📉 Tesla's cheaper

The US showed signs of nailing a soft landing | Tesla slashed prices in Europe | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for January 19th in 3:14 minutes.   🎭 Just as niche hobbies make someone interesting, alternative assets give a portfolio some oomph. So join us for [Investing Beyond Stocks And Bonds]( on February 1st, and discover the captivating world of diversified portfolios. [Get a free ticket]( Today's big stories - The US manufacturing sector put on a disastrous performance, but the shining retail sector stole the spotlight - Forget the old myth: stocks aren't doomed just because interest rates are high – [Read Now]( - Tesla cut car prices across Europe, after high price tags put the region off upgrading their four-wheelers Plastic Fantastic [Plastic Fantastic] What’s going on here? The Federal Reserve’s (the Fed) latest beige [book]( revealed that the retail industry is like, totally fetch right now. What does this mean? US retail sales were 5.6% higher this December than last, pulled up by shoppers spending big on clothing and online stores – presumably making the most of emergency next-day deliveries over the holidays. That meant retail sales increased more than inflation, an indicator that the economy could be headed toward the ideal “soft landing” outcome, where inflation is tamed without sparking a recession. So even though the manufacturing sector had its weakest year since 2020, the combination of easing inflation, robust spending, and a calmer job market should keep the economy on balance. Why should I care? For markets: Americans are doing fine on their own. The Fed is now more likely to keep interest rates where they are for the fourth time in a row at the next meeting. See, those hardy retail sales show that Americans can still afford to spend money and keep the economy moving, reducing the need for any imminent rate cuts. But with inflation falling faster than predicted, the committee could start penciling this year’s rate cuts – three, as forecast in December – into the diary. The bigger picture: Confessions Of A Shopaholic, the sequel. A soft landing would earn the US a pat on the back, it’s true. But once the handshakes are finished, attention will slide toward the government’s massive debt pile. Between October and December, the government is expected to have added just under $510 billion to the existing $31 trillion of national debt. Now, some of that will be sold as treasury bonds, but America’s burgeoning debt pile could put off investors. And while the government spent over $650 billion on just interest last year, creditors could well demand more this year, swiping cash that could otherwise be used to help everyday Americans. You might also like: [What "higher for longer" means for your portfolio.]( 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=Plastic Fantastic&utm_campaign=daily-global-19-01-2024&utm_source=email) Analyst Take Relax: Higher Interest Rates Aren’t A Calamity For Stocks [Relax: Higher Interest Rates Aren’t A Calamity For Stocks]( By Paul Allison, CFA, Analyst Don’t get me [wrong](: I don’t like higher interest rates. But they’re [not the disaster]( for stocks that a lot of people make them out to be. And if they stay at these higher levels for a while (or, yes, even climb a little bit), that doesn’t mean your [portfolio]( has to take a beating. That’s today’s Insight: [why you can forget that old myth about stocks](. [Read or listen to the Insight here]( SPONSORED BY CFA INSTITUTE Make your name known in the finance industry this year The crowded finance sector is hardly known as a relaxing work environment. But you don’t need to step on toes or spring for a thousand-dollar suit to get noticed: you could simply work toward an [Investment Foundations Certificate from CFA Institute instead](. And don’t worry, that won’t get in the way of any after-work pub trips. You can work through any of the [six online classes online at your own pace]( – whenever, wherever, as Shakira said. So if you want to focus on the basics, sustainability, private markets, alternative assets, or data science, you can hone your professional skills and [add an accolade to your resume from home](. [Make this year your year, with CFA Institute](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Speed Slump [Speed Slump] What’s going on here? Tesla [trimmed]( the price of two electric vehicle (EV) models, so now Europeans can risk an automated accident for less. What does this mean? The fuzzy feeling that comes with saving the world isn’t cheap. EVs often cost more than traditional fume-throwers, especially now government incentives that made them cheaper have largely wrapped up. It follows, then, that 3.8% fewer new EVs were registered in Europe this December than last. So you can’t blame Tesla for trying to buck the trend: the world’s second-biggest EV maker – recently overtaken by Chinese BYD – made two Model Y versions some €5,000 ($5,400) cheaper in the region. That made Tesla stand out against the competition, pushing down shares of rivals Volkswagen, Stellantis, Renault, and BMW. But slipping sales will have knees shaking all along the supply chain, too, with companies like battery suppliers and makers seeing their prospects shrink. Why should I care? For markets: Enjoy the January sales. Tesla reduced prices over and over in China last year, prompting rivals BYD, NIO, Li Auto, and Xpeng to do the same. After all, in such a crowded and competitive market, any shrewd move from a competitor could compromise a company’s bottom line – especially because EVs aren’t the sort of thing you buy a few of. So if you’re a European in the market for an electric hot rod, you might bag a sale by holding out a little bit longer. The bigger picture: Cover your mouth. China’s yawns could be contagious this year. The Magnificent Seven – Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla – lent investors their magic touch over the last few years, partly thanks to China making up 19% of Apple’s revenue and 22% of Tesla’s earnings in the first nine months of the year. But with the Chinese economy stumbling and population slipping, companies that once relied on the market may need to find a replacement, stat. You might also like: [How to work out whether Tesla's valuation is justified.]( 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=Speed Slump&utm_campaign=daily-global-19-01-2024&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. [Get In Touch]( 💬 Quote of the day "The power to question is the basis of all human progress." – Indira Gandhi (an Indian politician and stateswoman) [Tweet this]( SPONSORED BY STREETBEAT Meet your AI-powered financial advisor and claim a welcome bonus AI can help you craft a strategy that fulfills your financial goals while balancing your risk appetite. That’s because AI can digest a world’s worth of investment news, analyze real-time market trends, and align those insights with your own goals to deliver tailored, actionable advice. You can [unlock this cutting-edge knowledge with Streetbeat, your 24/7 AI-powered financial advisor](. The platform’s cutting-edge tools can even [automatically monitor and rebalance your portfolio]( for you, suggesting [optimization opportunities based on market changes and your financial goals](. The cherry on top – as if you needed one: [you’ll get a bonus when you make a deposit on Streetbeat before the end of January](. [Find Out More]( Streetbeat, LLC ("Streetbeat") is an SEC-registered investment adviser. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Any historical returns, expected returns or probability projections are hypothetical and may not reflect actual future performance. See Terms and Conditions at [Streetbeat.com](. When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Maybe Zuck is onto something. You might as well [ride out the apocalypse by the beach](. 2. Theory will only get you so far in the real world. Here's how to [master options trading](.* 3. The dos and don’ts of lounge suits. Turns out menswear is [pretty darn complicated](. 4. This decade is not like the last. Here's how to [make sure your strategy will keep up](.** 5. Last year was hot – literally. Here’s how [seven scientists]( feel about the world. **Investing puts your capital at risk. 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. 📈 [Investing Beyond Stocks And Bonds](: 5pm, February 1st ❤️ 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: shutterstock | shutterstock – Kittyfly 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](