✈️ Airbus hits turbulence

Airbus is cutting back on its profit outlook | The EU is charging Apple with breaching its tech rules | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for June 26th in 3:12 minutes.   🥊 The UK and France are headed to the polls, and the countries' votes could seriously impact your investments. So join us for [Election Special: What Investors Need To Know Before Voting]( at 12pm on July 3rd, and find out how to prepare your portfolio for different election outcomes. [Grab your free ticket]( Today's big stories - Airbus's profit outlook was grounded, so cautious investors sought out the emergency exits - The bitcoin trade that hedge funds are making money on now – [Read Now]( - Apple and Microsoft were charged under the EU’s new Digital Markets Act, which could lead to billions in penalties Sparse Parts [Sparse Parts] What’s going on here? Airbus [lowered]( its profit outlook for this year by 20%, as the European aircraft manufacturer ran out of engine power – literally. What does this mean? Airbus’s woes have nothing to do with folk switching to helicopters or making peace with Boeing. The outlook downgrade was due to supply chain kinks, which have lingered since the pandemic. Engine manufacturers Pratt & Whitney and CFM International are stuttering and sputtering when it comes to production. So much so that Airbus, like any unhappy customer, is considering asking for compensation. Now, Airbus expects to deliver 770 aircraft this year. And although that’s only down from 800 – a drop of 4% – the knock-on effect on profit is going to be a lot bigger. Investors aren’t waiting around to find out: the company’s share price fell by 9% on Tuesday. Why should I care? Zooming in: Double trouble. Together, Airbus and Boeing have total control of the world's airplane production. That said, Boeing’s run of mid-air mishaps has forced it to slow down the giant conveyor belts. So now that even frequent flyers are hoping their plane tickets don’t read “737”, Airbus is in prime position to bump up its market share. Problem is, Airbus can’t even fulfill its own order book this year, let alone pick up Boeing’s slack. So without an industry titan to rely on, airlines are simply making do by refurbishing their existing planes, which is only making new parts even more scarce. The bigger picture: Slowly, slowly. Supply chains are crucial for companies, and the more spread out they are, the more that can go wrong between factory and delivery. That’s why many firms have been bringing production sites closer to home, in a process called “onshoring”. And to its credit, Airbus is trying to iron out its situation by buying one of its suppliers, which should lead to a smoother ride. You might also like: [Europe is up in arms, and its defense socks have been gaining ground.]( 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=Sparse Parts&utm_campaign=daily-global-26-06-2024&utm_source=email) Analyst Take Hedge Funds Are Doing The Bitcoin Basis Trade, And You Can Too [Hedge Funds Are Doing The Bitcoin Basis Trade, And You Can Too]( By Jonathan Hobbs, CFA, Analyst [Bitcoin]( may be in a summer lull, but that hasn’t stopped some hedge funds from making good money on it. They’re shorting (betting against) bitcoin futures contracts while simultaneously buying spot bitcoin through ETFs or crypto exchanges. It’s called the [bitcoin basis trade](. Here’s what they’re doing, what it could mean for the market, and how you might get [in on the action]( yourself. That’s today’s Insight: [a bitcoin trade you can copy from the pros](. [Read or listen to the Insight here]( SPONSORED BY CROWDCUBE X PLUM Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more: [crowdcube.com/explore/risk-warning]( Plum’s latest funding round is just peachy [Plum’s commission-free investment platform]( has won over two million users across ten markets. That shows on the books: Plum’s [revenue has nearly doubled]( compared to last year, with an average gross margin of 80%. Plus, its customer assets have tripled to [over a billion]( in the past 12 months. No wonder that Deloitte has ranked Plum [the fastest-growing UK tech company](, or that the platform was voted Personal Finance App in the [British Bank Awards 2023](. With that reputation, you can see how Plum has raised over £52 million in previous rounds, including strategic investment and support from Greek giant Eurobank. And get this: Plum has now launched a new round on Crowdcube. Now’s your chance [to join renowned investors]( like Global Brain, Venture Friends, and EuroBank, as well as unlock new features and free access to paid plans. [Find Out More]( When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Caught In The Crunch [Caught In The Crunch] What’s going on here? The European Union (EU) has [hung]( both Apple and Microsoft out to dry, [charging]( the tech titans with breaching the region’s tech rules. What does this mean? The EU’s Digital Markets Act is partly designed to stop tech giants from hogging too much of the market. That way, smaller companies get a look-in, and customers have more choice. And now, the EU has accused Apple’s App Store of stopping developers from directing customers to alternative, cheaper ways of buying services and products. If found guilty, Apple could face fines of up to 10% of its global annual revenue, or tens of billions. Repeat offenses would see this double. And Microsoft hasn't escaped the spotlight either. The tech giant is facing antitrust charges for the first time in over a decade, with the EU accusing the firm of anti-competitive shenanigans – specifically, by bundling the Teams app with the Office suite. Why should I care? Zooming out: There’s no euro summer for tech giants. The EU might be playing a dangerous game – especially if it wants innovation in the region. After all, Apple recently announced that it won’t launch AI features in Europe this year because of regulatory hurdles. Meta has delayed its own European AI launch, too, after Ireland’s Data Protection Commission blocked the company from using public Facebook and Instagram content to train its AI models. The bigger picture: If it sounds too good to be true…. Even market darling Nvidia has been having a hard time. The chipmaker’s stock – the priciest in the S&P 500 – has tumbled 8% over the past week, wiping $270 billion from its market value. Investors are concerned that Nvidia’s towering stock could be toppled if the market decides it’s overpriced, see, so some are taking their money and running while they can. The course of AI-fueled world domination never did run smooth, as they say. You might also like: [How to pick tech stocks using the rule of 40.]( 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=Caught In The Crunch&utm_campaign=daily-global-26-06-2024&utm_source=email) 💬 Quote of the day "Memories of our lives, of our works and our deeds will continue in others." – Rosa Parks (an American activist) [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](. [Talk To The Team]( 🤫 The Fed's Quiet Update With [inflation]( cooling from its recent highs, all the focus has been on when the Federal Reserve might cut its key interest rate. But, in the meantime, the central bank has been making a subtle change: raising its estimates for the [long-term “neutral” interest rate](. That's big: [it could change where interest rates sit for the next decade and beyond](. [Read The Quicktake]( 🎯 On Our Radar 1. Blast off. Everything you need to know about how a [rocket works](. 2. ESG investing isn’t just a feel-good theory. Here’s how you could [put principles into practice](.* 3. There’s something in the water. A, ahem, deep dive into the [making of Jaws.]( 4. Bitcoin’s big news. You can trade the most popular cryptocurrencies without fronting big prices with [these micro-sized tools](.* 5. Not so red-hot. Chilli peppers are getting [less spicy]( – and not by popular request. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming up soon... 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