The Purse

Welcome to our #53 weekly newsletter.

Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.

Stay in the know.

Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2021 during Covid-19 and beyond.

If you’re short on time, listen to the audio for a brief overview.

“For women who are taking control of their financial future”

-Jana Hlistova

From The Purse

Editorial from the Founder

Global stocks have gained $1.7tn in market cap this week: investors focus on liquidity support (ie government stimulus) and vaccine rollouts.

US stocks reached record highs as Joe Biden became the 46th US President on Wednesday. The market was led higher by technology stocks.

The US Treasury Secretary, Janet Yellen said that the US ‘must act big’ to revive the flagging economy. She underlined the new administration’s plans to press ahead with Joe Biden’s $1.9tn stimulus package.

Meanwhile the UK government’s borrowing has surpassed £250bn in the first 9 months of the fiscal year. This is double the level reached in the aftermath of the financial crisis.

Ether, the world's second-largest cryptocurrency, sets a new all-time high price. The price of ether hit $1,439.33 on January 18, overtaking its previous high of $1,432.88 recorded a little over three years ago. 

Institutional interest in the cryptocurrency market continues: CoinShares has launched an exchange-traded Bitcoin product and BlackRock may start trading Bitcoin futures in its fund.

In the Future Focus section, fund managers see a ‘big reset’ in dividend payments after they were cut 44% last year due to the pandemic (UK) and ESG ETFs grew by 223% in 2020.

Netflix published its earnings report and has signalled stock buybacks are to come as subscribers hit 200m.

A survey carried out by UBS Group found that women’s setbacks in a Covid economy extend to the wealthy. For example, 61% of affluent U.S. women believe the Covid-19 outbreak is hurting their careers.

In the Have You Seen This? section, the court has ruled that the UK childcare payment system is discriminatory and irrational.

And some of the biggest British companies fail to meet targets for women on boards.

We’re tracking Bumble, a female-centred dating app where women initiate the first move, founded by Whitney Wolfe Herd. The company filed paperwork on Friday for an initial public offering (IPO).

Unlike many other technology companies, the majority of Bumble's board is made up of women. At 31, Whitney Wolfe Herd will become one of the youngest female CEOs in tech to take her company public. 

And don’t forget to listen to The Purse Podcast interview with Cindy Gallop, founder & CEO of MLNP. (And here and here).

We talk female entrepreneurship, why the next big thing in tech is sex, fundraising, female investors, Cindy's $200m sextech fund, bitcoin and more.

Stay safe, look after yourselves and your loved ones.

I hope you enjoy this week’s newsletter. Until next week,

Jana

The Big Picture

Global markets and economy news, trends and indicators

* Global stocks have gained $1.7tn in market cap (this week)

* Investors focus on the liquidity support (ie government stimulus) and vaccine rollouts.

* Business sentiment is improving in the US but not Europe.

* US stocks reach record highs (Wednesday) as Joe Biden is sworn in as the 46th US President

* The stock market was led higher by technology stocks.

* Netflix reported stronger than expected earnings report that sent shares soaring nearly 20%. 

* US Treasury Secretary says US must ‘act big’ to revive flagging economy

* Janet Yellen underlined the new administration’s plans to press ahead with Joe Biden’s $1.9tn stimulus package. (Historic low interest rates mean that it is ‘cheap’ to borrow).

* She said: “Economists don’t always agree, but I think there is a consensus now: without further action, we risk a longer, more painful recession now – and long-term scarring of the economy later.”

* UK government’s borrowing surpasses £250bn in the first 9 months of the fiscal year

* The budget deficit (in the fiscal year) is approximately 20% of GDP.

* This is double the level reached in the aftermath of the financial crisis.

* UK inflation jumped to 0.6% in December (up from 0.3% in the previous month)

* This is due to an increase in transport costs and rise in computer games console (and partially offset by cheaper takeaway prices and lower furniture and household prices).

Bitcoin & cryptocurrencies

Global news, trends and insights

* Ether: world's second-largest cryptocurrency sets new ATH price

* The price of ether hit $1,439.33 on January 18, overtaking its previous high of $1,432.88 recorded a little over three years ago. 

* The cryptocurrency, which is used by the Ethereum blockchain, is only surpassed by bitcoin in terms of overall value.

* Ether has surged in value by 92% this year compared to bitcoin’s 27%.

* Janet Yellen suggests curtailing cryptocurrencies, such as Bitcoin

* On Tuesday, the US Treasury Secretary said cryptocurrencies were being mainly used for ‘illegal transactions’.

* It is the latest sign that lawmakers and regulators are going to get touch on cryptocurrencies.

* CoinShares started an exchange-traded Bitcoin product (19 January)

* It be listed under the ticker BITC on the SIX Swiss Exchange.

* CoinShares, which has about $4 billion in assets under management, was among the first to debut a crypto product.

* BITC, which is launching with over $100 million in assets under management will hold the underlying assets it is designed to track. Each unit of the product will be backed with 0.001 Bitcoin.

* BlackRock may start trading Bitcoin futures in its fund

* BlackRock is the largest asset manager in the world, with more than $7.8 trillion assets under management.

* On Wednesday, they submitted documents to the SEC today outlining its potential move into Bitcoin futures trading.

* It will only be investing in cash-settled Bitcoin futures on exchanges registered with the CFTC.

Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future

* Fund managers see ‘big reset’ for dividends after pandemic (44% reduction)

* In 2020, boards suspended or cut dividend payments to shore up balance sheets.

* According to Link Group, a company that tracks financial ownership, dividend payments fell 44% in 2020 to £61.9bn — the lowest annual total in nine years.

* Link said expectations for 2021 are “significantly more subdued” due to new lockdown measures. It predicts UK dividends will not regain their previous highs until 2025 “at the very earliest”.

* ESG ETFs grew by 223% in 2020

* 2020 was something of a boom year for ETFs, which saw the sector grow to $189bn and record almost 200 new listings, after capturing $97bn of flows over the course of the year. There are now more than 540 ESG ETFs available.

* (Due to the pandemic): many investors switched their usual holdings for ESG stocks as the merits of investing responsibly became more apparent.

* ESG portfolios outperformed due to their higher exposure to the healthcare and technology sectors.

* See the ESG Observatory: an online hub that provides tools, data and analysis on the global market for ESG ETF.

Companies: winners & losers

Companies to watch and share price movements

* Netflix signals stock buybacks to come as subscribers hit 200m

* Netflix will no longer raise debt to fund its ‘spending spree’ on television shows and films.

* Since 2011, when Netflix has invested in original programming with House of Cards, acquiring content through via high-yield bonds.

* Their strategy has been successful: the streaming giant had almost 204m subscribers at the end of 2020, having added 37m paying customers last year. 

* ‘We believe we no longer have a need to raise external financing for our day-to-day operations’ Netflix said in a letter to investors, adding that it would explore stock buybacks.

* Net income fell to $542m, from $587m a year ago, but the company’s cash flow position was significantly improved. For the quarter, the cash outflow was $284m, narrowing from $1.7bn a year ago.

* The company said it expected to break even this year and be cash flow positive after that.

Your Money

Insights, trends and what this means for you and your purse

* (US): Women’s setbacks in a Covid economy extend to the wealthy

* The pandemic has been tough on working women -even those with high incomes.

* A UBS Group survey found:

* 61% of affluent U.S. women believe the Covid-19 outbreak is hurting their careers.

* 40% said the pandemic has put pay raises and promotions on hold as they worked less to help their kids with school. 

* And 1 in 4 respondents said they’ve delayed retirement plans or considered leaving the workforce completely.

* The pandemic has also prompted 68% of women to discuss money more frequently with their partners, and 49% to talk about inheritance with their kids, according to the UBS poll. 

Have You Seen This?

