🤝 A new AI alliance

The Fed's rate cut, a fresh fund with lofty AI ambitions, the UK's inflation reading, and the jackpot generation | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for September 19th in 3:12 minutes.   📈 You can make the same trade as the big boys, but you’ll make a lot less without the cash to put down. So read our free guide on [Leveraged and Inverse ETFs](, and find out how to amplify your highest-conviction trades without emptying your bank. [Read for free]( Today's big stories - Three big-name firms teamed up to build a fund focused on AI investments, and they’re set on raising $30 billion - Inside the “Big Five” portfolio that’s built for wild times – [Read Now]( - UK inflation stayed slightly above the Bank of England’s 2% target in August Three’s Company [Three’s Company] What’s going on here? BlackRock, Microsoft, and Abu Dhabi’s MGX [created]( a fund to invest in critical AI infrastructure, set on proving that teamwork does make the high-tech dream work. What does this mean? Data centers whir away every time an AI system “thinks”, so they’re essential infrastructure in a world that’s becoming increasingly reliant on the super-smart technology. And eager to cash in on the trend, BlackRock, Microsoft, and MGX have formed the “Global AI Infrastructure Investment Partnership” to invest in AI data centers and energy infrastructure. They’re hoping to raise $30 billion from private equity investors with the fund – and by borrowing on top of that cash, funnel up to $100 billion into target projects. Why should I care? For markets: Time for a trust fall. AI might be able to do more tricks than traditional tech, but it uses far more power in the process – and existing energy systems are already feeling the strain. So with the International Energy Agency predicting that data centers alone could force US power demand up 8% by 2030, energy infrastructure clearly needs an upgrade. But that’s expensive work, and investors have already grown skeptical of AI’s ability to justify its colossal costs with cold, hard profit. So if the fund does attract investors, that’ll prove they still believe the tech has the potential to produce serious cash. The bigger picture: Welcome the reigning champ. The exponential rise of AI is putting US gas plants to work. And, charmed by the old-school fuel, the country’s utility companies are tossing their green intentions aside, writing plans for new gas-powered plants at the fastest pace in years. So despite predictions that natural gas would fall out of fashion, it’s currently still the top method of electricity generation in the US – and it could stay that way if cleaner energy alternatives fail to scale. You might also like: [The new investing power couple, AI and Energy.]( 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=Three’s Company&utm_campaign=daily-global-19-09-2024&utm_source=email) 🚨 The Federal Reserve Stunned Investors They say everything's bigger in Texas. Apparently, the same goes for Washington: [the Federal Reserve went big and bold, announcing a 0.5 percentage point cut to the country's key interest rate](. The decision surprised investors who'd – for the most part – expected a smaller trim. And what's more, the US central bank said suggested it'll probably make another cut of the same size later this year. The [economy-boosting move and the promise of more to come]( were initially met positively by investors, who bought up stocks. [Read More]( Analyst Take The “Big Five” Portfolio Built For Growth In The Economic Wild [The “Big Five” Portfolio Built For Growth In The Economic Wild]( By Jonathan Hobbs, CFA, Analyst Growing up in South Africa, I saw Africa’s “Big Five” animals on safari – the lion, leopard, elephant, rhino, and buffalo – all surviving in their natural habitat. So, inspired by those formidable creatures, I’ve built [an aggressive, diversified Big Five Portfolio](, able to thrive in different economic environments. Turns out, it would have beaten the US stock market over the past decade. I’ve written about how it works – and [how you can replicate it using low-cost ETFs](. That’s today’s Insight: [the “Big Five” portfolio that’s built to take on the economic wild](. [Read or listen to the Insight here]( You’ve got the keys, now it’s time to start the engine There’s no getting around it: today’s markets are volatile. But if you have steady hands and nerves of steel, you could use Leveraged and Inverse ETFs to [use market movements to your advantage](. You need to know how to use them correctly, though. Leveraged trades mean you can amplify your gains, sure, but the same goes for your losses. Inverse ETFs see you [bet against the market without shorting an asset](. And if you’re going against the grain, you’ll need to have conviction. So we’ve [worked with Direxion]( – the investing platform aimed at decisive investors – to develop a [free guide]( covering the risks, rewards, and need-to-knows of Leveraged and Inverse ETFs. [Read The Guide]( Hold Still [Hold Still] What’s going on here? UK inflation [held]( steady in August, although higher-than-expected services inflation may have tested the Bank of England’s (BoE’s) nerves. What does this mean? Just as economists had predicted, British consumer prices picked up by 2.2% in August from the same time last year, matching July’s pace. Down on the ground, a few prices were headed in the right direction: folk paid less at hotels, restaurants, and the gas pump. But the same can’t be said for the skies. The price of plane tickets – ahem – took off, wiping out those small wins. In fact, the air travel industry’s runaway costs were enough to push services inflation up to a higher-than-expected 5.6%. Why should I care? For markets: Time to start the rates race. With the headline inflation figure landing just above the BoE’s 2% target, the central bank should be able to follow up August’s interest rate cut – its first since 2020 – with a series of trims. But traders don’t expect the next one to come out of Thursday’s meeting: they’re betting on a 0.25 percentage point cut in November instead, with a high chance of another in December. Those chops can’t come fast enough, with borrowing costs still high enough to drag the country down. Case in point: data out last week showed that the UK economy stalled for the second consecutive month in July, disappointing analysts who had forecast a 0.2% uptick. The bigger picture: The UK has money issues. The British pound has been the best-performing major currency against the US dollar this year. But, as always, there are two sides to the coin. On one hand, the strong pound could help ease inflation by making it cheaper to import commodities, which are priced in dollars. But on the other, it makes the UK’s exports more expensive for international buyers – and if they’re lured away by cheaper currencies, the country’s economy could feel the hit. You might also like: [Here’s how the US election could impact the dollar.]( 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=Hold Still&utm_campaign=daily-global-19-09-2024&utm_source=email) 💬 Quote of the day "Every bad situation is a blues song waiting to happen." – Amy Winehouse (a British singer-songwriter) [Tweet this]( 🤝 Tom and Jerry, Woody and Buzz Lightyear, Butch Cassidy and the Sundance Kid. You're a stellar fintech brand looking to get your name out there, and we're a newsletter with [hundreds of thousands of brainy, switched-on readers](. Let's become the next picture-perfect duo: [Talk to the team](. [Get Your Name Out There]( 🎯 On Our Radar 1. Meet the Jackpot Generation. Canada’s kids are [waiting for $1 trillion]( to land in their accounts. 2. Long, short, put, call. Options might sound complicated, but [our guide breaks them down to their bones for beginners](.* 3. RVs are old news. Imagine living in [a high-end condo, Transformers-style](. 4. Bitcoin's highs have come with some serious lows. 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