🔫 Investors fire a warning shot

Germany's all grown up | JP made bank | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for January 17th in 3:12 minutes. 🇨🇳 This is the closest thing China has to an election year, and while the outcome’s all but guaranteed, you can’t be quite as certain how your investments will fare. Join Young China Group CEO Zak Dychtwald for [China Outlook 2022]( on Tuesday, and find out how to set yourself up for almost certain success. [Get your free ticket]( Today's big stories - The German economy surged back into growth last year - You might want to bet on European stocks over American ones this year, and here's why – [Read Now]( - JPMorgan kicked off earnings season with better-than-expected results Hot Dog! [Hot Dog!] What’s Going On Here? Data out on Friday [showed]( Germany's economy bounced back into growth last year, and here’s hoping the wurst is behind the country. What Does This Mean? Germany’s economy went from shrinking 4.6% in 2020 to growing 2.7% last year. That’s a definite improvement, but it’s still way behind the 4.5% economists are expecting from France, Italy, and Spain. Then again, Germany’s economy is much more dependent on manufacturing, which has been hit hard by supply bottlenecks over the past year – not least the chip shortage that forced its carmakers to furlough a fifth of their workers. Mix in the country’s highest inflation in [30 years](, and you can see why Germany might end up lagging behind. Still, there might be light at the end of the Eurotunnel: Germany’s central bank thinks the country’s economy will surge after spring and grow 4.2% this year. Why Should I Care? The bigger picture: It’s not just Germany. It can’t be easy for Germany to see an ex (a Brex?) doing so much better, with data out on Friday [showing]( that the UK economy returned to pre-pandemic levels in November. The country’s services, manufacturing, and construction sectors all grew more than expected between October and November. Issue is, the data reflects a pre-Omicron state of affairs, and economists aren’t optimistic about what’s happened since: they reckon the economy will actually have shrunk in December and January. For markets: In for a penny… That data could convince the Bank of England that the UK economy is strong enough to raise interest rates [again]( next month – something the European Central Bank seems determined to avoid until 2023. And since the prospect of higher interest rates – and therefore higher returns on investments – makes a country’s currency more attractive to international savers and investors, the British pound has found itself hovering around its highest level relative to the euro in two years. You might also like: [Six ways to prepare for breakneck interest rate hikes.]( 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=Hot Dog!&utm_campaign=daily-global-17-01-2022&utm_source=email) Analyst Take Can Europe Finally Beat America In 2022? [Can Europe Finally Beat America In 2022?]( [Photo of Stéphane Renevier] Stéphane Renevier, Analyst What’s Going On Here? Europe hasn’t exactly put up much of a fight against America in the past. If you’d invested in US stocks over the past 3 years, you’d have made an [80% return](. Compare that to Europe’s 35%, and it’s clear the region’s been out for the count. But this could be the year Europe picks itself up and [starts swinging again](. For one thing, its stocks are valued [much more attractively]( than their American counterparts, whose prices are sky-high by most metrics. And for another, US stock prices are at risk because of the looming threat of interest rate hikes. America’s stock market is far more dependent on [at-risk tech stocks](, after all. So that’s today’s Insight: why Europe might finally beat the reigning champ, and [how to invest in the region if you want to back the underdog](. [Read or listen to the Insight here]( SPONSORED BY ALTS Stocks are so last year Stocks are a great way to grow your money, it’s true. But they’re far from the only way. With [Alts’ one-of-a-kind newsletter](, you’ll discover a whole host of alternative investments that could help you hit the ground running in 2022. And when we say that it’s one of a kind, we mean it: Alts’ self-proclaimed investing geeks cover [video games](, [NFTs](, [sneakers](, [music rights]( – heck, even [islands](. And with stocks as dizzying as they are right now, this niche insight into [under-the-radar opportunities]( could be just the pep your portfolio needs. Start 2022 right: [discover Alts before everyone else does](. [Sign Up To Alts’ Newsletter]( Tough Crowd [Tough Crowd] What’s Going On Here? JPMorgan [reported]( better-than-expected earnings on Friday, so what’s a US investment bank got to do to get a positive reaction around here? What