Female-focused news, reports, research, campaigns

* UK childcare payment system discriminatory and irrational, judge rules

* Nichola Salvato, 49, from Brighton, had argued that the Department for Work and Pensions (DWP) requirement that she pay hundreds of pounds upfront to childcare providers before she could claim back the money through universal credit plunged her into debt and forced her to reduce her working hours.

* The court ruled that the ‘proof of payment’ rule disproportionally discriminated against women.

* Salvato’s legal challenge was supported by the charities Save the Children UK and Gingerbread, as well as the Professional Association for Childcare and Early Years and the National Day Nurseries Association.

Know this: women account for approximately 80% of all universal credit childcare payment claimants. Mr Justice Chamberlain said the childcare payment system will be used eventually by 500,000 UK parents when universal credit is fully rolled out, was irrational and subjected mothers to indirect sex discrimination under human rights law.

* Biggest British companies fail to meet targets for women on boards

* There are 33 companies in the FTSE 100 share index that have boards where women make up less than a third of its members.

* They include Antofagasta, Imperial Brands and Flutter Entertainment, where women hold only a fifth of the seats. 

* The FTSE 250 is lagging behind. Aston Martin, the carmaker, does not have a single woman on its nine-member board, while Baillie Gifford, 4imprint Group, AJ Bell and Biffa are among those with only one.

Know this: research shows that gender diversity drives performance. And companies which have diverse boards, tend to better reflect their market and therefore tend to be more successful. Gender diverse boards tend to more ‘cognitively diverse’ which leads to more creativity and innovative thinking.

What We’re Tracking

Female and diversity-focused products or services, start-ups and businesses led by women/diverse founders, investment, crowdfunding campaigns and research.

* Bumble (US)-founded by Whitney Wolfe Herd, is a female-centred dating app (women initiate the first move).

* The company filed paperwork on Friday for an initial public offering (IPO).

* The company reported generating $376.6 million in revenue between Jan. 29 and Sept. 30 of last year. During that same period, the company posted a net loss of $84.1m.

* According to its IPO paperwork, the Bumble dating empire counted 42.1 million monthly active users as of the end of September.

* Unlike many other technology companies, the majority of Bumble's board is made up of women. At 31, Wolfe Herd will become one of the youngest female CEOs in tech to take her company public. 

* Whitney wrote in the letter to investors:

* ‘Our long-term vision is to be the platform to meet new people, no matter what you might be looking for, whichever life stage or situation you're in’.

* It will list on the Nasdaq under the stock ticker ‘BMBL’.

Coffee Break? Read This

* Covid: self-employed mothers ‘deserve equal help’

* How to be a ‘glass shattering’ organisation

* Why we need to stop ‘untitling’ and uncredentialing’ professional women

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #52 weekly newsletter.

Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.

Stay in the know.

Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2021 during Covid-19 and beyond.

If you’re short on time, listen to the audio for a brief overview.

“For women who are taking control of their financial future”

-Jana Hlistova

From The Purse

Editorial from the Founder

Global stocks lost $800bn market cap last week: investors digested a mix of news ranging from negative vaccine and virus news to elevated equity valuations and rising bond yields.

Meanwhile, a double-dip recession beckons in Europe. Economists are abandoning projections for first quarter growth.

According to Bloomberg, JPMorgan now projects a 1% downturn in the first quarter of this year compared with its earlier forecast for 2% growth.

The UK is ‘facing its darkest hour’ due to lockdown, with unemployment thought to be over 6%, according to the Bank of England Governor.

Last Monday, the Financial Conduct Authority (FCA) warned that investing in cryptocurrencies was risky and investors could lose their money.

Bitcoin had its biggest plunge, last Monday, since March, dropping 26% and wiping $185bn in value. However many regard this rally to be different (to 2017) as many institutional investors have allocated money into Bitcoin: it is increasingly regarded as a hedge against inflation.

Twitter’s share price tumbled as much as 12% (last Monday) after it permanently banned Donald Trump from its platform.

In the Have You Seen This? section, read about why women in top finance jobs will benefit everyone.

And we are tracking Harlem Capital-a US venture capital firm on a mission to change the face of entrepreneurship by investing in 1,000 diverse founders over the next 20 years. Apple has just announced it is investing $10m into Harlem Capital (as part of its plan to allocate $100m to address racial equity and justice).

Don’t forget to listen to our podcast interview with Katrine Marcal, an award-winning author, journalist and keynote speaker. (And here).

Katrine’s first book entitled ‘Who Cooked Adam Smith’s Dinner’ has been translated into more than 20 languages and was hailed by Margaret Atwood as ‘a smart, funny, readable book on economics, money and women’. 

We talk about feminist economics, women’s work and women’s innovation.

Stay safe, look after yourselves and your loved ones.

I hope you enjoy this week’s newsletter. Until next week,

Jana

The Big Picture

Global markets and economy news, trends and indicators

* Global stocks have lost $800bn in market cap this week:

* Investors digested a mix of negative vaccine & virus news, fiscal stimulus plans, eroding US retail & employment activity on backdrop of elevated valuations & rising bond yields.

* Double-dip recession beckons in Europe (as lockdowns drag on)

* Economists are abandoning projections for first-quarter growth.

* JPMorgan, which reckons the economy suffered a massive 9% contraction in the fourth quarter of 2020, now projects a 1% downturn in the first quarter of this year compared with its earlier forecast for 2% growth.

* Most economists predict that it’ll be the second quarter that a recovery ultimately gets under way.

* (The UK economy shrank 2.6% in November).

* Bank of England (BoE): UK is facing its ‘darkest hour’ due to lockdown

* Bank governor: Andrew Bailey says unemployment thought to be over 6% and talks down prospect of negative interest rates.

* The total amount of electronic money pumped into the UK economy is (currently) £895bn.

* Last Monday, the Financial Conduct Authority (FCA) warned that investing in cryptocurrencies was risky and could go to zero

* The FCA issued a warning following the fall in bitcoin price from a high of $42,000 to $34,000.

* Bitcoin’s biggest plunge since March shakes faith in crypto boom

* Largest cryptocurrency fluctuates wildly after 26% plunge.

* Bitcoin has wiped out about $185bn in value, more than the market capitalisation of 90% of individual companies in the S&P 500.

* Many regard this rally to be different (to 2017) as many institutional investors have invested into Bitcoin and it is increasingly regarded as a hedge against inflation.

Bitcoin & cryptocurrencies

Global news, trends and insights

* Last Monday, Bitcoin dropped 20% from its ATH

* Bitcoin price reached an ATH of $42K and then dropped to £30K the following Monday.

* This week, Bitcoin’s record-breaking rally hit a wall at circa $37K

Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future

* David Rosenberg: why comparisons between bitcoin and gold are absurd

* ‘No one ever talks about the risk that gold could go to zero because it simply can’t — there is a floor in its price, because it has physical properties that make it useful even outside of its primary function as a safe-haven asset.

* But bitcoin, which has marginal intrinsic value, relies on the faith of its holders that it is worth more than nothing and that the technology is sound.

* Up-and-coming technological innovations could put the entire crypto-security universe in jeopardy as the private keys that are currently thought to be impenetrable might be easily cracked by quantum technology. 

* Bottom line: we really don’t see the gold-bitcoin debate as being “one or the other.” There is nothing wrong with investing a small…share of your portfolio in something such as bitcoin, if your risk tolerance allows it.’

* Invesco launches new Japan ‘ESG Momentum’ ETFs

* Invesco have launched a new Japan and Asia Pacific focussed ETFs to add to their existing suite of ESG ETFs. 

* Invesco builds their ESG ETFs by taking MSCI Indices and removing companies involved in controversial, conventional or nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco or recreational cannabis.

