🇨🇳 Evergrande 2.0

Another major Chinese property developer is in big trouble | TSMC offered hope for the chipmaking world | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for October 20th in 3:14 minutes.   🎄 The highlight of most of your Christmas parties will be a lukewarm mince pie and a not-totally-awful Secret Santa present. So join us for the [Modern Investor Summit]( on December 5th and 6th to get festive with financial legends like Ray Dalio and Jamie Dimon. Start mulling your wine and [grab your free ticket]( Today's big stories - TSMC’s profit plunged, but the chipmaker’s optimistic about the future - Higher yields aren’t the only thing to love about bonds – [Read Now]( - Country Garden missed a major payment deadline, joining the list of companies hit by China's real estate downturn Just Visiting [Just Visiting] What’s going on here? TSMC released results on [Thursday]( that suggested the world’s biggest chipmaker may be about to free itself from the shackles of a demand downturn. What does this mean? The chip industry slump is taking no prisoners, and Taiwanese firm TSMC – which makes tiny slabs of silicon for basically every chip designer on the planet – has been well and truly confined. Gadget designers have been slowing production in the face of slowing demand, and that’s bad news for TSMC: the firm’s profit was down 25% last quarter from the same time last year. That’s the second quarter in a row where profit had dipped from the year before – a pattern TSMC hasn’t seen for four years. But get this: those results were actually better than analysts expected, and it’ll only help that TSMC suspects recovering Chinese demand could end the slump sometime soon. Why should I care? Zooming out: Chipmakers have a sixth sense. Artificial intelligence has given Big Tech firms the strength to hoist indexes higher this year, so investors are probably hoping the sector can take the lead again next year. Chipmakers are important to watch, then, because often they’re the first to know when the climate’s changing, picking up on consumer demand and activity in a bunch of tech areas. So with both TSMC and chip equipment maker ASML saying the clouds might be parting, the broader industry – and in turn, the market as a whole – could be in for some milder weather. The bigger picture: Big fish, big pond. Only a few firms are capable of making the most advanced chips, so when chip designers have a job to send out, there’s a high chance TSMC will be on the receiving end. That means the chipmaker is a leader in the industry and all the trends that come with it, including artificial intelligence advancements. But those pros aren’t without cons: the industry’s volatile and heavily sensitive to geopolitical tensions between China and Taiwan. You might also like: [Here's what’s driving semiconductor stocks now.]( Copy to share story: [=/just-visiting]( 🙋 [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=Just Visiting&utm_campaign=daily-global-20-10-2023&utm_source=email) Analyst Take Why Bonds Are Turning Everyone’s Heads Right Now [Why Bonds Are Turning Everyone’s Heads Right Now]( By Russell Burns, Analyst Let’s face it: the “40” side of the [classic 60/40 portfolio]( has never been the sexier side. But lately, [the bonds end]( of the tried-and-true 60% stocks and 40% bonds investment mix has been turning heads all along Wall Street. Fidelity, BlackRock, Oaktree, and other giants are admitting that they’re finding themselves [seduced by bonds]( and their risk-adjusted returns. And that’s today’s Insight: [why Wall Street is crushing on bonds and what to do if you are too](. [Read or listen to the Insight here]( SPONSORED BY TRADE REPUBLIC Maybe you can do it all [Trade Republic]( is one of Europe’s biggest savings platforms. It does it all: you can access [saving plans for stocks, ETFs, and crypto](, which you can use to invest gradually with a goal to grow alongside markets. You can [lock in the benefits of high interest rates with bonds]( – which are embracing a fresh bout of popularity – on the platform too, plus you can sell them at any time. What’s more, you can see your bonds’ annual returns in real time, which makes investing in the tried-and-tested assets a lot less complicated than it could be. And get this: you can [start investing from just €1 on Trade Republic](. [Find Out More]( DisclaimerNot all of the above mentioned services are available in all the markets. The scope and availability of our stock, etf, savings plan, crypto and derivative offering may vary according to the country. Please refer to our website for more information. Investing