👃 Smells like an oil price war

OPEC+ fight dirty | Carmakers change tact |

Hi Reader, here's what you need to know for July 7th in 3:10 minutes.

🌎 We’re six months into the year, so now seems as good a time as any to look ahead to the next six. Join BlackRock’s Karim Chedid for The Mid-Year Outlook 2021 on Thursday, and get the skinny on the major investment trends to keep on top of. Get your free ticket here

Today's big stories

  1. Oil's price hit a six-year high on the back of disagreements between the world’s biggest oil-producing nations
  2. One overlooked market has already doubled over the last year, and hedge funds think it could do again by January – Read Now
  3. The global chip shortage claimed a couple more carmaking victims

Fighting Talk

Fighting Talk

What’s Going On Here?

The oil price hit a six-year high on Tuesday, after discussions between the world’s biggest oil-producing nations and their allies – known as OPEC+ – heated up and broke down.

What Does This Mean?

OPEC+ first rolled out a host of production cuts during the pandemic in an effort to boost the oil price, and it met again last week to discuss finally dialing them back. But the talks were scuppered by a disagreement between Saudi Arabia – the group’s de facto leader – and the United Arab Emirates.

Short of a change of heart, that means current production limits will stay in place for at least another month. That’s not ideal: this tiff is depriving pandemic-battered economies of the oil they need to get back on their feet. The prospect of a major imbalance of supply and demand, then, sent oil’s price to almost $80 a barrel – its highest since 2014 (tweet this).

Why Should I Care?

For markets: A man’s word is his – never mind.
Production limits are more of a gentleman’s agreement than anything: OPEC+ members don’t have to stick to them. And with prices soaring and profits up for grabs, they might be tempted to get back to pumping. That’s raising the specter of last year’s price war, when they went flat out and sent prices crashing. Investors, for their part, seem wary of exactly that: the prices of oil futures contracts are lower than the current price of oil, suggesting they think the dusky nectar will be worth less down the line.

The bigger picture: The ECB shakes things up.
Higher oil prices – which increase the costs of energy and gas – tend to lead to higher inflation, so the world’s central banks will be keeping a close eye on how the situation gets resolved. None more so than the European Central Bank, which is meeting this week to discuss tweaking its inflation target – a shift in strategy that’d be one of its most significant in two decades.

Copy to share story: https://www.finimize.com/wp/news/fighting-talk-2/

🙋 Ask a question

2. Analyst Take

Is This The Most Resilient Trade Of 2021?

What’s Going On Here?

Stocks, bonds, and commodities: all these investor favorites are at risk if the economic recovery doesn’t pan out as expected.

Traditional investments, after all, are vulnerable to the whims of central banks, governments, and faltering economic growth.

But there’s one market whose investment rationale doesn’t have anything to do with any of those factors.

Its price has already doubled in the last year, and some hedge funds think it could do the same again before this year’s up – no matter what central banks do.

So that’s today’s Insight: what the market is, and how you can benefit from its potential year-end surge.

Read or listen to the Insight here

SPONSORED BY SIMPLERTRADING

Know your options

We’ll say it if no one else will: options can be baffling.

But there’s no doubt they can be a seriously effective tool in any investor’s arsenal, and a great way to hedge your positions.

Thing is, there aren’t many smart, easy-to-understand resources to learn more about them. Cue Simpler Trading, whose team is made up of 18 of the brightest and boldest traders out there.

In Simpler’s eBook, you’ll learn the fundamentals of options, managing your position at expiration, the different types of settlement, all the key terms you need to know, and on, and on.

Oh, and Simpler will share the most important factor to your options trading success too. That’s pretty neat.

Get your free eBook today, and know your options.

Get Your Free eBook

Bad Lot

Bad Lot

What’s Going On Here?

Even more carmakers announced this week that they were cutting production on the back of the global chip shortage, but hey – at least you’ll finally be able to get a parking space.

What Does This Mean?

