Finimize - 📈 Big Four, big results

Big four's biggest hitter | Melrose's plan has come to light |
Finimize

Hi Reader, here's what you need to know for September 9th in 3:12 minutes.

🚘 Get in loser, we’re hurtling toward an unprecedented period of excruciatingly high energy bills. So join – no, not Regina George – Sagar Singh Setia for What’s Driving The European Energy Crisis? on Monday, and find out how to keep your portfolio hot while our houses get colder. Grab your free ticket

Today's big stories

  1. Big Four firm Deloitte posted record annual revenue
  2. Here's how you can hitch a ride on copper’s latest slide – Read Now
  3. Melrose announced it’s spinning off GKN’s automotive business

Deloitted With Record Revenues

Deloitted With Record Revenues

What’s Going On Here?

Professional services firm Deloitte reported record annual revenues on Thursday.

What Does This Mean?

Deloitte’s the biggest of the “Big Four” professional services firms, a group of top-tier brain-for-rent companies that lend accounting and consulting expertise to businesses. And now that firms are shaking things up – improving online customer support, updating systems, toughening supply chains, you name it – in the wake of Covid, the big dog’s services have never been so sought after. That might explain why consulting revenues are up 24% in the last financial year from the one before, taking gold as the firm’s fastest-growing segment. Auditing and assurance revenues were up 9% too: after all, with more companies sharing information about their environmental impact, more auditors are needed to review those riveting reports. For Deloitte, that means record-breaking total revenues, jumping 18% to within touching distance of $60 billion.

Why Should I Care?

The bigger picture: Pivotal partnerships.
A big chunk of those sales – a cool $16 billion – came from partnering with huge tech groups to bring services like AWS and Salesforce to more customers. Not every “Big Four” titan can take this tack: rival firm EY audits a whole host of tech companies, so conflict of interest rules mean it can’t form the same lucrative partnerships that Deloitte’s hoovering up. That’s one of the main reasons EY’s planning to separate its audit and advisory businesses, so it can bid farewell to those constraints and say a cheery hello to beefed-up consulting revenues.

Zooming out: Take a hike. Or ten.
Still, Deloitte might struggle to repeat that success this year. The European Central Bank increased interest rates by 0.75% – taking them to their highest since 2011 – on Thursday, and warned more hikes are likely on the way to help control inflation (tweet this). With the Federal Reserve likely to follow suit in the coming weeks, the next few months could feature more hikes than a weekend in Yosemite, making loans more expensive for businesses and leaving them with less cash to splash on Deloitte’s special services.

You might also like: Has inflation (finally) peaked?

Copy to share story: https://www.finimize.com/wp/news/deloitted-with-record-revenues/

🙋 Ask a question

Analyst Take

Everything Was Looking So Good For Copper. What Went Wrong?

Everything Was Looking So Good For Copper. What Went Wrong?

By Paul Allison, Analyst

Copper seems to have lost its footing lately, recently collapsing 35%.

A fall was understandable: copper is a barometer for the health of the global economy – that’s how it got its unusual “doctor copper” nickname.

And sure, recession fears have been growing. But the magnitude of the latest drop caught many people by surprise.

That’s today’s Insight: how so much changed so quickly for copper, and where you can find opportunities now.

Read or listen to the Insight here

(De)Merge Right

(De)Merge Right

What’s Going On Here?

Melrose Industries announced plans on Thursday to spin off GKN’s automotive business.

What Does This Mean?

Melrose is a well-known turnaround specialist, meaning the FTSE 100-listed company acquires struggling firms, tightens their operations, and re-sells them for a healthy profit at a later date. (Think house flipping, but for businesses instead of buildings.) So when Melrose bought GKN – a British car and aerospace parts manufacturer – for £8 billion ($9 billion) back in 2018, investors knew it would eventually want to cash in on its work. Looks like that time has come: Melrose has spent those years carefully crafting GKN’s auto business – one of the world’s leading suppliers of vehicle drive shafts – into a slimmed-down, polished-up version of its former self. Now it’s planning to separate it from GKN’s aerospace arm completely, and list the newly independent spin-off on the stock market as soon as next year.

Why Should I Care?

The bigger picture: United we fall, divided we stand.
This is a clever play by Melrose: breaking up GKN lets it focus in on the aero segment while freeing up resources for other potential deals. On top of that, it should help GKN’s businesses steer clear of the dreaded “conglomerate discount” phenomenon, when investors – skeptical about how effectively sprawling conglomerates can manage their various offshoots – tend to value straightforward, “pure-play” businesses more highly. So by splitting up GKN, Melrose is hoping to get more for two parts than it would for one whole.

Zooming out: (Dis)united in our grief.
The pound fell to its lowest level against the dollar since 1985 this week. That’s bad news for the economy, but not so much for GKN and other UK businesses with major business overseas. After all, a weaker pound makes their offerings cheaper to international buyers, so don’t be surprised if a few British CEOs seem less than dismayed by the news.

Copy to share story: https://www.finimize.com/wp/news/demerge-right/

🙋 Ask a question

💬 Quote of the day

“You’re only as good as your last haircut.”

