🤝 When Klarna met ChatGPT

Klarna slimmed its losses | China finally moved an inch | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for September 1st in 3:09 minutes.   🏠Crowdfunding transformed early-stage investing, especially for retail investors. So join Allbricks for [A Beginner's Guide To Building Wealth Through Real Estate]( on September 6th, and find out how the property market's catching up to the times. [Grab your free ticket here]( Today's big stories - Klarna roped in ChatGPT and narrowed its losses - Maybe the Fed should raise its 2% inflation goal – [Read Now](/2-isnt-a-magic-number-why-the-fed-could-consider-a-higher-inflation-target?email-id=1327f1a06f056f5f9a0db6a3e33f6587cb7a9e3d4e3661d6361c44&name={NAME}&title=Maybe the Fed should raise its 2% inflation goal&utm_campaign=daily-global-01-09-2023&utm_source=email) - China’s manufacturing sector finally showed a tiny bit of motion Shop Till You Bot [Shop Till You Bot] What’s going on here? Klarna [slimmed]( its losses in the first half of the year, and a certain famous chatbot might’ve had something to do with that. What does this mean? “Buy now, pay later” (BNPL) schemes let customers spread out their payments over time with interest-free credit. That’s a tidy idea when money’s good and those designer shoes aren’t technically in the budget. A potentially risky one, though, when the cost of living has emptied folks’ wallets and rate hikes have made interest-free debt a much bigger ask. But so far, even more shoppers are using Klarna to make nice-to-haves more manageable, and what’s more, inflation hasn’t stopped them from keeping up with their debts. Klarna’s real success, though, came from its shrewd cost-cutting and leaning into AI tools like ChatGPT to improve efficiency. That slimmed losses by two-thirds in the first half of this year versus the same time last year, and Klarna even wrangled a month of profit. Why should I care? For markets: Go U-S-A! Klarna’s business was particularly blooming Stateside, now boasting around 30 million users and three straight quarters of gross profit. That’s just the ticket: Klarna has always said it wants an established US presence before it lists on the stock market. And while markets aren’t exactly shining right now, that means Klarna – once Europe’s most valuable startup – could hit the public stage in a few years. Zooming out: You’re techy and you know it. ChatGPT’s impact on Klarna shows just an iota of its potential in the business world. And OpenAI – the tech’s creator – knows it, [launching]( a corporate version of the chatbot with new features and privacy settings designed to lure businesses in. That should hoist ChatGPT’s revenue even higher, adding to the already $1 billion annual sales it’s [headed]( toward. You might also like: [Goldman’s 50-stock portfolio of under-the-radar long-term AI winners.]( Copy to share story: [/shop-till-you-bot]( 🙋 [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=Shop Till You Bot&utm_campaign=daily-global-01-09-2023&utm_source=email) Analyst Take 2% Isn’t A Magic Number: Why The Fed Could Consider A Higher Inflation Target [2% Isn’t A Magic Number: Why The Fed Could Consider A Higher Inflation Target]( [Photo of Stéphane Renevier] Stéphane Renevier, Analyst Inflation is still hotter than [the Federal Reserve’s (the Fed’s) 2% target](, despite all the interest rate hikes the central bank’s been using to tamp it down. And you’ve probably heard the notion that [we might need a recession]( just to bring those inflationary pressures to heel. But there’s a growing buzz that says, actually, maybe the Fed ought to [rethink its long-standing – and mostly arbitrary – 2% inflation target](. That’s today’s Insight: [what a higher inflation target might mean for you](. [Read or listen to the Insight here]( SPONSORED BY ALLBRICKS This isn’t your granddad’s buy-to-let property investment Imagine you could [invest in real estate]( without managing a property or paying a huge deposit. Now picture that by doing that, you’d be [helping hard-working would-be homeowners get on the ladder](. You might even help them buy local, and [invigorate a community]( in the process. Well, looks like you’ve got some mighty manifestation skills: by investing in smaller chunks (or “bricks”) of properties with [Allbricks](, you’ll effectively replace traditional mortgages for folks. That means you could [make passive monthly income]( when tenants pay the equivalent of rent, and [lock in the potential of long-term capital gains]( as properties rack up more value. [Discover the new generation of property investment with Allbricks](. DisclaimerCapital at risk – Investments may go up or down. Investment decisions must be based on definitive documentation and your own independent research. Any past performance referenced is not an indicator of future performance. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Upstream Battle [Upstream Battle] What’s going on here? Fresh data out on Thursday [suggested]( that China’s economy might finally be making moves, if you wade through the bad bits, that is. What does this mean? China’s economy has been a real downer this year, and pundits will take what they can get at this point. So sure, an index tracking activity in the country’s all-important manufacturing sector shrank for the fifth-straight month in August. But hey, it wasn’t as much as economists expected and it edged a little closer to flatlining. These days, that’s a win. Mix in a measure of new orders creeping up in the sector for the first time since March, and whispers are spreading that the worst may be over. Maybe that’s because the government’s efforts are working or maybe it’s wishful thinking – but either way, it’s a tiny shred of hope for China’s manufacturing-heavy economy. Why should I care? The bigger picture: Good news, if you look hard enough. Still, measures of non-manufacturing activity – think services and construction – are on the decline. But as we’ve learnt, you need to dig to find the good stuff: services like transport, accommodation, and entertainment did alright last month. The blame, then, may land on the country’s troubled property sector. If that’s the case, the government needs to ramp up targeted support initiatives, or risk seeing small victories give way to massive failures. For markets: What goes up must crash down. Each promise of government economic support seems to be followed by a market rally, but every time they fizzle faster than the last as investors realize that not much actually changes. That’s a toxic relationship, one that’s left China’s main index a little battered this year. So with jaded investors far from won over by existing measures, many analysts reckon the government needs to unleash its beast to win them over – potentially one like the half-a-trillion-dollar stimulus package it rolled out in 2008. You might also like: [Five reasons to invest in China.]( Copy to share story: [/upstream-battle]( 🙋 [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=Upstream Battle&utm_campaign=daily-global-01-09-2023&utm_source=email) 💬 Quote of the day "I have the simplest tastes. I am always satisfied with the best." – Oscar Wilde (an Irish poet and playwright) [Tweet this]( SPONSORED BY STOCKLIFT Find out if you’re really on track to financial freedom Vacations, retirement, college funds. Whatever your goal, it takes [saving and smart investing](. If only you had access to the sort of [analytical, growth-projecting tools]( that high-tech, billion-dollar firms use to plan their budgets. (Sigh.) Well as luck would have it, [StockLift]( believes in democratizing those tools, which is why it offers [similar analysis for free on its app](. Just [connect your brokerage account](, and the proprietary algorithm will forecast your portfolio’s potential growth, and even [give you a score]( based on your diversification and risk exposure. That way, you’ll see a clear and comprehensive outline of where you stand, so you can [formulate the right strategy]( to hit your big goals faster. Stop investing in the dark. [Check out StockLift.]( [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Forget sandwiches. Here's the [lunch inspiration]( you never knew you needed. 2. Crisp basics never go out of style. Give your investment strategy [a refresher](.* 3. Look out, LinkedIn. [Elon Musk]( is coming for your gig. 4. Time to take your first steps. Here's how to [get started on your investment journey](.* 5. Latin tunes don't just fix a bad mood. One woman relied on the hits to [navigate her illness](. *Investing puts your capital at risk. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🥳 Coming Up Soon... 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