💥 Bank of England breaks UK

Accenture's results impressed | The UK's rates kept on climbing | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for June 23rd in 3:13 minutes. ☕️ Finimized over a Turkish coffee at [Joy Art Cafe]( in Bodrum, Turkey (☀️ 33°C/91°F) Today's big stories - Tech consulting giant Accenture announced some unexpectedly sunny quarterly results, as it embarks on its AI revolution - Here’s why paying off all your debt could put the economy in trouble – [Read Now]( - The Bank of England raised interest rates, piling up the pressure on millions of homeowners AI-ccenture [AI-ccenture] What’s going on here? Accenture, the American tech consulting (and soon-to-be AI) behemoth, announced some unexpectedly strong quarterly earnings on Thursday. What does this mean? Accenture earns its crust by offering brains-for-hire to firms planning major system revamps, and over time it’s evolved into a top-tier adviser for cutting-edge tech endeavors. So with mega-trends like cloud computing still flying high, and corporate clients almost universally [gung ho]( about artificial intelligence, it wasn’t a total surprise that the firm’s quarterly revenue and profit swept past analysts’ forecasts. With just one quarter of its financial year left to go, then, Accenture was able to fine-tune its earnings prediction for the rest of the year, which wound up looking brighter than before. Why should I care? The bigger picture: Another AI play. Accenture [announced]( this month that it’ll invest $3 billion – roughly half of its cash reserves – in AI. So over the next three years, the company’s game plan is to recruit hotshots in the field and develop new solutions for clients. If that gambit works, Accenture’s “bookings” – a yardstick investors use to forecast future revenue – could get a serious lift from clients keen on its AI offerings. After all, there’s probably a serious high-tech skills war brewing right now: if Accenture can snag the top talent, it might become more of a money-making machine for shareholders. For markets: Remember the cost cycle, not just the revenue cycle. Investors are all abuzz about AI’s revenue potential, but they might be forgetting to take stock of the cost factor. Take Microsoft: it’s pegged as an AI victor, but it hasn’t detailed the capital costs its robo-jaunts involve (think servers and equipment). And Accenture? Well, despite being a low-capital-expenditure people business, its AI expansion could squeeze profit margins. So, while the attention-grabbing tech might be a revenue bonanza, remember: firms have to shell out on pickaxes before they can hope to strike gold. You might also like: [How to play the AI opportunity.]( Copy to share story: [/ai-ccenture]( 🙋 [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=AI-ccenture&utm_campaign=daily-global-23-06-2023&utm_source=email) Analyst Take The Very Real Threat Of A “Balance Sheet Recession” [The Very Real Threat Of A “Balance Sheet Recession”]( This week’s big concern is how [rising UK mortgages]( will eventually bite into consumer spending. And it's not a million miles away from the talk about a possible “balance sheet recession” taking shape in China. See, that’s the kind of recession that can happen when people and companies start to prioritize [paying off debt]( over spending or investing. And all that belt-tightening can spark [a broad economic slowdown](. That’s today’s Insight: [how to deal with the balance sheet recession risks brewing on the horizon](. [Read or listen to the Insight here]( SPONSORED BY COVEY Access the trades of the top 1% All the [best investment strategies]( are locked away in the minds of the world's very richest. Well, they used to be. But now, you can trade in line with the top 1% on the [Covey Legends app](. There, you’ll unlock entry to a [first-of-its-kind global investment community](, where analysts are transparently tracked and continuously ranked on the only metric that matters: [performance](. All so you can co-trade with [“The Legends” portfolio](: a round-up of the top 20 positions held by Covey’s top 1% of analysts. So far, so good: it’s [beaten the S&P 500 by 16%]( since January 2022. [Discover how the top 1% are investing with Covey](. DisclaimerAvailable to U.S. residents only. Covey Advisors LLC is an investment adviser registered with the Securities and Exchange Commission. Past performance is no guarantee of future results. The performance of the Covey Legends Portfolio shown is hypothetical and does not reflect trading in actual client accounts by Covey Advisors. Performance is from the inception of the portfolio, Jan 2, 2022, through June 9, 2023. See [coveylegends.io/disclosure]( for more. