💪 Goldman showed the rest up

Big banks delivered a big bang | But Deliveroo didn't deliver much | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for July 19th in 3:11 minutes. ❄️ Iceland isn’t actually that icy, Greenland isn’t really that green, and – believe it or not – Stablecoins might not be that stable. So join Dustin Teander for [Navigating The World Of Stablecoins]( on Wednesday, and find out what to really expect on your next big trip to crypto-land. [Grab your free ticket]( Today's big stories - Goldman Sachs and Bank of America reported strong quarterly results - Investors are worried that a recession is imminent, so Goldman Sachs has predicted what that could mean for stocks – [Read Now]( - Deliveroo gave a completely unappetizing trading update Best For Last [Best For Last] What’s Going On Here? [Goldman Sachs]( and [Bank of America (BofA)]( reported strong quarterly results on Monday. What Does This Mean? Goldman and BofA were the last of the six big US banks to report results this earnings season, and they’ve rounded us off in style. Let’s get the bad news out of the way first: both Goldman and BofA reported drops – 41% and 47% respectively – in their investment banking revenue compared to last year, mainly because dealmaking took a plunge and fewer companies used their services to issue new stock or raise more debt. Then there’s the good news: Goldman’s bond traders made around $700 million more than analysts expected, helping the bank report a 32% surge in trading revenue after volatile markets “significantly” increased commodity and currency trading volumes too. BofA, meanwhile, saw its [net interest income]( – a key source of revenue – grow by 22% thanks to higher interest rates. So while both banks saw their overall revenue drop, they still came in above analyst expectations. Why Should I Care? For markets: Brace yourselves. Those results might’ve pacified investors for now, but the wider banking sector might have trouble coming its way. For one, bank executives [predict]( borrowing will fall as higher rates put off customers from taking out new loans. And for another, banks are expected to put more cash reserves together in case a recession prevents hard-up borrowers from repaying their debts. That, then, might be why a [key index]( tracking some of the US’s biggest banks has fallen more than the S&P 500 this year. Zooming out: Home-owning sucks. Rising interest rates are already hurting the housing industry: data out on Monday [showed]( that US homebuilder confidence fell to its lowest level in two years in July, after suffering its biggest monthly drop since April 2020. You can hardly blame them for feeling down: rising material prices and borrowing rates have pushed the cost of building a house higher than its sale value in some cases. You might also like: [How to forecast the markets better than Wall Street’s been doing.]( 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=Best For Last&utm_campaign=daily-global-19-07-2022&utm_source=email) Analyst Take Just How Bad Are Things Going To Get? [Just How Bad Are Things Going To Get?]( [Photo of Carl Hazeley] Carl Hazeley, Analyst So far, not so good. [US inflation]( has risen above economists’ expectations, and investors are worried that the Federal Reserve will take [drastic measures](. After all, massive interest rate hikes could [tip the economy into a recession](. But since that is a real possibility, it’s worth exploring how a turn for the worst would impact [US companies](, and, in turn, [their stocks.]( So that’s today’s Insight: [how bad could things really get, and what that means for US stocks](. [Read or listen to the Insight here]( SPONSORED BY YONDER Aren’t vacations meant to be relaxing? The trip you’ve been waiting for should start with a cocktail at the pool, not a delay in the airport. But since holidaymakers are contending with everything from canceled flights to lost luggage at the moment, you’ll want to [make sure you’re covered]( for the worst-case scenario. You can get [worldwide travel protection]( for your family with [Yonder](, which covers you for flight cancellations, delays, and medical expenses – with [no excesses]( when you claim, either. Your [Yonder credit card]( will also get you some hand-picked rewards, purchase protection, [Mastercard Priceless benefits](, and 24/7 customer support. Oh, and no foreign exchange fees. [Get your first 3 months free and a £50 bonus experience if you apply today](. [Find Out More]( Approval is subject to eligibility. Over 18 & UK residents only. Membership fee applies. Borrow responsibly. T&Cs apply. Rep 59.3% APR var. Under-Deliveroo [Under-Deliveroo] What’s Going On Here? British-based delivery company Deliveroo [gave]( a disappointing trading update on Monday. What Does This Mean? Food delivery companies are in a tough spot: cash-strapped customers are shunning increasingly expensive takeouts, and those that do want restaurant-quality food are more likely to leave the house now that lockdowns are a distant memory. In fact, Deliveroo reported that its customers