The chip shortage has been haunting car firms this year: they reportedly pay less than other chip-dependent companies, which sends them to the back of a very long queue. That might be why Britain’s Jaguar Land Rover warned on Tuesday that its car deliveries would be 50% lower than expected this quarter, while Germany’s Mercedes-Benz – the world’s biggest luxury car brand – said its deliveries would be constrained for the next two. And it’s not just European companies: those warnings came just a day after China’s biggest carmaker – SAIC Motor – announced that it’d slashed its production plans by around 500,000 cars in the first half of 2021.

Why Should I Care?

For markets: This isn’t getting fixed fast.
Tata Motors – Jaguar Land Rover’s Indian parent company – saw its share price drop nearly 9% on Tuesday’s news, while Mercedes-Benz owner Daimler’s fell 4%. And this is just the start, with the shortage expected to cause issues until 2023. That could put carmakers seriously out of pocket: one consulting firm recently upped its estimate of lost carmaker revenue to $110 billion this year alone – and that was before the latest announcements.

Zooming out: Carmakers adapt to survive.
The chip crisis has forced car companies to adjust their strategies. Jaguar Land Rover, for one, is planning to focus production on more profitable models for as long as the shortage persists. Ford, meanwhile, has put more emphasis on its finance business, which lends customers money to buy pre-owned vehicles. Buyers, after all, are turning to second-hand cars in the face of a lower supply of new ones, driving up their prices at a record rate.

Copy to share story: https://www.finimize.com/wp/news/bad-lot/

🙋 Ask a question

💬 Quote of the day

“I can accept failure. Everyone fails at something. But I can’t accept not trying.”

– Michael Jordan (an American businessman and former professional basketball player)
Tweet this

SPONSORED BY YIELDSTREET

Look beyond the stock market

With stocks near record-highs, profits are only getting harder to come by these days.

In other words, you’d be smart to look at investments that typically don’t move in line with the stock market.

Yieldstreet offers a way to do just that: an alternative investment platform where you can invest in real estate, art, aviation, legal finance, and more.

You get to choose from their unique suite of products across a range of asset classes, all with different yields, durations, and minimum investments.

And since only a fraction of the billions of dollars’ worth of deals Yieldstreet analyzes make it onto its platform, you won’t have to spend all day looking for opportunities that meet your needs.

You can invest with just $1,000: get started today.

Find Out More

When you support our sponsors, you support us. Thanks for that.

🌎 Finimize Live

💪 Why invest in diversity and inclusion?

A more equal world is a more profitable world for all of us. Dr Leung knows that only too well: he’s spent his career looking at how diversity in the workforce lends the labor market even more weight. He’ll tell you all about it at our next event, How To Profit From Diversity And Inclusion.

🌎 How To Profit From Diversity And Inclusion: 5pm UK time, July 7th
💉 Global Trends That Matter For Your Portfolio: 2pm UK time, July 8th
😎 How To Craft Your Own Trading Strategy: 6pm UK time, July 8th
💰 How To Make Crypto Work For You: 6pm UK time, July 14th
🤔 What Does Inflation Mean For Your Portfolio: 2pm UK time, July 15th
🍷 How To Invest In Wine: 6pm UK time, July 19th
🇧🇷 Why It Might Be A Good Time To Buy Brazil Stocks: 5pm UK time, July 20th
💥 How To Profit From The Commodities Boom: 1pm UK time, July 21st
👟 How To Invest In Sneakers And Streetwear: 1pm UK time, July 22nd
🌿 How To Invest In The Future Of Cannabis: 6pm UK time, July 23rd
📈 How To Protect Yourself From Rising Prices: 6pm UK time, July 26th
👑 How To Invest Like The Ultra-Wealthy: 5pm UK time, July 28th
🌎 How To Profit From Emerging Markets: 6pm UK time, July 28th
🏙 Investing In A Sustainable Metropolis: 11am UK time, July 29th
💰 How To Make Money From Money: 3pm UK time, August 4th
🤔 Are You An Investor Or A Trader?: 12pm UK time, August 25th

🎯 On our radar

  1. The United States of medical debt. American hospitals’ predatory billing.
  2. A new dawn of food content. How granny cooking became cool.
  3. Unidentified flying objects. Why we search for life in the universe.
  4. Just read the book already. We don’t have to be slaves to the internet.
  5. It’s not you they’re after. The real reason Costco checks receipts at the door.
❤️ Share with a friendYour Referrals: 0

