Finimize - ⚔️ JetBlue's outbidding Frontier

The Fed's getting concerned | JetBlue's outbidding the rest |

Hi Reader, here's what you need to know for April 7th in 3:11 minutes.

💭 This isn’t a fantasy, there really is an easy way to lose less money when your strategy lets you down. Join AJ Bell’s Laith Khalaf for A Guide To Stop Losses on Thursday, and learn how to minimize your losses every time you trade. Grab your ticket

Today's big stories

  1. The Federal Reserve suggested it could step up its fight against inflation
  2. One investment manager has laid out how the various possible outcomes in Ukraine should influence your investments – Read Now
  3. US airline JetBlue made a $3.6 billion rival offer for Spirit Airlines

Backup Plan

Backup Plan

What’s Going On Here?

The Federal Reserve (the Fed) revealed this week that it’s planning to sell off billions of dollars of bonds – just in case interest rate hikes aren’t up to the job.

What Does This Mean?

The Fed has two main ways of fighting inflation: it can raise interest rates, or it can sell off some of the $9 trillion worth of bonds it’s accumulated – a move that drives down their prices, pushes up their yields, and increases the overall cost of borrowing. The central bank already started doing the first of the two last month, but now it’s resorting to the latter: the central bank said it could ramp up to selling $95 billion worth of bonds every month – almost twice as much as when it did the same thing in 2017. It suggested it’d be more aggressive with rate hikes too, which analysts took to mean we can expect at least two 0.5% hikes – rather than the typical 0.25% – sometime this year.

Why Should I Care?

For you personally: You have been warned.
The tech-heavy Nasdaq index fell on the news, and the message was loud and clear: tech stocks are at risk. See, investors value a stock based on what they think a company’s future profit is worth today. And since tech companies are expected to generate a higher proportion of their profits in the future than other companies, they’re the first to suffer when yields rise. Then again, you might just want to ride it out: data shows that fast-growing stocks like tech have beaten cheap-looking value stocks in three of the last four periods of Fed rate hikes (tweet this).

The bigger picture: The R word.
It’s no secret that the Fed’s efforts to limit inflation will drag on economic growth, but some economists are more pessimistic than others. Take Deutsche Bank: it said this week that it’s expecting the US economy to fall into recession next year.

Copy to share story: https://www.finimize.com/wp/news/backup-plan/

🙋 Ask a question

Analyst Take

Your Updated Guide To The Russia-Ukraine Crisis

Your Updated Guide To The Russia-Ukraine Crisis
Photo of Carl Hazeley

Carl Hazeley, Analyst

What’s Going On Here?

It’s now been six weeks since Russia invaded Ukraine, and there’s no end in sight.

So investment manager abrdn – which came out with a series of potential war scenarios in February – is back with new analysis on how the crisis is likely to play out from here on.

There are some more likely possibilities: abrdn sees a 30-40% probability over the next 12 to 18 months of either ongoing conflict or an effective split of Ukraine, for example.

And then there are some wildcards, like a Russian U-turn that could come from a coup against Putin, or from the sanction-fueled collapse of the Russian military.

So that’s today’s Insight: where abrdn’s economists think the war might head next, and what each of those scenarios would mean for your portfolio.

Read or listen to the Insight here

SPONSORED BY THE MOTLEY FOOL

Make that a double

Occasionally, The Motley Fool gets so excited about a stock that it issues a “double-down recommendation”.

But today, it isn’t just excited about one, but three.

These are three stocks it’s handpicked that have already performed well, and that The Motley Fool thinks might have a lot further to run.

Get The Motley Fool’s special report here, and find out more about its double-down recommendations.

Find Out More

Reality Check

Reality Check

What’s Going On Here?

US carrier JetBlue made a $3.6 billion offer to buy Spirit Airlines this week, in hopes its head can be turned from another eligible admirer.

What Does This Mean?

Domestic travel has bounced back from the pandemic much more quickly than long-haul flights, and Spirit – which specializes in cheap, largely US-based travel – has been reaping the rewards of that shift in momentum. That caught the eye of Frontier Group, which offered to buy the airline for $2.9 billion in February – a bid Spirit was happy to accept.

But a deal’s not done till it’s done, and JetBlue’s now swooped in with a $3.6 billion offer of its own. If Spirit decides to take it, the deal would make JetBlue the fifth-biggest airline in the US, and could allow it to offer more flights in more parts of the country. It’ll shore up the airline’s bottom line too: JetBlue reckons the sales boost and cost savings combined could be worth about $700 million a year.

Why Should I Care?

Zooming in: No cheaper tickets for you.
Fuel costs are putting a lot of pressure on airlines at the moment, but a bigger carrier should have the financial flexibility to better absorb those costs and offer cheaper tickets anyway. Trouble is, ticket prices haven’t tended to drop following mergers in the industry, but instead risen toward those of the more expensive carrier. And since that would undermine Spirit’s whole “budget airline” schtick, analysts think regulators might end up stepping in.

The bigger picture: Little old JetBlue.
That wouldn’t be JetBlue's first regulation rodeo: it’s already dealing with a lawsuit after teaming up with American Airlines to coordinate flight times in the north-east of the US. Regulators say that it’s hurting customers by dint of fewer choices of flights, but JetBlue is arguing the opposite: that the move helps it better compete with the biggest airlines, who are otherwise blocking it out of the region.

Copy to share story: https://www.finimize.com/wp/news/reality-check-2/

🙋 Ask a question

💬 Quote of the day

“Forever is composed of nows.”

– Emily Dickinson (an American poet)
Tweet this

SPONSORED BY WEALTHIFY

Give your savings a £20,000 boost

If only investing your money could be as simple as saving it…

Well, with Wealthify it can be: the award-winning platform curates and manages a personal investment plan for you, and you can get started with just £1.

