🇨🇳 China's pork problem

The UK marched toward a recession | China's pork prices tipped the country further into deflation | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for December 14th in 3:06 minutes.   🤖 Our future might not actually turn out like The Terminator films. Join InvestAlert's CEO [Jacques Cailloux]( for [The AI Advantage: Enhancing Portfolio Protection Strategies]( at 5pm UK time today, and find out how the tech could help investors make smarter decisions, instead of destroying mankind. [Get your free ticket.]( Today's big stories - The British economy dipped in October, fueling fears of a recession - Here’s how Japan’s stocks are stacking up against Europe’s for 2024 – [Read Now]( - Cheaper pork prices threatened to send China’s economy deeper into deflation Jingle Bell Balk [Jingle Bell Balk] What’s going on here? The UK economy slowed down in [October](, so sleigh bells will likely be drowned out by recessionary alarms this holiday season. What does this mean? The British economy slipped by a much worse-than-expected 0.3% between September and October, which essentially means the country produced a lower value of goods and services that month. That’s important: keep that up for two quarters in a row, and the economy could be well on its way to a technical recession. Now, the nation was in slightly better shape than the same time last year, but the uptick was a lot smaller than economists expected. And with both the services and production sector slowing down over the month, the UK’s been left without an industry hardy enough to rely on. Why should I care? For markets: Hikes, hikes, go away. The Bank of England (BoE) hiked interest rates to bring inflation to a halt. Problem is, the same tactic has ground down the economy too, while the higher mortgage rates they produce have already deepened the cracks in the UK [housing]( market. So when the BoE meets on Thursday, the central bank will likely discuss the merits of cutting rates sooner rather than later next year. The bigger picture: A sterling effort. Inflation’s been falling faster in the US while the economy’s held steady, sparking predictions of rate cuts in the first half of 2024. And because higher interest rates correlate with a stronger currency and vice versa, the British pound has held stronger than the US dollar on the whole this year. But if the UK economy keeps losing steam, overseas investors may take their cash elsewhere – and if that happens, the poor pound may be worth fewer pennies. You might also like: [UK stocks are almost embarrassingly cheap](. Copy to share story: [( 🙋 [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=Jingle Bell Balk&utm_campaign=daily-global-14-12-2023&utm_source=email) Analyst Take Europe Versus Japan: The Stocks You Might Want In 2024 [Europe Versus Japan: The Stocks You Might Want In 2024]( By Russell Burns, Analyst Tempting as it may seem after a year like 2023 to devote [your entire stock portfolio]( to the S&P 500, it wouldn’t be the wisest decision. There’s just too much economic uncertainty out there, and, anyway, you’re always better off spreading your eggs across [a few baskets](. And, if you’re wondering which baskets, [European and Japanese stocks]( could be worthy of your hard-earned money. That’s today’s Insight: [a look at how Japan’s stocks – and Europe’s – are stacking up for next year](. [Read or listen to the Insight here]( SPONSORED BY IG Find out if gold can keep up its winning streak [Gold prices]( have held strong this year, even bringing home a brief all-time high. That makes sense: the last twelve months have been turbulent, to say the least, and investors tend to flock to so-called [safe-haven assets during uncertain times](. But central banks have been buying more than usual, too. In fact, data from the World Gold Council revealed [central banks bought 14% more gold than the year before](. So gold’s price going forward may well hinge on central banks’ policies. But that’s not easy to predict: decisions will be made based on global tension, inflation, and economic strength. IG has done the heavy lifting, though, and [forecast where gold will head in 2024](. DisclaimerYour capital is at risk. 68% of retail investor accounts lose money when trading spread bets and 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. Pork Chopped [Pork Chopped] What’s going on here? China headed further into deflation territory, and the country’s [favorite meat]( was largely to blame. What does this mean? Humans love to eat – so much so that food can make up a hefty chunk of countries’ inflation readings. But in China, it’s a different story. The price of pork, the country’s go-to meat, dropped nearly 32% in November, pulling down overall food prices by over 4%. And because food has such a heavy impact on prices as a whole, that partly explains why Chinese consumer prices notched their sharpest decline in three years. Now it’s true, much of the world would envy prices that are coming back down to Earth. But China’s on the verge of deflation – an economy-busting fall in prices that’s harder to tackle than inflation. Why should I care? For markets: Make friends in the right places. China used to make a killing selling stuff like steel and cars abroad. But with the country battling a slowdown within its own borders, it’s added discount stickers to most of its exports – a desperate bid to make sure some cash flows into the economy. China’s currency weakening against the dollar hasn’t helped either, with foreign buyers able to get their hands on more products for less. One man’s trash is another’s treasure, mind you: if countries like the US can get Chinese goods for cheap, that could help them in their fights against inflation. The bigger picture: Down the helter skelter. Deflation’s the enemy of any country, but especially ones with a lot of debt. (You know, like China.) Just think: if you make less money from every item you produce and sell, it takes a lot more effort to reach a target amount. For governments, that means they fall behind on their massive debts. And for everyday folk, the daunting price of borrowing puts them off using credit cards and loans to spread out spending, meaning less money moves around the economy. You might also like: [The long-term investment case for emerging market nations.]( Copy to share story: [( 🙋 [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=Pork Chopped&utm_campaign=daily-global-14-12-2023&utm_source=email) 💬 Quote of the day "Wisdom outweighs any wealth." – Sophocles (an ancient Greek tragedian) [Tweet this]( SPONSORED BY ADMIRALS The need-to-knows before you start investing If you’re new to investing, you’ll want to nail [a few fundamentals]( before you find your style. First up: the difference between [stocks and exchange-traded funds (ETFs)](. If you buy a stock, you own a small fraction of the public company – and a right to a fraction of the profit, of course. ETFs are essentially [a basket of assets](: stocks, an index, a commodity, derivatives, fixed-income securities, and so on. You can find an ETF for almost any niche, making the funds a go-to investment for investors who strongly believe in [a certain industry or theme’s potential](, such as green energy or AI. But that’s just the tip of the iceberg. To get off on the right foot, [find out about the pros and cons of stocks and ETFs for free with Admirals](. [Find Out More]( Investing involves risk. When you support our sponsors, you support us. Thanks for that. Reach the right audience at the right time Our [one-million-strong community of modern investors]( is clever, clued-in, and keen to learn. In other words, they’re exactly the type of folk your businesses want to reach. So whether you’re an established brand, scaleup, or startup, [our promotional campaigns]( can help you [introduce yourself to your future community](. [Let’s Chat]( 🎯 On Our Radar 1. It's not your fault you left your lunch at home. Stress can make you more [forgetful](. 2. This decade is not like the last. Here’s how to [make sure your strategy will keep up](.* 3. Dive in. [Cold-water swimming]( could replace your regular brunch date. 4. Active ETFs are evolving fast. Find out how the right ones could help you [beat the market](.** 5. The school run just turned green. [Range Rover]( opened the waitlist for a new EV. Investing puts your capital at risk.* Your 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.** When you support our sponsors, you support us. Thanks for that. SPONSORED BY HEALTHWORDS.AI [HEALTHWORDS.AI]( When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming Up Soon... All events in UK time. 🤖 [The AI Advantage: Enhancing Portfolio Protection Strategies](: 5pm, December 14th ❤️ 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? [Get in touch]( Image Credits: Image credits: xx | xx Preferences: [Update your email]( or [change preferences]( [View in browser]( [Unsubscribe]( from all Finimize Emails 😴 Crafted by Finimize Ltd. | 280 Bishopsgate, London, EC2M 4AG All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021 [View Online](