Finimize - 🇨🇳 China's making 2023 its year

Hi Reader, here's what you need to know for December 23rd in 3:14 minutes.

🎄 The turkey’s ordered, the festive cocktails are planned, and the in-laws have been warned against bringing up politics at the dinner table. There’s just one last to-do on our list: letting you know that we’re taking a few days off to soak up the holiday spirit. Okay fine, the mulled wine. Anyway, we’ll see you back here on December 29th.

Today's big stories

China’s making major plans to get its economy back on track, and the results could trickle through the whole world
Here are the tax smarts you need to get better investment returns – Read Now
Memory chipmaker Micron posted disappointing quarterly results, but it's hoping cost-cutting will turn it all around

Not-So-Grand Reopening

What’s Going On Here?

China pledged big plans to wake up its sleepy economy this week, but they’re not exactly going off without a hitch.

What Does This Mean?

China clung to its zero-Covid stance for the best part of three years, standing by mass testing and country-stalling lockdowns while the rest of the world got back to business. But in a bid to spur on its lethargic economy, the country’s finally relaxing its painstakingly strict rules. So far, not great: experts reckon China’s now grappling with the biggest outbreak the world has ever seen, with a million new infections and 5,000 deaths a day.

China’s policymakers have little choice but to optimistically pull together economy-stabilizing plans. They’re focusing on padding up the EV market, and fortifying the crackdown-stricken tech and property sectors. Sprinkle in spending-boosting interest rate cuts from the central bank, and that should lay the groundwork for China's economy to boom in 2023 – if the country can wriggle out of Covid’s grip, that is.

Why Should I Care?

For markets: Christmas miracles.
Those future-fueling plans will be music to investors’ ears, and they might explain why the Hang Seng China Enterprises index – which tracks some of China’s biggest companies – jumped 3% on Thursday. China’s even started playing ball when it comes to its US-listed firms: after a decade-long standoff, US regulators said last week that they’d been allowed to inspect the work of auditors in China for the first time ever. That’s big, and should save around 200 Chinese companies – including goliaths Alibaba and JD.com – from being delisted from US exchanges.

The bigger picture: Get the jets ready.
China plans to lighten up quarantine restrictions for overseas travelers next month, which should give its deflated tourism industry a short in the arm. And there’s plenty of joy to go around: hordes of would-be travelers have been stuck at home in China, but newfound freedom could get those high-spending holidaymakers hopping around the world again.

You might also like: With less to drag on China’s economy, here’s where to look for opportunities.

Copy to share story: https://go.finimize.com/wp/news/not-so-grand-reopening/

🙋 Ask a question

Analyst Take

How To Invest Tax-Efficiently, In Four Easy Steps

By Theodora Lee Joseph, Analyst

Making your money work for you is only going to get tougher.

Capital is getting more expensive, and rate hikes are threatening to derail both stocks and bonds.

Still, wringing every drop out of your portfolio’s returns starts with investing tax-efficiently, and that becomes even more important as your income bracket scales higher.

The power of compounding means that even a 1% annual tax drag on your investments can have a massive impact on your returns by the time you retire.

So that’s today’s Insight: four tax-smart tips to get you better investment returns.

Read or listen to the Insight here

Finimize x Revolut

Pretty good stuff, right? Our analysts write Insights like this every day, and you can read every single one of them with Finimize Premium.

There’s no better time to get started: our new partnership means you can get six free months of Finimize Premium and three free months of Revolut Premium if you sign up for Revolut today.

We’ll even send you £10 (or equivalent) to your Revolut account to get you started.

Micro Micron

What’s Going On Here?

Micron posted shrinking stats in its quarterly results earlier this week.

What Does This Mean?

It’s hard to justify the latest tech upgrade when your household bills are pricey enough to rival a brand-new PlayStation 5. But when shoppers cut back on not-so-little luxuries like smartphones and PCs, it affects businesses all through the supply chain. Just look at Micron: the biggest US memory chipmaker could barely keep up with out-of-control demand last year, but those consumer cutbacks helped to almost halve its sales last quarter from the same time the year before. The firm even notched a quarterly loss four times bigger than already pessimistic analysts expected, so it’s pulling out all the stops to make the books better next year. Micron cut production by roughly 20% a few months back, and is now planning to trim its manufacturing investment further, cut its workforce by 10%, and squash any bonuses. Talk about festive joy.

Why Should I Care?

