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Today's big stories

Bank stocks fell after leaked documents showed they’ve helped criminals launder money
Our analyst has dug up two major reasons you should be wary of Apple’s stock – Read Now
Investors ditched stocks, apparently in response to the newly resurgent coronavirus pandemic

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Laundry Day

What’s Going On Here?

Leaked documents showed a dozen banks – including JPMorgan, HSBC, and Deutsche Bank – have been helping criminals remove stubborn stains from their ill-gotten gains.

What Does This Mean?

If you’ve raised a chunk of change doing something illegal – like selling drugs or running a Ponzi scheme – you’ll need to “launder” your tainted money through the financial system before you can really enjoy it. The aim is to get shady transactions recognized as legitimate, and banks need to be the ones to stop you.

But according to reports over the weekend, some of the world’s biggest banks did billions of dollars’ worth of business with people they couldn’t identify – and often carried on even after learning they were criminals (tweet this). Among the many allegations: Barclays enabled a prominent Russian to avoid US sanctions, and JPMorgan let more than $1 billion flow through an account that might’ve been owned by a wanted gangster.

Why Should I Care?

For markets: Taking a bath.
Financial regulators – which have been quick to prosecute rule-breaking banks ever since the global financial crisis caught them napping – have already issued tens of billions in fines for a laundry list of infractions, from misselling mortgages to breaching US sanctions. And just like in 2008, the publicity surrounding the scandal could embarrass regulators into more aggressive enforcement – further hitting profit at banks already struggling with record-low interest rates. That might be why bank shares around the world fell on Monday, with HSBC’s stock in particular hitting a 25-year low.

The bigger picture: Power shower.
Around 80% of cross-border trade is transacted in US dollars, and this leak is proving just how much power that gives the country. Banks from Angola to Venezuela are having to snitch on clients suspected of fraud, as American regulators peer at the financial plumbing in almost every corner of the globe. That makes them an invaluable intelligence-gathering tool – and one lots of countries have no alternative but to play ball with.

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2/3 Premium

Carl’s Take: Apple’s Crumbling

What’s Going On Here?

Apple might’ve dropped a few new product and subscription announcements last week, but our analyst Carl has crunched the numbers and reckons the company’s almost $2 trillion valuation could be way too high.

Find out if you agree with Carl in today’s Premium Insight

💥 “The next boom has begun”

That’s what Forbes says about the cryptocurrency market. And it’s easy to see why: in just two years, some digital coins have seen their values multiply by 30 times, 80 times, sometimes even 124 times.

Our sponsors at Weiss Crypto Alert think it could be about to happen all over again – and reckon three cryptocurrencies in particular will be next to benefit. So if you want to make your own mind up about their profit potential, you’ll want to take a look at their new and exclusive report: The Cryptocurrency Superboom of 2020.

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3/3

Sink Or Swim

What’s Going On Here?

As the pandemic starts to resurface, investors are getting out of the water pronto: they sold off shares around the world on Monday. Du-nuh… Du-nuh…

What Does This Mean?

Coronavirus is on the rise again: the UK, to take one example, reckons it’s on track for 50,000 new cases a day by mid-October if no action’s taken. So to avoid that sort of spread and the death toll that’d likely follow, countries might be forced to roll out new regional or national lockdowns. And given that the last ones led to the worst-ever contractions in giant economies like the US and eurozone, it’s perhaps no surprise that investors – most of whom were anticipating an economic recovery by now – ditched the stocks most likely to feel the effects of another slowdown. Or, if things get really bad, another halt on economic comings and goings altogether…

Why Should I Care?

For markets: A leisurely selloff.
Among the worst-hit stocks were those in the travel and leisure industries. No surprises there: hotels, restaurants, and bars are all facing costly restrictions on business hours and service etiquette – if they can stay open at all. Airlines, likewise, will earn less money if all-but-essential travel is stopped again. That’d be why shares of British Airways owner IAG fell 12%, while even low-cost carriers Easyjet and Ryanair – whose short-haul routes are expected to recover more quickly than their larger rivals’ long-haul trips – were down 8% and 5% respectively.

The bigger picture: When they zig, you zag.
The US’s key stock market index fell to its lowest level since July on Monday, perhaps reflecting concerns that Europe’s resurgence will spread Stateside or hurt American companies that have large international segments. Some analysts might say it’s about time to start looking elsewhere for opportunities – like, say, smaller American companies’ stocks, or those outside the States altogether.

Get invested: How to pick winning small-cap and international stocks.

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💬 Quote of the day

“You drown not by falling into a river, but by staying submerged in it.”

– Paulo Coelho (a Brazilian author)

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💀 To recover or not to recover?

The data shows the economy is getting better, but is everything really as it seems? The numbers can’t tell the full story, but Allianz’s chief economist Ludovic Subran sure can. He’s popping by on Thursday, so don’t miss out.

😎 Social Innovation & Entrepreneurship: 7pm UK Time / 2pm NYC Time, September 23rd
🙋‍♀️ Women & Money: 5.30pm Perth Time / 10am UK Time, September 23rd
📈 A Tale of Two Recoveries: 6pm UK Time / 1pm NYC Time, September 24th
🐲 Invest Like A Dragon: 11am Ireland / UK Time, September 24th
✌️ The Finimize Induction: 2pm UK Time / 9am NYC Time, September 25th
🤖 The Next Gen Investor: 1pm NYC Time / 6pm UK Time, September 29th
💻 Find Career Fulfillment: 5pm Dubai Time / 2pm UK Time, September 29th
✈️ Healthy Financial Habits for Expats: 5pm UK Time, October 15th

📚 What we're reading

Climate change is shifting America (ProPublica)
Shouting alligators, drunk earthworms (New Atlas)
The first bionic eye transplant has arrived (Futurism)

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Finimize - 🚨 Big banks' life of crime

Today's big stories

Laundry Day

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Carl’s Take: Apple’s Crumbling

💥 “The next boom has begun”

Sink Or Swim

What’s Going On Here?

What Does This Mean?

Why Should I Care?

💀 To recover or not to recover?

Older messages

👋 Say goodbye to TikTok

😷 The economy might never recover

😎 Relax, China's got this

🌍 Nvidia versus the world

📈 Investors go back to college

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