💸 Europe's new big bank

Europe's next big bank, China's new (and likely controversial) retirement age, and a viral bag of Cheetos | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for September 14th in 3:15 minutes.   👕 You scratch our back, and we'll give you a free shirt to cover yours. Fill in our [20-second survey](, and you could win some free Finimize swag. [Complete the survey]( Today's big stories - UniCredit built up a stake in German rival Commerzbank, and the Italian bank has a merger on the mind - How to profit from what the stock market gets wrong – [Read Now]( - China agreed to increase its retirement age for the first time in over four decades European Union [European Union] What’s going on here? UniCredit [revealed]( a 9% stake in German rival Commerzbank, but the Italian bank has a more official alliance in mind. What does this mean? UniCredit’s stake might sit in the single digits, but it has bigger ambitions of making two become one. A successful merger would create Germany’s biggest bank – but there’s no guarantee the deal will be signed and sealed. The German government still owns more Commerzbank shares than UniCredit, and the Italian bank would need the European Central Bank’s approval to push its stake above 10%. Plus, Commerzbank is reviewing its defenses to push back against the takeover. Either way, investors have picked up on UniCredit’s fascination: they’ve sent Commerzbank shares up 17% since the news broke, adding millions to the prospective Italian buyer’s stake. Why should I care? For markets: It’s go time. Investors and policymakers have a hankering for a European bank merger. See, US banks have size on their side, affording them a sense of security. But with so many smaller markets to conquer, and different rules and regulations in each one, European banks have struggled to build up bulk to rival their stateside counterparts. In fact, only BNP Paribas comes close. More recently, though, higher interest rates have padded profit for European banks – so they can better afford to make big bets on buying other banks. And the targets themselves look extra appealing now that they’re making more money, too. The bigger picture: We’re not all in this together. German labor unions are worried that the deal could threaten thousands of jobs at Commerzbank. UniCredit did slash payrolls after buying HypoVereinsbank in 2005, after all. Add in the fact that Volkswagen just warned about factory closures and layoffs across Germany, and the country’s economy – which shrank by 0.1% last quarter due to higher costs, lower demand, and global trade disruptions – could be headed for yet more dejection. You might also like: [How to invest in financial services 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=European Union&utm_campaign=daily-global-14-09-2024&utm_source=email) Analyst Take The Art Of Profiting From Market Inefficiencies [The Art Of Profiting From Market Inefficiencies]( By Theodora Lee Joseph, CFA, Analyst In an ideal world, [stock prices]( would reflect all the information that’s out there. That would mean that shares are neither cheap nor expensive – everything is priced just right. But markets aren’t perfect, and [inefficiencies]( can creep in. The question is how far they spread. New research finds that the stock market – once deemed to be a tight ship – has been slackening. And that may have some logical implications for [how you invest](. So that’s today’s Insight: [how to profit from the stock market’s little missteps](. [Read or listen to the Insight here]( SPONSORED BY REVOLUT Subway trips, morning coffee, a few (too many) after-work pints, quick grab-and-go dinners… Your everyday expenses add up – but with the right rewards card, their benefits can pile up too. But switch to Revolut, and you’ll get rewards and travel perks – from airline miles to exclusive discounts on accommodation and experiences – as you spend. You’ll earn up to one “[RevPoint](” – the equivalent of one air mile – for every pound you spend, and you’ll pocket double the points for booking hotels in the Revolut app. And if trips aren’t your thing, you can swap your RevPoints for discounts on major brands like [Myprotein, Samsung, Morrison’s, and Gymshark](. So prepare your plans, and get ready for everyone to call you “jet setter”: you can [sign up for Revolut – and start earning RevPoints – right here](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Old Money [Old Money] What’s going on here? China [approved]( a plan to increase its retirement age for the first time since 1978, wary of losing the workforce to golfing and gardening. What does this mean? China’s running out of spring chickens: the country’s death rate is increasingly outpacing its birth rate. And as time goes on, that means a smaller circle of workers will be tasked with supporting a wider net of retirees. So, to keep things chugging along, China plans to gradually raise the retirement age – up three years for men, and between three and five for women. Now, China’s retirement age is one of the world’s lowest, even though the country’s population is living longer than ever. But with workers already struggling through the biggest economic slump in decades, the proposal’s unlikely to win over the masses. Why should I care? For you personally: Bring in the bots. China could always replace some of its workers with robots. Seriously: automation tech – think robotics and AI – will be crucial for making up for the workforce shortage, even if it is measly humans who control them (for now). Besides high-tech solutions, investors could check out sectors like meal delivery, nursing homes, and entertainment for seniors. They make up the so-called “silver economy”, which is expected to account for a tenth of China’s overall economy by 2035. And naturally, biotech and pharma firms should become increasingly important for the country, too. The bigger picture: Run, in one of two directions. International investors pulled record sums of cash out of Chinese investments last quarter. On top of the country’s aging population and slowing economy, they were scared off by China’s trade-related fallouts with some of its biggest customers. Plus, an escalating spat with Europe has led to a mass exodus of the region’s firms, as they shift supply chains away from China. Of course, some would take this opportunity to recall Warren Buffett’s famous advice: “be greedy when others are fearful”. You might also like: [The opportunities emerging from China’s aging population](. 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=Old Money&utm_campaign=daily-global-14-09-2024&utm_source=email) 💬 Quote of the day "Jealousy is the tribute mediocrity pays to genius." – Fulton J. Sheen (an American bishop) [Tweet this]( Meet the experts in alternative assets You can’t call the markets in the best of times, let alone this year and next. So if you want your portfolio to pay for your next blow-out vacation, family’s college education, or look after you in old age, you should prepare it for as many outcomes as possible. That’s where [alternative assets]( come in: plenty of untraditional sectors have a low correlation with stocks and bonds, so they can reduce the risk and volatility in your portfolio. Of course, you need to know [how to make that strategy work for you](: how to split your portfolio, which assets suit your risk tolerance, how often you should trade, and the rest. So join our [Modern Investor Summit]( to tune into [iCapital CEO Lawrence Calcano](’s exclusive interview with [Michael Sidgmore, the host of Alt Goes Mainstream](. You’ll get your answers about all things alternative assets, as well as gaining access to the rest of the Summit’s all-star lineup. [Grab your free Summit ticket here](. [Grab Your Free Ticket]( 🎯 On Our Radar 1. Flamin’ hot articles. A [bag of Cheetos]( sparked a national media storm. 2. Long, short, put, call. Options might sound complicated, but [our guide breaks them down to their bones for beginners](.* 3. A conspiracy theory born out of a duck-egg-blue box. Turns out you can’t even buy [the so-called audio earrings]( that had the world talking after the presidential debate. 4. Bitcoin’s big news. You can trade the most popular cryptocurrencies without fronting big prices with [these micro-sized tools](.* 5. The apple doesn’t fall far from the… park. Apple’s development has [a new addition](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... 🚀 [2024 Modern Investor Summit](: December 3rd and 4th ❤️ 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](