For markets: Alexa, play “Irreplaceable” by Beyoncé.
Micron has a problem: its chips are made to a set standard, meaning they can be easily switched with competitors’ products. So the firm will end up in trouble if its biggest rivals – including Samsung Electronics and SK Hynix – don’t follow its production-cutting lead to help bring the glut of chips across the industry in check. And if you think being replaceable sounds like a recipe for disaster, you might be right: that could well be why Micron’s shares have underperformed a key index of some of the world’s biggest chipmakers by around 12% this year.

The bigger picture: New year, no new jobs.
Micron does have some company in the firing room, mind you: Intel, Nvidia, and Qualcomm have all announced hiring freezes or layoffs of their own. Pair that with Big Tech’s recent workforce mega-cull, and the high likelihood that Western economies will face a recession next year, and the writing might be on the wall for 2023’s job market.

You might also like: This is what’s driving semiconductor stocks now.

Copy to share story: https://go.finimize.com/wp/news/micro-micron/

🙋 Ask a question

💬 Quote of the day

“Santa Claus has the right idea: visit people only once a year.”

– Victor Borge (a Danish-American comedian, conductor, and pianist)

Tweet this

Our community wants to know your name

Building a good brand is hard work.

So if you’re proud of the work you do, you best make sure everyone knows about it.

You could start by introducing yourself to our one-million-strong community: they’re a global bunch of switched-on, savvy retail investors who want to take their investing skills up a notch.

And if your tips, tools, or platform – plus whatever else you have up your sleeve – could help them do that, then this might be just the right spot for you to show off what you have to offer.

Make sure everyone knows your name: introduce yourself to over one million retail investors.

Get In Touch

🌍 Finimize Live

🥳 Coming Up **– Gasp – Next Year..**.

All events in UK time.

🌪 Preparing Your Strategy For A Volatile 2023 And Beyond: 12pm, January 11th
🤑 Wealth-Building Habits With Carl Richards And Helena Wardle: 5pm, January 11th
🎙 Live Q&A With CEO Max Rofagha: 1pm, January 12th
👩‍💻 2023 Investing Opportunities For The Self-Employed: 10am, January 13th
💥 How To Spot The Best Long-Term Investments: 1pm, January 17th
📑 The Risks And Regulations When Investing In Crypto: 10am, January 27th

🎯 On Our Radar

A thousand-dollar golden steak won’t impress Messi. He just scoffed Salt Bae in public.
Bye bye, kale. LA is finally embracing good old greasy food.
Uh, maybe Oprah isn’t one of us. Here’s the moment she found out that $100 is a lot of money.
Games aren’t always relaxing. This super-nerdy outlet is satisfying strategic brains everywhere.
Holiday movies are pushier than family members. Someone tell Hollywood that being single’s really not that bad.

❤️ Share with a friend

Your 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: Sean Pavone - Shutterstock | Sundry Photography - 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

spendingboosting interest rate cuts biggest US memory chipmaker Four Easy StepsBy Theodora Lee Joseph four taxsmart tips RevolutPretty good stuff six free months million new infections three free months latest tech upgrade disappointing quarterly results

Finimize - 🇨🇳 China's making 2023 its year

Today's big stories

Not-So-Grand Reopening

What’s Going On Here?

What Does This Mean?

Why Should I Care?

How To Invest Tax-Efficiently, In Four Easy Steps

Micro Micron

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Our community wants to know your name

🥳 Coming Up **– Gasp – Next Year..**.

Key phrases

Older messages

🥰 Fund managers have gone all fuzzy for these investments

🏡 Good news for homeowners, bad news for homebuyers

🐦 Twitter told Elon Musk to step down

😔 Coal’s setting a worrying record

💲 Inditex went upmarket

You Might Also Like

Tesla slashes workforce

🏆 Samsung beat Apple

Rodney's Take 4-15-24 Glad To Pay Taxes

Most Financial Phenomena are Older than they Look

🇨🇳 China’s growing pains

Why it may be a good time to buy a home

The Gold Grab of the Century

Longreads + Open Thread

Rate-cut divergence

Issue #233: I'm almost 32, and the Dow is almost 40K

Finimize - 🇨🇳 China's making 2023 its year

Today's big stories

Not-So-Grand Reopening

What’s Going On Here?

What Does This Mean?

Why Should I Care?

How To Invest Tax-Efficiently, In Four Easy Steps

Micro Micron

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Our community wants to know your name

🥳 Coming Up – *Gasp* – Next Year...

Key phrases

Older messages

You Might Also Like

🥳 Coming Up **– Gasp – Next Year..**.