💔 Japan's getting dumped

Stateside inflation was hot, hot, hot | Germany threatened to break Japan's heart on Valentine's | [Share the Love 💘 Refer a loved one to Finimize today!]( [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for February 14th in 3:14 minutes.   🌹 You might have a date this Valentine's, but the business you left in the office is feeling awfully lonely. So [chat to our team about promotional slots](, and you could have it mingling with hundreds of thousands of eligible retail investors, stat. [Get your company some, uh company]( Today's big stories - US inflation readings came in higher than expected, stomping on investors’ hopes of interest rate cuts anytime soon - The Year of the Dragon suggests good fortune, and Chinese stocks wouldn’t mind some of that – [Read Now]( - India looks set to become the world’s third-biggest economy by the end of the decade, while Japan could be booted as soon as tomorrow Hot And Heavy [Hot And Heavy] What’s going on here? Valentine’s Day has hit at the right time, because economists’ on-and-off relationship with inflation looked well and truly back on after a spicier-than-expected [update](. What does this mean? The consumer price index, which tracks the prices of a range of goods and services, was a pinch higher in January than December and 3.1% higher than the same time the year before. That’s way above the Federal Reserve’s (the Fed) 2% target. What’s worse, the core reading – which leaves out especially volatile food and energy prices – was a more-than-expected 0.4% higher in January than December, the biggest rise in eight months. Housing costs bit particularly hard, surprising economists who’d predicted they’d slow down. But a measure of services, with housing excluded, still picked up by the most since May. Inflation across the board is clearly proving hard for the central bank to tame. Why should I care? For markets: The day the music died. The Fed needs concrete evidence that prices are on a dependable decline before cutting interest rates. Ease up too soon, and the central bank risks letting inflation slip back out of control. So while investors had been betting on a rate cut sooner rather than later, the latest data lends itself to anything but. That’s rough for stocks. The lower the interest rate, the higher stocks are valued and the cheaper it is for companies to invest in themselves – both music to investors’ ears. For now, though, they’ll be stuck with silence. The bigger picture: The 90s are back in style. Citigroup expects the Fed to start cutting rates in June, an opinion shared with many other major banks. But it’s one of the very few predicting that the cuts will be short-lived, with the Fed hiking rates again afterward. That last happened back in the 1990s – just before, you know, the market totally crashed. You might also like: [Four lessons we can learn from the last 100 inflation bouts](. 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=Hot And Heavy&utm_campaign=daily-global-14-02-2024&utm_source=email) Analyst Take Why The Year Of The Dragon Could Mean It’s Time To Invest In China Again [Why The Year Of The Dragon Could Mean It’s Time To Invest In China Again]( The Year of the Dragon is believed to be [one of success]( – and Chinese stocks need some good fortune. They underperformed [global markets]( in 2023 for a third straight year and got off to a rocky start in 2024. But now there are [reasons]( to be positive about the outlook for Chinese assets. That’s today’s Insight: [why the Year of the Dragon could bring good fortune to Chinese stocks](. [Read or listen to the Insight here]( SPONSORED BY HEALTHWORDS Your chance to revolutionize healthcare alongside a panel of big-name experts The experts agree: a startup’s team is its most important asset. Good news for [Healthwords.ai](, that. The pioneering firm uses conversational AI to help under-the-weather, time-poor folk [find out if they can self-treat at home](. But AI’s just a helper: [the Healthwords.ai team]( includes healthcare professionals, legal experts in healthcare regulations, technology innovators, and user experience specialists. They’re revolutionizing healthcare for the 60 million who saw a doctor for symptoms that could have been treated at home last year, letting them swap buses for chicken noodle soup in bed. [You can invest from just $1,000 today to join an esteemed list of backers](: Netdoctor’s founder, a former JPMorgan global investment banking chairman, Procter & Gamble’s ex-head of global customer sales, and the former global head of Reckitt Benckiser. [Find Out More]( This is not Finimize editorial content. Finimize received a fixed fee for producing, hosting and promoting this content on behalf of [Healthwords.ai](. Other than the compensation received for this service, Finimize and its principals are not affiliated with [Healthwords.ai](. Finimize and its principals have no ownership in [Healthwords.ai](. The content