Financial Jitters 😬

Investors are bracing for a week of turbulent trading in UK financial markets as the government attempts to regain control and the Bank of England steps back from its emergency intervention.

As markets reopened for the first time since the Bank halted its multibillion-pound support programme on Friday, analysts prepared for the expected jitters and waves – despite Kwasi Kwarteng’s sacking as chancellor.

This week, on Zeed we're looking into ESG investing through green bonds, what DAOs are and how they actually work, and whether you should ever invest in stocks at IPO.

From our community, we're covering the gloomy state of the global economy, and discussing why corporate borrowing, loans, and mortgage rates have skyrocketed across the globe.

This week's deal uncovers the details of Naver's $1.2 billion acquisition of US second hand fashion company, Poshmark.

🌳 Green Bonds

ESG investing is everywhere right now, it's becoming more and more popular with people who want to make a positive impact with their investments. Watch this to learn more...

🤔 What are DAOs?

In crypto, a DAO is a decentralised autonomous organisation (sometimes called a decentralised autonomous corporation). Watch this to find out what they are and how they work...

👍 IPO Investing Pros and Cons

Should you invest in stocks at Initial Public Offering? There's definitely both pros and cons to it. Melanie explains ...

A Global Economic Crisis?

Last week the International Monetary Fund stated how multiple issues — including the European energy crisis, rapid interest rate rises and China’s slowdown — have been brewing in the global economy. Separate crises emerging from many different regions and markets are now coalescing: and we may be facing a crisis on a global scale.

It's not normal for so many economies to face trouble at once - the two largest, China and the US, could both be facing bleak futures. As global inflation rates have reached their highest for the last 40 years, central banks have had to increase interest rates sharply this year, in a synchronicity that hasn't been seen since the 1970s. Meanwhile the US dollar has hit its strongest level since the early 2000s – these forces together are causing the gloomy forecasts over the global economy.

Because of this, emerging economies such as India have been faced with higher debt burdens, thanks to the newly higher dollar, and disruptive capital outflows. We've also seen corporate borrowing, loans, and mortgage rates skyrocket across the globe.

For more bite-size market updates, visit our community!

Naver Acquires Poshmark for $17.90 per share

NAVER Corporation (035420.KS)

The Naver Corporation is a South Korean internet conglomerate headquartered in Seongnam that operates the search engine Naver. Naver established itself as an early pioneer in the use of user-generated content through the creation of the online Q&A platform Knowledge iN.

Poshmark POSH (NASDAQ)

Poshmark is a social commerce marketplace where users can buy and sell new and secondhand fashion, home goods, and electronics. The platform has over 80 million users, with over 200M available listings.

Details

• After the deal, Poshmark shares jumped 14% to $17.8 in after-hours trading.
• But Naver shares plunged 7.5% as of 0335 GMT, versus a 2.3% market rise.
• Poshmark reported a wider-than-expected quarterly loss in August, exacerbated by slower e-commerce growth, but efficient marketing spend and advertisement revenue could help profitability, Naver said.

Stats

• Total transaction size: $1.2 billion cash.
• Naver will buy all Poshmark stock at $17.90.

In the spirit of the turbulent markets this week, we're thought we'd re-share this conversation with Katie Ramsey, who is a portfolio manager and trader. She began her trading career at the beginning of the 2008 financial crisis, and knows a thing or two about challenging trading.

We'll catch you again next week, until then, make sure you're signed up to our community, and follow us on LinkedIn, Instagram, and Twitter! If you have any feedback or want to join our team, send us a message!

- Finance Focused Team