🇬🇧 The UK beat America

UK inflation swaggered in bang on target | Another EV maker went bankrupt | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for June 20th in 3:11 minutes.   🔑 It might seem like cracking the Da Vinci Code, but the secrets of becoming wealthy might be more accessible than you think. So join us for [How AI Can Help You Invest Like The Wealthy]( on Tuesday, and find out how modern technology is solving the puzzle. [Grab your free ticket]( Today's big stories - The UK beat the US and eurozone to inflation coming in on target, but some of the figures were easier on the eye than others - These five massive shifts are reshaping the global economy – [Read Now]( - US carmaker Fisker filed for bankruptcy, becoming the latest company turned into scrap by the pressure of the EV industry Land Of The Glee [Land Of The Glee] What’s going on here? The UK announced that inflation was bang on target for the first time in three years, earning the country serious bragging rights over Europe and the US. What does this mean? British inflation came in at 2% for May, marking a major milestone in the fight against the steepest price rises in a generation. But the battle isn’t won yet. Core inflation, which excludes volatile food and energy prices, is still well above target at 3.5%. Services inflation is proving stubborn too, improving by only a smidge over the last month. So while the headline figure puts the Bank of England on track for interest rate cuts later this year, it won’t be rushing into anything. That’s why traders aren’t unanimously expecting the first cut until November – and why you can’t bank on any trimming of the 16-year-high interest rate from the central bank’s next announcement on Thursday. Why should I care? For markets: Hare and the tortoise. The UK’s win puts the country ahead of the US and eurozone in their efforts to calm inflation. That’s some underdog story. British inflation notched the highest peaks and slowest drops out of the trio, making it seem that the UK would be stuck in the mud for the longest. But then, inflation started slipping in Blighty without budging elsewhere. The exact reason is hard to pinpoint, but aggressive rate hikes, effective energy price caps, and a stable currency will all certainly have helped. The bigger picture: The win is a loss in disguise. Remember, though, that even 2% inflation means prices are still rising. In fact, Brits are now up against prices that are more than 20% higher than they were in 2020. And unless the country's bosses suddenly do a synchronized act of goodwill and make wages high enough to cover that price increase, many households will continue to feel the strain. You might also like: [Four lessons we can learn from the last 100 inflation bouts](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Land Of The Glee&utm_campaign=daily-global-20-06-2024&utm_source=email) Analyst Take Five Trends That Will Change How You Invest [Five Trends That Will Change How You Invest]( [Photo of Stéphane Renevier, CFA] Stéphane Renevier, CFA, Analyst The [global economy]( is on the brink of a game-changing few decades, set to veer sharply from the patterns we’ve seen in the previous ones. It will mean shifts in interest rates, inflation, and growth – reshaping everything, including [how you invest](. And much of it will be driven by five [major swings]( that are already altering markets. That’s today’s Insight: [the trends that will change how you invest](. [Read or listen to the Insight here]( Bulls have horns for a reason Change might scare some of us – but it excites plenty, too. Case in point: when financial markets start moving as quickly as they are today, many investors take the opportunity to go against the grain or seek quick turnaround trades. That’s where [leveraged and inverse ETFs]( come in. The first lets traders amplify their high-conviction trades, while the latter lets traders bet on price dips without having to “short” assets. That means you could put a bigger bet on a market move or technical signal without accessing more capital. So if you’re a risk-tolerant trader, you’ll want to [find out how to use them safely and effectively](. Our free guide with Direxion – a platform that specializes in tools for decisive investors – has the lowdown: [discover how you could use leveraged and inverse ETFs to amplify your trades](. [Find Out More]( An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. Click here to obtain a Fund’s prospectus and summary prospectus or call 866-476-7523. A Fund’s prospectus and summary prospectus should be read carefully before investing. Leveraged and Inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk and who actively manage their investments. Direxion Funds Risks — An investment in the Funds involves risk, including the possible loss of principal. The Funds are non-diversified and include risks associated with concentration risk which results from the Funds’ investments in a particular industry or sector and can increase volatility over time. Active and frequent trading associated with a regular rebalance of a fund can cause the price to fluctuate, therefore impacting its performance compared to other investment vehicles. For other risks including correlation, compounding, market volatility and risks specific to an industry or sector, please read the prospectus. Direxion Shares ETF Risks — An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF’s investments in a particular industry, sector or company, which can increase volatility. The leveraged and inverse ETF utilize derivatives, such as futures contracts and swaps which