🌧 Dark and stormy

China wants to up investors' confidence | British rain dampened retail sales | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for August 19th in 3:07 minutes.   🔥 Every financial epoch has its trailblazers, leading us into the next era. So join eToro's Lule Demmissie and TradeStation's John Bartleman for [Future Of Finance: Building Investment Platforms For The Modern Era]( on Wednesday and find out how the world’s biggest investment platforms are set to shape the years to come. [Get your free ticket]( Today's big stories - Chinese regulators are doing what they can to prop up investors' flagging confidence - Here’s what the Federal Reserve's rate cuts would mean for the economy – [Read Now]( - July was a washout for UK retail sales Silk Roadblocks [Silk Roadblocks] What’s going on here? China’s [giving]( investors a pep talk, but it’ll have to overcome some serious obstacles to boost their confidence. What does this mean? 2023 was pegged as China’s comeback year – a chance for the country to shake off the lingering pandemic blues and regain its mojo. But it’s been more of a wobble than a confident strut so far, with consumer spending and the property market still on shaky ground. That’s spilled over into markets too, with the CSI 300 – China’s main stock index – dipping 3% this year. To try and get investors back on side, Chinese regulators are rolling out the red carpet: slashing broker transaction fees, mulling longer trading hours, and giving a thumbs-up to share buybacks too. Why should I care? The bigger picture: Shaky foundations. While these moves might soothe market jitters, they’re really just papering over the cracks. Just take a gander at China’s property sector, which makes up about a quarter of the country’s economy. Nearly half of state-owned property developers are in the red for the first half of the year – stoking [worries]( the housing crisis is spreading from the private sector to companies that have government backing too. And that’s bad news: if state-owned companies can’t finish the projects that private companies dropped, it could further dent homebuyer confidence. That means that all eyes are now on the central bank’s recent hefty interest rate cut, in the hope that it’s the magic elixir the market needs. Zooming out: Prophets of doom. China once set its sights on a 5% growth target for 2023, and at the time, that goal seemed almost unambitious. But even that modest aim might be out of reach now, and banks are already [dialing back]( their optimism: Nomura’s betting on 4.6%, Morgan Stanley’s at 4.7%, and JPMorgan’s chimed in with 4.8% – the best of a bad lot. You might also like: [Five reasons to invest in China.]( Copy to share story: [/silk-roadblocks]( 🙋 [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=Silk Roadblocks&utm_campaign=daily-global-19-08-2023&utm_source=email) Analyst Take The Fed’s Contemplating More Rate Hikes. Investors Are Soon Expecting…Cuts. Here’s What Gives. [The Fed’s Contemplating More Rate Hikes. Investors Are Soon Expecting…Cuts. Here’s What Gives.]( [Photo of Stéphane Renevier] Stéphane Renevier, Analyst The Federal Reserve’s (the Fed) rate-hiking campaign finally seems to be [having an impact]( on oh-so-stubborn inflation. It might sound counterintuitive, then, that investors are now eyeing up [the potential of rate cuts](. So let’s unpack the reasons why the central bank would want to hit reverse just as it’s seeing [the fruits of its labor](, and assess what would happen to the economy and asset prices if it does. That’s today’s Insight: [why the Fed would flip the script on rate hikes, and what that means for the economy.]( [Read or listen to the Insight here]( SPONSORED BY MAGNIFI Chisel your portfolio with artificial intelligence If you're like us, you probably have at least a [few brokerage and retirement accounts]( you're hanging onto from old jobs and new apps you were trying out. And while some might not be pulling their weight, it takes a lot of time and effort to [check in with all of them]( regularly. Well, unless you use [Magnifi, the artificial intelligence-enhanced platform](. [Link all your accounts]( using Magnifi, and you’ll uncover [risks, investment opportunities, and untapped strategies]( for all of your brokerage accounts, 401Ks, IRAs – you get the idea. Then you can use the conversational AI assistant to [analyze your holdings, diversify, find new investments, and tip your risk-reward profile in the right direction](. And how’s this for smart finances: you can [get started today with a free trial](. DisclaimerAdvisory services are offered through Magnifi LLC, an SEC Registered Investment Advisor. All investments involve risks, including possible loss of principal. Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk. See Terms and Conditions at magnifi.com Free trial available for new Magnifi members only. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Rain Check On Retail [Rain Check On Retail] What’s going on here? Data out on Friday [showed]( that the bad British weather rained on the retail sector’s parade. What does this mean? The UK might be famous for its unpredictable weather, but Mother Nature seemed particularly moody this summer. After all, last month turned out to be more about raincoats than beachwear, ranking as the sixth wettest July on record. And that gloomy backdrop had shoppers rethinking their summer wardrobe updates – triggering a sharp drop in clothing store sales, despite inflation’s slight cooldown. Food and department stores also felt the pinch, but those cooped-up consumers were good for one thing: online shopping. Thanks to events like Amazon Prime Day, online sales climbed 2.8% from June, hitting their highest proportion of overall sales since February last year. Mind you, though, even that uptick in virtual carts couldn’t offset the overall slide, and retail sales ultimately fell by 1.2% – the first time they’ve missed expectations in four months. Why should I care? The bigger picture: On the fence. Forecasting whether this is a rain-induced blip or the start of a trend is like predicting British weather: tricky. On the one hand, elevated interest rates and waning consumer confidence suggest that shoppers might keep pulling back. But on the other hand, wage growth is set to keep outpacing inflation in the coming months – so consumers might actually have some extra cash to splash before long. Zooming out: Baby-bust blues. The UK’s baby-making hit a 20-year low last year – and if that continues, a shrinking workforce could lead to heftier taxes to keep everything ticking along, which is likely to dent economic growth in the long run. And sure, in an ideal world, a surge in productivity could turn things around. But let’s be real: we haven’t seen one of those in 15 years. You might also like: [Shunned, hated, and cheap: why you might want to buy UK stocks now.]( Copy to share story: [/rain-check-retail]( 🙋 [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=Rain Check On Retail&utm_campaign=daily-global-19-08-2023&utm_source=email) 🤝 Introducing Finimize For Business We're helping financial firms publish [first-class content]( that keeps investors engaged, active, and up to speed. After all, we don’t hoard our treasures: we prefer to [share them](. [Book A Demo]( 💬 Quote of the day "I try to take it one day at a time, but sometimes several days attack me at once." – Ashleigh Brilliant (an English-born American author and cartoonist) [Tweet this]( SPONSORED BY MAGNIFI Spot the opportunities your portfolio’s been missing There are a ton of [investment and savings accounts]( with plump perks and handy tools. 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[Find Out More]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Superconductor scandal. Korea University is [investigating]( an academic's disputed claims of a room-temperature superconductor. 2. This AI-enhanced investing platform is giving out free trials. Uncover your portfolio’s [hidden risks and missed opportunities]( in seconds.* 3. Mercury's menace. The ancient Maya's [fascination with mercury]( might have contributed to their downfall. 4. Imperial ambitions. Elon Musk turned to [Napoleon Bonaparte's strategies]( for leadership inspiration. 5. Subterranean slumber. This A-Frame home in Mexico City boasts [underground bedrooms]( amidst nature. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🥳 Coming Up In The Next Week... 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