Companies: winners & losers

Companies to watch and share price movements

* Twitter’s share price tumbled as much as 12% (last Monday)

* Twitter lost as much as $5bn in market value after it permanently barred Donald Trump from its platform.

* Trump who had 88m followers generated enormous publicity for the platform over the past 6 years.

Your Money

Insights, trends and what this means for you and your purse

* The hot alternative investments to watch in 2021

* Here is a list of alternative investments which does not involve investing in the stock market including:

* Cask whisky: spurred by rising demand from Asian investors, the value of rare whisky has soared 564% in the last decade, and the asset has outperformed not only fine wine but every other luxury asset.

Have You Seen This?

Female-focused news, reports, research, campaigns

* Why women in top finance jobs will benefit everyone

* A 2019 study by S&P Global Market Intelligence of 6,000 companies in the Russell 3,000 index over 17 years found that, within 24 months of appointing a female chief financial officer, companies’ profits increased by an average 6% and stock market returns improved by 8% compared with their male predecessors.

* Although we have reached a record high this year with 90 female finance chiefs in the S&P 500 -18% of companies - more needs to be done.

Know this: involving men and women in decision-making broadens perspectives, drives creativity and innovation, often by questioning the status quo or default view and diversifies talent and skills.

What We’re Tracking

Female and diversity-focused products or services, start-ups and businesses led by women/diverse founders, investment, crowdfunding campaigns and research.

* Harlem Capital: (US) -founded by 'a venture capital firm on a mission to change the face of entrepreneurship by investing in 1,000 diverse founders over the next 20 years’.

* According to a 2020 Crunchbase Diversity Spotlight report, Black and Latino founders represented only 2.6% of the total $87.3 billion in funding toward the end of 2020.

* On Wednesday, Apple announced it will be investing $10m in Harlem Capital (as part of its plan to allocate $100m to address racial equity and justice).

Coffee Break? Read This

* Why women leaders thrive during a crisis

* Furlough refused to 70% of working mothers while schools shut-survey

* The pandemic made the childcare crisis an urgent talking point -will the US finally change things?

* Why should I be ashamed of making £1m? Female business owners speak of backlash against success

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #51 weekly newsletter.

Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.

Stay in the know.

Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2021 during Covid-19 and beyond.

If you’re short on time, listen to the audio for a brief overview.

“For women who are taking control of their financial future”

-Jana Hlistova

From The Purse

Editorial from the Founder

Global stock market cap is now $106tn, which has now topped 120% of global GDP which is the same level before the 2008 crash.

The Dow and tech-heavy Nasdaq reached all-time highs and the FTSE 100 index posted its best start to the year (to date on record).

On Thursday, the global cryptocurrency market hit $1tn in market cap. And Bitcoin reached $41,000 for the first time.

We’re beginning to see investors shift their money out of gold into Bitcoin.

Meanwhile JP Morgan says Bitcoin could surge to $146,000 in the long term.

In the Future Focus section, read about the ESG ETFs boom in 2020 as assets under management triples.

Tesla is now is up 950%+ since 2019 and Bitcoin is up 470%.

In the Your Money section, read about why divorce hits women’s income twice as hard as men.

And whilst hundreds of startups go public every year in the US, only 20 were founded and led by women.

We are tracking US startup called Allobee, founded by Brooke Markevicius, which has raised $500,000. It is a solution for women and small businesses impacted by the economy and circumstances of the pandemic.

If you have time, read about why women make better leaders during a crisis.

Stay safe, look after yourselves and your loved ones.

I hope you enjoy this week’s newsletter. Until next week,

Jana

The Big Picture

Global markets and economy news, trends and indicators

* Global stock market cap has hit an ATH at $106tn:

* The global stock market cap has now topped 120% of global GDP which is the same level before the crash in 2008.

* The Dow and tech-heavy Nasdaq reached all-time highs .

* The robust growth of equities is largely due to:

* the extraordinary monetary policies unleashed by central banks,

* optimism that the combinations of Covid-19 vaccines

* and the continued government stimulus.

* The benchmark FTSE 100 Index posted its best start to a year on record.

* It has rallied 6.4% so far in 2021, helped by a long-awaited Brexit deal and global growth optimism.

* Investors are also piling into the country’s exchange-traded funds.

* Miners, energy shares and banks boosted the FTSE 100 in the year’s first week of trading.

* ‘U.K. equities are seen as strong value investments based on fundamentals’.

Bitcoin & cryptocurrencies

Global news, trends and insights

* On Thursday, the global cryptocurrency market hit of $1trillion (for the first time)

* January 2018 was the last time total market cap came close to $1 trillion when it reached nearly $800 billion.

* Bitcoin was up 300% in 2020.

* Bitcoin hits an ATH $41,000 (Thursday)

* However Bitcoin fell $3,500 half an hour later, as volatility continues.

* Investors seem to be shifting their money out of gold and into Bitcoin.

* JP Morgan says Bitcoin could surge to $146,000 in the long term

* According to a note, this theoretical price is to ‘match the total private sector investment in gold via exchange-traded funds or bars and coins’.

Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future

* ESG ETFs boom in 2020 as AUM triples

* The urgency around climate change front and centre, investor appetite for ESG ETFs has largely been directed at those with exposure to green energy. (These were some of the best performing ETFs of 2020).

* Analysis by ETF research platform TrackInsight found ESG ETFs enjoyed a 223% increase in assets under management in 2020 to $189bn.

* The growth in ESG ETFs helped overall ETF assets under management grow to $7.6 trillion at the beginning of 2021.

* ‘It’s also clear that 2020 was a long-awaited turning point for ESG ETFs with huge growth in this sector’.

Companies: winners & losers

Companies to watch and share price movements

* Shares in Signal Advance surged Thursday

* Tesla CEO, Elon Musk, urged his Twitter followers to to ‘use Signal’-the encryped messaging app, which is a non-profit.

* As a result, traders mistakenly invested in an obscure and unrelated company called Signal Advance, which trades over the counter, surged 527% on Thursday and another 91% on Friday, climbing from 60 cents to $7.19.

* Tesla is now is up 950%+ since 2019 and Bitcoin is up 470%.

Your Money

Insights, trends and what this means for you and your purse

* Divorce hits women's income twice as hard as men's

* According to research by Legal & General pensions group:

* wives experience a drop of a third in their income after a marriage ends but for men the fall is less than a fifth of the money they have to live on.

* this is because women are likely to earn less than men, and many do not insist on taking a share of their husband's pension.

* Also: 'men who divorce are far more likely to have been the primary breadwinner in the relationship – 74% of men against 18% of women,' said the report from Legal & General. 

* The findings, based on a poll carried out by Opinium Research among more than 2,000 divorced men and women aged over 50, showed that following divorce a woman's income typically falls by 33%, against 18% for a man.

* UK: The best (and worst thing) that could happen to your money this year

* Current accounts: benefits vs charges

* Savings accounts: rise in interest rates, government initiatives vs low interest rates.

* Pensions: stock market goes up vs reduction of pension relief, stock market goes down.

* Mortgages: extension of stamp duty holiday, more lenders offer 90% loan-to-value mortgages vs price falls and therefore lending constrained.

Have You Seen This?

Female-focused news, reports, research, campaigns

* US: hundreds of startups go public every year. Only 20 were founded and led by women

* Since the New York Stock Exchange was founded in 1817, hundreds of companies have gone public.

* Thousands are publicly currently traded, but only 20 were founded and led by women.

Know this: there are many reasons why women fall behind. Women continue to receive less early-stage investment and under 3% VC funding for their startups. And when they do receive funding, they tend to raise less and is more expensive (in terms of the equity they have to give away). We need more to women raise funds and invest in women-led businesses.

What We’re Tracking

Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.