Does This Mean? There were deals akimbo last quarter, and JPMorgan’s investment banking division – which advises on [mergers and acquisitions]( and charges fees for the privilege – duly saw its revenue climb by a better-than-expected 28% last quarter compared to the same time in 2020. The bank added $1.8 billion in loan loss reserves to its bottom line too – that is, cash it had put aside during the pandemic in case customers couldn’t cover their debts. All in all, JPMorgan’s profit topped expectations last quarter, helping take 2021’s full-year profit to a record high ([tweet this](). And yet. Investors still sent the investment bank’s stock down 3% after the announcement, probably because the results beat expectations by the smallest margin in seven quarters. In fact, JPMorgan would’ve missed estimates altogether if not for the release of that $1.8 billion – and any leftover loan loss reserves won't last forever… Why Should I Care? The bigger picture: Let earnings season begin. JPMorgan wasn’t the only banking giant to provide an update on Friday: Wells Fargo and Citi also reported better-than-expected results, if for very different reasons. The dealmaking frenzy helped [drive]( revenue from Citi’s investment banking segment 43% higher than the same time last year, while [rising]( demand for loans saw Wells Fargo lend 5% more cash to customers in the second half of the year. For markets: Start as you mean to go on. JPMorgan’s lukewarm reception wasn’t a surprise: investors have daft expectations of banks right now, given that this year’s all-but-inevitable interest rate hikes will allow them to make more on the loans they offer. Such is why an index tracking US bank stocks [jumped]( more than 10% last week – its best start to a year on record. So consider this a warning shot: investors aren’t going to be forgiving of less-than-stellar results from finance’s heavy-hitters. You might also like: [How to turn banks’ earnings updates into a profit.]( 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=Tough Crowd&utm_campaign=daily-global-17-01-2022&utm_source=email) 💬 Quote of the day “Be of love a little more careful than of anything.” – ee cummings (an American poet, painter, and playwright) [Tweet this]( SPONSORED BY CROWDSTREET Your entry to commercial real estate If you want to get into commercial real estate, [Crowdstreet]( is a great place to start. It’s the industry’s leading online [real estate investing platform](, and for good reason. Crowdstreet has all the credentials you’d want in a platform: $2.8 billion worth of investment, [$415 million worth of returns](, over 580 deals struck, and seven years in business. And those deals have been [spread across 250 cities in 39 states](, covering every major commercial asset class and then some. Get started today: [create a free Crowdstreet account](. [Learn More]( This content was written by Finimize, a paid partner of CrowdStreet, Inc. (“CrowdStreet”) and has been prepared solely for informational purposes. When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar - No more awkward taxi driver chat. Not in [China](, anyway. - Take Europe by storm. [EstateGuru]( lets you invest in the region’s real estate for as little as €50 – and its investors have already made over [€36 million](.* - The worst room in London. At least it comes at a… well, [pretty steep price](. - Gas, snacks, and… antidepressants. They’re the [roadtrip essentials](, apparently. - We’re all out of gossip. Covid stole our [secrets](. When you support our sponsors, you support us. Thanks for that. 🌎 Finimize Live 🤨 Calling all eco-not-so-warriors Do you buy mini bottles of water, but also recycle them? Saving up for a Tesla, but driving a gas guzzler? Trying to help the environment, but also keen to make money? You might be onto something: our [How To Invest In The Energy Transition]( event is on soon. Come along to find out if you can invest in fossil fuels while still staying ethical. 🇨🇳 [Three Things To Know About China’s Economy In 2022](: 5pm UK time, January 18th 🏡 [An Alternative Way To Invest In Real Estate](: 5pm UK time, January 19th 📲 [Investing In DAOs](: 5pm UK time, January 25th ⚡️ [How To Invest In The Energy Transition](: 6pm UK time, January 26th 🎟 [How NFTs Will Transform The Future Of Events](: 5pm UK time, January 27th 🔥 [Your Guide To New Investing Opportunities](: 6pm UK time, January 28th 🚀 [Will The Future Be Tokenized?](: 6pm UK time, January 31st 💸 [How To Earn A Passive Income From Franchise Investing](: 6pm UK time, February 1st ❤️ Share with a friend Your Referrals: 0 Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag. Share your unique link: [ You stay classy, {NAME} 😉 We’d love to hear your thoughts. 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