Finimize - 👻 Offices aren't dead

Foreign firms get all tangled up | The office is alive and well |
Finimize

Hi Reader, here's what you need to know for June 28th in 3:04 minutes.

⚖️ If you’re going to invest in crypto these days, you’re going to want to be smart about it. So join A-Quant founder Thomas Papapolyzos for How To Build a Well-Balanced Crypto Portfolio on June 28th, and find out how to do exactly that. Get your free ticket

Today's big stories

  1. Foreign firms in China have watched their profits take a nosedive this year
  2. There are signs that the housing market is about to slow down, but could it suffer an all-out crash? – Read Now
  3. A record number of companies are renting their first London office space

Unmade In China

Unmade In China

What’s Going On Here?

Data out on Monday showed that the profits of foreign industrial firms based in China have tanked this year.

What Does This Mean?

China’s decision to lock down the economy has been weighing heavily on industrial companies, killing demand and slowing – if not altogether halting – production. And look, there are signs of a bounceback: profits in the sector were down “just” 6.5% in May from the same time last year – a notable improvement from April’s 8.5%. Trouble is, it looks like foreign firms will take a while to recover: their profits fell 16% between January and May from the same time last year, even as state-owned firms posted a 10% uptick. That’s probably because they don’t have access to the same resources and insider knowledge that their counterparts do, and can’t rely on big-money government contracts even when times are bleak.

Why Should I Care?

The bigger picture: Abandon ship.
No surprises, then, that more and more foreign firms are reassessing whether to keep investing in their Chinese businesses at all: survey data out last week showed that almost a quarter of European companies in the country are thinking of relocating their current or planned investments – the highest proportion in a decade (tweet this). And when you consider that the Chinese government isn’t wavering from its zero-tolerance Covid strategy, that proportion could be set to get even bigger.

For markets: China’s a bargain.
Foreign businesses might be thinking about leaving the country, but investors are heading back in: Chinese stocks are up nearly 30% from mid-March, thanks in large part to easing lockdowns and supportive government policies.  And with a key valuation metric showing that Chinese stocks are currently much cheaper than those in the US, a growing list of investment managers and banks are thinking about piling even more into the country.

Copy to share story: https://www.finimize.com/wp/news/unmade-in-china/

🙋 Ask a question

Analyst Take

Are Home Prices About To Crash?

Are Home Prices About To Crash?
Photo of Stéphane Renevier

Stéphane Renevier, Analyst

Covid really brought out the best in the global housing market.

Homeowners with more cash to spend, lower mortgage rates to pay, and a newfound remote-working freedom lined up to move into bigger and better things.

But there are finally signs that its run of form is starting to lose its puff, as rising interest rates and slowing economic growth drag the market down.

So we can probably agree that a downturn seems to be on the cards. The question now is whether we’re likely to see a 2008-style crash.

That’s today’s Insight: is the housing market about to crash?

Read or listen to the Insight here

SPONSORED BY... YOU?

📝 [Insert your company’s name here]

Your company’s name would look pretty good in this space, wouldn’t it?

We’re sure our one million engaged investors would think so too.

If you want to spread the word about your business, chat to us about our daily newsletter slots. They’re the perfect opportunity for you to speak directly with the Finimize community.

Sound good? Get in touch.

Work With Us

London Calling

London Calling

What’s Going On Here?

Data out on Monday showed a record number of companies signed leases for major London office space for the first time.

What Does This Mean?

The arrival of the pandemic brought with it the dizzying revelation that you can do your job just as well without spending two hours on a train every day. So employers, the theory went, wouldn’t want city-based HQs at all, opting to open satellite offices instead. But according to analysis from UK real estate company Cushman & Wakefield, that’s not the case: a record number of businesses signed their first major lease in London last year. A third of those were businesses relocating from outside London, while the rest were wet-behind-the-ears startups. There’s apparently still a lot of demand for modern high-spec space too, with Google, TikTok, and more still willing to pay eye-watering rent for prime sites.

Why Should I Care?

The bigger picture: Landlord have mercy.
It’s true that overall occupancy rates are expected to stay well below the pre-pandemic average, as companies continue to let staff work from home for at least some of the week. But this data will still come as a relief to London landlords: it means workers will be incentivized to stay within commuting distance of the office, which should help prop up demand for properties to rent and buy.

Zooming out: Productivity pays.
London’s appeal to startups and Big Tech is part of the reason that the city’s productivity – that is, the economic output per worker – is so much higher than it is elsewhere in the UK. But the city still can’t bring up the overall average to match the US, where an hour of work is estimated to generate around $70 compared to the UK’s $60. That matters because productivity drives long-term economic growth, which is why UK economists all agree that improving the figure is crucial to get the country’s economy back on track.

Copy to share story: https://www.finimize.com/wp/news/london-calling/

🙋 Ask a question

💬 Quote of the day

“Nobody can be exactly like me. Sometimes even I have trouble doing it.”