* Allobee: (US)-founded by CEO Brooke Markevicius, is a managed marketplace for small businesses and startups. It is a solution for women and small businesses impacted by the economy and circumstances of the pandemic.

* Since launching in May 2020, the increased demand for access to flexible skilled workers to support entrepreneurs and small businesses all over the country has accelerated Allobee hiring a fully vetted and highly skilled workforce: women that have left the traditional 9-5.

* Allobee's algorithm eliminates decision fatigue and supports an agile approach to outsource and manage workflow. 

* Allobee has just closed a round of funding for $500,000 led by Stargazer Ventures and a network of angel investors to further support the company's rapid growth.

Coffee Break? Read This

* Research: women are better leaders during a crisis

* Interview: How the ‘Shecession’ will cause long term harm in the US

* Offline in lockdown

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2021 & All Rights Reserved.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Welcome to our #50 weekly newsletter in 2020.

Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.

Stay in the know.

Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2020 during Covid-19 and beyond.

If you’re short on time, listen to the audio for a brief overview.

“For women who are taking control of their financial future”

-Jana Hlistova

From The Purse

Editorial from the Founder

The global stock market continues to go up in value; global stocks are now equal to 116% of global GDP (the highest level since 2007).

The US Federal Reserve has agreed to keep on buying bonds until the economy gets back to full employment (and inflation stays at 2%).

The Bank of England (BOE) has agreed to leave rates at 0.1% and holds asset purchases unchanged at £895bn.

US and European inflation expectations have risen above pre-Covid levels, even though UK inflation fell to 0.3% in November.

Meanwhile Brexit talks remain blocked over fishing rights.

Bitcoin has become investible for institutions with custodian arrangements and the price rose above $24,000 this week.

In the Future Focus section, MSCI says that diversity and inequality metrics will see ‘a lot of scrutiny’ next year as ESG investing grows.

Tesla shares surge to a new high on S&P 500 inclusion (on the 21 December).

In the Have You Seen This section, we highlight ex-COO of Pinterest, Francoise Brougher, who has reached a $22.5m settlement in a gender discrimination case.

And we’re tracking a European early-stage venture capital fund, co-founded by Pia d’Iribarne, which has raised $56m and has already started making investments.

****

I’d like to wish you a safe Christmas and all the very best for 2021!

Thank you being on this journey with us.

And we will be back on the 10th January.

Stay safe, look after yourselves and your loved ones.

Jana

The Big Picture

Global markets and economy news, trends and indicators

* The global stock market continues to go up in value: global stocks are now equal to 116% of global GDP, the highest level since 2007:

* The Federal Reserve commit to keep buying bonds until the economy gets back to full employment & inflation stays at 2%

* Short-term borrowing rates to be held at zero.

* At least $120 billion a month in purchases will continue and the duration of bonds will not be extended.

* The Bank of England (BOE) leaves rates at 0.1% and holds asset purchases unchanged £895bn unanimously.

* The balance sheet has already jumped to record at 36.5% of the UK's GDP.

* The BoE will leave the stimulus policy unchanged.

* US: cash levels are low

* Money managers overseeing $534bn are underweight in cash for the first time since May 2013.

* Investors are bullish most on stocks and commodities since February 2011.

* US and European inflation expectations have risen above pre-Covid levels

* However, in the UK, inflation fell to 0.3% in November from in 0.7% (in October) due to discounting by clothes retailers.

* Brexit talks remain blocked over fishing rights

* British officials say EU side still not showing enough flexibility to get deal over the line.

* Bitcoin has become investible for institutions with custodian arrangements available; bitcoin price has risen above $24,000 this week

* Hedge fund One River becomes the newest player in bitcoin.

* The fund has invested $600m+ in bitcoin.

Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future

* Biggest inflows in 2020: gold, technology stocks and cash

* US: Guggenheim Chief Investment Officer says that bitcoin should be $400,000

* Scott Minerd has said that the price target is based on two things:

* the asset's scarcity and

* its relative value to gold as a percentage of gross domestic product.

* US: Diversity, inequality metrics will see ‘a lot of scrutiny’ next year as ESG investing grows, MSCI says

* The Nasdaq’s recent proposal to require more diversity on boards of companies listed on the exchange is just one example of a sustained push that is likely to strengthen.

* Inequality more broadly will also be a major focus following the economic hardship wrought by the Covid-19 pandemic.

Companies: winners & losers

Companies to watch and share price movements

* Tesla shares surge to a new high on S&P 500 inclusion

* The carmaker becomes the 6th largest company in the index.

* There are more than 200m shares in Tesla, worth more than $148bn.

Your Money

Insights, trends and what this means for you and your purse

* UK: Pension freedoms have cost too many people their life’s savings

* The City watchdog’s recent case against a firm of financial advisers highlights a series of problems.

* Pension freedoms rules brought in during 2015 has meant that people can move their occupational pensions into self-invested personal pensions (SIPPs) and invest in pretty much anything they like.

* In the current low interest rate environment, it is easy to be tempted into eye-catching alternatives where they may earn 20% returns (however they also risk losing their investment altogether).

* Read more here.

Have You Seen This?

Female-focused news, reports, research, campaigns

* Pinterest, former COO reaches $22.5m settlement in gender discrimination case

* The settlement comes after former chief operating officer Francoise Brougher sued the company in August for allegedly excluding her from important decisions after refusing to ‘take a back seat to her male peers.’

* Francoise who worked as COO for two years, said she was terminated for objecting to demeaning and sexist treatment.

Know this: as women take on more leadership positions and therefore have more clout, they will bump up against informal or tacit gender and cultural ‘codes’. Research shows that women continue to be held to a different standard and are treated differently in the workplace, compared to men. It’s important to seek out employers and colleagues who are forward-thinking and can demonstrate an inclusive, diverse and transparent company culture and leadership.

What We’re Tracking

Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.

* New Wave (Europe)-co-founded by Pia d’Iribarne, is a a early-stage venture capital fund:

* Its debut fund of $56 million was raised in just three months and has already begun making investments.

* It is said to be targeting seed and pre-seed startups across Europe.

* Cheque sizes will be between €500,000 and €2 million, with New Wave both leading and co-investing in rounds.

* High-profile LPs include Yuri Milner of DST, Peter Fenton from Benchmark, Philippe Laffont from Coatue and Tony Fadell of Nest and Apple fame.

Coffee Break? Read This

* How to stop thinking about work at 3am

* Female leaders make a real difference. And Covid may be proof.

* Equalities minister Liz Truss runs department with second-biggest gender pay gap

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2020 & All Rights Reserved.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing

Welcome to our #49 weekly newsletter in 2020.

Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.

Stay in the know.

Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2020 during Covid-19 and beyond.

If you’re short on time, listen to the audio for a brief overview.

“For women who are taking control of their financial future”

-Jana Hlistova

From The Purse…

Editorial from the Founder

Global stocks have lost $300bn market cap this week but are still valued at over $100tn; which is 114% of global GDP.

Meanwhile Brexit talks are on a ‘knife-edge’ but the EU and UK have agreed to extend trade deal talks today. UK equity funds have bled more than $2bn over the past two months. The latest withdrawals bring UK equity fund outflows since the Brexit referendum to $42bn (17% of total assets held since June 2016).

UK stocks have been battered by Brexit uncertainty over the past four years: the FTSE All-Share index is down 12% since the beginning of the year, while the US S&P 500 has risen by 12%.

Meanwhile, is the US stock market starting to feel like it’s 1999 (before the dotcom crash in 2001-2002)?

AirBnb soared close to a $100bn valuation as shares more than doubled at its IPO. Tesla’s share price has gone up by 50% since it was announced it will be included in the S&P 500 on 21 December (it is up 600% in 2020).

Massachusetts Mutual Life Insurance Co. bought $100m of bitcoin for its general investment account-this is the latest sign of mainstream acceptance for the digital currency.