– Fran Lebowitz (an American author, public speaker, and actor)
Tweet this

CHART OF THE WEEK

Texas Instruments is #trending

Google Trends data shows that searches for Texas Instruments shot through the roof over the past month.

That got our analysts wondering whether the tech hardware giant really is worth all that hype, so they went straight to their Finimize app.

And in just two minutes, our analysts discovered why you should – or shouldn’t – be interested in Texas Instruments. All it took was the brand-new Finimize Markets feature.

Check it out for yourself.

Analyze Texas Instruments

🌍 Finimize Live

🎉 Coming Up In The Next Week…

All events in UK time.

⚡️ What’s Driving The European Energy Crisis?: 5pm, September 12th
📚 How To Do Your Due Diligence For Web3 Projects: 4pm, September 16th

👀 And After That…

💰 Building Crypto Wealth In A Bear Market: 12pm, September 20th
😎 Three Industries That Can Thrive During Recessions: 5pm, September 21st
🎨 How To Hedge Against Inflation With Fine Art: 5pm, September 22nd
🇺🇸 What’s Next For The US Economy?: 1pm, September 29th
🚀 Modern Investor Summit: 12pm, December 6th – 7th

🎯 On Our Radar

  1. Vampires might be real. Looks like we just hid them away.
  2. Settle this debate: jorts. Fashion’s most controversial argument is back.
  3. It takes a lifetime to build a legacy. Well, unless you’re Beyoncé.
  4. Dutch courage. One easy switch could do the world a lot of good.
  5. Thirty isn’t old, guys. The internet is ageing us before our time.
❤️ 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: MDart10 - Shutterstock | pixssa - 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

📉 China lets itself down

Wednesday, September 7, 2022

China's lagging behind | Oil companies are seeing the light | TOGETHER WITH Hi Reader, here's what you need to know for September 8th in 3:10 minutes. 🗣 Got a friend who won't stop talking

💔 Investors are dumping the UK

Tuesday, September 6, 2022

Russia has a secret | The UK has a grand plan | TOGETHER WITH Hi Reader, here's what you need to know for September 7th in 3:10 minutes. 🍋 Finimized with a lemon water at Gran Caffe Ciorfito in

🇷🇺 Russia's giving Europe... nothing

Monday, September 5, 2022

The euro hit a new low | Someone tell Porsche the economy's bad | TOGETHER WITH Hi Reader, here's what you need to know for September 6th in 3:08 minutes. ☕️ Finimized with a Kaffee Creme at

🦷 This is FAANG 2.0

Sunday, September 4, 2022

The US job market is changing | Broadcom's chipping away at the competition | Finimize Hi Reader, here's what you need to know for September 5th in 3:13 minutes. 🤯 Here's your chance to

🔌 China's out of juice

Thursday, September 1, 2022

China's getting nothing done | Brits are pushing up house prices | Finimize Hi Reader, here's what you need to know for September 2nd in 3:10 minutes. 👯‍♀️ Two's company, three's a

‘Collision course’

Wednesday, October 5, 2022

Bloomberg Evening Briefing View in browser Bloomberg One giant options transaction may have sparked the S&P 500's huge midday bounce Wednesday. The trade, which involved buying and selling call

🤐 What Twitter isn't telling you about Credit Suisse

Wednesday, October 5, 2022

The WTO predicted a trade slow-down | Tesco's profit showed off its best limbo attempt | TOGETHER WITH Hi Reader, here's what you need to know for October 6th in 3:11 minutes. 🙋‍♀️ Even old-

Issue #163: Christmas shopping with a PSL in hand

Wednesday, October 5, 2022

plus a Missouri sign war + bear snack ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Amazon reportedly freezes hiring for the corporate wing of its global retail business

Wednesday, October 5, 2022

Numerous major companies have begun initiating hiring freezes and layoffs to reduce their workforce. View in browser Business Insider Business Insider Business Insider Subscribe Hello! We're saying

Insider's new daily newsletter is coming your way

Wednesday, October 5, 2022

Only fascinating stories — right in your inbox. INSIDER INSIDER Hi there! Insider is about to launch a new daily newsletter and we wanted you to be the first to hear about it. We know you're

Wall Street: Dalio exits Bridgewater

Wednesday, October 5, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Good morning! This is Kaja Whitehouse reporting to you from New York City. The focus of today's newsletter

The Daily StockTips Newsletter 10.05.2022

Wednesday, October 5, 2022

(Published 7:30 AM ET MON-FRI) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

[New post] Bonus episode: understanding pay and labour market tightness

Wednesday, October 5, 2022

BankUnderground posted: " Josh Martin Everyone likes a bonus – be it a bonus in pay, or a bonus episode for your favourite TV show. Everyone, that is, except statisticians. Bonuses are hard to

🥖 Butter on both sides of Greggs’ bread

Tuesday, October 4, 2022

South Korea's Naver bought Poshmark for $1.2 billion | Bakery chain Greggs saw 15% sales growth | TOGETHER WITH Hi Reader, here's what you need to know for October 5th in 3:13 minutes. 🗻 More

Elon wants Twitter—again

Tuesday, October 4, 2022

Bloomberg Evening Briefing View in browser Bloomberg After months of trying to back out and just days before a trial over his reversal, Elon Musk now says he's willing to buy Twitter after all, and