🚗 The electric car crash

Lithium reached its lowest price in years | European interest rates stayed where they are | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for January 26th in 3:13 minutes.   💸 Stashaway's recorded [Uncover The Art Of Risk Management]( event will walk you through covering your downside. And when you're ready to put that into practice, you can [sign up for StashAway with this link]( to invest up to $50,000 Singaporean dollars (or equivalent) fee-free. (Offer excludes Simple, Simple Plus, and private market portfolios) Today's big stories - Dwindling demand for electric vehicles has left lithium prices running low on energy - What to watch for when the Magnificent Seven serves up quarterly updates – [Read Now]( - The European Central Bank decided against rate cuts, an effort to keep inflation at arm’s length for a little longer Unlucky 13 [Unlucky 13] What’s going on here? Lithium prices dropped 80% to hit $13,200 per tonne, unfortunate collateral damage after the electric vehicle (EV) market drove off track. What does this mean? The transition to green energy hinges on a few factors: world leaders prioritizing the planet over corporate profit, international nations’ ability to work together, and lithium. The precious metal is, after all, a key ingredient in an array of rechargeable batteries, including the types that fuel solar power systems and EVs. For the last couple of years, that’s kept lithium prices fairly high. But with China – the world’s biggest EV market – suffering an economic slowdown, shoppers are keeping cash in the bank. The result: demand for EVs in China inched up just 25% in 2023, a tumble from 83% the year before. So with more lithium in the market than carmakers know what to do with, the metal’s price fell 80% in the last year to reach its lowest point since 2020. Why should I care? For markets: The outlook’s musky. Even OG EV maker Tesla has been feeling the pinch, continually slashing prices to coax drivers through the showroom doors. That tactic might put more of Musk’s models on the road, but it also chips away at the firm’s bottom line. And while Tesla is designing a more affordable model to attract a cost-conscious market, it won’t be ready until late 2025. So with a less-than-optimistic sales outlook and no immediate plans to drum up business, investors have sent Tesla’s shares down 27% this year already. Zooming out: China needs the green. Clean energy endeavors made up 40% of China’s economic growth last year, with major companies and governments investing their cash into solar power, panel manufacturing, EVs, and rechargeable batteries. That was enough to roughly offset the real estate sector’s woes, but with lithium prices and EV sales on the slide, China may have less to hide behind this year. You might also like: [The $173 trillion market that’s putting the world back together.]( 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=Unlucky 13&utm_campaign=daily-global-26-01-2024&utm_source=email) Analyst Take Earnings Season Preview: Here’s What Matters For The Rest Of The Magnificent Seven [Earnings Season Preview: Here’s What Matters For The Rest Of The Magnificent Seven]( By Paul Allison, CFA, Analyst Tesla’s earnings update was, well, anything but magnificent. The [grim showing]( had the EV maker falling short of analyst expectations and warning of “notably lower” growth for this year. But cheer up: there are six other mega-cap companies in this so-called [Magnificent Seven]( – all set to deliver their quarterly reports over the next couple of weeks – and I’m willing to wager that they won’t all be this dreary. Here’s a look at the earnings calendar for [the other six](, and what you’ll want to pay close attention to when they deliver their results. That’s today’s Insight: [your earnings season preview for the rest of the Magnificent Seven](. [Read or listen to the Insight here]( SPONSORED BY IG Five investments for 2024 Investors have locked in their predictions for 2024: lower inflation and milder interest rates. But if the last year has taught us anything, it’s that the unpredictable events – war, illness, company collapses, and political stances – are the ones that move markets. That’s why [IG]( thinks the last couple of years should be a lesson we don’t forget: look into interesting, fresh opportunities, sure, but keep [an eye on stocks that have performed well in the past](. Just remember that past performance is not an indicator of future returns. And IG’s whittled down those proven opportunities for you, assessing the performance of many stocks to highlight [the ones that kept investors happy last year](. [Check out the five stocks that IG thinks could come out on top this year](. DisclaimerYour capital is at risk. 69% 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. Gentle Nothing Care [Gentle Nothing Care] What’s going on here? The European Central Bank (ECB) erred on the side of caution, keeping interest rates steady on [Thursday](. What does this mean? The ECB is confident that inflation is on a steady decline, with high interest rates making it harder for shoppers to spend and, in turn, forcing retailers to keep