Meanwhile, Apple’s co-founder Steve Wozniak has launched a new cryptocurrency.

In the Your Money section, read about how to Brexit-proof your finances. And what are the seven ways married women can beat the £186,000 pension savings gap?

A healthcare fund run by an all-female team has outperformed its peers by 65%, largely due to its far-sighted bet on medical stock Moderna Inc.

And we’re tracking US startup Everlywell, founded by Julia Cheek, which is an at-home medical testing company which has outperformed during the pandemic. It has just raised $175m series D at around $1.3bn valuation.

Stay safe, look after yourselves and your loved ones.

I hope you enjoy this week’s newsletter. Until next week,

Jana

The Big Picture

Global markets and economy news, trends and indicators

* Global stocks have lost $300bn market cap this week but still valued at over $100tn

* Global stocks are valued at 114% of global GDP.

* Brexit talks on a ‘knife-edge’ but the EU and UK have agreed to extend trade deal talks

* Talks to unlock a post-Brexit EU-UK trade deal resumed Sunday morning.

* Both parties are increasingly pessimistic about a deal.

* UK equity funds have bled more than $2bn over the past two months, highlighting the extent of investor unease as a no-deal Brexit becomes increasingly likely.

* The latest withdrawals bring UK equity fund outflows since the Brexit referendum to $42bn (17% of total assets held since June 2016).

* UK stocks have been battered by Brexit uncertainty over the past four years: the FTSE All-Share index is down 12% since the beginning of the year, while the US S&P 500 has risen by 12%.

* From AirBnb to Tesla, it’s starting to feel like 1999 (ie the internet bubble followed by the dotcom crash in 2001-2002)

* More money has been raised from share sales (US) so far this year than in 1999, the height of the dotcom boom.

Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future

* UK economic recovery will lag behind all rivals (bar Argentina)

* According to OECD’s economic outlook report, the UK economy is expected to contract by 11.2% this year, compared with the 10.1% fall in GDP it was forecasting in September. 

* UK: The roaring 2020s? Don’t bank on it-here’s why:

* Inflation could start to rise, and the Bank of England may need to increase interest rates (which would eliminate an ‘economic boom’).

* Policy error is a potential threat: the UK Chancellor has to make a judgement soon about how much support he is going to continue to give to the economy – and for how long.

* More borrowing by the UK Chancellor than any other during peacetime Britain.

* Consumer confidence is weak. Unemployment fears loom.

* There is a limit to what the Bank and the Treasury can do. Britain’s problems are as much to do with the structure of the economy as they are to do with demand.

* Apple’s Co-founder Steve Wozniak launches new cryptocurrency

* Steve Wozniak has launched a new company called Efforce and a new token: WOZX (on 3 Dec). Efforce was first mentioned in July 2019 at the Delta Summit in Malta.

* The token reached “$950M in the first 13 minutes, 10 times the listing price,” according to a company press release. 

* According to its website: ‘Efforce is the first platform that allows contributors to benefit from the energy savings generated by energy efficiency projects worldwide’.

* It is the first blockchain-based energy-saving platform.

Companies: winners & losers

Companies to watch and share price movements

* AirBnb soars to near $100bn valuation as shares more than double at IPO

* AirBnb, the short-term rentals company, started trading on the Nasdaq on Thursday.

* The share sale was priced at $68 a share but the company started trading at over $150 a share and closed the day at $144.70.

* In April, it laid off 25% of its staff – nearly 1,900 employees. But bookings have bounced back as people fled the cities.

* Tesla said to sell up to $5bn worth of its shares over time

* Tesla stock has soared more than 600% this year, lifting its market capitalisation to more than $600 billion. (Some believe Tesla shares could soar another 300% to $2,500 in 3 years time.)

* (The company earned about $21 billion in revenue and only $1.4 billion in operating income in the first nine months of this year.) And many consider Tesla stock to be overvalued.

* Musk's electric-vehicle company has struck an equity-distribution agreement with 10 banks including Goldman Sachs. Tesla and the banks will decide how much stock is sold and at what price on a daily basis.

* Massachusetts Mutual Life Insurance Co. bought $100 million of bitcoin for its general investment account

* This is the latest sign of mainstream acceptance for the upstart digital currency.

* The investment is a tiny one for company whose general investment account totalled nearly $235bn as of Sept. 30.

* The company has $2.3 billion of bitcoin and other cryptocurrencies under management.

Your Money

Insights, trends and what this means for you and your purse

* No-deal nightmare: ten tips to Brexit-proof your household finances

* Try to keep some wiggle room in your budget

* Build a savings safety net

* Consider locking in savings rates

* Look at fixed mortgage rates

* Think about a diverse investment portfolio

* Plan pension income

* If you need to convert currency, consider the timing

* Do not assume house prices will go up indefinitely

* Plan further ahead for travel

* Check your mobile small print

* 7 ways married women can beat the £186,000 pension savings gap

* Equity release lender More2Life estimates the pension savings gap when life expectancy is taken into account is £108,130 for single women but rises to £186,120 for married women or those in a relationship.

* Married women, women in relationships and those with families are more likely to take breaks from employment or reduce hours to look after their family.

* How can married women close the pension savings gap:

* Figure out how much you need

* Start saving as soon as possible

* Claim National Insurance credits for the state pension

* See if your spouse can pay into your pension for you

* Make sure pensions are included in your divorce settlement

* Consider financial advice

* Claim child benefit.

Have You Seen This?

Female-focused news, reports, research, campaigns

* Fund run by an all-female team surges past peers to a 65% gain this year

* A Baillie Gifford & Co. health care fund run by an all-female team has surged past peers to a 65% gain this year, largely thanks to a far-sighted bet on medical stock Moderna Inc.

* The nearest European peers to the Baillie Gifford fund trail it with gains of 13%-45% this year through November.

Know this: there is growing evidence to suggest that funds, including hedge funds, run by all-female teams have outperformed their peers (male teams) during the pandemic. Goldman Sachs has recently shared data regarding stock outperformance based on the gender diversity of senior management teams. It’s proven that diverse thinking drives a diverse approach which in turn improves performances and generates better return on investment.

What We’re Tracking

Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.

* Everlywell: (US)-founded by Julia Cheek, is an at-home medical testing company.

* The startup has raised $175m series D at around $1.3bn valuation.

* Founded in 2015, it was a small home-testing company focused on women’s health with three mail-order test kits in its catalogue.

* Now, the company is a digital health unicorn with more than 30 test kits, 250 employees and a projected $100 million in revenue.

* According to Julia Cheek: “Consumers are changing how they use healthcare… and they are adopting digital solutions and home solutions at rapid rates we haven’t seen before.” 

Coffee Break? Read This

* The women radically overhauling their careers during the Covid crisis

* How to keep work stress from killing you-literally

* Ask an expert: what to do if my boss is gaslighting me?

* Female founder representation in the media and the ‘raise’ double standard

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2020 & All Rights Reserved.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing

Welcome to our #46 weekly newsletter in 2020.

Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.

Stay in the know.

Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2020 during Covid-19 and beyond.

If you’re short on time, listen to the editorial on audio for a brief overview.

“For women who are taking control of their financial future”

-Jana Hlistova

From The Purse…

Editorial from the Founder

On Monday, global markets hit a record high as Moderna announced that its vaccine was 94.5% effective.

In the US, the Treasury secretary said that several emergency lending facilities will be wound up in December. These tools helped restore market confidence this year, which triggered the recovery in the market. The Federal Reserve does not support this decision.

UK national debt is the highest since the 1960s, after record borrowing in October ie £22.3bn.

Bitcoin continues to rise (without the hype); its price is now over $18,000. And more importantly, bitcoin’s market cap hit at an all-time high.

