Today's big stories

Uber’s thinking about buying rival Postmates for $2.6 billion
Some investors think they've hit upon the perfect way to profit from ongoing market volatility – Read Now
Eurozone inflation started to pick up in June

1/3

Acquired Tastes

What’s Going On Here?

Ride-hailing and food delivery giant Uber has placed an order to buy US rival Postmates for $2.6 billion (tweet this). That’s a lot of sides.

What Does This Mean?

Postmates has been delivering everything from groceries to takeout across the US since the company began in 2011, and it could be exactly the kind of friend Uber needs right now. The ride-hailing firm’s already said it plans to withdraw from markets in which it’ll struggle to turn a profit any time soon. Having lost out on buying Grubhub to Just Eat Takeaway.com, it might now see Postmates as a way to set up its American Uber Eats business for eventual profitability.

But Postmates is playing the field: it’s in a “dual-track” process, meaning it’s simultaneously considering an initial public offering instead of the takeover. If the company reckons it can get a better deal from public investors than it can from Uber, the ride-hailing food delivery giant might be left a Billy No-Postmates yet again…

Why Should I Care?

For markets: Unhealthy competition.
“In-market consolidation” – where competing companies join forces – should help improve the combined firm’s bottom line. That’s especially true in the food delivery industry, where aggressive marketing makes it tough to earn money. But if Postmates and Uber Eats don’t need to compete against each other, the newly combined company should be able to cut its marketing spend and grow its revenue faster than its costs. That’d ultimately help Uber deliver on its promise to become profitable before much longer.

The bigger picture: Shake it out.
When the earliest online food delivery firms launched around two decades ago, they lost more money than they earned at first. But over time – thanks to rising internet and smartphone use – those companies saw dramatic growth, which attracted more competition. Now, as rivals strike deals to stay afloat, the industry will likely settle into a slower growth yet higher profit phase – no bad thing for profit-hungry investors.

Take action: How you can profit from potential acquisitions.

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2/3 Premium

Heavy Weather

What’s Going On Here?

US stocks are navigating their choppiest waters since 1933 – and with that ongoing volatility creating a massive mismatch in investors’ year-end outlooks, some smell an opportunity.

Get the full story with Finimize Premium

🌱 Sustainability never looked so good

There’s an old wives’ tale that says you have to pay a price for sustainable investing. But in reality, you don’t have to compromise performance for ethics – at least not with Quilter Cheviot.

Their Climate Assets Fund invests in solutions to some of the world’s challenges, like climate change and resource scarcity. And Quilter Cheviot reckon fund investors can could potentially pocket some returns while making the world a better place. Have cake and eat it too? Yes please.

As well as investing in firms that make a positive contribution to the world, the fund has a hand in government bonds and alternative assets like renewable energy. In other words, its investments are diversified. As a savvy Finimizer, you’ll know just how important that is.

You can play a part in creating a cleaner, more efficient economy with your investments. And while you’re at it, feel free to go swimming right after lunch too.

Here’s a disclaimer: investors should remember that the value of investments, and the income from them, can go down as well as up, and that past performance is no guarantee of future return. You may not recover what you invest.

Find Out More

3/3

No Fest For The Wicked

What’s Going On Here?

The rate at which the prices of goods and services increased in the eurozone – a.k.a. inflation – rose by slightly more than expected in June, but the bloc’s central bank shouldn’t celebrate just yet…

What Does This Mean?

June’s eurozone inflation was 0.3% compared to the same month last year – a pickup from May’s four-year low. That suggests growth might be returning, which should be good news for the economy. But there was cause for concern: price rises in the services industry – bars, restaurants, and so on – lagged those of food, tobacco, and alcohol. That’s worrying because services make up over half the eurozone economy, and “supply” – space, reservations, and the like – will be tight as the bloc tries to reopen safely. Economists will be watching closely, then, to see whether a much-hoped-for increase in demand drives future price hikes.

Why Should I Care?

The big picture: Low inflation ain’t so bad.
As far as the European Central Bank (ECB) is concerned, inflation at any level is better than deflation, which could send the eurozone on a downward spiral from which it may never recover. But it’s not out of the woods yet: inflation’s been below the ECB’s previous 2% target for seven years now, and the bank doesn’t expect it to rise much above zero until next year, as coronavirus leaves lasting effects on unemployment and, in turn, consumption.

Zooming out: Low inflation really ain’t so bad.
People are drawn to investing when inflation is high because it helps protect the value of their money from being eroded over time. That’s no truer than in Zimbabwe, where inflation hit 786% in May – its highest in ten years – and locals fled to the domestic stock market in their droves to protect their cash. And on Sunday – seemingly with no explanation – the government shut the country’s stock exchange down, leaving folks unable to get their money back out.

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🙋 Ask a question

💬 Quote of the day

“We don’t see things as they are, we see things as we are.”

– Anaïs Nin (a French-Cuban American essayist, and novelist)

Tweet this

♻️ No fossil fuels here

Sustainable investing: it’s hot right now. But how does it actually work? Quilter Cheviot have some ideas, and they’ve put them into action with their Climate Assets Fund.

First up: no fossil fuels. The fund avoids them totally and completely. That means you won’t find any oil and gas exploration or distribution, or any mining or nuclear power. As the name suggests, sustainable investments ought to last.

What the fund does invest in: firms offering solutions to global challenges. Things like reducing carbon emissions, improving food supply, and providing reliable power generation. Quilter Cheviot investments usually offer long-term growth and improve the state of the planet at the same time.

What’s more, investing in the Climate Assets Fund is super easy. You can even do it on an investment platform like Hargreaves Lansdown if you like.

Here’s a disclaimer: investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future return. You may not recover what you invest.

Get Sustainable

🌏 Finimize Community

🇺🇸 This month, we celebrate our Independence Day

July: it’s the month a motley worldwide community – inspired by a remarkably moving speech – push back against a mysterious oppressor. We will not go quietly into the night. We will not vanish without a fight. We’re going to live on. Today, we celebrate our Finimize events!

🇬🇧 UK: Estonia’s Startup Ecosystem – 5pm UK Time, July 1st
🇬🇧 UK: Investing in Your Twenties – 1pm UK Time, July 3rd
🇩🇪 Germany: Is Cash Still King in Germany? – 3pm Berlin Time, July 15th
🇺🇸 USA: IP Risk During A Pandemic – 11am New York Time, July 15th
🇦🇺 Australia: Women & Money (in-person) – 5.30pm Perth Time, July 22nd

📚 What we're reading

The Arctic’s getting too hot (Fast Company)
From Instagram wellness… to conspiracy theorists (ABC)
Silicon Valley has not stepped up (The Baffler)

Finimize - 😫 Uber’s getting desperate

Today's big stories

Acquired Tastes

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Heavy Weather

🌱 Sustainability never looked so good

Here’s a disclaimer: investors should remember that the value of investments, and the income from them, can go down as well as up, and that past performance is no guarantee of future return. You may not recover what you invest.

No Fest For The Wicked

What’s Going On Here?

What Does This Mean?

Why Should I Care?

♻️ No fossil fuels here

Here’s a disclaimer: investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future return. You may not recover what you invest.

🇺🇸 This month, we celebrate our Independence Day

Older messages

🎟 Newsletterest, Your Virtual Event Invite

🖕 Coke gives Facebook the finger

🎟️ Virtual Event Invite

🎉 Thanks a million, Newsletterest

😟 Goldman sees stock drop

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