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Today's big stories

Asian investors are steering clear of US stocks
... but our analysts have spotted a few you might be able to profit from this quarter – Read Now
Italian payments firm Nexi is eyeing up yet another deal

1/3

America Last

What’s Going On Here?

Investors in Asia revealed their investment strategies ahead of next month’s US presidential election in a new survey – and, uh, lots of them are avoiding the country altogether. Awkward.

What Does This Mean?

The 30 big-name investors surveyed were split on the election outcome, but their investment choices suggested they’re not convinced either way: the majority are buying into “safe havens” like gold, government bonds, the US dollar, and the Japanese yen. A third of them also reckon it’s time to ditch expensive tech stocks in favor of beaten-up sectors like leisure and banks, as well as “defensive” healthcare and consumer staples stocks. One opportunity that wasn’t high on their list, meanwhile, was “alternative investments” like real estate or increasingly popular environmental, social, and governance-focused funds – which tallies with Asian investors’ reputation for being particularly risk averse.

Why Should I Care?

For markets: Tech-nical analysis.
Asian investors might be gun-shy when it comes to America’s tech stocks, but they seem pretty gung-ho about China’s. That could be because Chinese tech stocks are both cheaper than their US peers compared to their earnings and less at risk of profit-limiting regulation (tweet this). In fact, investors are generally pretty optimistic about Asia as a whole: now that big parts are past the pandemic and China’s growing again, its stocks are in a good position to outperform those in the US well into 2021.

The bigger picture: China vs. India.
The surveyed investors agreed the election’s winner would have knock-on effects across Asia, but said those effects would differ depending who it was. A Democratic Party victory would, they thought, result in a more moderate approach to the ongoing trade war, which might boost China and its closest trading partners (think Japan and South Korea). A Republican Party victory, meanwhile, might benefit India more: investors are expecting the US to help galvanize the country in a bid to reduce China’s influence in Asia.

Take action: Why India’s hiding such big profit potential.

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2/3 Premium

Where To Invest This Quarter, Part 2

What’s Going On Here?

Investment professionals have been offering guidance for where to put your money this quarter, and you might be surprised by some of their suggestions.

Discover the next big thing in today’s Premium Insight

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Now, this list is designed to help you choose your investments, but it isn’t a personal recommendation. You read Finimize though, which means you’re probably pretty savvy. So have a think about whether their picks mesh with your personal goals.

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3/3

Whoa, Nexi!

What’s Going On Here?

The ink’s not even dry on Nexi’s recent $5.4 billion acquisition, but the payments firm is already chasing another deal this week – this time with Danish firm Nets.

What Does This Mean?

Italy’s Nexi hit the stock market last year and its share price has doubled since. That might’ve given it the chutzpah to go out and start hoovering up its rivals: the payments tech firm confirmed it’d be buying fellow Italian SIA on Sunday, only to make its interest in Nets – which is currently owned by private equity investors and valued at $10 billion – known the very next day.

Consolidation among payments firms has been in vogue lately: the US alone has seen PayPal buy iZettle, Fiserv buy First Data, and FIS buy Worldpay. Europe’s been at it as well, with French firms Worldline and Ingenico agreeing to team up. Nexi might’ve been swallowed up by a giant too, but it can rest easier now: Sunday’s deal has made it one of Europe’s biggest payment firms, and it’s not stopping there...

Why Should I Care?

The bigger picture: It’s not about the Benjamins.
The payments processing market is exploding as people spend less cash, and it’s expected to be worth $2.4 trillion by 2027. And investors know which way the wind is blowing: payments firm Square’s stock has soared 350% since March, PayPal’s shares are up 130%, and Ant Financial’s upcoming initial public offering might be the biggest ever.

Zooming out: Waste not, want not.
Another long-awaited deal – between French utilities firms Veolia and Suez – finally started taking shape this week. Veolia's bought an almost 30% stake in Suez and is expected to use it as a launchpad to buy the entire thing – even though Suez would rather stay independent. It might be alone there: even the French government likes the sound of being home to a global giant in waste treatment and environmental services. Who wouldn’t?

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💬 Quote of the day

“No trumpets sound when the important decisions of our life are made. Destiny is made known silently.”

- Agnes De Mille (an American dancer and choreographer)

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🌎 Finimize Community

🚴‍♀️ Pull up a seat (or, y’know, a bike)

When you sign up to our virtual event on Thursday, you’ll secure your seat to a discussion with two of the sharpest minds at Goldman Sachs on where the economic recovery heads next. It’s virtual, mind you, so you’ll probably need to secure your own seat. A chair will do. Or a sofa. Or a Peloton. Or a small horse. Whatever you have handy.

🎙 Finimize Live: Stocks or Bonds?: 6pm UK Time, October 8th
📚 Investing 101: Back To Basics: 3pm UK Time, October 9th

Finimize - 📉 30 reasons to ditch US stocks

Today's big stories

America Last

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Where To Invest This Quarter, Part 2

🔔 Investing made easy with AJ Bell

Whoa, Nexi!

What’s Going On Here?

What Does This Mean?

Why Should I Care?

🚴‍♀️ Pull up a seat (or, y’know, a bike)

Older messages

🎬 Cineworld calls cut

🥤 Pepsi smashes Coke

📉 Last quarter’s worst stocks

💨 Uber’s high-speed deal

🎰 Caesars’ 4 billion dollar wager

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