spent a measly 2% more on its platform last quarter versus the same time last year – a massive slowdown from the 12% increase it saw the quarter before. That’s unlikely to pick up anytime soon, since consumer confidence is only going in one direction as would-be customers get more worried about rising costs. Maybe that’s why Deliveroo cut its full-year transaction growth outlook from 15-25% to just 4-12%, following in the footsteps of rival Just Eat which slashed its own outlook in April. Why Should I Care? For markets: Deliveroo’s cost-cutting. Food delivery companies burn a lot of money in hopes of growing quickly, and lately investors have been more taken by businesses that actually turn a profit. That’s slashed Deliveroo’s share price by 60% this year, meaning it’s now down by around 75% from when the company first went public in 2021. But Deliveroo has a plan to win investors over: it’s confident that tighter cost-controls will help it adapt to the changing economy, and even thinks it could break even in the next two years as its marketing costs eat up less cash ([tweet this](). The bigger picture: Do you want an ad with that? Deliveroo also has another revenue stream up its blue, waterproof sleeve: it [started]( selling advertising slots on its website and app this month, so – shock horror – you might see adverts for your nearest 24/7 gym the next time you order pizza. Mind you, it’s not the first to make the move: rivals Jokr and Delivery Hero have been supplementing their main businesses with ad revenue for a while now. You might also like: [Is Deliveroo a bargain 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=Under-Deliveroo&utm_campaign=daily-global-19-07-2022&utm_source=email) 💬 Quote of the day “Every day brings new choices.” – Martha Beck (an American author) [Tweet this]( SPONSORED BY HEDGEHOG Real-world investments made easy Commercial real estate can be a savvy buy, but it could cost you millions of dollars. [Hedgehog]( is lowering the barrier to gaining investment exposure to commercial real estate – from large sums of upfront capital to managing tenant demands – by [tokenizing $1.5 billion of future investment opportunities via its investment funds]( for eligible investors. So now you can get portfolio exposure to commercial real assets – alongside the asset owners – by simply [buying a token](. And thanks to [Hedgehog’s nifty app](, you’ll be able to browse opportunities that provide exposure to assets such as [industrial real estate]( to [renewable energy infrastructure]( straight from your mobile phone. Who said real estate had to be complicated? [Make it simple with Hedgehog](. [Check It Out]( Capital at risk. The value of your investments may go down as well as up, so you could get less than you originally invested. Investments are not protected by the UK Financial Services Compensation Scheme (FSCS) This information is being distributed in the UK and US by Hedgehog Invest Limited, a limited company registered in England and Wales (company number 13336465) whose registered office is at 167-169 Great Portland Street, 5th Floor Great Portland Street, London W1W 5PF, United Kingdom (“Hedgehog UK”). Hedgehog UK is an appointed representative (firm reference number 961050) of MJ Hudson Advisers Limited, which is authorised and regulated in the UK by the Financial Conduct Authority (firm reference number 692447). In Switzerland, this information is being distributed by Hedgehog Manager LLC, a Delaware registered company. Only qualified investors in the UK, US and Switzerland are eligible. When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar - Bruce Willis broke his promise. Everyone’s [very excited about it](. - Get £50 cashback just for investing. Simply register and invest £50 [with Wealthify]( before 31st July. *Capital at risk. T&Cs apply.* -  There’s one thing fueling Alaska. Let’s hear it for [pilot bread](. - Beer, wine, liquor. If that’s your order, [you’re doing it all wrong](. - Is pork really the other white meat? More importantly, [does it even matter](? When you support our sponsors, you support us. Thanks for that. 🌎 Finimize Live 🎉 Coming Up This Week… All events in UK time. 🌍 [Blockchain, Crypto, and ESG](: 5pm, July 19th 👀 [Your Guide To Earnings Season](: 3pm, July 20th 🎉 [Navigating The World Of Stablecoins](: 6pm, July 20th 🔥 [How To Use Machine Learning For Trading](: 12pm, July 21st 🥳 And After That… 🍷 [Is Wine The Perfect Recession-Proof Investment?](: 1pm, July 27th ♻️ [Building A Crypto ESG Framework](: 6pm, August 2nd 📈 [A Case For DAO Treasury Diversification](: 6pm, August 9th 💻 [How To Spot The Best Tech Stocks](: 6pm, August 16th ❤️ 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. Share your unique link: [ 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: Shutterstock | Hadrian - Shutterstock Preferences: [Update your email]( or [change preferences]( [View in browser]( [Unsubscribe]( from all Finimize Emails 😴 Crafted by Finimize Ltd. | Bow Bells House, Bread Street, London, EC4M 9HH 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](