What are the 4 sub sectors posed to be the ‘next best thing’ for investors?

And according to Morgan Stanley, Tesla’s share price is expected to go up 22% from current levels.

Divorce rates are on the rise and how should you protect your assets?

In the Have You Seen This? section, read about why many women are ill-prepared for the pandemic’s financial challenges.

It was Equal Pay Day on Friday for the UK: the day that women in effect stop being paid because of the gender pay gap. Although the gender pay gap has gone down recently, the Fawcett Society ‘said the reduction should be treated with caution, as a quarter of the usual sample of employer pay data was missing from the ONS calculations due to Covid.’

And we are tracking UK tech startup called Flown, founded by Alicia Navarro: it is an online platform that will match knowledge workers with inspiring properties. They have just closed a $1.5 million pre-seed investment round from several high-profile angels and entrepreneurs.

Stay safe, look after yourselves and your loved ones.

I hope you enjoy this week’s newsletter. Until next week,

Jana

The Big Picture

Global markets and economy news, trends and indicators

* Global markets at a record high after Moderna vaccine boost

* FTSE 100 hit the highest close since June, Europe’s 600 Stoxx hits highest close since February & the Dow Jones hits a record high.

* On Monday, Moderna announced coronavirus vaccine was 94.5% effective

* They join Pfizer as a front-runner in the global race to contain a raging pandemic that has killed 1.2 million people worldwide.

* On Wednesday, Pfizer and its German partner BioNTech announced that its vaccine appears 95% effective at preventing mild to severe COVID-19 disease in a large, ongoing study.

* See Moderna’s share price

* US: several emergency lending facilities will be wound up in December

* Treasury secretary Steven Mnuchin said wrapping up these emergency facilities would free up $455bn in funds that could be spent elsewhere by Congress.

* These tools helped restore market confidence this year, which triggered the recovery in the market.

* Analysts fear that the move will make it harder for Joe Biden’s administration to fight the economic damage of Covid-19.

* UK national debt the highest since the 1960s after record borrowing in October (£22.3bn)

* Britain has borrowed £215bn since April this year.

* Meanwhile tax receipts has slumped by £70bn.

* National debt is now 100.8% of GDP.

* Bitcoin continues to rise, this time without the hype; (at writing it is priced at $18, 779)

* Bitcoin is up 261% YTD (vs Tesla shares are up 585% YTD).

* This is a 35 month high.

* Crucially, bitcoin market cap has hit an ATH.

Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future

* The world’s largest wealth manager names 4 sub sectors poised to be ‘the next best thing’ for investors

* Mark Haefele, chief investment officer of UBS Wealth Management has said, ‘..we think the next decade will reward investing in the disruptors in sectors undergoing technological transformation’.

* Here are the 4 sub sectors:

* The 5G wave

* How consumers pay

* Streamlining healthcare

* Governments going green

* Billionaire investor Mike Novogratz says bitcoin will hit $65,000

* Bitcoin's market capitalisation recently hit a high of $337 billion, eclipsing a record of $328 billion set in December 2017, according to data from Coin Gecko.

* Morgan Stanley says Tesla shares will surge 22% from current levels

* Morgan Stanley said it sees an opportunity in Tesla's high-margin software-and-services business, which it expects to represent up to 20% of total profit by 2030.

* ‘To only value Tesla on car sales alone ignores the multiple businesses embedded within the company, and ignores the long term value creation arising from monetising Tesla's core strengths, driven by best in class software and ancillary services,’ the note said.

Companies: winners & losers

Companies to watch and share price movements

* Tesla has hit a fresh ATH as it will be added to the S&P 500 in December.

* Naked Wines reports a 80%+ increase in sales

* The company revealed a rise in sales from £87.5m to £157.1m as more people ordered wine home.

* The listed company has raised full-year sales forecast and expects full-year sales increase to be between 55 and 65% – up from previous forecasts of 40%.

* Naked Wines describes the step change: ‘Ultimately the most significant impact of COVID-19 on Naked Wines is not found in these interim results, but in the way it has accelerated the growth of the online wine category and increased consumer willingness to trial a new and better way to buy wine.’

Your Money

Insights, trends and what this means for you and your purse

* Divorce rates rise by 18.4% as advice is issued on how to protect pensions, wills & assets

* Divorce rates rose in 2019:

* According to the ONS, there were 107,599 divorces of opposite-sex couples in 2019, increasing by 18.4% from 90,871 in 2018.

* There were 822 divorces among same-sex couples in 2019, nearly twice the number in 2018 and of these, nearly three quarters (72%) were between female couples.

* Here is some advice on how to protect your assets:

* Have the right team behind you; including a financial planner (not just a family solicitor).

* Understand your day to day budget and create a financial plan that fits with your goals

* Think about the long-term: consider the pension as an asset & update your will.

Have You Seen This?

Female-focused news, reports, research, campaigns

* US: Many women are ill-prepared for the pandemic’s financial challenges

* According to research, on average, adult women correctly answered 49% of the Personal Finance (Personal Finance Index) questions versus men who correctly answered 56%.

* ‘The combination of precarious personal finances and low financial literacy results in poor financial resiliency,’ said TIAA Institute Senior Economist Paul Yakoboski. 

* Additional findings reveal that minority women spent, on average, 13 hours per week contemplating and addressing personal finance issues, whereas their white peers spent five hours a week. 

* ‘The 2020 P-Fin Index findings on women, particularly underrepresented women, are alarming. They signal an urgent need for policymakers, private-sector leaders, and others to develop policies and programs that empower women..’

Know this: learning about money; becoming financially literate during a ‘crisis’-be this a divorce, redundancy or a pandemic is very difficult. (This does not ignore the fact that the financial services industry has to play catch-up on how to best engage female customers and female investors). Carve out at least 10mins every day to learn something new about money and investing. Use this newsletter to inspire you; read the relevant article and highlight what interests you and want to read up on. Search for podcasts or watch YouTube videos on topics you are drawn to. If you have a partner, commit to a weekly or fortnightly ‘money date night’ to discuss all of your financial matters, including investments, investing decisions and pensions (& and other assets). Stay engaged. And why not find a financial planner who can help?

* UK: Women in the mid-30s may never know equal pay in their lives

* It was Equal Pay Day on Friday: the day that women in effect stop being paid because of the gender pay gap.

* Labour has said 8.5m women will go their entire careers without receiving equal pay.

* It comes as research from the Fawcett Society reveals that 43% of working women, and 50% of black and minority ethnic working women (compared with 35% of white working men) are worried about their job and promotion prospects because of coronavirus.

* Fawcett calculates Equal Pay Day by using the full-time mean average gender pay gap – which this year is 11.5%, down from 13.1% in 2019. But it said the reduction should be treated with caution, as a quarter of the usual sample of employer pay data was missing from the ONS calculations due to Covid.

* The Equality Trust said the government could only make equal pay a reality by giving women the right to know what a male colleague doing the same work was paid.

Know this: women have had to bear the brunt of the pandemic, both at work and at home. Society continues to lean on women to ‘pick up the pieces’ around childcare and the home. It goes without saying that employers need to provide remote and flexible work. However, as women we also need to have important conversations with our partners about sharing the workload in the home.

What We’re Tracking

Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.

* Flown: (UK)-founded by Alicia Navarro, an online platform that will match knowledge workers with inspiring properties (already set up for productive and ergonomic remote work), supported by an array of online tools and resources.

* Flown has now closed a $1.5 million pre-seed investment round from several noted and prolific angels and entrepreneurs, including Taavet Hinrikus (TransferWise), Greg Marsh (OneFineStay), James Meekings (Funding Circle) and Pete Cashmore (Mashable) — with a third of the fundraise also coming from female investors.

Coffee Break? Read This

* What do great listeners actually do?

