Finimize - 🇨🇳 China’s back, baby

China’s stock markets got off to a flying start | Walgreens Boots Alliance got a mixed bag |
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Hi Reader, here's what you need to know for January 6th in 3:08 minutes.

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Today's big stories

  1. China's stock markets sped off the starting line
  2. This Monster has been delivering the S&P 500’s highest returns – Read Now
  3. Walgreens Boots Alliance posted stellar quarterly results, but its share price still took a tumble

Bright Spark

Bright Spark

What’s Going On Here?

Chinese stock markets entered 2023 with a bang.

What Does This Mean?

After a tumultuous 2022, China's stock market finally seems to be regaining its shine. And that's not for nothing: the country’s been easing its Covid policies and refocusing on growth – giving the struggling property sector a shot in the arm and seemingly softening its tough stance on business regulations. That’ll prompt deafening cheers from the tech industry, which has been especially battered by government crackdowns over the past two years. Just look at Ant Group: its request to raise $1.5 billion for its consumer unit was recently approved by regulators, triggering a 13% leap in part-owner Alibaba’s stock. Moves like that could explain why the MSCI China Index has had its best start to the year since 2009.

Why Should I Care?

For markets: US titans teeter.
Things aren't going so well for US giants right now. ExxonMobil lost its place on one uber-exclusive list when Tencent – China’s gaming titan – strutted back into the club as one of the world’s ten most valuable companies this week. That’s left the oil giant sitting on its hands with previously ousted American members, like Tesla and Meta. And the immediate future doesn’t look much brighter: Amazon and Salesforce added to the tech layoff bandwagon this week in the face of slowing demand, while the minutes from the latest Federal Reserve meeting suggest interest rates might stay high for longer than expected. Not exactly a recipe for corporate success…

The bigger picture: Have a little patience.
China's the world's biggest oil importer, so you’d think its reopening would give oil markets a nice little pick-me-up. But it's not that simple: relaxing restrictions has let Covid run riot, and the recent outbreaks have actually dampened demand for oil. Give it a few months, though, and China will probably have infections under control – and that’s when oil might feel the effects.

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Analyst Take

This Stock’s Seen A 100,000% Return Since 2000

This Stock’s Seen A 100,000% Return Since 2000

By Luke Suddards, Analyst

You’d be forgiven for thinking Monster Beverage’s stock has been guzzling its own energy drinks.

The pepped-up stock has racked up a 100,000% return since 2000 – that’s enough to get your hands shaking and your heart pumping, for sure.

But I’ve been wondering whether today’s global economic slowdown will turn folk off the seemingly magical elixir, and put an end to its winning streak

So that’s today’s Insight: how this high-octane drink maker got its buzz, and whether it’s due a crash.

Read or listen to the Insight here

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A Bitter Pill To Swallow

A Bitter Pill To Swallow

What’s Going On Here?

Walgreens Boots Alliance reported impressive results on Thursday, but its share price looked less than healthy.

What Does This Mean?

It's been an interesting quarter for Walgreens Boots Alliance. With stateside Covid cases disappearing into the rear-view mirror, the drugstore giant couldn’t rely on vaccines and home testing kits to pass muster anymore. Then fate intervened, sending one of the worst flu seasons in recent memory, and giving demand for over-the-counter cough and cold medicines a big, (un)healthy boost. Walgreen’s British business Boots pulled its weight across the pond too, ramping up its market share for the seventh quarter running. Add in a jump to beauty and personal care sales (probably thanks to the lipstick effect), and the firm coasted past expectations for revenue and profit – putting a bright, lipsticked smile on bosses’ faces.

Why Should I Care?

For markets: Walgreens’ makeover.
Walgreens is trying to transform itself into a full-blown healthcare company, and it’s already put a ton of money on the line. The firm recently added specialty pharmacy company Shields Health Solutions and home care platform CareCentrix to its brimming shopping basket. But the firm's healthcare segment sales missed expectations last quarter, and the slew of acquisitions wasn’t enough to make Walgreens brighten the year’s profit outlook. That could be why shares dropped, despite the impressive headline figures – or maybe, just maybe, that was down to the $5.2 billion opioid litigation charge Walgreens took in the quarter…

Zooming out: Golden oldies.
Healthcare is a hot ticket, especially with the economy taking a hit: we’re always going to need healthcare, after all, especially with an aging population. That might be part of the reason GE Healthcare saw a strapping 8% bump on its trading debut earlier this week, as part of its spinoff from the GE conglomerate. The plucky firm even mentioned it’s on the lookout for some small-fry acquisitions of its own this year.

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💬 Quote of the day

“When a stupid man is doing something he is ashamed of, he always declares that it is his duty.”

– George Bernard Shaw (an Irish dramatist and critic)
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🌪 Preparing Your Strategy For A Volatile 2023 And Beyond: 12pm, January 11th
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👀 And After That…

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📈 How To Hedge Against Volatility With Crypto: 5pm, January 19th
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🎯 On Our Radar

  1. Concrete jungle. Maybe it’s time to cut back on the 33 billion tons of the stuff we use every year.
  2. Romantic renegades. Here’s how a handful of eighteenth-century young bucks changed the world.
  3. The Himalayan skate crew. Peek inside northern India’s thriving skateboard community.
  4. “Not guilty”. Sam Bankman-Fried is contesting all of the charges he’s facing.
  5. Golf-cart cityscapes. The future of urban life could depend on some wacky forms of transport.
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