🇨🇳 China's steely problem

A US clean energy spree, China's in hot water again, and paranormal investigations | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for September 3rd in 3:11 minutes.   🖐️ Easy as one, two, three... four and five, apparently. Join Prospero.Ai for [Five Portfolio Hacks For Busy Investors]( next Thursday, and find out how to save time without cutting corners. [Grab your free ticket]( Today's big stories - The US government’s clean energy loan office went on a spending spree, racing against the clock before the November elections - How to invest smarter, with help from a famous cheat sheet – [Read Now]( - China’s economic turmoil weighed heavily on steel prices Clear The Books [Clear The Books] What’s going on here? A $400 billion US federal clean-energy fund is dishing out dollars, eager to clean up the States before the election muddies the waters. What does this mean? The Energy Department Loan Programs Office is tasked with supporting advanced energy projects, not least clean and green initiatives. Yet, despite sitting on hundreds of billions of dollars, the department had been holding off on spending them. But concerned that a Republican win could put the office on ice, as it did last time, the current president’s team has hurried projects along. That’s why the office has recently signed a $1.5 billion pledge to a solar panel maker, a $1.2 billion agreement with a battery parts maker, and promised $861 million for solar and battery storage in Puerto Rico. Why should I care? For markets: We might not always have Paris. The US election could change the trajectory of the country’s clean energy plans. Some worry that if the former president wins, he could pull out of the Paris Agreement – an international climate change pledge – again, instead redirecting funding to Republican-favored tech like nuclear power and fossil fuels. Mind you, this isn’t just an American issue. Around the world, election candidates are questioning the cost and speed of cutting emissions. That has investors wary that renewable energy sectors will see less attention and investment, so they’re pulling back from related pockets. The bigger picture: Rules are made for breaking. The environmental, social, and governance (ESG) industry was seeing serious shifts even before election season. Europe, the birthplace of the world’s most stringent ESG rules, has been rethinking its hard stance. That’s encouraged green-minded investors to tweak their strategies, anticipating that regulations will soon be more forgiving to fossil fuels. Case in point: Goldman Sachs found that ESG funds are now more invested in oil and gas than they were just a year ago. You might also like: [Investors are ditching ESG-focused funds, but they might be missing a trick.]( 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=Clear The Books&utm_campaign=daily-global-03-09-2024&utm_source=email) Analyst Take What The Wall Street Cheat Sheet Says About Stocks Now [What The Wall Street Cheat Sheet Says About Stocks Now]( By Jonathan Hobbs, CFA, Analyst [Warren Buffett said]( it best: “Be fearful when others are greedy, and be greedy when others are fearful”. That simple mantra about [going against the crowd]( can help you sell closer to the top and buy closer to the bottom. But to do that, you’ll need to keep an eye on [sentiment]( – i.e., how most investors feel – and try to feel the opposite. So I’ve pulled out the famous Wall Street Cheat Sheet’s Psychology of a Market Cycle Guide to get you [started](. That’s today’s Insight: [how to invest smarter, with help from a famous cheat sheet](. [Read or listen to the Insight here]( You’ve got the keys, now it’s time to start the engine There’s no getting around it: today’s markets are volatile. But if you have steady hands and nerves of steel, you could use Leveraged and Inverse ETFs to [use market movements to your advantage](. You need to know how to use them correctly, though. Leveraged trades mean you can amplify your gains, sure, but the same goes for your losses. Inverse ETFs see you [bet against the market without shorting an asset](. And if you’re going against the grain, you’ll need to have conviction. So we’ve [worked with Direxion]( – the investing platform aimed at decisive investors – to develop a [free guide]( covering the risks, rewards, and need-to-knows of Leveraged and Inverse ETFs. [Read The Guide]( Not So Steely Nerves [Not So Steely Nerves] What’s going on here? A key steel price has fallen by 20% this year, as China’s overzealous factories fill the market with cheap metal. What does this mean? China makes around 50% of the world’s steel. And even though the country’s buyers are watching their pennies, wary of the stalling property and construction markets, producers haven’t slowed down at all. At this point, Chinese steel rebar prices are down around 20% this year. And at those prices, only around 1% of Chinese steel mills are profitable. So they’re “dumping” steel overseas, selling it for less than it costs to make. And at scale, too: China’s steel exports have reached levels last seen in 2016. To give its own wares a chance against ultra-low prices, Europe has stamped a minimum 18% tariff on Chinese steel – but even with tax and shipping costs, China’s is still cheaper. Why should I care? Zooming out: The great tech race. China’s made it a priority to bolster its tech industry, stat. So the country’s been shipping in semiconductor-making equipment like it’s nobody’s business – the equipment that current trade rules allow, at least. See, the US has clamped down on what chipmaking gear China can buy, and it’s been pressuring Japan to follow its lead. It’ll be tough to choose a side, though. If Japan follows through, China has threatened to restrict access to its rare earth minerals. They’re critical for the car industry, which employs around 8% of Japan’s working population. The bigger picture: Maybe all that glitters is gold. The Chinese property market is partly responsible for dragging down the price of iron ore – a key commodity used in steel production – by 27% this year. Diamond prices have been on the slide, too, with China’s luxury-loving shoppers taking a break. Gold’s been the exception, picking up 21% this year to become one of the only assets beating US tech stocks. You might also like: [It’s been a wild summer, but here’s where four key commodities stand now](. 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=Not So Steely Nerves&utm_campaign=daily-global-03-09-2024&utm_source=email) 💬 Quote of the day "Wear your heart on your skin in this life." – Sylvia Plath (an American poet and novelist) [Tweet this]( Discover portfolio management tools for time-poor investors Technology promises to save you time and make you more money. Tick, and tick. And yet, you often end up spending hours getting your head around new tools, terms, and conditions – and [daunted by the process](, it can be easy to retreat to your old ways. So join our next event with [Prospero.Ai]( for free, and find out how you could use super-smart technology to shave precious hours off your investing process. 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All events in UK time.5️⃣ [Five Top Tips Every Options Trader Should Know:]( 5pm, September 11th 🔨 [Five Portfolio Hacks For Busy Investors:]( 5pm, September 12th 🚀 [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: Midjourney | Midjourney 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](