⚔️ Oil giant vs. green energy

Gucci has been dragging down luxury retailer Kering's sales | An oil giant argued against green energy predictions | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for March 21st in 3:14 minutes.   💰 All too often, our financial situation ends up out of our control. So join us for [Building Wealthy Women: Investing For Your Future]( on April 11th, and discover practical tips to help you reach your investment goals, no matter what the world throws at you. [Grab your free ticket]( Today's big stories - Luxury retailer Kering ripped the Band-Aid off early, revealing that sales are on track to land way below target - abrdn sees a bumpy – but not calamitous – road ahead for the global economy – [Read Now]( - Kuwait Petroleum went against the International Energy Agency, predicting that the world will want more and more oil for decades to come Gucci’s Guilty [Gucci’s Guilty] What’s going on here? Kering [predicted]( worse-than-expected first-quarter sales on Wednesday, blaming its Gucci brand for having a bad influence on the luxury retailer. What does this mean? Kering wasn’t due to bring its sales to show and tell until later next month. But aware that the reveal was looking more gauche than luxe, Kering divulged that sales will likely fall by 10% this quarter from the same time last year, worse than the 3% analysts expect. So all eyes were on Gucci – and not thanks to fine leather craftsmanship. Despite a new management team, creative director, and product revamp, Gucci expects quarterly sales to come in 34% lower in Asia and 20% lower worldwide than at the same time last year, while investors had predicted a 4% global dip. That’s a big deal: the brand usually makes up around 60% of Kering’s profit, so it’s no wonder investors pushed the stock down 11% after the news. Why should I care? For markets: Investors went off brands. That’s not to say that fashionistas have suddenly lost their interest in maximalist Italian fashion. China’s usually a major shopping district for luxury brands, but the country’s economic wobbles have encouraged folk to stick to window shopping instead. So wary that Kering’s results will be echoed by fellow luxury brands, investors dropped the stocks of LVMH, Burberry, and Cartier-owner Richemont, too. Zooming out: This isn’t a high-end problem. Just like their products, luxury stocks tend to be more expensive than the wider market, so investors aren’t shy to drop them at the first sign of trouble. Bear in mind, though, that China’s shoppers aren’t just leaving luxury wares on the rack: overall retail sales in the country only increased by 5.5% in the first two months of this year versus last – the smallest uptick in a year. Even tech companies seem to be feeling the effects, with Tencent – China’s biggest internet company – releasing unremarkable fourth-quarter results on Wednesday. You might also like: [Investing in retail and luxury markets.]( 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=Gucci’s Guilty&utm_campaign=daily-global-21-03-2024&utm_source=email) Analyst Take Economies Are Hitting The Tricky Last Mile In Their Inflation Journey [Economies Are Hitting The Tricky Last Mile In Their Inflation Journey]( The inflation battle isn’t over till it’s over. Consumer price increases have perked up recently in some of the world’s big economies after months of falling, a [thorny reminder]( that the last mile is often the hardest part of the trek. For many central banks, that means sticking to the high interest rates they’ve been using to cool inflation – even at the risk of weighing down the job market and economic growth. Our partners at [UK investment house abrdn]( have taken a look at what it all means for the global economy. That’s today’s Insight: [inflation, economic growth, and the bumpy road ahead](. [Read or listen to the Insight here]( Your free guide to investing with AI Artificial intelligence is slowly but surely becoming ingrained into our lives. Condensing articles, checking out medical symptoms, writing tricky break-up texts: we’ve all been flocking to chatbots without a second thought, for better or for worse. So it’s no surprise that [AI investing tools]( have taken off in a big way. After all, they can tap into the insights of every resource imaginable to create [tailor-made suggestions and solutions](. The only problem: AI can go rogue, and it doesn’t always understand the nuances of human thinking and communication. (Yet.) So before you use the super-smart tech to sharpen up your strategy, [read this free guide to find out how to invest with AI the right way.]( [Check Out The Guide]( Opposites React [Opposites React] What’s going on here? Kuwait Petroleum [took]( issue with predictions that global oil demand will tail off, on-brand for a giant black gold producer. What does this mean? The International Energy Agency (IEA) believes oil will fall out of favor after 2030, as governments embrace cleaner alternatives. Kuwait Petroleum thinks the agency’s missed a trick, though. The world’s population is expected to increase by a quarter before 2050, putting a strain on developing countries where millions already have no access to electricity. So while the world tackles that inequality, Kuwait Petroleum's CEO estimates that we’ll burn through more energy per person over the next two and a half decades. Oil would be a popular pick: it’s a lot cheaper than many alternative energies. That’s why Kuwait Petroleum plans to produce one million more barrels of oil a day by 2035, bringing its daily roll-out to a weighty four million barrels. Why should I care? Zooming out: You can’t trust anyone. The IEA and OPEC – the group of the world’s biggest oil-producing nations – have more than one million barrels of oil a day between their forecasts for demand this year, the biggest difference in opinion for 16 years. See, the organizations aren’t working off the same assumptions: in fact, OPEC believes the IEA’s predictions are skewed by the agency’s optimism around green energy. Now, it’s fine if they don’t see eye to eye. Problem is, those biased outlooks could start influencing where investors put their money. The bigger picture: Fuel the future – literally. AI might have the potential to dream up perfectly sustainable energy solutions, but for now, it’ll need to fuel those imaginations with dirtier fuel. A lot of it, too: Boston Consulting Group believes that technologies related to AI products – from smartphones to household appliances – will devour 7.5% of the US’s electricity by 2030, triple the share from only two years ago. You might also like: [AI is power-hungry, and not for the reason you expect.]( 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=Opposites React&utm_campaign=daily-global-21-03-2024&utm_source=email) 💬 Quote of the day "Saying nothing... sometimes says the most." – Emily Dickinson (an American poet) [Tweet this]( "If a tree falls in a forest and no one is around to hear it, does it make a sound?" You're a brilliant business with great products. (We've taken the liberty of making an assumption.) Now you need to [find the right audience](, so you can really make a sound. Our one-million-strong international [financial community]( is on the lookout for any products and services that can help them make smarter decisions with confidence. That sounds like a perfect pairing to us. [Get in touch today](. [Get Your Name Out There]( 🎯 On Our Radar 1. Turns out Threads still exists. Meta’s answer to Twitter (or, uh, X) [just got trendier](. 2. AI isn’t your work buddy, it’s more like your boss. You should be [careful what you tell your high-tech tools at work](. 3. Luxurious ski towns could melt away. Maybe now the one-percenters will [care about climate change](. SPONSORED BY HEALTHWORDS.AI [HEALTHWORDS.AI]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming Up Soon... 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