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Bang Of England [Bang Of England] What’s going on here? The Bank of England (BoE) announced a bigger-than-expected interest rate hike on Thursday, raining more pain onto Brits on the housing ladder. What does this mean? Fresh data out on Wednesday [showed]( that the UK’s “core inflation” (that’s the price of goods and services, minus roller-coaster sectors like food and energy) shot to 7.1% last month, the highest level in 30 years. So the BoE decided to try and slam on the brakes by cranking up the “base rate”, which sets the tone for the rest of the country’s interest rates, from 4.5% to 5%. That jump, to the highest level since 2008, was double what economists had expected. And the kicker: investors now reckon we’re heading for at least a 6% base rate by year’s end. With Bloomberg Economics saying a 6% interest rate would trigger a UK [recession](, the country looks caught between an economic rock and an inflationary hard place. Why should I care? For you personally: Hit after hit for homeowners. Around 40% of British [mortgage]( holders either have a variable interest rate, which will increase quickly with central bank rates, or a two-year fixed rate, which will jump up soon enough. Case in point: around 1.6 million fixed-rate mortgages due for an update in 2024, meaning these ever-climbing rates will see millions of Brits paying more every month – an unwelcome squeeze that’ll pinch cash-strapped households even tighter. For markets: No good deed will go unpunished. The UK government isn’t planning any extra help for mortgage holders just yet. But if things do get worse and it eventually steps in, it’ll likely lead to even more government borrowing, with high-interest-rate repayments weighing on the economy. The relief for households, meanwhile, could stoke the fires of inflation all over again, and push interest rates higher still. In short, any well-intended short-term relief could end up making the bigger picture look even grimmer. You might also like: [With interest rates so high, are you better off renting or buying a home right now?]( Copy to share story: [/breaking-bank-england-interest-rate-announcement]( 🙋 [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=Bang Of England&utm_campaign=daily-global-23-06-2023&utm_source=email) 💬 Quote of the day "I've learned that you can tell a lot about a person by the way (s)he handles these three things: a rainy day, lost luggage, and tangled Christmas tree lights." – Maya Angelou (an American poet, singer, memoirist, and civil rights activist) [Tweet this]( SPONSORED BY COVEY The portfolio that’s been beating the S&P 500 To be a great investor, you need a helluva lot of [time, skill, and expertise](. But for the average modern investor, busy with work, friends, and family commitments, studying the market in depth simply isn’t an accessible option. Now, though, you could benefit from [top analysts’ investment strategies]( without picking up a single workbook or watching a convoluted how-to YouTube video. See, the [Covey Legends app]( is bringing the [top 1%’s strategies out into the open](, making investing know-how more transparent than before with [The Legends portfolio](. If you want to explore co-trading, you could [invest with The Legends here](. DisclaimerAvailable to U.S. residents only. Covey Advisors LLC is an investment adviser registered with the Securities and Exchange Commission. Past performance is no guarantee of future results. The performance of the Covey Legends Portfolio shown is hypothetical and does not reflect trading in actual client accounts by Covey Advisors. Performance is from the inception of the portfolio, Jan 2, 2022, through June 9, 2023. See [coveylegends.io/disclosure]( for more. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🤔 Q&A · [RE: Shut Up And Drive]( "With electric vehicle sales growing so quickly, what’s going to happen to Tesla’s market share?” From Katherine in Malaga, Spain "Well, Katherine, if only we had a crystal ball! Predicting the future is always a bit of a gamble – but we can take a peek at some educated guesses. Bank of America, for instance, has done some number crunching. They reckon that Tesla’s slice of the EV pie in the US will shrink to 18% in 2026, down from 62% last year. But here's the twist: EVs are set to claim a bigger chunk of the overall car market. So, even with a smaller slice, Tesla’s share of the total car market could actually grow to 4.7% in 2026, up from 3.4% last year." [Finimize] 🙋 [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=I have a question Finimize!&utm_campaign=daily-global-23-06-2023&utm_source=email) 🌍 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. Battle of the billionaires. Elon Musk and Mark Zuckerberg have agreed to face off in [a cage fight](. 2. Orca attacks might be spreading. A boat’s been rammed [off the UK]( now too. 3. A $64,000 gaming bill. This is why you should be wary of kids using [paid mobile games](. 4. Wolverine returns. The ferocious animal was [spotted in California]( for only the second time in a century. 5. Skip those pointless meetings. Here are [five easy ways]( to avoid time-wasting meetings and calls. ❤️ 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: Midjourney | William Barton – shutterstock 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. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021 [View Online](