🚨 Intel's rescue mission

Intel's plan to save its stock, surprisingly strong stateside shopping stats, and Shein's less-than-desirable accolade | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for September 18th in 3:10 minutes.   ♟️ Think the Queen's Gambit, but with portfolios instead of chess boards. Join us for [Game-Changing Strategies For Options Traders]( on October 15th, and discover savvy moves that only Anya Taylor-Joy – uh, or IG – could pull off. [Grab your free ticket]( Today's big stories - Intel announced major cost cuts and restructuring plans, determined to stop investors from sending the sunken stock any lower - The investments that are getting the pros’ votes this election year – [Read Now]( - US retail sales defied pessimistic predictions by picking up in August, a reassuring sign for the economy A Positive Spin [A Positive Spin] What’s going on here? Legacy chipmaker Intel is [planning]( to separate its manufacturing business from the rest, desperate to soften the impact of its biggest crisis in 50 years. What does this mean? Intel might’ve run the chip sector back in the day, but the old timer’s a relic in this modern market. Overshadowed by the competition, the firm’s foundry business – which makes chips for other companies – has been a $25 billion drag on the books for not just one year, but two. So after its rough August earnings report sparked the sharpest stock sell-off in half a century, Intel announced a rescue mission. While it’s keeping manufacturing and chip design under the same roof, the firm wants its manufacturing arm to operate like an independent company – crucially, with its own financing. Why should I care? For markets: Stop the bleeding. Determined to save over $10 billion in costs next year, Intel’s also cutting thousands of jobs, scaling back global office locations by two-thirds, and pausing projects in Germany, Poland, and Malaysia. But it’s not just about stopping money from leaving the bank accounts. Intel has to bring more cash in, too – and lately, the firm has scored a couple of lucky breaks. A multi-billion-dollar deal with Amazon Web Services (AWS) to produce custom AI chips, for one, and a grant of up to $3 billion from the US government, for another. The bigger picture: It could be worse, but it could be way better. Intel’s government grant caught investors’ attention: they sent the stock up 6% after the news. And when word spread about the AWS deal and plans for the foundry business, Intel’s shares rose another 7%. But even after those boosts, the stock is still sitting almost 60% lower than last year’s peak. That’s a vulnerable spot: one more serious stumble could knock Intel out of the Dow Jones index, which tracks 30 heavy-hitting American firms. You might also like: [If you’re short on investment ideas, try looking at things from a new perspective.]( 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=A Positive Spin&utm_campaign=daily-global-18-09-2024&utm_source=email) Analyst Take How The Pros Are Investing Ahead of The US Election [How The Pros Are Investing Ahead of The US Election]( “It’s the [economy](, stupid.” That famous line from [James Carville]( – Bill Clinton’s chief strategist – vividly underscored what would matter most to voters during the 1992 presidential race. The same idea applies to [investors]( today: it’s not so much the election that’s shaping the market, but the economic conditions surrounding it. That’s today’s Insight: [where the pros are putting their money this election year](. [Read or listen to the Insight here]( Make the most of your options, so they don’t get the best of you When the going gets tough, the tough get to grips with [options strategies](. After all, the more volatile markets are, the higher options prices tend to rise. Thing is, these are complex, risky trades – so [you need to know how to pull them off](. Our [latest guide](, made with IG, tells you everything you need to know about selling options as a beginner. (If you’re more advanced, sit tight: they only get more technical from here.) You’ll discover the [different types of options you could sell](, see how the process would play out, and find out how you could make income through “premiums” if your trades are done right. [Check Out The Guide]( A Cut Above [A Cut Above] What’s going on here? Surprisingly strong retail sales [suggested]( that the US economy is holding its own, but investors still think the Federal Reserve (Fed) will go the extra mile on Wednesday. What does this mean? Consumer spending makes up around 70% of the US economy. So it bodes well that despite high borrowing costs and prices, stateside shoppers are still splashing the cash. Retail sales were 0.1% higher in August than the month before, trumping economists’ predictions of a 0.2% drop. That comes on the heels of July’s even healthier 1.1% increase – and when you take cars and gas out of the equation, spending has increased for four months straight. Why should I care? For markets: Super size, super size, the American way. Those hardy retail sales suggest that the US economy is handling high interest rates just fine. Yet, investors still seem concerned that the job market and broader economy might be headed toward a downturn – not least because the impact of high rates can take months to fully materialize. Combine that with the belief that inflation is finally under control, and investors think there’s a 60% chance that the Fed will cut interest rates by a chunky 0.5% on Wednesday, rather than the standard 0.25%. The bigger picture: Land of the late fees. America’s divided: while plenty of folk have been seriously affected by the higher cost of living and expensive loans, others have benefited from skyrocketing stock prices and pumped-up interest rates on savings accounts. That’s allowed wealthier Americans to keep spending, offsetting much of the cautious budgeting from lower-income households. But the cracks are starting to show: sales are stuttering at discount retailers, and more borrowers are falling behind on their car and credit card loan payments. If an interest rate cut doesn’t ease the burden, there could be more defaults to come. You might also like: [The US economy is being pulled in two directions 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=A Cut Above&utm_campaign=daily-global-18-09-2024&utm_source=email) 💬 Quote of the day "He has Van Gogh's ear for music." – Billy Wilder (an American filmmaker and screenwriter) [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. Maybe watching paint dry isn’t that bad. These DIY projects will get you serious [bang for your buck](. 2. Long, short, put, call. Options might sound complicated, but [our guide breaks them down to their bones for beginners](.* 3. Chips, hold the dip. The humble bag of potato chips has become the [new must-have accessory](. 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. AI could save the planet, but it might hurt it first. High-tech fast-fashion company Shein is officially [the industry’s biggest polluter](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... ♟️[Game-Changing Strategies For Options Traders](: 5pm, October 15th 🚀 [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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