* How to talk to your boss if you are underperforming

* Have female CEOs coped with Covid better than men?

* “Other countries have social safety nets. The US has women’.

* Women have long been the leaders in Navajo culture. Now they’re steering the fight against Covid

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2020 & All Rights Reserved.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing

Welcome to our #45 weekly newsletter in 2020.

Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.

Stay in the know.

Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2020 during Covid-19 and beyond.

If you’re short on time, listen to the editorial on audio for a brief overview.

“For women who are taking control of their financial future”

-Jana Hlistova

From The Purse…

Editorial from the Founder

Global equities are moving further into bubble territory, according to the Buffet-indicator.

Global stock market cap has hit an all-time high this week at $95tn, which is equal to 108% of global GDP; the highest figure since 2007.

Last Monday, the global markets rallied on the Joe Biden win in the US Presidential election and news of a Covid-19 vaccine breakthrough by U.S pharmaceutical giant Pfizer and German biotech firm BioNTech.

The UK economy grew at a record quarterly rate 15%+ but recovery slowed in September. Meanwhile UK unemployment increased to 4.8% in the 3 months to September.

In the Your Money section, read about research by Fidelity International which says that 22% of women have a secret savings fund should their relationship end or they choose to leave their partner.

According to Goldman Sachs, listed European companies that have more women at senior levels have benefited from strong share-price performance (this is based on data for Stoxx 600 companies since the 2008 financial crisis).

The Equality and Human Rights Commission (EHRC) said that the BBC has not breached the law (regarding equal pay), after selecting and reviewing 10 cases between 2017 and 2019.

Former BBC China editor Carrie Gracie, who resigned in 2018 in protest at pay inequalities, has called the investigation by the EHRC a ‘whitewash’. We couldn’t agree more.

And we’re tracking UK fintech startup called PensionBee, founded and run by Romi Savova. They are close to appointing bankers before a flotation in London set to value it at £300m or more.

And don’t forget to listen to The Purse Podcast interview with Tina Weeks, the founder of Serenity Financial Planning. We talk about financial planning and why it’s crucial, how women should think about their pension especially important if going through a divorce. And Tina shares advice on how to manage your money during the pandemic.

Stay safe, look after yourselves and your loved ones.

I hope you enjoy this week’s newsletter. Until next week,

Jana

The Big Picture

Global markets and economy news, trends and indicators

The Coronavirus Effect:

* The global stock market cap has hit an all-time high this week

* It is equal to 108% of global GDP which is the highest figure since 2007.

* We are moving further into bubble territory.

* On Monday, European stocks closed 4% higher as global markets rally on Joe Biden win and on Covid-19 vaccine news

* European markets tracked their global counterparts higher Monday as investors reacted to Democrat Joe Biden’s win over Donald Trump in the U.S. presidential race.

* Stocks received a further boost as U.S pharmaceutical giant Pfizer and German biotech firm BioNTech said their coronavirus vaccine was more than 90% effective in preventing Covid-19.

* The UK economy grew at a record quarterly rate 15%+ but recovery slowed in September

* GDP increased by 9.1% in June, 6.3% in July, and 2.2% in August before slowing again in September ie growing by 1.1% only.

* UK unemployment increased to 4.8% in the 3 months to September

* But the unemployment rate is still below its levels after the financial crisis ie it increased to 8%+ in 2011.

* The Bank of England thinks the unemployment rate will peak at 7.75% next year.

Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future

* US: legendary investor Jeremy Grantham says he’s certain the stock market is in a bubble

* The cofounder and chief investment strategist of the asset-management firm GMO, expressed concern about a stock market bubble for the first time in June.

* Grantham said that the bubble was disconnected from economic realities (and neither a vaccine or a fiscal stimulus would change its trajectory).

* A million people may quit self-employment in Covid-hit UK

* The study by the LSE’s Centre for Economic Performance (CEP) found that in August – 58% of the UK’s 5 million self-employed had less work than normal.

* A fifth of the self-employed anticipated quitting altogether, rising to 58% for those under the age of 25.

Your Money

Insights, trends and what this means for you and your purse

* More than a fifth of women have a secret savings fund

* According to research by Fidelity International, 22% of women have a secret savings fund should their relationship end or they choose to leave their partner.

* Fidelity found that secret funds have been setup by 21% of women aged 18 to 34, equating to 20% of those living with their partner, and 27% of those with children.

* One in eight (12%) women admitted that they find it difficult to discuss their household’s spending and budgeting with their partner, and another 12% said they find it difficult to discuss savings and investments.

* UK adults spend an entire year worrying about their money over their lifetime

* A study of 2,000 Brits found they typically think about their finances four times a day, for a total of 28 minutes.

* The top 10 money worries among Brits are:

* How much money they'll have left over after the main outgoings

* Household bills

* How much they should put into a savings account

* Upcoming occasions e.g. buying birthday gifts

* How they will cope if their financial situation changes

* Interest rates

* Paying off debts

* Whether they can afford a holiday

* Whether they can afford personal treats e.g. a haircut

* Their rent / mortgage

Have You Seen This?

Female-focused news, reports, research, campaigns

* The stock market boost from more women in management

* According to Goldman Sachs, listed European companies that have more women at senior levels have benefited from strong share-price performance (based on data for Stoxx 600 companies since the 2008 financial crisis).

* However, correlation does not mean causation. For example, it could be that by hiring from a broader pool that includes both sexes, companies are able to attract the best talent. Equally, it may work the other way: women may be more choosy about their employer and end up picking higher quality businesses. 

Know this: having more women in senior positions is associated with a lower cost of equity, stronger share-price performance and lower volatility of shares.

* BBC equal pay: 'No unlawful discrimination', watchdog finds - but critics hail inquiry a 'whitewash'

* The Equality and Human Rights Commission said that the BBC has not breached the law (regarding equal pay), after selecting and reviewing 10 cases between 2017 and 2019.

* Former BBC China editor Carrie Gracie, who resigned in 2018 in protest at pay inequalities (and was later given an apology and back pay) hit out at the findings after the watchdog made them public on Thursday.

Know this: pay discrimination is a complex issue largely due to systemic bias in decision-making around how much women get paid (especially where the hiring process and salary negotiation is not standardised). The gender pay gap exacerbates the problem which compounds over a woman’s lifetime and has a profound impact on a woman’s net worth.

Listen to our podcast interview with Katie Donovan who is one of the leading pay-equity experts and advocates in the US. 

What We’re Tracking

Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.

* PensionBee: (UK)-founded by Romi Savova, is a financial technology company that has been dubbed ‘the Monzo of pensions’.

* They are close to appointing bankers before a flotation in London set to value it at £300 million or more.

* PensionBee enables customers to transfer and aggregate legacy pension pots on to a single, low-cost platform accessible from a smartphone.

* Customer numbers have risen from 15,000 to 115,000 in the past two months and assets under administration to £1.2 billion.

* Net operating losses at PensionBee doubled in 2019 to £6.86 million.

Coffee Break? Read This

* Why women don’t negotiate their job offers

* ‘Women’s work’ can no longer be taken for granted

* Blind viewing shows how female artists are undervalued

* Meet Kathrin Jenson, the woman leading Pfizer’s Covid-19 vaccine effort

* Startup fundraising is the most tangible gender gap. How can we overcome it?

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2020 & All Rights Reserved.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing

Welcome to our #44 weekly newsletter in 2020.

Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.

Stay in the know.

Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2020 during Covid-19 and beyond.

“For women who are taking control of their financial future”

-Jana Hlistova

From The Purse…

Editorial from the Founder

Joe Biden has become the 46th US President joined by Kamala Harris, as the first female Vice President. A monumental result.

Global stocks gained $5.5tn in market cap in the US election week. Global stocks are now worth $93.5tn (the highest value in history), which is equal to 106.6% of global GDP.

