Presented by

Hi Newsletterest, here's what you need to know for June 12th in 3:13 minutes.

☕️ Finimized over a freddoccino at Menta Café Bar in Thessaloniki, Greece (24°C/76°F ☀️)

Today's big stories

Online food delivery giants Just Eat Takeaway.com and Grubhub agreed to a merger
Turns out Robinhood investors aren't very good at investing – Read Now
The Federal Reserve painted a bleak picture of the US economic outlook

1/3

Grub’s Up

What’s Going On Here?

Takeaway.com’s appetite for acquisitions seems bottomless: after buying the UK's Just Eat earlier this year, it’s now swallowing up American online food delivery platform Grubhub in a $7 billion deal.

What Does This Mean?

Both companies have the same mission in their respective stomping grounds: getting food from restaurant to doorstep. But while Dutch company Takeaway.com boasts a near-$15 billion market value (and a clumsy new name) following its merger with Just Eat, Grubhub is only worth $5.7 billion – even after acquiring rival Seamless in 2013.

The deal will be an “all-share merger”, meaning no cash will actually change hands. Instead, Grubhub’s investors will receive 0.671 shares of Just Eat Takeaway.com for every Grubhub share they own. That’ll value the American firm at $7.3 billion, as well as create the biggest online food delivery company outside of China.

Why Should I Care?

For markets: Ding ding ding – round two.
The merger should benefit both players. In the markets where they currently overlap, the reduced competition will limit marketing spend and in turn boost profit. And in the markets where they don’t, the combined company’s increased firepower will help blow its rivals out the water. Oh, and after managing to outgun Uber Eats in several regions outside the US, Just Eat Takeaway might be able to offer some pointers on how Grubhub can take down the big-hitter Stateside too…

The bigger picture: What a hassle.
Incidentally, Uber was also keen to pair its Eats platform with Grubhub – a deal that would’ve seen them control over half the American food delivery market. But maybe it was for the best: competition regulators mightn’t have been particularly accommodating. Just look at regulators in Europe, which plan to issue antitrust charges against Amazon over how it treats sellers on its marketplace – or in the UK, where they’re mulling over whether Amazon’s investment in food delivery service Deliveroo will unfairly limit competition.

Get invested: How you can profit from mergers and acquisitions.

Copy to share story: https://www.finimize.com/wp/news/grubs-up/

🙋 Ask a question

2/3 Premium

Poor Show

What’s Going On Here?

Turns out Robinhood investors aren’t very good at investing – but looking at retail investors like them who are getting it wrong could help you get it right.

Get the full story with Finimize premium

Save Our Stocks

What’s Going On Here?

An update from the Federal Reserve (the Fed) left investors feeling a bit stranded late on Wednesday, and they jumped ship from global stocks the very next day.

What Does This Mean?

The Fed said it was too early to leap to conclusions based on a few positive economic data points, and admitted it expects the US economy to shrink by 6.5% this year (so much for that “V-shaped” recovery). And while the central bank is expecting economic growth to rebound next year, the Fed doesn’t think it’ll increase interest rates until at least 2022.

There’s something else in the corner of investors’ eyes: coronavirus cases have started rising again in a few US states as stay-home orders begin to lift, which – short of a decent track-and-trace system – could trigger more infections, renewed lockdowns, and a delayed economic recovery.

Why Should I Care?

For markets: We like big “buts” and we cannot lie.
The stock market isn’t the economy, we wrote on Wednesday. But if the economy doesn’t recover as quickly as predicted – or grinds to a halt all over again – it’ll be the stock market that feels the pain (tweet this). That’s because companies will likely earn less than expected in a downturn, and investors will adjust their company forecasts accordingly. And when they do, they might end up selling shares either in anticipation that a company’s earnings are going to fall, or – if the news comes as a surprise – after the fact.

For you personally: Law of averages.
With investors everywhere not sure if they’re coming or going, “dollar-cost averaging” could be a good choice for Finimizers. By investing a set amount regularly, you’ll end up paying the average price for stocks over a period of time rather than on any one day – and get more bang for your buck when prices drop. And since stock prices tend to rise in the long run, odds are you’ll end up bagging yourself a profit.

Copy to share story: https://www.finimize.com/wp/news/save-our-stocks/

🙋 Ask a question

💬 Quote of the day

“Freedom is never given. It is won.”

– A. Philip Randolph (an American labor unionist, civil rights activist, and socialist politician)

Tweet this

🤔 Q&A · RE: N’awwwkward

“How can activist investors wield such influence on a public company by owning only 5% of its shares?”

– Andy in Vancouver Island, Canada

“The longer a company is public, Andy, the more fragmented its shareholder base becomes – so much so that for most, a single investor that owns just 3% of their shares is significant enough to make them take notice. In Commerzbank’s case, the biggest investor after the German government at 15% is activist Cerberus at 5% (where it’s tied with three other large investment managers). So when the company speaks, you can bet its voice heard loud and clear.”

🙋 Ask a question

📈 All’s well that trends well

Here’s some of the most popular Finimize Premium content this week…

⏰ Timing ain’t everything
Here are a few super-simple strategies you can use that are more effective than trying to time the market.

💪 Recovery starts now
Investors are betting on a recovery from the crisis – and our analysts have walked you through how you can do the same.

🛡 Protect yourself, hedge fund-style
Our analysts explored a simple hedge fund strategy you can copy to protect yourself from the next stock market drop.

📺 What’s next for the media?
Learn what the future holds for the media landscape with the man who transformed MTV Europe from startup to household name.

🖼 Get the big picture
It’s your monthly catch-up with our analysts – featuring threats to tech giants, risks to retailers, and ongoing debates around economic stimulus.

📚 What we're reading

British tea isn’t here for your sh*t (AV Club)
The story behind Australia’s cocaine capital (Vice)
Understand your biases, improve your UX (Growth.Design)

❤️ Share with a friend

Your Referrals: 0

Thanks for reading Newsletterest. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag.

Share your unique link:

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

Like what you’re reading? Show your support:

You stay classy, Newsletterest 😉

We’d love to hear your thoughts. Give feedback

Image Credits:

Image credits: Spalnic, drebha, VIAVAL, Abasli Toghrul - Shutterstock | Africa Studio, Marco de Benedictis - Shutterstock

Preferences:

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | Third Floor, 1 New Fetter Lane, London, EC4A 1AN, UK.

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 2020

Finimize - 😭 Uber goes hungry

Today's big stories

Grub’s Up

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Poor Show

Save Our Stocks

What’s Going On Here?

What Does This Mean?

Why Should I Care?

📈 All’s well that trends well

Older messages

💪 Activism really works

📈 Tech stocks break records

💉 The 240 billion coronavirus cure

🇺🇸 Best jobs report ever

🇺🇸 Big tech leaves America

You Might Also Like

Discover How Gold Can Shield Your Savings from Policy Effects

Next Gen Finance - Issue #466

US-Saudi pact

🚘 Tesla fired everyone

Bigger savings potential is here — don’t miss out.

Fund the future you deserve

It's not my fault I'm like this (financially)

Harry's Take 5-1-24 Reader Mailbag: Full TLT

The 2024 Election Could Change Everything

Only the Fed can complain