🥵 Inflation wouldn't budge

UK inflation refused to cool in May | Tesla's European sales swelled, but at a cost | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for June 22nd in 3:11 minutes. 🎧 Investing well takes pure, undiluted focus – and a [free pair of AirPods Pro]( could help you tune out any unwelcome distractions. To be in with a chance of [winning them]( just let us know how you’re feeling about investing at the moment. [Go on – share your expertise]( Today's big stories - Stubborn UK inflation refused to budge last month, coming in above expectations for the fourth straight month - Here’s what all the AI razzmatazz means for your long-term portfolio – [Read Now]( - European car sales hit the gas in May, propelled by accelerating EV demand Can’t Buy Me… Anything [Can’t Buy Me… Anything] What’s going on here? UK inflation was [out]( of tune with expectations for the fourth month in a row. What does this mean? Economists predicted inflation to drop to 8.4% in May, but it seems price increases ignored the memo last month, holding steady at 8.7% instead. That overshoot marks the fourth month on the trot that inflation has outpaced the pundits. And the main culprits? Used car prices, airline tickets, and the swelling cost of recreation and culture. That’s left Britain as an outlier among major economies, with consumer prices rising at a pace that’s more than four times the central bank’s 2% target. And it gets worse: core inflation, which excludes volatile food and energy prices, decided to join the fray, accelerating to a 30-year high of 7.1% – up from 6.8% the previous month. That left economists, who’d expected core inflation to sit pretty, with some serious egg on their faces. Why should I care? The bigger picture: Ticket to hike. This spicy inflation data has got traders betting that the Bank of England will push interest rates to a peak of around 6% by early next year. But that strategy could be a double-edged sword, potentially causing the economy to stumble too. After all, a recent Bloomberg analysis suggests that pushing rates that high could cause the British economy to shrink by about 0.3% this year – and by a whole 1.4% in 2024. Zooming out: The taxman. A separate report dropped another bombshell on Wednesday: the UK’s government debt has [climbed]( above the size of its economy for the first time since 1961, after public borrowing doubled in May. And with the economy potentially shrinking, that debt ratio could run further into the red. All that borrowing doesn’t just weigh on public finances: it’ll also tie the government’s hands, making it harder to cut taxes or rev up the economy with stimulus. You might also like: [Avoid being like the UK government and manage your debts sensibly.]( Copy to share story: [/cant-buy-me-anything]( 🙋 [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=Can’t Buy Me… Anything&utm_campaign=daily-global-22-06-2023&utm_source=email) Analyst Take Raise A Glass To AI: Here’s What It Could Mean For Your Long-Term Returns [Raise A Glass To AI: Here’s What It Could Mean For Your Long-Term Returns]( [Photo of Stéphane Renevier] Stéphane Renevier, Analyst AI has been the [toast of the town]( all year, and driving a sparkling rally for the S&P 500. But you’d be forgiven for worrying that [this intoxicating effect]( might soon lose its fizz. In fact, it’s exactly why I’ve taken a closer look at what this technological revolution could mean [for stock returns]( – and what the hangover from all the current hype could be like. That’s today’s Insight: [what AI could mean for your long-term stock returns.]( [Read or listen to the Insight here]( SPONSORED BY FENNEL No more gatekeeping: find the stocks leading world-changing innovation Savvy eco-friendly investors will want to assess a firm’s impact on the world before investing. And [Fennel]( is making the process totally transparent: you’ll be able to [dig into companies on the mobile investing app](, and uncover the impact – good or bad – that they might have on the world. No matter if you’re looking at a single stock, entire portfolio, watchlist, or exchange-traded fund (ETF), you’ll [unlock easy-to-digest ESG data]( as well as past and future shareholder votes. That means you can find out stats like a company’s [average carbon footprint]( or tidbits like a firm’s customer privacy policies, and use that to assess your overall portfolio. Hey, you might even [uncover the companies that look set to take over in the future](. So if you want to help the world and your wallet, you can discover the [power of conscious investing with Fennel]( for a flat $4.99 a month – you can even [get your first month free](. DisclaimerRisk of loss when Investing/Trading securities is substantial. Consider your investment objectives, financial situation, risk tolerance, and investment experience before transacting. Services offered by Fennel Financials LLC, member of FINRA and SIPC. Super empowered does not refer to app users gaining superpowers or other advantages with investing, we just feel we provide data on ESG, shareholder voting, and financial metrics that others don’t to assist Fennel users with making investment decisions. