🤨 This recession might be different

[Finimize]( Hi {NAME}, here's what you need to know for August 22nd in 3:10 minutes. 🔊 Hear, hear! You told us you wanted the chance to win a pair of AirPods Max, so here it is: [refer just three friends]( and you could enjoy your summer playlist that little bit extra this month. [Find out more here](, just make sure you visit the link from a mobile device. Today's big stories - Farmers need Deere, but Deere needs lower production costs - There are five ways this recession differs from the others, which means you might want to take a different approach – [Read Now]( - UK retail sales were deceptively good in July Deerely Departed, We Are Gathered Here Today… [Deerely Departed, We Are Gathered Here Today…] What’s Going On Here? Deere & Co. – the world’s biggest agricultural equipment maker – gave a disappointing quarterly results update on Friday. What Does This Mean? Crop prices have been booming in the first half of the year, with corn and soybeans hitting 10-year highs and leaving farmers flush with cash. And what else would they spend it on but Deere’s machinery, which – along with higher prices – helped push up the company’s sales by a better-than-expected 22% last quarter from the same time in 2021. That’s all well and good, but it still wasn’t enough to offset the higher prices of raw materials and parts, which drove up costs and dragged down profit. In fact, Deere cut its profit outlook for the rest of the year, warning that these issues aren’t going anywhere soon. The firm reaped what it sowed: investors sent its shares down 7%. Why Should I Care? The bigger picture: It’s a good day for America. Deere is worth watching because it’s an economic bellwether, meaning its performance gives an insight into the wider US economy. So the fact that it said it was feeling upbeat about demand in its next financial year – largely thanks to the popularity of its early-order program – could be a sign that things aren’t as bad as they seem. Add in the recent [demand]( for US oil and [encouraging]( retail sales, and some economists think the country might be set to escape its “technical recession” – that is, two consecutive quarters or more of economic shrinkage – this quarter. Zooming out: Ukraine keeps feeding the world. One of the main reasons crop prices are so high is because the Russian invasion interrupted shipments out of Ukraine, one of the world’s so-called “breadbaskets”. But things are gradually getting back up and running: more than 500,000 tons of crops were [shipped]( out of the country in the first half of the month, which is already helping push down global food prices. You might also like: [What Goldman’s recession manual is telling us about this one.]( 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=Deerely Departed, We Are Gathered Here Today…&utm_campaign=daily-global-22-08-2022&utm_source=email) Analyst Take Why This Recession Is Different [Why This Recession Is Different]( [Photo of Reda Farran] Reda Farran, Analyst The US is in a technical recession, even if the world’s biggest economy is holding out on making it official. But if this one feels very different from the one in the wake of the global financial crisis, you’re not wrong. [Inflation](, for one, is much, much higher now than it was back then, while [unemployment]( is remarkably low. So that’s today’s Insight: five ways this recession is different, and [how that should influence your investments](. [Read or listen to the Insight here]( 🤝 Work with us If your business shares our goal of changing the world of finance for the better, there’s no better place to showcase your mojo than this [spot in our daily newsletter](. You’ll get your message out to more than [one million engaged investors](, and speak directly to the very people who can help [take your business to the next level](. Interested? [Just drop us a line](. [Work With Us]( Don’t Be Fooled By UK Retail Sales [Don’t Be Fooled By UK Retail Sales] What’s Going On Here? Data out on Friday [showed]( that UK retail sales unexpectedly climbed last month. What Does This Mean? Amazon Prime Day has so much clout in the UK these days that there were 4.8% more online sales in July than there were in June, with shoppers grabbing nice-to-haves on the cheap while they had the chance. That uptick helped lift retail sales by 0.3% over the same period, even as economists had expected them to drop off. But that obscures the rest of the story, with sales of clothing, household goods, and fuel all on the decline. Strip out online sales, in fact, and there were 3.4% fewer retail sales than the same time last year. More interestingly still, the value of those sales was up 7.8%, which goes to show that Brits are buying far less for far more… ([tweet this]() Why Should I Care? Zooming in: The UK is circling the drain. It stands to reason that data out on Friday also showed UK consumer confidence fell to a record low in August, which could cause retail sales to slump more going forward. Brits’ outlook for the next year of their personal finances, meanwhile, is now even bleaker than it was during the financial crisis. This caps off a week of [mounting]( [evidence]( that the UK economy is hurtling toward a recession, even if it might suggest that the Bank of England’s anti-inflation efforts are starting to work. For you personally: Your next steps. There are a few things you can do to [navigate]( this situation. If you can pay off more of your debt sooner, do: interest rates are bound to rise even more as the Bank of England keeps trying to get a handle on inflation. Likewise, if you’re due to remortgage, try to fast-track the process before lenders raise mortgage rates. And if you’re investing, diversify your portfolio so that any losses from one asset could be balanced out by gains in another. You might also like: [How to build a truly diverse portfolio.]( 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=Don’t Be Fooled By UK Retail Sales&utm_campaign=daily-global-22-08-2022&utm_source=email) 💬 Quote of the day “If you want others to be happy, practice compassion. 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