Finimize - ⭐️ Goldman lost its luster

China’s growth slowed down | Goldman missed the mark |

Hi Reader, here's what you need to know for January 18th in 3:11 minutes.

⚠️ You might think that crypto would only add more risk to your portfolio. But join BIT’s Ruolan Wang for How To Hedge Against Volatility With Crypto on February 2nd, and find out how the temperamental digital assets could help safeguard your investments. Get your free ticket

Today's big stories

  1. China’s growth stalled in 2022, but its unexpectedly strong fourth-quarter figures gave hope for this year
  2. These three indicators are signaling a comeback for stocks – Read Now
  3. Goldman Sachs’s quarterly results missed expectations by a mile

Hopping And Splashing

Hopping And Splashing

What’s Going On Here?

Data out on Tuesday showed that China’s economy expanded by 3% in 2022 – the slowest rate of growth, excluding the pandemic years, for nearly half a century.

What Does This Mean?

Spending most of 2022 cooped up in lockdowns meant that China was always going to have a tough time hitting its ambitious growth target of 5.5%. And let's face it, the 3% that the country did achieve is pretty glacial by its own track record (tweet this). In fact, last year’s growth marked the first time in decades that the world as a whole outpaced China’s economic performance. But it’s not a total sob story: the country had a bit more pep in its step as the year drew to a close, and the fourth quarter’s growth actually outstripped economists’ predictions. So sure, Covid’s still a nuisance in China, but this weekend ushers in the year of the water rabbit, supposedly bringing patience and prosperity – so the country just might have luck on its side.

Why Should I Care?

Zooming out: See-saw.
Now that China’s reopening, there's one worry niggling at economists’ minds: whether this move will help or hinder the fight against inflation. See, some experts think that a reopened, re-invigorated China will be extra-thirsty for resources like oil, sending prices skyward. But others point out that an unfettered China could lead to unclogged supply chains and free-flowing goods, easing price pressures instead. Time will tell which factor packs a bigger punch…

The bigger picture: Baby bust.
China's one-child policy was scrapped in 2016, so you might expect the birth rate to be booming – especially given the boredom and pent-up energy that lockdowns entail. But China's population actually fell for the first time in 60 years in 2022, and that’s a problem. Just ask Japan: now labeled “the land of the setting sun”, its slipping population has held economic growth back for a generation. Maybe it’s time for a three-child policy.

Copy to share story: https://go.finimize.com/wp/news/hopping-and-splashing/

🙋 Ask a question

Analyst Take

Stocks May Be Ready For A Breakout, According To These Three Indicators

Stocks May Be Ready For A Breakout, According To These Three Indicators

By Russell Burns, Analyst

We’re only a couple of weeks into 2023, but the S&P 500 is already dropping hints that this year could be an interesting one. 

And if  – like me – you’re obsessed with charts, you might have already noticed this

If not, let me show you three major technical indicators, and explain what they say about the potential for a stock market rally.

That’s today’s Insight: the three technical indicators that are pointing to a higher S&P 500.

Read or listen to the Insight here

SPONSORED BY IG

New Year, new economy

Well, maybe.

The threat of a portfolio-busting recession is sticking around, so you might want to hold some defensive stocks – that’s ones like defense, tobacco, and pharmaceuticals.

But headache-inducing inflation is expected to let up later this year, as are stock-denting interest rates. In that case, you might want to pick up some so-called recovery stocks.

That leaves you with a heap of options, so maybe this will help: IG has released its top defense and recovery picks for the upcoming year.

Get the rundown today: discover what IG’s backing this year.

Find Out More

Disclaimer

Your capital is at risk. The value of shares, ETFs, and ETCs can fall as well as rise, which could mean getting back less than you originally put in.

All That Glitters Is Not Goldman

All That Glitters Is Not Goldman

What’s Going On Here?

Investment bank Goldman Sachs reported some seriously disappointing fourth-quarter results on Tuesday.

What Does This Mean?

Goldman Sachs isn’t alone in laying off workers, but it has been wielding the job-cutting ax with particular gusto compared to other Wall Street residents. And now we know exactly why: the firm missed profit expectations by a country mile, which had a lot to do with slumping investment banking and asset management fees. That’s probably why the firm’s trying its best to Ctrl Z the hiring spree it went on when dealmaking was at its height – slashing jobs and other costs left, right, and center. But that frenzy’s come a bit late in the day, and some investors might not be impressed by Goldman’s Johnny-come-lately cost-cutting antics.

Why Should I Care?

For markets: No rush for gold.
The world of investment banking is cyclical, and trading revenues and advisory fees ebb and flow – so by the time the results roll in, last quarter’s earnings are already ancient history. That means it’s not the quarterly sprint that counts: it’s all about the multi-year marathon. So sure, last quarter’s numbers were a disappointment – but Goldman’s a finely-tuned long-distance runner, and there isn’t any finish line in sight. Long-term shareholders know that too, which could be why the firm’s share price is still trading near all-time highs.