Whether you’re cautious, ambitious, or ethical with your money, Wealthify has a plan suited to you.

And if you’re not sure how you’d like to invest, play around with Wealthify’s handy slider to find out how little changes could make a big difference to your portfolio.

What’s more, invest before June 1st and you can enter their £20,000 prize draw. Terms and conditions apply.

Discover Wealthify

With investing, your capital is at risk. Forecasts are not a reliable indicator of future performance.

Wealthify sliders show projected values for your investments, although the figures are only forecasts and not a reliable indicator of your future performance. Prize draw not open to residents of Northern Ireland.

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

🌎 Finimize Live

🥳 Coming up this week…

(All events given in UK time)

🚫 A Guide To Stop Losses: 1pm April 7th
🌍 Scenario Analysis Of The Ukraine Crisis Impact: 1pm April 8th
🎙 Live Crypto Community Q&A: 5pm April 8th
💰 How Investors Can Profit From Real-Time Payments: 6pm April 11th
🧑‍💻 Strategies To Find The Best Web3 Projects and DAOs: 5pm April 12th
♻️ Investing Opportunities Beyond Wind And Solar: 1pm April 13th
🧠 How To Master The Investor Mindset: 6pm April 13th
🚀 How To Invest In The Space Economy: 1pm April 14th
🚑 How To Invest In Insuretech: 6pm April 14th

🤯 And after that…

💰 Understanding Use Cases To Generate Crypto Wealth: 6pm April 20th
👷‍♀️ How To Protect Your Portfolio: 1pm April 21st
📈 How To Identify High-Growth Metaverse Stocks: 6pm April 21st
🌍 2022 Macro And Fixed Income Opportunities: 1pm April 22nd
🎙 Live Crypto Community Q&A: 5pm April 22nd
💸 Top Crypto Investing Strategies: 5pm April 25th
🪐 An Impact Investor’s Guide to Web3: 6pm April 28th
🎙 Live Crypto Community Q&A: 5pm April 29th

🎯 On Our Radar

  1. Lexus is going electric. It’s using a steering yoke to do it, too.
  2. This chair’s been famous for 100 years. And it’s done it all with just two legs.
  3. Fairness? Diversity? You can’t talk like that at this huge company.
  4. Lizzo’s hiking shoes are crazy. There’s nothing like a ten-inch platform to get you up a hill.
  5. Inside an Olympic weightlifter’s psyche. Here’s how lifting made her treat herself better.
❤️ 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: Vadi Fuoco - Shutterstock | LedyX and Sergii Lesik - Shutterstock

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | Bow Bells House, Bread Street, London, EC4M 9HH

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

Key phrases

Older messages

🌍 Save the planet, invest in miners

Tuesday, April 5, 2022

Miners need more cash | AMD's making a massive deal | TOGETHER WITH Hi Reader, here's what you need to know for April 6th in 3:08 minutes. 🏡 Just think of all the times you've envied your

💪 Tesla delivers

Monday, April 4, 2022

Tesla's getting even bigger | Shein's stealing the fashion show | TOGETHER WITH Hi Reader, here's what you need to know for April 5th in 3:07 minutes. 📈 Crypto looks like it's on the

📉 Okay, here comes the recession

Sunday, April 3, 2022

The US has jobs to spare | Everyone say, "no deal" | TOGETHER WITH Hi Reader, here's what you need to know for April 4th in 3:17 minutes. 🌊 The new wave of the internet is about to roll

⚠️ The market's getting risky

Thursday, March 31, 2022

Russia's feeling the effects | China's in the negatives | TOGETHER WITH Hi Reader, here's what you need to know for April 1st in 3:06 minutes. 🤡 No April Fools here: you really can get all

🚨 Germany's in emergency mode

Wednesday, March 30, 2022

Germany's putting its foot down | Micron made record sales | TOGETHER WITH Hi Reader, here's what you need to know for March 31st in 3:04 minutes. 👶 This isn't your grandpa's portfolio.

🔴🔴 Cristiano Ronaldo sent blunt Liverpool message but Naby Keita deserved better

Monday, October 25, 2021

Liverpool Echo Latest LFC stories from the Liverpool Echo Read in browser News In Your Area Liverpool FC What's On | Sign In Today's Highlights See more highlights... Cristiano Latest LFC

Nothing's gonna stop you now... right?

Monday, October 25, 2021

Question: Who loves deeply revealing, soul-searching, uncomfortable personal explorations of weaknesses and flaws? Answer: Except for Dr. Phil, no one. Unfortunately, if you're gonna succeed, you

Anna von Hausswolff

Monday, October 25, 2021

Good morning. We're back. Today we're listening to Anna von Hausswolff, a Swedish pipe organist and singer/songwriter based in Gothenburg. Her music is hard to classify. “She's too

Your weekly notes / #4

Monday, October 25, 2021

Enjoy this week's powernotes (Monday, 25 October, 2021) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Evergrande And Chinese Regulators Pummel Crypto Markets

Saturday, September 25, 2021

Also: The Next Frontier For US Sports Betting Is Crypto And Blockchain Technology Also: The Next Frontier For US Sports Betting Is Crypto And Blockchain Technology View in browser THE EVERGRANDE

The Economic Data Can't Possibly Be Accurate. Here Is Proof.

Monday, September 20, 2021

Listen now (8 min) | To investors, I hope each of you had a great weekend. At the end of last week, I saw a chart that really confused me. It showed the difference between the CPI Rent Index and the

A clever tax loophole

Thursday, September 16, 2021

Bloomberg Most Americans hope their retirement accounts will allow them to stop working without falling into poverty. For the rich, those accounts have become something more—a clever tool to avoid