are subject to market risks that may cause their price to fluctuate over time. The leveraged and inverse ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index or underlying security for periods other than a single day. The leveraged and inverse ETFs may also be subject to leverage, correlation, daily compounding, market volatility and risks specific to an industry, sector or company. The non-leveraged ETFs are subject to certain risks, including imperfect index correlation and market price variance, which may decrease performance. The non-leveraged ETFs may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. The non-leveraged ETFs may experience greater fluctuation in its net asset value as compared to other investments. The non-leveraged ETFs may be appropriate for investors with a long-term investment time horizon, who primarily seek capital growth, and who are able to tolerate periods of prolonged price declines. Please read each ETF’s prospectus for a more complete description of the investment risks. There is no guarantee that an ETF will achieve its investment objective. Distributor: Foreside Fund Services, LLC. Punch Drunk [Punch Drunk] What’s going on here? Fisker [filed]( for bankruptcy, becoming the latest EV maker to end up beaten and bruised by the volatile auto market. What does this mean? Fisker went public in 2020 and hit a peak valuation just shy of $8 billion in early 2021. But since then, it’s been stuck in reverse. The US firm fell short of sales targets in both Europe and the US last year, not least because it delivered only half of the roughly 10,000 new SUV models it made. To make matters worse, Fisker couldn’t snag financing from any major automaker. That forced it to halt operations, pause manufacturing, and cut its workforce. And those aren’t the only problems under the hood: Fisker’s cars are under investigation by the US auto safety regulator over complaints about their braking system. Why should I care? Zooming out: Slamming on the brakes. Fisker is the latest casualty of the EV industry’s cutthroat climate, which recently sent Lordstown Motors and Arrival into the scrapyard. Supply chain issues, a price-cutting war between Tesla and Chinese producers, and trade tariffs have all hammered companies’ bottom lines. That, at a time when demand is waning. Drivers have been put off by generally high prices, as well as concerns about sparse charging points. It hasn't helped that high borrowing rates have made it tough for smaller brands to reach the manufacturing scale needed to pad out profit margins. The bigger picture: The self-fulfilling pricing prophecy. Cost-conscious eco-warriors might be able to nab a deal, though. Companies are making more cars than they’re selling, so they’re cutting prices to shift them. That’s making models – especially used ones – that bit more affordable. Case in point: the average price of a used EV [fell]( below that of regular cars for the first time in February, and that gap is only getting wider. Problem is, that’s hardly incentivizing anyone to buy expensive, top-of-the-line EVs. You might also like: [Five reasons not to write off oil and gas](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Punch Drunk&utm_campaign=daily-global-20-06-2024&utm_source=email) 💬 Quote of the day "Adventure is not outside man; it is within" – George Eliot (an English novelist) [Tweet this]( 💖 Meet your perfect match No, we haven't started a dating website. We're also not official promotional partners of Netflix's latest reality TV show (despite the many hours we've spent glued to it). See, our [one-million-strong community]( is full of active investors, eager to discover new tricks and tools to increase their net worth. So if you're looking to [promote a product or service]( related to finance, we think you could really hit it off. [Drop us a line to talk about partnerships](. [Get Your Name Out There]( 🚮 Investors Are Ditching Certain AI Stocks Investors are still piling into [AI plays](. In fact, the frenzy has helped pull the S&P 500 up by 15% since the start of the year, enough to see the index set 31 record highs in the same period. But when you dig into the details, many of the stocks that were previously popular picks have actually declined this year, suggesting that [investors are becoming more discerning about where they place their AI bets](. [Read The Quicktake]( 🎯 On Our Radar 1. Weird and wonderful. [Gimmicky popcorn buckets]( have taken over movie theatres. 2. Talk about gaining leverage. Our free guide explains how you could [amplify your trades]( without using up more capital.* 3. Back to the future. Gen-Z has fallen out of love with [dating apps](. 4. This decade is not like the last. Here's how to [make sure your strategy will keep up](.** 5. Wildlife wonderland. There’s a secret [natural haven]( in America – and it’s under threat. *See important disclaimers in Direxion's guide [here](. **Investing puts your capital at risk. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming up soon... All events in UK time. 🤑 [How AI Can Help You Invest Like The Wealthy](: 5pm, June 25th 🏔️ [Gaining An Edge Beyond ETFs](: 8pm, July 9th 💃🏼 [Finimize Ladies Investing Club:]( 6.30pm, July 18th 🚀 [2024 Modern Investor Summit](: 2pm, December 3rd ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? [Get in touch]( Image Credits: Image credits: dall-e | dall-e Preferences: [Update your email]( or [change preferences]( [View in browser]( [Unsubscribe]( from all Finimize Emails 😴 Crafted by Finimize Ltd. | 280 Bishopsgate, London, EC2M 4AG 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](