🛍 Target’s tremors

Target's served up some iffy results | The UK caught a break | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for August 17th in 3:12 minutes. [Ray Dalio](, founder of one of the world's biggest hedge funds and bestselling author, is officially speaking at this year’s [Modern Investor Summit](. So if you want to hear time-tested strategies and market-focused predictions from the legendary investor himself, [grab your free ticket here](. Today's big stories - Target’s results were a real mixed bag - Here’s whether companies’ environmental and social responsibility practices actually translate into financial reward – [Read Now]( - UK inflation continued to cool in July, but danger might lurk beneath the surface Basket Case [Basket Case] What’s going on here? Target [reported]( a mixed bag of results on Wednesday. What does this mean? Target unveiled a set of results showing that customers were both shopping and dropping last quarter. Given its penchant for offering non-essentials, the retail giant was always poised for a challenging time, especially as consumers tighten their belts. And while beauty sales doubled, offsetting what would’ve been a more pronounced slump, the quarter marked the company’s first sales decline in four years. On the brighter side, Target handled its inventory cannily, clearing last year’s backlogs, reducing discounts, and ultimately making a profit that pleasantly surprised analysts. But – and it’s a significant “but” – the future still looks clouded: citing looming challenges like the resumption of student loan repayments, Target dialed back its annual sales and profit outlook. Why should I care? For markets: Grossing groceries. Investors, ever the optimists, latched onto Target’s quarterly silver linings, pushing its shares up by 8% initially. But that was partly down to the bar being so low – and compared to Walmart, Target still has plenty of catching up to do. See, even after this recent surge, Walmart’s stock performance still overshadows Target’s by over 20%. Walmart’s probably got groceries to thank for that. After all, they make up just 20% of Target’s revenue, compared to over half of its rival’s – and that helps shield Walmart from the fickle winds of consumer trends. Having failed to beat ’em, though, Target’s now in the “join ’em” frame of mind, adding more daily essentials to its own shelves too. The bigger picture: You might need that seatbelt. Consumers are giving economists hope that the economy can achieve a so-called “soft-landing” – but there are still some pretty big bumps on the runway. After all, the Federal Reserve’s commitment to keeping rates high, coupled with increasing missed debt repayments and the shrinking cushion of pandemic savings, reminds us that this safety net won't hold indefinitely. You might also like: [The US economy is defying the laws of gravity. Here’s how.]( Copy to share story: [/basket-case]( 🙋 [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=Basket Case&utm_campaign=daily-global-17-08-2023&utm_source=email) Analyst Take Good As Gold: Here's Whether Responsible Firms Can Really Cash In On Kindness [Good As Gold: Here's Whether Responsible Firms Can Really Cash In On Kindness]( [Photo of Reda Farran] Reda Farran, Analyst Companies are increasingly bending over backward to let you know [how “good” they are](. And because a feel-good factor just isn’t enough for investors, they’re leaning on the idea that [their good deeds]( will be rewarded with higher valuations. But naturally, you never want to take a company’s marketing spiel [at face value](. So let’s look into how the virtues of environmental responsibility and social consciousness could lead to [a better valuation]( – and see if there’s any proof they actually do. That’s today’s Insight: [whether or not do-gooder firms can actually do good for your portfolio.]( [Read or listen to the Insight here]( SPONSORED BY IG Navigate investing during a recession with this expert guide A potential [recession]( has given us the biggest will-they-or-won’t-they storyline of this year. And because the global economy’s still flirting with the idea of a downturn, you need to [be prepared]( for the fallout of what could be a fairly toxic situation. [IG’s recession guide]( unravels the more [complicated effects]( of economic downturns, spelling out how your portfolio could be affected and pointing out [indicators to keep an eye on](. You’ll also see a rundown of [protective strategies](, designed to guard your portfolio while allowing you to [maximize any potential opportunities]( that could arise. That way, if we do find ourselves in a full-on relationship with a recession, you’ll have the confidence and ability to ride it out. [Read IG’s tips for navigating a recession here](. DisclaimerYour capital is at risk. 70% 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. Easy Peasy, Lessened Squeezy [Easy Peasy, Lessened Squeezy] What’s going on here? British inflation dropped sharply in July, according to data out on [Wednesday](. But as always, the devil’s in the detail. What does this mean? July’s inflation rate clocked in at 6.8% versus the same time last year, a refreshing dip from June’s heated 7.9%. But hold off on the celebratory toasts for now. See, while the broader price landscape seems to be chilling out, there’s actually a bit of a ruckus beneath the calm. Core inflation – leaving out the ever-fickle food and energy prices – stubbornly stayed put at June’s 6.9%. Plus, the tab for services like hotels, dreamy holidays, and healthcare actually climbed by 7.4%, edging past June’s 7.2% rise. And the real kicker: if the perks of cheaper food and energy wane, and everything else keeps getting pricier, then inflation could regain its full momentum before long. Why should I care? For markets: Look after the pennies. There’s been some good news for Brits this week too, though. Data out on Tuesday showed that wages climbed by a record-breaking 7.8% in the three months to the end of June – and you don’t need to be Alan Turing to calculate that that figure’s bigger than Wednesday’s headline inflation number. The upshot is that Brits have more actual cash in their pockets right now, for the first time in a long while. The bigger picture: A second wave. Maybe, then, Brits should embrace the “live in the moment” mindset – but let’s be real, that’s not quite the British way. And while some might be humming a more optimistic tune now, a chorus of stern-faced economists is already hitting a different note. Their forecast: that today’s cooling inflation might just rear its head next year, in a seriously hard-hitting sequel. That might sound a tad gloomy – but in Britain, it never rains but it pours. You might also like: [The chill in the housing market might have you wondering if it’s time to buy](. Copy to share story: [/easy-peasy-lessened-squeezy]( 🙋 [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=Easy Peasy, Lessened Squeezy&utm_campaign=daily-global-17-08-2023&utm_source=email) 🤝 Partner with us Finimize is much more than just this newsletter: we’re a full-blown [one-stop shop]( for engaging with [modern investors](. So whether you’re a fintech, founder, or just a fed-up exec, rest assured – we’ve got [the solutions]( you need. [Book A Demo]( 💬 Quote of the day "If at first you don’t succeed, try, try again. Then quit. There’s no point in being a damn fool about it." – W. C. Fields (an American actor) [Tweet this]( SPONSORED BY CME You could hedge your portfolio better than ever with futures [Futures]( are different than trading straight stocks, it's true. But when you strip out the jargon, they’re simply [contracts that let you buy or sell an asset]( for a set price sometime in the future. That’s a trick to have. 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