on this page should not be taken as advice, an endorsement, or a recommendation from Finimize and its principals to buy or sell any security. Finimize and its principals have not evaluated the accuracy of any claims made on this page. Finimize and its principals recommend that investors do their own independent research and consult with a qualified investment professional before buying or selling any security. Investing is inherently risky and capital is at risk. Past performance is not indicative of future results. When you support our sponsors, you support us. Thanks for that. The Money’s On Germany [The Money’s On Germany] What’s going on here? Japan’s economy is expected to [fall]( behind Germany’s in the world ranking, but that might have more to do with the greenback than any true drawbacks. What does this mean? Japan’s currently the third-biggest economy in the world, but some analysts reckon the country will be handing that bronze medal over to fourth-place competitor Germany in the not-too-distant future. Still, Japanese policymakers – excuse the slight bias – have reason to be optimistic. The economy is expected to have shrunk from $6.3 trillion in 2012 to $4.2 trillion last year, it’s true, but that’s mainly because the Japanese yen weakened against the dollar during that time. In fact, when you take out the greenback factor, the economy likely picked up by 12%, instead. What’s more, with whispers that the central bank may raise interest rates for the first time since 2007, Japan may soon turn its decade-long deflation into healthier prices that feed into the economy. Why should I care? Zooming out: Race for the wooden spoon. Germany’s hardly an intimidating opponent, mind you. Production levels in the country’s industrial sector – which tends to lend bragging rights to Europe as a whole – were 1.6% lower in December from the month before, reaching a level that’s 10% below the pre-pandemic rate. So Germany knows first-hand how inflation can tilt the balance: the country’s shoppers are paying more for less, and for now, that’s enough to keep one step ahead of deflation-struck Japan. The bigger picture: A one-way ticket to India, please. It’s no wonder Japan and Germany are jostling over the same spot on the podium. They both have aging and shrinking populations, which is weighing heavily on all sorts of industries. India, meanwhile, is on a tear: the country’s population not only inched ahead of China’s last year, but it’s younger, too. That spritely workforce is why, according to the International Monetary Fund, India’s on track to beat Germany’s economy as soon as 2027. 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=The Money’s On Germany&utm_campaign=daily-global-14-02-2024&utm_source=email) 💬 Quote of the day "Love is friendship that has caught fire." – Ann Landers (an American columnist) [Tweet this]( 📍 Be in the right place at the right time. And by right place, we mean right here. [Promote Your Brand]( SPONSORED BY CFA Take a free sneak peek at finance courses from CFA Institute The [finance industry]( is competitive. Like, you-better-hope-your-uncle-still-works-there competitive. That’s why [CFA Institute]( designed certificate courses that get you noticed on your own merit. [Study online at your own pace](, and you’ll develop a deeper understanding of specific finance sectors. You’ll use [real-world scenarios]( and [case studies]( to train your number-crunching brain, and once you pass the assessment, you’ll bank [a certificate and an online badge]( worthy of showing off. Everyone learns differently, of course, so CFA Institute is teaming up with Finimize to [host six free-to-attend webinars](, where professors will walk you through the curriculum outline. You’ll get a feel for the different courses available, and you’ll have snagged some practical knowledge straight out of the gate from them, too. [Register for the first free webinar here](. [Discover More]( When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Your love life doesn't have to stop in your thirties. Here's how to [keep the romance going](, even after kids. 2. Bitcoin’s big news. You can trade the most popular cryptocurrencies without fronting big prices with [these micro-sized tools](.* 3. Roses are red. They're also quite [bad for the environment](. 4. Crisp basics never go out of style. Give your investment strategy [a refresher](.** 5. Valentine's isn't pointless, after all. The holiday has roots – and [not just in capitalism](. **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. 💉 [The Rise of AI-Driven Healthcare Investments](: 5pm, February 13th 💰 [The Inevitable Future of Cryptocurrency](: 5pm, February 20th 🔒 [Unlocking Trading Opportunities In 2024](: 1pm, February 26th 🔮 [Future-Proof Your Portfolio With Artificial Intelligence](: 5pm, February 27th ❤️ 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: dall-e | dall-e 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](