Today's big stories

The European Union finally agreed to an $860 billion bailout package
Goldman Sachs has just upped its outlook for one controversial and fast-rising tech stock – Read Now
Coca-Cola and Philip Morris reported better-than-expected earnings

1/3

Come To Papa

What’s Going On Here?

After four days of bluffs, tells, and intense eye contact, European Union leaders agreed on Tuesday to cash in an $860 billion bailout for the region (tweet this).

What Does This Mean?

The so-called recovery fund will be split roughly 50/50 between grants and low interest rate loans. It’ll be financed by eurozone-wide loans that are being issued for the very first time, and will mostly go to the industries – like tourism – and countries – like Italy – that’ve been hit hardest by the coronavirus pandemic. The environment is benefiting too: almost a third of the money has been earmarked for initiatives to fight climate change and reduce greenhouse gas emissions – including via Europe’s world-leading “green bonds”.

Why Should I Care?

For markets: Take slow for an answer.
Ahead of the announcement, key European stock market indexes rose, the value of the euro increased versus other major currencies, and investors bought up even the riskiest of eurozone countries’ bonds. In other words, investors appeared to have already accounted for – or “priced in” – a positive outcome, and the response to the news in stock, bond, and currency markets on Tuesday was accordingly calm. If Europe’s leaders had folded without a deal, investors might’ve scrambled to sell off assets instead. It just goes to show how future headlines are often reflected in markets ahead of time, putting retail investors at a disadvantage when they try to react in real time.

Zooming out: U-B-Yes!
Swiss investment bank UBS’s stock rose 3% after announcing better-than-expected second-quarter earnings on Tuesday, partly thanks to a similar boost in its trading business that US rivals reported seeing last week. In encouraging signs for investors in other European banks, UBS also said it’d aim to keep its shareholder payouts stable this year – primarily through dividends but with an eye on share buybacks, which the bank hopes to resume toward the end of the year.

Behind the headlines: How you can respond to news before it happens.

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2/3 Premium

Peloton Gets An Upgrade

What’s Going On Here?

Investment bank Goldman Sachs broke away from the pack this week, posting a price target for Peloton’s controversial stock that suggests its 100% rise in 2020 could have further to run…

What Does This Mean?

> Find out with Finimize Premium

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3/3

The Bare Necessities

What’s Going On Here?

Drinks magnate Coca-Cola and tobacco firm Philip Morris (PM) can forget about their worries and their strife for a moment: the “consumer staples” companies both reported better-than-expected earnings on Tuesday.

What Does This Mean?

Consumer staples companies sell essentials that people tend to buy no matter what, which was pretty clear from PM's results: the tobacconist had the addictive qualities of its smoky wares to thank for its own stronger-than-expected quarter. Coke, meanwhile, reported a profit that beat investors’ forecasts, even as the number of products it sold in April and May shrank. That might’ve been because about half its revenue comes from home drinkers, unlike arch-rival Pepsi which relies more on eat-out locations. The cash it saved late last month might’ve helped too: the soda purveyor announced it’d pause all social media advertising for 30 days.

Why Should I Care?

For markets: Sitting on defense.
The seemingly ever-present demand for consumer staples’ products gives their stocks a “defensive” quality that investors look for in an economic downturn. Stable demand makes it easier to predict how much those companies are likely to earn – and at a time when American companies are expected to report 44% lower profits than the same time last year, that relative certainty can give defensive stocks the edge over their “cyclical” counterparts, whose earnings rise and fall with the economy.

The bigger picture: So Shere Khan of you.
Shares of companies that enable vices like high sugar consumption and smoking are sometimes referred to as “sin stocks”, and some investors avoid buying them for ethical reasons. But those undesirable characteristics are precisely what make such companies attractive to less conscientious investors, since lots of customers are hooked on their products. Just look at cigarettes: their prices have risen relentlessly around the world, but PM still managed to shift 766 billion packets last year.

Take action: Your investments can help make the world a better place.

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💬 Quote of the day

“Imperfection is beauty, madness is genius, and it’s better to be absolutely ridiculous than absolutely boring.”

– Marilyn Monroe (an American actress, model, and singer)

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🌎 Finimize Community

😎 Investing can be risky business

Cue Finimizer Praveen popping his collar and sliding across the floor in his socks. And who can blame the guy: he’s about to host his very first event, Navigating Financial Risk, and he’s mighty excited.

🇦🇺 Australia: Women & Money (in-person) – 5.30pm Perth Time, July 22nd
🇮🇳 India: Navigating Financial Risk – 7.30pm Mumbai Time, July 23rd
🇿🇲 Zambia: Millennial Investing – 11am Zambia Time, July 25th
🇬🇧 UK: How the Pros Pick Stocks – 6pm UK Time, July 27th
🌎 Global: Finimize Live AMA – 1.30pm UK Time, July 28th
🇨🇦 Canada: Searching For Financial Stability – 1.30pm Pacific Time, July 28th
🇬🇧 UK: What’s Next For The Global Economy? – 6pm UK Time, July 29th
🇬🇧 UK: The Bright Future for Renewable Energy – 12pm UK Time, July 30th
🇺🇸 USA: Money Behaviors 2020 – 1pm New York Time, July 30th

📚 What we're reading

Easy peasy workouts to get you ripped (Outside)
Leadership tips from team Antarctica (Fast Company)
How sugar conquered the world (Saveur)

🇪🇺 Europe's 860 billion rescue package

Today's big stories

Come To Papa

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Peloton Gets An Upgrade

🍷 “More lucrative than ever”

The Bare Necessities

What’s Going On Here?

What Does This Mean?

Why Should I Care?

🍷 For those with finer taste

😎 Investing can be risky business

Older messages

💰 Alibaba just got richer

🎟️ New Events: Global Economic Outlook, Financial Risk, & Millennial Investing

📉 Netflix drops 12%

🥤 Pepsi crushes Coke

🎟 New events: IP risk, streaming's future, and how to be anti-racist

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