A major airline group just made a profit â finally | Brits might be better off renting for now | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for February 27th in 3:14 minutes. ð¶ If variety is the spice of life, then diversification is the relish of investing. So join portfolio manager Frank Grinnell for [How To Pick Winning Exchange-Traded Funds]( on March 7th, and find out how to bulk up your portfolio â without the bitter aftertaste. [Get your free ticket]( Today's big stories - British Airways-owner IAG made a profit last year for the first time since the pandemic
- Chipotleâs futuristic menu comes with a dollop of artificial intelligence â [Read Now](
- Fired-up mortgage costs have made it cheaper to rent than buy in the UK New Heights [New Heights] Whatâs Going On Here? IAG [reported]( on Friday that it finally made a profit last year, but the airline groupâs other announcement kept investors grounded. What Does This Mean? If youâve ever scanned for European flights while dreaming of a prosecco-filled summer vacation, youâll probably recognize some of IAGâs carriers: British Airways, Iberia, and Vueling. Well, IAGâs been flying against a headwind for some time, racking up more than $10 billion in pandemic-induced losses. But now travel-hungry freedom-seekers are booking flights like theyâre going out of style, and more business travelers are swapping their shirt-on-top, underpants-on-the-bottom Zoom meeting setups for boardrooms around the globe. IAG, then, made a profit last year after two dismal ones â and with the airline group expecting a full return to pre-pandemic capacity by the end of the year, IAG reckons its profit could almost double in 2023. Why Should I Care? For markets: Own the Spanish sky.
 IAG had another announcement: itâs buying up the rest of Spanish airline Air Europa, picking up the deal that was scuppered by the pandemic back in 2020. Now, that might sound like a prime opportunity to nab more market share in the region, but investors arenât fully sold. See, analysts reckon IAGâs massive debt pile has been weighing on the firmâs share price, and this deal will only make the dent bigger. That might be why IAGâs stock fell on Friday, despite the tip-top results. The bigger picture: Prepare for a slow ascent.
Mind you, IAGâs tale is hardly an original story: the airline industry [took]( a collective blow of $200 billion in losses over the last three years, but planes all over the world are finally taking off from the tarmac. Itâll take a long time to erase the past, though: the International Air Transport Association predicts carriers will make just shy of $5 billion in profit this year, a mere fraction of the more than $26 billion they made in the heady days of 2019. You might also like: [The highs and lows of investing in the airline industry.]( Copy to share story: [( ð [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=New Heights&utm_campaign=daily-global-27-02-2023&utm_source=email) Analyst Take
This Spicy Little Stockâs Got A Recipe For Growth [This Spicy Little Stockâs Got A Recipe For Growth]( By Paul Allison, Analyst Youâve probably stood in line [waiting for a burrito at Chipotle](, and maybe you spent the time deciding if extra guac is worth it. Or maybe youâve tried to figure out how many orders the store fills in a day, what the ingredients cost, and how much employees earn. A bit of mental arithmetic and youâve figured out [the firmâs profit margins](, a vital part of understanding [Chipotleâs business model](. And with the chainâs record of innovation and its plans for an [artificial intelligence and robotics-driven future](, that could be an appetizing prospect. Thatâs todayâs insight: [a deep dive into Chipotleâs stock.]( [Read or listen to the Insight here]( SPONSORED BY IG Springâs come early for the UK Itâs been a long olâ winter, but there are finally [signs of spring]( in the UK. And weâre not just talking about the weather: the countryâs chaotic mini-budget era seems like a hazy memory, and there finally seems to be [a sense of blossoming calm](. Investors certainly seem a bit more upbeat: the UKâs key stock index â [the FTSE 100]( â just keeps setting [fresh record highs](, and even crept above the symbolic 8,000-point barrier. Mind you, thereâs no guarantee that the countryâs back on its feet â and as always, [some investments are more likely to hold up]( over time than others. Handy timing, then, that [IG has released its top FTSE 100 stock picks for this March](. [Find Out More]( Your capital is at risk. The value of shares, ETFs and ETCs can fall as well as rise, which could mean getting back less than you originally put in. Lease Please [Lease Please] Whatâs Going On Here? Data out on Friday showed itâs now cheaper to rent a home than own one in the UK. What Does This Mean? Thereâs a reason folk scrimp and save for years to buy a home, besides the freedom to paint the walls without agitating a grumpy landlord. For over a decade, reports have shown that owning a home is cheaper than renting for Brits. But that changed last year: the Bank of England started hiking interest rates in a bid to tame rampant inflation, pulling mortgage rates up from the 1% they averaged over the past few years to over 6%. That means the interest component of mortgage payments has doubled in the last couple of years. That matters: according to Capital Economicsâs analysis, the average mortgage payment has hit £1,000 ($1,200) for the first time, making renting the cheaper alternative to taking out a new mortgage. That hasnât been the case for 14 years, and the same analysis suggests Brits will be better off renting until the second half of 2024. Why Should I Care? The bigger picture: Thereâs the rock, and thereâs the hard place.
Renting might be the cheaper option, but itâs certainly not cheap. Those ramped-up mortgage payments are forcing would-be buyers to rent for longer, and thatâs lighting up rental prices too. And because savers are struggling to reach ever-increasing lending requirements, mortgage approvals have slowed to their lowest level since the first Covid lockdown. House prices have dropped off too, with Oxford Economics predicting they could end up as much as 15% lower than last yearâs peak. Zooming out: Hard as nails.
Brits sure are resilient: data out on Friday [showed]( UK household confidence rebounded by the most in almost two years this February, indicating more optimism about their finances and the economy as a whole. But with plenty of predictions that the countryâs economy is headed for one of the longest slumps on record, that hardy disposition will really be tested. You might also like: [We might be headed for a housing market crash.]( Copy to share story: [( ð [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=Lease Please&utm_campaign=daily-global-27-02-2023&utm_source=email) ð¬ Quote of the day âI would never die for my beliefs because I might be wrong.â â Bertrand Russell (a British mathematician, philosopher, and logician) [Tweet this]( Meet your future community Letâs face it, even the best brands need a little push to [reach the right audience](. Our [one-million-strong community of modern investors]( is clever, clued-in, and keen to learn. In short, theyâre exactly the type of folk you want to reach. So whether youâre an established brand, scaleup, or startup, [our promotional campaigns]( can help you reach the right audience at the right time. Your tailored campaign will make the most of all the Finimize channels, including live events and Summit showcases, social media blasts, and curated newsletter placements â [yup, right here](. [Introduce yourself to your future community with Finimize](. [Get In Touch]( ð Finimize Live 𥳠Coming Up Soon⦠All events in UK time. ð¸ [How To Pick Winning Exchange-Traded Funds](: 5pm, March 7th
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