💰 Luxe but losing

The EU’s side-eyeing China’s EVs | John Lewis lost again | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for September 15th in 3:14 minutes.   Finimized over a galão at [Cafe Janis]( in Lisbon, Portugal (🌤 26°C/79°F) Today's big stories - China’s EV success has caught the attention of the EU - The “Dumb Money” GameStop frenzy, explained – [Read Now]( - British department store John Lewis spent another six months in the red Grinding Gears [Grinding Gears] What’s going on here? China’s accelerating pace in the electric vehicle (EV) world has [triggered]( a little road rage from the EU. What does this mean? China’s been looking to growth in EVs and green tech to offset its wobbly property sector. And so far, it’s working out. Just peek at Europe: Chinese EV brands are zipping through the market, and look set to claim 15% of Europe’s EV pie in a mere two years. But not everyone’s happy about that. The EU, for one, is crying foul, complaining that these affordable Chinese rides are only kept so cheap by hefty state subsidies. But China’s not one to be backseat-driven, and it responded to the bloc’s investigation pretty predictably: by claiming that its lead is down to nothing but innovation and efficiency. So watch this space – the EU’s probe could lead to tariffs on Chinese EVs, much like those already in force stateside. Why should I care? For markets: Good news for everyone else. Chinese EV giants like BYD and Nio, eager to conquer Europe, didn’t anticipate this kind of speed bump – and this sudden disruption to their expansion plans saw their stocks take a dip. For lagging European automakers, that could provide a welcome chance to catch their breath. And as for the market leader, Tesla – well, the firm’s probably relishing the reduced threat of clashing bumpers with its arch nemesis BYD on European turf. The bigger picture: Equal and opposite reaction. This EU-China tiff is the latest episode in the global trade drama. But it’s a risky game. Higher EV prices could slow adoption and slam the brakes on Europe’s green transition. And if China hits back, then Europe’s car giants could feel the pinch – especially since China holds the keys to the EV battery kingdom. Plus, less competition might also mean less innovation in the longer run, and that’s a road no one wants to take. You might also like: [How not to get left in the dust in the EV boom.]( Copy to share story: [/grinding-gears]( 🙋 [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=Grinding Gears&utm_campaign=daily-global-15-09-2023&utm_source=email) Analyst Take “Dumb Money” Movie Primer: Here’s What Really Drove The GameStop Frenzy [“Dumb Money” Movie Primer: Here’s What Really Drove The GameStop Frenzy]( [Photo of Reda Farran] Reda Farran, Analyst [“Dumb Money”]( is coming to a theater near you this weekend – and it’s a film you might not want to miss. The comedy-drama bills itself as “the ultimate David vs. Goliath tale”, telling the story of the everyday retail investors who [thumbed their noses]( at some of Wall Street’s titans and drove a stock-buying frenzy that briefly turned GameStop into the world's hottest company. So this seems like a great opportunity to go over one of the biggest (and least-understood) factors behind [GameStop’s dramatic surge]( – and explain how you might spot similar situations elsewhere. That’s today’s Insight: [the “Dumb Money” GameStop mania, explained.]( [Read or listen to the Insight here]( SPONSORED BY STOCKLIFT What happens in China doesn’t stay in China China’s slowdown has been the talk of the town lately. And its ramifications go well beyond the country itself: what happens in China will have [far-reaching consequences](. So it might be a good time to [check your exposure,]( and there’s an easy way to do that: using [Stocklift’s in-app market simulator and portfolio tracker](. You can [test your portfolio against a Chinese slowdown]( to see if your strategy works. And if it doesn’t, you’ll be able to see which bits might need tweaking. A new – and global – perspective is always helpful, especially when it comes to your investments. [Check out Stocklift’s app]( to see where you stand. [Find Out More]( When you support our sponsors, you support us. Thanks for that. John Loses [John Loses] What’s going on here? John Lewis, the British retail darling, seems to have [developed]( a taste for the red, reporting more losses for the first half of this year. What does this mean? For over 150 years, John Lewis has been the go-to for the UK’s middle class, offering everything from posh pots and pans to plush pillows. But lately, even its ritzy regulars are tightening their Gucci belts. Big-ticket buys, like furniture and electrical goods, are on the decline – and the firm’s upmarket grocery chain, Waitrose, isn’t faring much better. After all, it seems the company missed the memo on price cuts, watching sales volumes dip in the first half of the year. So while John Lewis has managed to trim its losses from the same time last year, falling sales and ballooning costs mean it’s still not back in the black. Why should I care? For markets: A losing game. John Lewis is in the middle of a turnaround plan designed to make the company a simpler, more efficient machine – along with some (questionable) offshoots into real estate and financial services. But these results have come as a reality check with a capital “R”. And sure, Christmas could sprinkle some magic: historically, it's been the firm’s time to shine. But hold the mistletoe. John Lewis hinted that its difficulties could last a while yet, delaying the completion of its turnaround plan by two years, till 2028. The bigger picture: Cash is king. The plight of John Lewis suggests that British consumers are feeling the pinch – and folks’ recent surprising return to cash backs that up. Despite years of digital banking growth, there was a noticeable uptick in physical money usage last year, for the first time in a decade. And that wasn’t just nostalgia kicking in. Much like during the 2008 financial crisis, uncertain times drive people back to the tangible reassurance (and hard-to-fudge budgeting) of cold, hard cash. You might also like: [The UK’s cheap. Here's whether it’s worth buying.]( Copy to share story: [/john-loses]( 🙋 [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=John Loses&utm_campaign=daily-global-15-09-2023&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 "My favorite machine at the gym is the vending machine." – Caroline Rhea (a Canadian comedian and actress) [Tweet this]( SPONSORED BY MAGNIFI Get all your bucks in a row Chances are, you have different open trades bobbing away on various trading platforms. And while that’s a smart way to keep your options open and make the most of the industry’s perks, it does make [keeping tabs on your active trades]( a lot trickier and time-consuming. [Link all your accounts together with Magnifi](, though, and you’ll see all of your account’s wins and shortcomings laid bare, so you can assess a holistic view of your entire portfolio. Plus, with savvy artificial intelligence tools, Magnifi will show you [the opportunities you’re missing](, from cheaper fees to better returns to diversification possibilities. [Tell your portfolio’s swans from your ugly duckings with Magnifi](. [Find Out More]( Advisory services are offered through Magnifi LLC, an SEC Registered Investment Advisor. All investments involve risks, including possible loss of principal. 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. Fees and expense ratios vary by holdings. Not all investors will have investments with high fees. See Terms and Conditions at magnifi.com Free trial offer available for new Magnifi members only. When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Silicon stagnation. OpenAI's Sam Altman is lamenting the [decline in innovation]( in Silicon Valley. 2. Bitcoin’s big news. You can trade the most popular cryptocurrencies without fronting big prices with [these micro-sized tools](.* 3. Fake texts, real consequences. Using AI for [personal messages]( might just cost you a friend. 4. Meet the hospitality industry's disruptor. [This newly public company]( is reinventing travel for nomads.* 5. Toxic tidings. The US is facing scrutiny for allowing [harmful chemicals]( into everyday products. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🥳 Coming Up Soon... All events in UK time. 🚀 [Future Of Finance: Building Global Platforms For Next-Gen Investors](: 6pm, September 20th 🎉 [Modern Investor Summit 2023](: 12pm, December 5th & 6th ❤️ 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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