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Shut Up And Drive [Shut Up And Drive] What’s going on here? May was smoother than a limousine for the European auto industry, with car sales [speeding]( ahead. What does this mean? Nothing beats debuting a new ride in May, with the volume up, the windows down, and hayfever sneezes racking your body. That might be why car sales in Europe continued their upswing last month, rising for the tenth time in a row. Or maybe it had more to do with easing supply snags, which allowed carmakers to churn out even more vehicles. Either way, fears that the cost-of-living squeeze might make consumers cut back on big-ticket purchases seem to have been misplaced, with new car sales in Europe increasing by 18% in May from the same time last year. EVs led the charge with a 71% jump, boosted by government subsidies and juicy orders for corporate fleets. Why should I care? Zooming in: Full throttle, empty pockets. Tesla’s been making waves in the EV market, with European sales doubling in the first five months of the year. That’s mainly down to some aggressive price cuts – but there is a catch. See, while slashing prices [boosted]( revenue by 24% last quarter, it also nibbled away at profit margins, dragging some profitability measures down to multi-year lows. And that’s got investors wondering if Elon Musk’s long-term game plan – prioritizing market share over short-term profit – will eventually pay dividends. The bigger picture: Supercharger synergy. There’s a silver lining for Tesla investors: EV newcomer Rivian plans to [build]( Tesla’s EV charging ports into its future cars and tap into Tesla’s supercharger network of 12,000 fast-charging stations. That move follows Ford’s [recent]( sharing-is-caring deal with Tesla, sparking a [trend]( among North American EV makers and the companies that make charging tech. Those kinds of real-world, nuts-and-bolts charging considerations are key to broader EV adoption – and industry-wide standardization could make plug-in purchases a whole lot more tempting. You might also like: [Investing in the EV ecosystem.]( Copy to share story: [/shut-and-drive]( 🙋 [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=Shut Up And Drive&utm_campaign=daily-global-22-06-2023&utm_source=email) 💬 Quote of the day "Never go to a doctor whose office plants have died." – Erma Bombeck (an American humorist) [Tweet this]( SPONSORED BY IG An opportunity ripe for slurping up Commodities are seen as the dream partner of trading: stable and unflustered. And apparently, sometimes delicious. According to [IG](, one commodity that might be worth a peek over the next few months is [orange juice]( – yup, the stuff you had for breakfast. It’s all about supply: University of Florida research shows [the citrus industry brings in over $6 billion a year](, but extreme weather conditions have squeezed production in the US. But folks still want their [favorite morning drink]( (sorry, coffee), and governments are keen to get Vitamin C into the population. You know what that means: a high likelihood of [rising prices](. If you want to find out more about [investing in orange juice and which other commodities IG is eyeing up]( this quarter, [check out the report here](. Disclaimer 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🥳 Coming Up Soon... All events in UK time. 🔥 [Co-Trading: A New Way To Beat The Market](: 5pm, June 26th 🚀 [Your Guide To Investing With Artificial Intelligence](: 5pm, July 11th 🤖 [Artificial Intelligence & Crypto Investing](: 7pm, July 20th 🎉 [Modern Investor Summit 2023](: 12pm, December 5th and 6th 🎯 On Our Radar 1. Aldi’s ascendant. Wealthy shoppers have ditched their airs and graces, and they’re flocking to [budget retailers](. 2. Sealed with a kiss. Explore the link between [embarrassing PDA]( and happy relationships. 3. Splashing that cash. Folk are admitting to [spending big on restaurants]( for social media clout. 4. Whaling’s waning. Whale hunting could be [coming to an end]( in Iceland. 5. Thriving on the throne. Apparently a [common laxative]( can boost your mental performance. ❤️ 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? 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