It's not the time to take out Euros | Tesla's lost its top spot |

Hi Reader, here's what you need to know for July 6th in 3:11 minutes.

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Today's big stories

  1. The euro is getting closer to parity with the US dollar
  2. One bitcoin indicator is poised to flash a buy signal, even as miners switch off their machines in their droves – Read Now
  3. Buffett-backed BYD is now the world’s biggest EV maker

Bad Value

Bad Value

What’s Going On Here?

The euro fell to its lowest level against the US dollar in two decades on Tuesday.

What Does This Mean?

The US Federal Reserve (the Fed) and the European Central Bank (the ECB) have taken two very different approaches to inflation in the last few months. The Fed’s opted to raise rates by 1.5% this year, and markets are pricing in another 0.75% later this month. The ECB, meanwhile, is taking a softly-softly approach: the central bank hasn’t even started hiking rates, and a string of weak economic data has traders betting that it’ll raise them just 1.4% this year when it eventually does.

This divergence has had a knock-on effect on the countries’ respective currencies, as the prospect of higher interest rates in the US makes the greenback more attractive to international savers and investors. Ipso facto: the euro has dropped to its weakest level versus the US dollar since 2002, and Bloomberg analysis suggests there’s now a 60% chance that they’ll reach parity by the end of the year (tweet this).

Why Should I Care?

The bigger picture: Keep an eye out.
This dynamic will probably get a mention when US companies report their quarterly earnings over the next few weeks. On the one hand, it makes European imports cheaper, reducing the firms’ costs on that front. But it also makes US companies’ exports more expensive for their European customers, which means they risk losing business to cheaper rivals. What’s more, any US firms with a big European presence – think Coca-Cola and Ford – will have found those sales worth less once they were converted back into dollars.

For you personally: How about a road trip instead?
This news might alter your vacation plans too. If you’re an American with aspirations of traveling Europe, now’s the time: you’ll get a lot more for every dollar you spend over there. But if you’re a European who wants to visit the glittering bastion of democracy in person, it’ll cost you.

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Analyst Take

Even Bitcoin Miners Have Thrown In The Towel

Even Bitcoin Miners Have Thrown In The Towel

By Jonathan Hobbs, Analyst

Bitcoin miners are a difficult breed to spook.

But another 37% drop in bitcoin’s price in June seems to have done just that, with more and more of them switching off their machines.

Now, you’d be forgiven for thinking this is yet another nail in the coffin of the OG crypto. But one proven indicator actually suggests this is the first of three promising signals.

The second of those signals flashed yesterday, meaning there’s only one left: the buy signal.

This buy signal has only flashed 13 times since 2012, and would’ve got you into bitcoin near the bottom of the 2015 and 2018 bear markets, as well as about a month into the Covid crash.

So that’s today’s Insight: how this indicator works, and when that final signal is going to flash.

Read or listen to the Insight here

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BYD Energy

BYD Energy

What’s Going On Here?

China’s BYD overtook Tesla as the world’s biggest EV maker by sales this week.

What Does This Mean?

Only a handful of BYD’s factories are based in regions that suffered from China’s most severe lockdowns, which allowed the carmaker to press ahead even as rivals Tesla, Xpeng, and Nio struggled. That enabled BYD to sell 641,000 EVs in the first six months of this year – up more than 300% from the same time in 2021, and 14% more than Tesla managed in the same period. In fact, the Chinese company has now officially dethroned the American EV maker as the world’s biggest in terms of EV sales. And as if to prove a point, BYD overtook South Korea's LG Energy as the world’s second-biggest producer of EV batteries too.

Why Should I Care?

For markets: There’s a reason Buffett’s bought in.
BYD is backed by the one and only Warren Buffett, and this might be why: the company is different from other EV makers insofar as it self-produces a lot of the parts that its rivals need suppliers for. It’s planning to become directly involved with the mining of lithium too, which will prove useful as batteries become harder to come by. That might be why BYD’s stock is up around 70% from its March lows, and why it’s on track to join an exclusive crew of Chinese stocks that have hit a market value of 1 trillion yuan.

The bigger picture: Made in China, by China.
BYD’s rise underscores China’s rapidly growing car industry, which has benefited as its EV makers have turned their focus onto exports: they shipped twice the number of cars last year than they did the year before. But analysts think there’s a lot more room to keep building on this momentum, with just 2% of Chinese car exports into Europe last year coming from homegrown brands.

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💬 Quote of the day

“Opinion is the medium between knowledge and ignorance.”

– Plato (a Greek philosopher)
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🌎 Finimize Live

🎉 Coming Up This Week…

All events in UK time.

💰 Managing Your Pension In A Cost Of Living Crisis: 12pm, July 6th
📚 Your Guide To Staying Safe In Web3: 1pm, July 7th
😊 How Not To Panic In A Bear Market: 5pm, July 7th
😎 The Benefits Of On-Chain Transactions: 1pm, July 8th

🤩 And After That…

🏡 Shelter Your Portfolio With Premium Real Estate: 12pm, July 12th
🔮 The Psychology Of Risk Management: 10am, July 13th

🎯 On Our Radar

  1. Eggs can cook on hot cars. Apparently barbecue meats can too.
  2. This body modification artist went too far. His art became a matter of life and death.
  3. Ryan Gosling is bringing male spray tans back. Here’s why we should let him.
  4. Offensive comedy strikes again. Police are getting involved this time.
  5. Hot weather demands ice cream. Unless you live in Florida.
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