Thanks for reading Reader. 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

You stay classy, Reader 😉

We’d love to hear your thoughts. Give feedback

Want to advertise with us too? Get in touch

Image Credits:

Image credits: mipan, Civil, Ariadna Nevskaya - Shutterstock | Andreas Altenburger - Shutterstock

Preferences:

Update your email or change 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 2021

View Online

Older messages

😭 Leave Didi alone

Monday, July 5, 2021

Didi's American vacation might end early | Morrisons is very popular | TOGETHER WITH Hi Reader, here's what you need to know for July 6th in 3:10 minutes. 🙌 A company that invests in people is

 🤭 Robinhood reveals all

Sunday, July 4, 2021

Tell me no lies, Robinhood | Give me jobs, or give me cake | TOGETHER WITH Hi Reader, here's what you need to know for July 5th in 3:11 minutes. ☕️ Finimized over a strawberry banana smoothie at

👀 Join the private party

Thursday, July 1, 2021

Oiling the wheels | Private goes public | TOGETHER WITH Hi Reader, here's what you need to know for July 1st in 3:05 minutes. 💪 If you agree that sharing is caring, then do we have an event for you

😎 Crypto pays a salary

Wednesday, June 30, 2021

Didi says hello | 'Tis the earnings season | TOGETHER WITH Hi Reader, here's what you need to know for July 1st in 2:54 minutes. 🐦 Join us live on Twitter Spaces at 6pm UK time / 1pm NY time on

💵 Banks are throwing cash at you

Tuesday, June 29, 2021

US banks are getting all steamed up | Won't somebody think of the first-time buyers? | Finimize Hi Reader, here's what you need to know for June 30th in 3:10 minutes. 💪 If you agree that

Chicken prices to the moon

Thursday, July 29, 2021

Finshots Chicken prices to the moon In today's Finshots we talk about why chicken prices are on the rise. Business The Story Over the last few weeks, chicken prices have skyrocketed across many

Fintech News Issue #322

Thursday, July 29, 2021

Crypto regulation, Embedded finance and Solarisbank, VISA buys currencycloud, Amazons new currency and more See Online Issue 322 2021-07-27 The decade of regulation started. Microsoft recently

Colleges Are Giving Students up to $25,000 Just for Getting Vaccinated

Thursday, July 29, 2021

Campuses are using creativity (and money) to encourage COVID-19 vaccinations among young people. July 28, 2021 COVID-19 Colleges Are Giving Students up to $25000 Just for Getting Vaccinated Campuses

Risk from China

Wednesday, July 28, 2021

Bloomberg Federal Reserve officials signaled they are moving closer to when they can start cutting massive support for the US economy, but Chair Jerome Powell said there was still some way to go. “We

😭 Apple hurts Facebook

Wednesday, July 28, 2021

Facebook vs privacy | McDonald's fills up | TOGETHER WITH Hi Reader, here's what you need to know for July 29th in 3:05 minutes. 🔋 What? Your city is evolving! Congratulations, your city

🚀 Announcing our new job board!

Wednesday, July 28, 2021

An easier way to find and filter open roles ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

FTT Update: And Robinhood Will IPO At...

Wednesday, July 28, 2021

​ ​ Hi all, Julie here. Sitting here on the edge of my seat waiting for this Robinhood IPO pricing to get announced. Tomorrow could get super interesting with the high retail allocation, but FTT Expert

Issue #104: Every time I pay an ATM fee I die a little inside

Wednesday, July 28, 2021

plus Gordon Ramsay + Gen Z finance July 28, 2021 • Issue #104 Dollar Scholar Dollar Scholar Hi y'all — When I was in college, I frequented a pizza joint called Satchel's. In addition to

Is India getting its own digital currency?

Wednesday, July 28, 2021

Finshots Is India getting its own digital currency? A few days back we began hearing whispers about a central bank digital currency (CBDC) and how the RBI is working on it as we speak. So in

Back-to-School Shopping Will Be More Expensive This Year

Wednesday, July 28, 2021

Shoppers should expect shortages and higher prices on computers and other school supplies. July 27, 2021 SHOPPING Back-to-School Shopping Will Be More Expensive This Year Shoppers should expect