👀 The ECB is debt serious

The Bank of England left rates alone | And the ECB delivered a warning | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for June 21st in 3:10 minutes.   ☕️ ️ Finimized over a double espresso at [Tempo Cafe]( in Chicago, USA (🌤 31°C/87°F) Today's big stories - The Bank of England kept interest rates unchanged, but hinted that a long-awaited cut could happen sooner rather than later - Why now might be the time to dump your mega-cap tech stocks – [Read Now]( - Soaring debt in the European Union added extra drama to an already volatile market The Seven-Pause Itch [The Seven-Pause Itch] What’s going on here? The Bank of England (BoE) held interest rates steady on Thursday for the seventh-straight time, but it [hinted]( that a cut could happen as soon as August. What does this mean? The decision to keep borrowing costs at a 16-year record level didn’t shock many people. The BoE has said it wouldn’t rush to chip away at the high interest rates it’s been using to battle inflation. After all, they’ve proved pretty successful so far: data released on Wednesday showed consumer prices rising perfectly in line with the central bank’s 2% target in May, down from more than 11% in late 2022. But there were still signs of underlying pressures: core inflation, which excludes the more volatile stuff like food and energy, was way above target. Why should I care? For markets: Dark hours. Everyone seems to have given up on the British market. Global investors aren’t wowed, US fund manager Invesco is folding its once-mighty UK stocks team, and London startup Zilch is contemplating an overseas shares debut in search of better liquidity, bigger excitement, and nicer incentives for high-growth firms. Just remember, it’s often darkest before dawn. The bigger picture: Double-edged swords. After a historic, aggressive spree of interest rate hikes, central banks are now pivoting toward rate cuts. Leading the pack is the Swiss National Bank, which unexpectedly unveiled a second trim on Thursday. And that suggests that, in some places, the battle against inflation is being won. Mind you, it also suggests that with price rises becoming less of a worry, policymakers may be turning their focus to economic weaknesses – like, say, the kind brought about by the dampening effects of a long stint of high interest rates. You might also like: [Why central banks matter](. 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=The Seven-Pause Itch&utm_campaign=daily-global-21-06-2024&utm_source=email) Analyst Take It Could Be Time To Dump Your Mega-Cap Tech Stocks… Or Not [It Could Be Time To Dump Your Mega-Cap Tech Stocks… Or Not]( By Russell Burns, Analyst Growth stocks and value [stocks]( are often treated like they’re in opposite corners of the ring. But, with growth shares reliably delivering knockout blows for roughly the [past 15 years](, there’s not been much of a contest between them. Now, that might be changing: the pros at [Bank of America]( say value is starting to look pretty scrappy and might be worth betting on over the next year. That’s today’s Insight: [why you might be tempted to dump your mega-cap growth stocks (and what to do if you are)](. [Read or listen to the Insight here]( Seize the day Traders don’t see disaster when markets move quickly like they are today: they see opportunity. With [over 75 Leveraged & Inverse ETFs](, Direxion gives traders the tools to trade opportunistically, however and whenever the market changes. These Leveraged and Inverse ETFs help traders seek to [amplify high-conviction trades by up to 300%](, so you can make a bigger bet on a market move or technical signal without accessing more capital. Plus, you can manage your level of risk every day with Direxion, so you’re not stuck out in the cold if the winds change. Inverse ETFs, meanwhile, allow traders to bet on price dips, without having to “short” an asset. So if you think everyone’s backing the wrong trend, [you can go against the grain](. [Discover tools for risk-tolerant traders with Direxion](. [Find Out More]( An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. [Click here to obtain a Fund’s prospectus and summary prospectus]( or call 866-476-7523. A Fund’s prospectus and summary prospectus should be read carefully before investing. Leveraged and Inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk and who actively manage their investments. Direxion Shares ETF Risks — An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF’s investments in a particular industry, sector or company, which can increase volatility. The leveraged and inverse ETF utilize derivatives, such as futures contracts and swaps which are subject to market risks that may cause their price to fluctuate over time. The leveraged and inverse ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index or underlying security for periods other than a single day. The leveraged and inverse ETFs may also subject to leverage, correlation, daily compounding, market volatility and risks specific to an industry, sector or company. The non-leveraged ETFs are subject to certain risks, including imperfect index correlation and market price variance, which may decrease performance. The non-leveraged ETFs may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. The non-leveraged ETFs may experience greater fluctuation in its net asset value as compared to other investments. The non-leveraged ETFs may be appropriate for investors with a long-term investment time horizon, who primarily seek capital growth, and who are able to tolerate periods of prolonged price declines. Please read each ETF’s prospectus for a more complete description of the investment risks. There is no guarantee that an ETF will achieve its investment objective. Distributor: Foreside Fund Services, LLC. Debt Weight [Debt Weight] What’s going on here? The European Central Bank (ECB) has [given]( a stern warning to its member countries about their heavy and growing piles of debt. What does this mean? The ECB is telling its members to start cutting back on their spending bloat now because the future’s not getting any cheaper. Europe’s aging populations are already reducing the number of folks in the workforce, just as defense and climate change costs ramp up. While all countries will have to slash expenses by at least 0.5%, some will have to dig much deeper and cut them by as much as 10%. And that will be a particularly tough shave for the likes of France and Italy: they’ve already been running budget shortfalls well beyond the European Commission’s agreed 3% limit. It’s no wonder, then, that worries have been growing about the 20-nation bloc’s finances – especially in France, where surprise snap elections have stirred market chaos. Why should I care? Zooming out: Less isn’t always more. Dealing with the debt challenges could cost countries a stomach-churning 5% or more of their total economic output. Plus, the latest reprimand could stir up fresh fears about potential spending cuts and financial instability – the kinds of worries that could drive borrowing costs higher for places like France and Italy. Those nations will probably have to cinch their belts by trimming their expenses or hiking taxes, which could hurt businesses and consumers, ultimately squeezing profit and stock prices. The bigger picture: A chill is in the air. It seemed like 2024 was going to be a comeback year for initial public offerings (IPOs) in Europe. But investor jitters and new volatility in the bond and stock markets are giving companies cold feet: fearing a flop, Italian luxury brand Golden Goose chickened out of its Milan stock debut this week, and Spanish fashion maker Tendam Brands also turned tail. After raising about $13.3 billion in the first half of this year – more than double the same period in 2023 – it looks like Europe’s IPO scene might now be on ice. You might also like: [US government debt is a ticking time bomb](. 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=Debt Weight&utm_campaign=daily-global-21-06-2024&utm_source=email) 💬 Quote of the day "Cock your hat – angles are attitudes." – Frank Sinatra (an American singer and actor) [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](. [Get Your Name Out There]( 🎯 On Our Radar 1. Gazing into a crystal ball. What George Orwell got right in his novel [1984](. 2. AI-enhanced investing is here. Unlock the [control of a brokerage, smarts of AI, and guidance of an advisor]( with Magnifi. 3. Far out. Scientists have observed the [oldest and farthest supernova]( ever, and it’s like looking back in time. 4. You need a lot of time and knowledge to be a value investor. Well, unless you have a [digital assistant to do the heavy lifting for you](.* 5. Diving in. From taramasalata to hummus, here’s how the UK became so [obsessed with dips](. *Investing puts your capital at risk. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming up soon... All events in UK time. 🤑 [How AI Can Help You Invest Like The Wealthy](: 5pm, June 25th 🏔️ [Gaining An Edge Beyond ETFs](: 8pm, July 9th 💃🏼 [Finimize Ladies Investing Club:]( 6.30pm, July 18th 🚀 [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. 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