🇨🇳 Forget China's rebound

China's industrial sector damped the mood | Copper could create the next price crunch | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for April 30th in 3:15 minutes.   🎧 "You've got to make yourself unignorable in the world." That was the takeaway from this week's [Generation Podcast]( guest, two-time startup founder, Dan Hegarty. Tune in to discover the hacks that will make sure everyone remembers your name. [Listen in]( Today's big stories - China's rebound reversed in March, when the world left the country’s hard work to gather dust - This trade is giving profit to hedge funds, and headaches to regulators – [Read Now]( - Copper miners need to spend billions to address the metal’s future supply gap Mind Games [Mind Games] What’s going on here? China’s industrial [sector]( let the country down in March, a cruel twist after seven months spent inspiring hope in worn-down, nerve-wracked economists. What does this mean? Chinese industrial companies brought in 3.5% less profit in March than the same time last year, pouring cold water over a seven-month streak of increases. That, at the same time as orders for exports unexpectedly slipped, leaving manufacturers with little to keep them busy. The decline caught even experts off-guard: profit had ticked up by 10% over January and February to reach a 25-month high, sparking hopes that the industrial sector might be shaking off its slump. Clearly, it’s not going to be that straightforward. Why should I care? Zooming out: Home and away. Officials in the US and Europe are wary of China’s reliance on its manufacturing muscle. See, China’s all-important factories are churning out more stuff than they can sell, so they’ve been pushing harder into overseas markets, often handing over goods for less than it cost to make them – a process called “dumping”. Problem is, Western countries are calling out the country for overproducing, as they can’t compete with those impossibly cheap prices. And with talk that China’s electric vehicle and shipbuilding businesses may come under watch too, Chinese officials might need to pay special attention to the problems at home. The bigger picture: Investors love a bargain. That doesn’t mean the writing’s on the wall for Chinese stocks, mind you. Investors are expecting the Federal Reserve (the Fed) to push interest rate cuts further down the line now that stateside inflation seems to be picking up again. And because higher-for-longer rates tend to weigh on stocks, investors might switch their focus away from the US market. Their gaze may just land on China’s stocks, instead: not only are they trading at near-record discounts compared to their US counterparts, but they’re also less affected by the Fed’s monetary decisions. You might also like: [Get ready for the emerging markets era in stocks.]( 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=Mind Games&utm_campaign=daily-global-30-04-2024&utm_source=email) Analyst Take The Little-Known Hedge Fund Trade That’s Got Regulators Feeling Nervous [The Little-Known Hedge Fund Trade That’s Got Regulators Feeling Nervous]( [Photo of Stéphane Revenier, CFA] Stéphane Revenier, CFA, Analyst A lot of leading hedge funds are fans of [the US Treasury basis trade](. And it’s easy to see why: this savvy, uncomplicated strategy allows them to snag some seemingly straightforward returns. But don’t let the simplicity fool you: all the major financial watchdogs are waving red flags about its potential risks. That’s today’s Insight: [the hedge-fund trade that’s got the financial stability pros on edge](. [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]( Canary In The Copper Mine [Canary In The Copper Mine] What’s going on here? A new study predicted that the copper market will be short of supply in the coming years – unless miners throw billions into new production. What does this mean? Copper is used in renewable energy plants, power cables, EVs, and data centers – all of which are more in demand than ever thanks to megatrends like decarbonization and AI. Problem is, existing mines are set to produce less copper in the coming years as mines run dry, and firms aren’t investing enough into new sites to make up the difference – let alone increase output. Instead, they seem more interested in buying copper-focused rivals, as demonstrated by BHP’s proposed [takeover]( of Anglo American. In fact, according to consultancy CRU Group, miners need to spend an extra $150 billion between 2025 and 2032 to make up the suspected supply gap. Why should I care? The bigger picture: Once bitten, twice shy. Miners have their reasons for cutting back. It’s getting harder to find new high-quality sources of the metal and mining costs are picking up – all while there’s a mounting social and environmental pushback against mining. Plus, copper is a bellwether of the economy, with demand rising and falling depending on the state of the world’s industries. That makes miners extra cautious, in case they get caught out by a sudden drop-off in demand just as they finish their projects. For markets: We need red to turn green. Copper mines take years to develop, so miners need to be convinced that future copper prices will justify the costs of scaling up. Currently, BlackRock reckons that the metal’s price needs to reach a record-high of $12,000 a ton – about 20% higher than today’s levels – to incentivize serious spending. And there’s a lot riding on that: if miners don’t churn out more copper, prices could spiral out of control, posing a risk for the technologies that are touted as potential world-savers. You might also like: [Copper could be the next big AI play.]( 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=Canary In The Copper Mine&utm_campaign=daily-global-30-04-2024&utm_source=email) 💬 Quote of the day "Nature does not hurry, yet everything is accomplished." – Lao Tzu (an ancient Chinese Taoist philosopher) [Tweet this]( 📈 The UK is back, baby The [UK’s FTSE 100]( has been the worst-performing index across Europe this year. Well, until [this month](. Higher oil prices and a weaker pound have picked the index off the floor and pushed it to a record high this week: [let's see if that will last](. [Read The Quicktake]( Connect your brand with the next generation of investors Our one-million-strong international financial community has some big plans. They want to [develop their investing skills]( and discover [expert tools]( that could help them trade better, all in a bid to achieve their dreams of financial freedom. [Your brand could help them]( do just that: whether you provide information, tools, or tricks, [you could help retail investors]( around the world make smarter decisions. So [showcase your mojo]( in this very spot, and [introduce yourself to over a million engaged investors]( – you might even help us change the world of finance for the better. [Get Your Name Out There]( 🎯 On Our Radar 1. Novak Djokovic is known for peak performance and always-on stats. The sports star’s latest accessory is [less data, more diamonds](. 2. Bitcoin's the OG crypto. It's also tricky to value, but [this guide can help](.* 3. Pick up your pen and notepad. In the face of AI resumes, [some recruiters are going analog](. 4. There’s no shortage of acronyms in crypto. [This guide walks you through two biggies](: DeFi and CeFi.** 5. Tens of thousands of vacationers are trying to book one Grand Canyon lodge. Here’s how to make sure you [bag a night at Phantom Ranch](. **Stocks is a derivative product offered by Change Securities B.V. that replicates the performance of your favourite companies’ shares - full or fractional. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... All events in UK time. 🏔️ [Gaining An Edge Beyond ETFs](: 8pm, June 19th 🚀 [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? 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