The bigger picture: Banks bounce back.
After the financial crisis hit, experts worried that investment banks’ best days were behind them, and predicted they’d never see pre-recession profit levels again. But the Wall Street titans clawed their way back, and of the five most famous banking firms, only Citigroup’s share price has been outstripped by the S&P 500 over the last ten years. That’s quite a feat for the industry, especially given that it seems to have ditched the profitable but questionable moves that landed it in hot water before.

Copy to share story: https://go.finimize.com/wp/news/all-that-glitters-is-not-goldman/

🙋 Ask a question

💬 Quote of the day

“To follow, without halt, one aim: there’s the secret of success.”

– Anna Pavlova (a Russian prima ballerina)
Tweet this

🌍 Finimize Live

🥳 Coming Up Soon…

All events in UK time.

♻️ Which ESG Stocks Will Win In 2023?: 12pm, January 23rd
📑 The Risks And Regulations When Investing In Crypto: 10am, January 27th
📈 How To Hedge Against Volatility With Crypto: 5pm, February 2nd

🎯 On Our Radar

  1. Sesame shoes. Nike really just launched a pair of bagel-inspired sneakers.
  2. Candles are caveats. Keep an eye out for these red flags at your next house viewing.
  3. Game-changing GPT. Here’s what the latest news from the Microsoft-OpenAI deal means.
  4. Agony uncle. Writing relationship columns is like being 1.8 million readers’ therapist.
  5. Bright sparks. Ditching fossil fuels means we need way more electricians.
❤️ 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: HstrongART, Peace-loving – Shutterstock | feelartfeelant, Piotr Swat – Shutterstock

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | 280 Bishopsgate, London, EC2M 4AG

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

🔍 Microsoft just got smaller

Friday, January 20, 2023

Microsoft announced 11000 job cuts | UK inflation dropped off | Finimize Hi Reader, here's what you need to know for January 19th in 3:12 minutes. ♻️ Sustainable investing keeps the world green,

🎬 Netflix's results stole the show

Friday, January 20, 2023

Netflix announced show-stopping subscriber growth | Boohoo's results were enough to make a retailer cry | TOGETHER WITH Hi Reader, here's what you need to know for January 20th in 3:08 minutes.

🙊 Microsoft's smooth-talking ChatGPT

Tuesday, January 10, 2023

Microsoft mulled buying almost half of OpenAI | Goldman said Europe will dodge a recession | Finimize Hi Reader, here's what you need to know for January 11th in 3:06 minutes. 🏃 We're all

🧊 Strike while crypto’s not hot

Monday, January 9, 2023

Rolls Royce sold more cars than ever | AstraZeneca snapped up a biotech firm | Finimize Hi Reader, here's what you need to know for January 10th in 3:04 minutes. 🫦 Once bitten, twice shy –

🔌 Samsung powered off

Sunday, January 8, 2023

The US added a whole lotta jobs last month | Samsung turned into Samsunk | Finimize Hi Reader, here's what you need to know for January 9th in 3:09 minutes. 🎬 Go behind the scenes and discover what

🥷 Time to get tactical

Sunday, February 5, 2023

The US is over-employed | The IMF told China to up its game | TOGETHER WITH Hi Reader, here's what you need to know for February 6th in 3:13 minutes. 📝 We all need a refresher from time to time,

🚀 IG's founders unveil their next act

Sunday, February 5, 2023

Plus, why does every app have a subscription now? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Tech’s new era — Fraud reckoning — China’s grim omen

Sunday, February 5, 2023

A selection of our best stories from the past week, as chosen by a top editor. Subscribe to Insider View in browser INSIDER WEEKLY Hi, I'm Matt Turner, the editor in chief of business at Insider.

The DINKWAD trend taking over TikTok

Saturday, February 4, 2023

Plus: Tips for preserving your memory, and working on a cruise ship. View in browser Subscribe February 4, 2023 Hello, Insiders! Welcome to our Saturday edition, filled with fascinating reads for your

The job market won’t quit

Saturday, February 4, 2023

Bloomberg Weekend Reading View in browser Bloomberg The US job market just won't quit. While that's a sign of underlying strength for the economy and great news for American workers, it's

‘Apocalypse postponed’

Friday, February 3, 2023

Bloomberg Evening Briefing View in browser Bloomberg Forget all that talk of falling inflation, moderating wages, record-low unemployment and possible soft landings. Wall Street says 2023 will likely

The Art of Short Selling

Friday, February 3, 2023

Plus: Deutsche Bank, Custodia Bank, Late Fees ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

ChatGPT may be coming for our jobs

Friday, February 3, 2023

Plus: A new era in tech, and why some packages take strange journeys. View in browser Subscribe February 3, 2023 Hello, Insiders. Steve Jobs used to talk about how humans are one of the slowest animals

Wall Street: Exodus at ExodusPoint

Friday, February 3, 2023

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET TGIF! Dan DeFrancesco in New York, but I'll be on my way to China shortly to pick up my new Porsche that

[New post] Does the bonus cap work?

Friday, February 3, 2023

BankUnderground posted: " Qun Harris, Ieva Sakalauskaite and Misa Tanaka After the 2007–08 Global Financial Crisis (GFC), several jurisdictions introduced remuneration regulations for banks with