🇨🇳 China got off to a flying start

China might have trouble up ahead | Volkswagen believes in quality over quantity | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for March 16th in 3:12 minutes. 📈 We’re always interested in how you’re investing and where you think markets are headed, which is why we roll out our [casual investor survey]( every so often. Go on, it’ll only take a couple of minutes. [Take the survey here]( Today's big stories - China reported a better-than-expected increase in retail sales - Stocks that split tend to outperform the market straight away, and our analyst has figured out why – [Read Now]( - Volkswagen reported strong results despite supply disruptions Jumped The Gun [Jumped The Gun] What’s Going On Here? Fresh data out on Tuesday [showed]( that Chinese retail sales grew by more than expected at the start of the year, but the country might be headed straight back to its starting point. What Does This Mean? The Chinese economy was off to a flying start at the beginning of the year, as folk in the country splashed out to celebrate Lunar New Year and Beijing’s Winter Olympics. And they weren’t fussy about what they bought: spending was up in all but one of the retail categories from the same time last year. The biggest rises were in fuel and jewelry, but car sales – which actually fell during a lot of last year – chipped in too. Overall, retail sales in January and February – combined to even out the Lunar New Year’s impact since it can fall in either month – grew by 6.7% from the same time last year, much higher than the 3% analysts expected. Why Should I Care? Zooming in: Not too fast… China’s strong start mightn’t last long: the country’s now [battling]( its biggest surge in Covid cases since the start of the pandemic, with over 45 million people back in lockdowns as a result ([tweet this](). Add in that Goldman Sachs [predicted]( last week that rising oil prices could cut China’s economic growth by 0.5%, and plenty of economists now doubt the country’s economy will hit its goal of growing 5.5% this year. And that – along with fears of new sanctions over its ties to Russia – might be why an index tracking some of China’s biggest companies fell 5% on Tuesday. The bigger picture: Apple’s feeling it. Lockdowns in China – the world’s biggest manufacturing hub – have been shutting down production plants around the country, and that’ll have a major impact on global supply chains. Foxconn, for one, just closed its Chinese production sites that were busy whipping up the latest iPhone 13. That could really hurt Apple’s sales, and investors know it: they [sent]( Apple’s shares down to their lowest since November this week. You might also like: [Global stock markets have fallen, so should you buy the dip?]( 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=Jumped The Gun&utm_campaign=daily-global-16-03-2022&utm_source=email) Analyst Take Why Stocks Beat The Market After A Split – And How You Can Profit From It [Why Stocks Beat The Market After A Split – And How You Can Profit From It]( [Photo of Stéphane Renevier] Stéphane Renevier, Analyst What’s Going On Here? Plenty of the world’s biggest companies have been [splitting up their stocks]( in recent years. And when we say big companies, we mean it: Apple, Tesla, Alphabet, and Nvidia have all done it. And sure, the fact that stocks [significantly outperform the market]( after a split probably has to do something with it. Thing is, a stock split only redistributes shares, and doesn’t directly affect profit, revenues, or dividends. That begs the question: [why does a split often boost a business?]( That’s today’s Insight: why stocks that split outperform the market, why that matters, and [how you can profit from it](. [Read or listen to the Insight here]( SPONSORED BY PENFOLD You wouldn’t treat your other investments like this… Your pension will probably be the biggest investment you ever own. So why do so many of us lose sight of how much we’re earning, not to mention accept it as a given when we lose track of pots from old jobs? With [Penfold](, you can transfer all your old pensions to one pot and let [its powerful digital pension technology]( grow your money for you. You get to choose from [four investment plans](, all managed by BlackRock and designed to help you reach your savings goals. [Penfold]( will even claim your 25% tax relief bonus for you. And if you want to get into the nitty-gritty, take a deep-dive with Penfold’s [Explore Your Pension]( tool and track your pension’s growth from one month to the next. Unlock your pension’s potential today: [download Penfold](. [Power Up Your Pension]( Capital at risk. It’s important to compare providers’ fees & any guaranteed benefits when deciding on whether to transfer, and be sure that the investments available are suitable for you. We cannot accept defined benefit pension transfers. If you decide to close your Penfold account and the value of your pot has gone down, the amount returned to the provider may be less than what you originally transferred. Smile And Wave [Smile And Wave] What’s Going On Here? Volkswagen proved an age-old adage this week, [reporting]( strong results even though supply shortages hit its production last year. What Does This Mean? Supply issues meant Volkswagen was lacking a few key production parts last year, so it only ended up selling 8.6 million cars in 2021 – 6% lower than the lockdown-stricken year before. But the carmaker brought in a new strategy faster than you can say, “drive bigger”: it focused on selling more expensive high-end models to make up for lost sales on its more affordable cars. And boy, did that pay off: Volkswagen made 12% more in revenue last year than the one before, and even almost doubled its pre-tax profit – partly because it managed to cut overhead costs by 10% a year earlier than planned. Why Should I Care? Zooming in: Volkswagen has big plans. Volkswagen might’ve sold fewer cars overall, but sales of its electric vehicles (EVs) – its biggest focus – nearly doubled last year. That helped the carmaker finish the year with a quarter of the European battery EV market in its clutches, making it a market leader in the region. And it looks like Volkswagen’s shooting for even more of the market: it’s expecting to use the cash it raises from its planned [listing]( of Porsche later this year to help it build six European battery plants and speed up its electrification. The bigger picture: China’s in control. Volkswagen’s just one of the many western carmakers planning to build battery plants these days, but it doesn’t seem like China’s ready to release its dominance over the sector anytime soon. Quite the opposite: the country’s battery makers – including CATL, CALB, and Svolt – are all planning big expansions over the coming years, which might be why China’s still [predicted]( to make up about two-thirds of the sector’s manufacturing capacity by the end of 2030. You might also like: [What investors are getting wrong about the EV market right 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=Smile And Wave&utm_campaign=daily-global-16-03-2022&utm_source=email) 💬 Quote of the day “I destroy my enemies when I make them my friends.” – Abraham Lincoln (an American lawyer and statesman) [Tweet this]( SPONSORED BY LEDGER There’s nothing like the big screen If you had the choice, you’d watch your favorite movies on a private theater screen every time. Well now you can do the same with your investments: [Ledger’s]( brand new wallet – [the Nano S Plus]( – comes with a bigger screen to give you the smoothest experience possible. That [souped-up screen]( helps you make and verify your transactions clearly and easily. That’ll come in handy when Ledger offers you over [5,500 digital assets]( to trade. And that’s not all: the new [Nano S Plus]( also comes with [more memory]( than before, so you can install over [100 apps]( at the same time. Discover that big screen experience: [check out Ledger’s brand new Nano S Plus](. [See the Nano S Plus]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar - Here’s Duff Beer’s alcohol percentage. Find out how your favorite [cartoon beer]( stacks up. - Fancy your own personal investment team? Let us introduce you to [Titan](.* - The “wheels or doors” debate has taken over social media. It’s all [this man’s fault](. - Maybe you really can trust TikTok. ByteDance might be about to [lose control](. - Talk about Endurance. These creatures have settled into a [freezing shipwreck](. When you support our sponsors, you support us. 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