🚗 Auto extinction

Xpeng faced a crash | British inflation is back in single digits | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for May 25th in 3:15 minutes. 😎 Old-school retail trading’s fine and dandy – but prop trading just might, ahem, prop up your portfolio. So join The Trading Pit’s Christoph Radecker and Illimar Mattus for [A Guide to Prop Trading]( this Thursday, May 25th, and find out what sets this approach apart. [Get your free ticket]( Today's big stories - Xpeng, the Chinese carmaker, posted disastrous results – and they don’t bode well for its future - Warren Buffett may have found the next bull market (and it’s not in the US) – [Read Now]( - UK inflation is getting used to singledom again, after finally returning to single digits Xpain [Xpain] What’s going on here? Chinese EV upstart Xpeng is [looking]( sore and sorry, after results that seem more like a shock to the system than a power surge. What does this mean? The EV industry is more crowded than a California freeway during rush hour, with established brands and ambitious startups all trying to outpace each other. And while BYD is cruising in the fast lane, Xpeng is experiencing some serious engine trouble. That hasn’t been helped by Tesla’s aggressive price slashing either, which keeps luring away potential customers. The numbers showed the full damage: Xpeng’s deliveries last quarter were about half of those notched up at the same time last year – meaning both revenue and profit missed expectations by miles. Rubbing salt in that wound, Xpeng’s forecast for this quarter predicted a grim 40% drop in deliveries. So while the company said it’s rejigging its structure to boost growth, the reaction of investors was icy, and its shares dropped 11%. Why should I care? Zooming in: Xtinction event. The firm once said it sees the global car industry shrinking to just ten big players over the next ten years – so if Xpeng doesn’t want to be Xpunged, it’s going to have a lot of work to do. In a nutshell, the company thinks Chinese carmakers need to sell about three million cars a year, and export a good chunk globally, to survive. That’s got it counting on its upcoming SUV launch to kickstart sales and rejuvenate its brand image. Great Xpectations, but let’s see if Xpeng actually delivers. The bigger picture: Park those hopes. China’s revving up to overtake Japan as the world’s top car exporter. But while Xpeng is steering towards Europe this year, US plans are parked for now due to frosty US-China relations. You can bet it’s not the only Chinese firm thinking that way either – and that could leave American drivers missing out on broader choices and potentially lower prices. You might also like: [What investors are getting wrong about the EV market right now.]( Copy to share story: [/xpain]( 🙋 [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=Xpain&utm_campaign=daily-global-25-05-2023&utm_source=email) Analyst Take Warren Buffett Loves Japan. Your Portfolio Might Love It Too. [Warren Buffett Loves Japan. Your Portfolio Might Love It Too.]( [Photo of Stéphane Renevier] Stéphane Renevier, Analyst [Warren Buffett’s big bets]( tend not to stay quiet for long, like the fact that Berkshire Hathaway now has more exposure to Japan than any country other than the US. That wager – staked on the expectation that Japanese stocks might [finally be entering a new chapter]( – is helping to drive Tokyo’s stock market straight into investor focus, catapulting it to highs not seen since July of 1990. And this [could be just the dawn](: they don’t call it the Land Of The Rising Sun for nothing. So that’s today’s Insight: [why Japan’s stocks might (finally) be worth a look.]( [Read or listen to the Insight here]( SPONSORED BY RAISIN You could cut the uncertainty in the air with a knife And in an environment like that, a bit of peace of mind sounds more appealing than ever. That’s why [Raisin UK]( – the platform where you can [hold multiple savings accounts]( under one roof – is offering [FSCS-protected returns of up to 4.6%](. You can [pick from a batch of easy-access savings accounts](. And what’s more, notice and fixed-term products that start from just [three months]( can give you all the flexibility you need. That gives you faster access to your money – and to [Raisin’s multiple savings offers]( – on your terms. You can find out more about [fixed returns with Raisin UK](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Lying Low [Lying Low] What’s going on here? Data out on Wednesday [showed]( that UK inflation shrank into the shadows last month – but that doesn't mean it's gone away. What does this mean? The price of goods and services in the UK rose only 8.7% in April versus the same time last year – the first time the inflation monster has been tamed into single digits in eight months. But that dropoff – down from 10.1% in March – doesn’t mean the price-hike beast has lost its claws. See, the cooldown wasn’t quite as chill as the Bank of England (BoE) expected, and while energy prices let up, the cost of groceries clung on near a 45-year peak. Plus, core inflation (which strips out volatile factors like food and energy) leaped from 6.2% in March to 6.8% last month – scary enough to sustain Brits' heebie-jeebies. Why should I care? For markets: Hiking higher. The BoE has already said that it’ll only ease up on interest rate hikes when there are clear signs of ebbing inflation, and “clear” this mixed bag is decidedly not. With the country’s inflation still outpacing its major peers (like the eurozone’s 7% and 4.9% in the US), the BoE will be keen to nip this in the bud with even more rate hikes. That means economists’ Magic 8 Balls are saying “Without a doubt” to another hike – and traders are betting rate increases will total nearly a full extra percentage point by the end of the year. The bigger picture: Staying the course. The IMF might’ve tipped the UK to sidestep a recession and outpace Germany’s growth this year, but Wednesday’s data shows the fight against inflation is still raging. And sure, that’s in line with the IMF’s warnings that more hikes could be called for – but to make good on the organization’s other predictions, the BoE and the British government can’t let off the gas anytime soon. You might also like: [Morgan Stanley says the UK could deliver a huge surprise in 2023.]( Copy to share story: [/lying-low]( 🙋 [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=Lying Low&utm_campaign=daily-global-25-05-2023&utm_source=email) 💬 Quote of the day "The trouble with being punctual is that nobody's there to appreciate it." – Franklin P. Jones (an American columnist) [Tweet this]( SPONSORED BY RAISIN Discover and open savings accounts paying market-leading interest, all in one platform If you’re putting your cash away instead of investing or spending it, you’ll want it to [get to work](. And now it’s easier than ever to compare [different accounts with varying perks](: Raisin UK’s a one-stop shop for savings accounts, with many offering [interest rates up to 4.95% that could suit your timelines](. You’ll find a variety of [deposit-protected accounts,]( many of which are offering products [exclusively available at Raisin UK](. So if you want to discover plenty of [market-leading savings accounts and manage them in one place](, you can do it all with [Raisin](. [Discover More]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🥳 Coming Up In The Next Week... All events in UK time. 🚀 [A Guide To Prop Trading](: 5pm, May 25th 3️⃣ [Three Reasons To Invest In Crypto Right Now](: 5pm, 30th May 👀 And After That... 💥 [A Guide To Impact Investing 2.0](: 1pm, June 1st 🌎 [The ESG Revolution: Investing with Purpose](: 6pm, June 8th 🙋‍♀️ [Finimize Ladies Investing Club](: 6.30pm, July 13th 🎉 [Modern Investor Summit 2023](: 12pm, December 5th and 6th 🎯 On Our Radar 1. Breaking down the 4HL. Most of us are stuck in the so-called “[four-hour life](”. 2. This trick is free. And it can make your wine taste [way, way better](. 3. So long, “Carolina squat”. This [eye-catching auto look]( has been banned in its home state. 4. The Chinese dream’s in trouble. And that’s especially true for [penniless twenty-somethings](. 5. The great TV show purge. [Disney+ and Hulu]( are set to scrap over two dozen shows. ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. 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: gualtiero boffi shutterstock | Midjourney Preferences: [Update your email]( or [change preferences]( [View in browser]( [Unsubscribe]( from all Finimize Emails 😴 Crafted by Finimize Ltd. | 280 Bishopsgate, London, EC2M 4AG All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. 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