– Tallulah Bankhead (an American stage and screen actress)
Tweet this

🌍 Finimize Live

🎉 Coming Up This Week…

🏗 How To Build a Well-Balanced Crypto Portfolio: 1pm June 28th
🇺🇸 How To Prepare For A Recession: 1pm June 29th
🏠 Blockchain And Real Estate: What’s Next?: 6pm June 29th

🥳 And then after that…

🤷‍♀️ What To Do With Your Cash, Gains, And Letdowns: 12.30pm July 4th
💰 Managing Your Pension In A Cost Of Living Crisis: 12pm July 6th
📚 Your Guide To Staying Safe In Web3: 1pm July 7th
😊 How Not To Panic In A Bear Market: 5pm July 7th
😎 The Benefits Of On-Chain Transactions: 1pm July 8th
🏡 Shelter Your Portfolio With Premium Real Estate: 12pm July 12th
🔮 The Psychology Of Risk Management: 10am July 13th

🎯 On Our Radar

  1. Who needs an imagination anyway? Ikea’s new app will delete your furniture for you.
  2. Say no to (high-priced) drugs. Mark Cuban’s making them cheaper.
  3. Long live the liver. It survived three days outside a body.
  4. Got $35 million to spare? The Crown Prince of Dubai’s yacht is for sale.
  5. Mayday, mayday. How two men survived a plane crash in Hawaii.
❤️ Share with a friendYour Referrals: 0

Thanks for reading Reader. If you liked today's brief, we'd love for you to share it with a friend.

Share your unique link:

https://finimize.com/invite/?kid=177ZWC

You stay classy, Reader 😉

We’d love to hear your thoughts. Give feedback

Want to advertise with us too? Get in touch

Image Credits:

Image credits: Harvepino - Shutterstock | Baloncici, Africa Studio, Sergey Peterman, Evgeny Karandaev - Shutterstock

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | Bow Bells House, Bread Street, London, EC4M 9HH

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021

View Online

Key phrases

Older messages

🙏 Please buy Zendesk

Sunday, June 26, 2022

A blow to Zendesk's delusions of grandeur | "You can't package life" | TOGETHER WITH Hi Reader, here's what you need to know for June 27th in 3:11 minutes. 💸 If you're a

🤔 What if Elon is... wrong?

Thursday, June 23, 2022

Backtracking at its finest | RIP European dealmaking | TOGETHER WITH Hi Reader, here's what you need to know for June 24th in 3:07 minutes. 🧸 How do you navigate a bear market? By using options, of

⚔️ DoorDash and Instacart clash

Wednesday, June 22, 2022

This town ain't big enough for all these groceries | Strikes bring the UK to a halt | TOGETHER WITH Hi Reader, here's what you need to know for June 23rd in 3:06 minutes. 🏃‍♀️ The metaverse is

😵 What you can learn from three crypto casualties

Tuesday, June 21, 2022

So much for the most important meal of the day | Europe's at the coalface | TOGETHER WITH Hi Reader, here's what you need to know for June 22nd in 3:11 minutes. 🤓 We know you've been having

🍎 An IPO a day keeps the doctor away

Monday, June 20, 2022

China makes the rest of us look like schmucks | Airlines get back up again | TOGETHER WITH Hi Reader, here's what you need to know for June 21st in 3:06 minutes. 💩 You'd be forgiven for not

[New post] Swing or amiss: are fund pricing rules good for financial stability?

Friday, September 30, 2022

BankUnderground posted: " Benjamin King and Jamie Semark Open-ended funds (OEFs) offer daily redemptions to investors, often while holding illiquid assets that take longer to sell. There is

Ukraine advances

Thursday, September 29, 2022

Bloomberg Evening Briefing View in browser Bloomberg Vladimir Putin may not have long to wait for the first major test of his attempt to claim a large section of eastern Ukraine as his own. While the

👗 Clothing giant’s H&M-fisted results

Thursday, September 29, 2022

Porsche IPO is Europe's biggest in a decade | H&M posts disappointing results | Finimize Hi Reader, here's what you need to know for September 30th in 3:11 minutes. 😎 In this market, you

What’s going on with the markets?

Thursday, September 29, 2022

And why it's actually a good time to start investing. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

FinTech Weekly Issue #383 - Can Sustainable Finance Be The All-In-One Solution?

Thursday, September 29, 2022

Issue #383 - Can Sustainable Finance Be The All-In-One Solution? 2022-09-29 Renewable energy is not only a solution to a major social and economic issue but also a more direct weapon against inflation.

Over 275 of the most promising startups of 2022 in edtech, fintech, crypto, proptech and more, according to VCs

Thursday, September 29, 2022

Despite the rough economic environment for tech startups, some are thriving. We asked VCs to name the most promising ones across industries. View in browser Business Insider Business Insider Business

Wall Street: Meet the rising stars of finance

Thursday, September 29, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi. I'm Aaron Weinman. Today I want to highlight Wall Street's brightest young talents who are

Catastrophic impact

Wednesday, September 28, 2022

Bloomberg Evening Briefing View in browser Bloomberg Hurricane Ian barreled ashore in southwest Florida with a massive and deadly surge of water and catastrophic winds that are poised to make it one of

🧱 Let’s go, Lego!

Wednesday, September 28, 2022

Lego announced double-digit sales growth | BOE stepped in to rescue British markets | TOGETHER WITH Hi Reader, here's what you need to know for September 29th in 3:07 minutes. 🙋‍♀️ Are you in your

Pound steadies after hitting record low as investors weigh the chances of the Bank of England stepping in

Wednesday, September 28, 2022

In a contradictory message, the UK central bank said it wouldn't hesitate to hike interest rates if needed, but didn't announce an emergency meeting. View in browser Business Insider Business