in the stock market carries risk: The value of investments can go up as well as down and you may receive back less than your original investment. Individual investors should make their own decisions or seek independent advice. When you support our sponsors, you support us. Thanks for that. Time’s Up [Time’s Up] What’s going on here? Country Garden failed to pay interest on its US dollar bonds before the given deadline, making it the latest victim of China's languishing property sector. What does this mean? Country Garden was China’s biggest property developer by sales until recently. But this is not the firm’s shining moment, having just missed a $15 million coupon payment on a key bond. That almost guarantees an imminent default, forcing China into one of its most significant corporate debt restructurings since it dealt with infamous developer Evergrande. But unlike Evergrande, Country Garden was thought to have strong financial underpinnings before this default. In fact, it was one of only a few high-profile developers to tick the box on three debt-based criteria set back in 2021. Evergrande, meanwhile, failed all three. Country Garden’s default, then, could be a worrying sign that the property market’s cracks are deepening. Why should I care? For you: The center of our universe. China’s embattled property sector serves as a stark reminder that the real estate market is volatile. House prices can fall unexpectedly, excess debt can backfire massively, and government interference can help or hinder. And remember, the housing market underpins many economies: houses are most folks’ biggest asset, so property prices play a major role in consumer confidence and, as a result, spending on household goods like gadgets and furniture. Plus, major construction companies only thrive when the market’s in a good spot. The bigger picture: Bonds have problems too. Bonds have a reputation for being a less volatile option than stocks, but even they come with plenty of risk. Country Garden’s dollar bonds, for example, have fallen from $0.70 at the start of the year to a mere $0.06 now. And sure, bondholders could pick up some spare change when the company’s debt is restructured, but there will be plenty of obstacles and losses along the way. You might also like: [Macro and markets guide to China](. Copy to share story: [=/times-up]( 🙋 [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=Time’s Up&utm_campaign=daily-global-20-10-2023&utm_source=email) 🪧 Forget the billboards Old-school tactics won't engage [modern investors](. Capturing the attention of clued-in whippersnappers takes something a little more [up-to-date]( – like a [promotional partnership]( with Finimize. [Find Out More]( 💬 Quote of the day "If any person wish to be idle, let them fall in love." – Ovid (a Roman poet) [Tweet this]( SPONSORED BY AJ BELL MONEY MATTERS It’s rude to not talk about money AJ Bell’s Money Matters campaign is on a mission to help [close the gender investment gap](. [AJ Bell's previous research]( shows that women have less in their savings, investments, and pensions on average than men. And after looking deeper, they found [a few financial pitfalls]( that disproportionately affect women. Not all of them apply to every woman, of course, and depending on the investor, the same issue could be a minor speed bump or a huge pothole. [Read AJ Bell’s report]( to find out how we can deal with the issues that are making such a huge impact on women’s financial well being. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. It's not as simple as chunky or fine. [Choosing the right salt]( just got more complicated. 2. ESG investing isn’t just a feel-good theory. Here’s how you could [put principles into practice](.* 3. You're up. Here's how to [get ahead today]( if you're hosting Christmas dinner this year. 4. If you want to get into DeFi, you have a ton of projects to choose from. Here's an overview of [five of the most popular ones](.* 5. LBDs never go out of style. The "little black dress" just turned [brown](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🥳 Coming Up In The Next Week... All events in UK time. 💰 [Money Matters: Her Wealth Roadmap](: 5pm, October 25th 📈 [Accessible Strategies For Effective Trading](: 5pm, October 26th 🍷 [Acquiring A Taste For Rare Wine Investments](: 5pm, October 30th 🤝 [Peer-to-Peer Lending: The Next Opportunity:]( 5pm, October 31st 🧰 [Mastering Tools for The Modern Trader](: 5pm, November 2nd 🎉 [Modern Investor Summit 2023](: 12pm, December 5th and 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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