prices manageable. But the central bank seems to know that pride comes before a fall, too. So wary of adjusting rates too soon, which could give inflation the breathing room to pick up again, the central bank held them at their heady level. In theory, that should put enough pressure on inflation to push it toward the 2% target. Why should I care? For markets: Pick a date, any date. Just how long the ECB will stick to its strategy is up for debate. On Thursday morning, markets said there was a 62% chance of rate cuts as soon as April. That’s probably because investors know that central banks’ decisions can flip on the mere whiff of changing stats. Remember, the Federal Reserve spent a year insisting that rates would stay lofty for the foreseeable, before suddenly predicting a series of cuts this year. Zooming out: Friends outgrow each other. Europe and the US have both avoided a recession so far, and their central banks are each waiting for inflation data to give the green light to cut economy-stifling interest rates. Those similarities explain why the euro and US dollar have been hip-to-hip over for the last year or so. But look at the bigger picture: the European economy has barely budged since the early 2010s, while the US has picked up by more than 50%. And with fresh data showing that the US economy grew a better-than-expected 3.3% last quarter from the same time the year before, it’s no wonder that the dollar has strongly been gaining dominance over the euro for the past decade. You might also like: [Six key questions to address as inflation creeps back up](. 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=Gentle Nothing Care&utm_campaign=daily-global-26-01-2024&utm_source=email) 💬 Quote of the day "I can't change the direction of the wind, but I can adjust my sails to always reach my destination." – Jimmy Dean (an American country music singer) [Tweet this]( SPONSORED BY CONSUMERDIRECT Meet the company tackling the American debt crisis Everyday Americans racked up a record $1 trillion in credit card debt last year (1). Today, 92 million borrowers in the US (2) have poor credit scores, forcing them to overpay $130 billion in interest alone (3). What’s worse, most Americans don’t know how to [improve their score](. In fact, 31% of Americans don’t even know what their credit score is (4). Enter [ConsumerDirect](: its patented credit tools identify the specific actions folks can take to [improve their score](. So far, [ConsumerDirect]( has helped over 300,000 subscribers [save nearly $3 billion]( on interest payments – and that’s just on car and mortgage loans alone (5). That brought in over $90 million in sales last year (6), up 540% from 2019 (7). The best bit: you can take part in changing finance in America forever. Invest in ConsumerDirect today. [Find Out More]( Disclaimer1. Based on information obtained from [Reuters.com]( 2. Based on information obtained from the following publications: [FICO,]( [Experian.]( 3. Based on information obtained from Intuit Investor Day 2021 presentation. 4. Based on information obtained from [yahoo finance](. 5. Calculation Methodology: Our savings calculations are estimates using historical internal data. It is based on analyzing subscribers' credit reports that had an increased credit score, while a current subscriber, for two categories: new auto and new mortgage financings. The calculations assumed precise credit score reporting, a consistent correlation between score ranges and financing rates, uniform loan terms except for interest rates, and steady interest rates over the loan’s term, along with unvarying borrowing behaviors among users. It’s important to note that our calculation estimates rely on accurate credit reporting, average loan data and current interest rates, but may not account for an individual subscriber’s interest rate variations, if any, or significant shifts in users’ borrowing and repayment habits, if any. Additionally, there was an assumed conversion from VantageScore® v3.0 to FICO® v8.0 and then verified by an official FICO® v8.0 calculator to determine savings from starting credit score to credit score before the above mentioned financing occurred. Our calculation is subject to change without notice. 6. Based on an Internal financial statements evaluation of gross revenue calculated for the trailing 12 months ending December 2023. 7. Based on an Internal financial statements evaluation of growth revenue calculated between 10/19-09/23. When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. You don’t need to be alone to be lonely. Here’s how to [process that niggling feeling](. 2. There's nothing like staying active. Here's how [different active investing strategies]( could play out for you.* 3. Ice cream for dinner is peak autonomy. No one’s quite sure [what makes you an adult](. 4. NFT games have become a big hit among gamers and investors alike. Let's look into the [two most popular NFT gaming projects](.* 5. Losing your phone is the least of your problems. A lot could go wrong with [digital car keys](. When you support our sponsors, you support us. Thanks for that. 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