All eyes will be on how the markets respond (Monday) to the Democrats winning the US election (ousting Donald Trump from office after one term only).

The Bank of England injected £150bn into the UK economy (England went into lockdown on Thursday). And according to chief economist at KPMG UK Yael Selfin, the UK could end up borrowing £400bn this financial year (more than double the record after the financial crisis).

The UK furlough scheme was extended until the end of March 2021.

Meanwhile Bitcoin has topped $15,000+ and chart watchers are eyeing $20,000 as the next target.

According to US billionaire investor Leon Cooperman, future stock returns could average ‘very little’, due to ‘the Fed… creating this environment of free money’.

Meanwhile, investors are urged to inflation proof amid growing Covid cost.

In the Have You Seen This section, read about why the gender pay gap among all employees in the UK decreased to 15.5% in 2020, down from 17.4% in 2019.

And we’re tracking UK start-up MPowder, founded by Rebekah Brown: it is an e-commerce brand providing nutritional powders that tackle hormonal changes and provides women with insights, practices, and tools to empower them through menopause.  

If you have time, read about Kamala Harris making history as the first woman and woman of colour as Vice President.

Stay safe, look after yourselves and your loved ones.

I hope you enjoy this week’s newsletter. Until next week,

Jana

The Big Picture

Global markets and economy news, trends and indicators

The Coronavirus Effect:

* US election: Joe Biden becomes the 46th American President

* After clinching the highly contested state of Pennsylvania.

* Global stocks have gained $5.5tn in market cap in the US election week.

* The global stocks are now worth $93.5tn (the highest value in history), which is equal to 106.6% of global GDP.

* Bank of England (BoE) injects £150bn into the UK economy

* According to chief economist at KPMG UK Yael Selfin, the UK could end up borrowing £400bn this financial year (more than double the record after the financial crisis).

* (UK's public debt has ballooned to £2.1tn, or 103.5% of GDP).

* UK furlough scheme extended until the end of March 2021

* The government will pay 80% of the wages of workers who are temporarily laid off during the pandemic (up to £2,500 per month).

* Bitcoin price tops $15,000+

* Chart watchers are eyeing $20,000 as the next target.

Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future

* Bitcoin has increased 108% year-to-date (vs a 27% increase in gold).

* US banks are down 31% vs UK bank shares are down 39%.

* US: Billionaire investor Leon Cooperman says that future stock returns could average ‘very little’.

* He's also concerned about long-term consequences of the Federal Reserve's actions. 

* ‘The Fed is just creating this environment of free money. You have to kind of make a judgement whether that's justified, how long it's going to last and what impact this has on the longer-term outlook’

Your Money

Insights, trends and what this means for you and your purse

* Investors urged to inflation proof amid growing Covid cost

* Advisers, analysts and fund managers have raised concerns the UK’s debt levels are simply too high to be repaid through tax rises.

* ‘..Inflation – not growth, austerity or taxation – will have to do the heavy lifting, which poses the greatest risk to savers today’.

* ‘Investors need to not holding excessive amounts of cash, and you need to own assets that can provide a degree of inflation protection such as index-linked bonds, real assets like gold, and equities’.

Have You Seen This?

Female-focused news, reports, research, campaigns

* UK's gender pay gap among all employees at 15.5% in 2020

* The gender pay gap among all employees in the UK decreased to 15.5% in 2020, down from 17.4% in 2019.

* Data released showed that among full-time employees the gender pay gap in April 2020 was 7.4%, down from 9.0% in April 2019.

* There was a fall in the gender pay gap within the managers, directors and senior officials occupation group in 2020; this group has previously been identified as having a notable impact on the pay gap.

Know this: according to the report a slightly higher proportion of men than women were furloughed with reduced pay in April 2020 due to the pandemic.

* UK: Retired women could be owed £100m in underpaid state pension

* The Department for Work and Pensions has confirmed that tens of thousands of women are due extra state pension after years of underpayment.

* The scandal relates to older women who reached state pension age before April 2016 and are entitled to receive a rate based on their husband's National Insurance record.

Know this: check out this online tool to work out whether you have been affected and whether you should be paid via your state pension.

What We’re Tracking

Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.

* MPowder: (UK)- founded by Rebekah Brown, a former creative agency executive, is an e-commerce brand providing nutritional powders that tackle hormonal changes and provides women with insights, practices, and tools to empower them through menopause.  

* The company has recently raised a £500K seed round from Pink Salt Ventures, Founders Factory, and other strategic angels including Mumsnet co-founder, Carrie Longton.

* Rebekah Brown, founder, and CEO says ‘My doctor didn’t identify the early symptoms of perimenopause. I didn’t fit the profile. I was ‘too young’ and still having a regular cycle…Menopause simply isn’t well enough understood or researched. It is presented as an end-of-life category when it should be a midlife empowerment category.’

Coffee Break? Read This

* Kamala Harris makes history as the First Woman and Woman of Colour as Vice President

* How to identify and fix pay inequality in your company

* Covid’s male face: women are hidden in the pandemic debate

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2020 & All Rights Reserved.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing

Welcome to our #41 weekly newsletter in 2020.

Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.

Stay in the know.

Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2020 during Covid-19 and beyond.

If you’re short on time, listen to the editorial on audio for a brief overview.

“For women who are taking control of their financial future”

-Jana Hlistova

From The Purse…

Editorial from the Founder

Global equity markets continue to churn.

According to strategists at MRB Partners: ‘the stock markets are caught between hopes for a better economic future, yet struggling with a still-unchecked pandemic and signs that the economic rebound is fading’.

UK’s credit rating has been downgraded by Moody’s based on low growth, high debt and a fractious policy environment.

On Friday, British Prime Minister, Boris Johnson said that the UK will leave the EU without a trade deal. Many regard Johnson’s comments as ‘political posturing’.

US retail sales jumped 1.9% in September, exceeding the forecast by 0.7%. Are Americans spending their ‘free money’?

Meanwhile two Covid-19 trials (by US pharmaceutical firms) have been paused due to safety concerns.

And the world’s stockpile of negative-yielding debt has soared to $16.3tn, the highest since April 2019. As negative-yielding debt goes up, so does the price of Bitcoin.

In fact, according to ex-Goldman Sachs, hedge fund chief, Raoul Pal, Bitcoin will increase to $1m in 5 years.

Read about why US personal finance guru, Suze Orman says that an emergency fund is a critical part of your investment portfolio.

We spotlight how investors are protecting their money from low returns.

And in the Have You Seen This? section, read about how the gender savings gap has widened during the pandemic.

We’re tracking Ada’s Ventures: a London-based venture capital firm which launched its £250,000 angel investment programme, targeting 'angels’ from diverse backgrounds.

Listen to my podcast interview with Matthew Stafford, the co-founder of 9Others and Dot Matrix Group. We talk about how you can invest in startups through an angel syndicate and much more.

If you have time, watch the TED talk with Tom Rivett-Carnac about how to shift your mindset to change your future. Tom works at the highest levels of business and government to find creative ways to accelerate solutions to the climate crisis.

Stay safe, look after yourselves and your loved ones.

I hope you enjoy this week’s newsletter. Until next week,

Jana

The Big Picture

Global markets and economy news, trends and indicators

The Coronavirus Effect:

* Global equity markets continue to churn

* According to strategists at MRB Partners:

* ‘the stock markets are caught between hopes for a better economic future, yet struggling with a still-unchecked pandemic and signs that the economic rebound is fading’.

* ‘Unprecedented policy actions have supported economic activity and boosted risk asset prices, but are not sufficient to generate a self-reinforcing economic expansion’.

* UK’s credit rating has been downgraded by Moody’s

* ‘Moody’s said it believed growth would be ‘meaningfully weaker’ than it had previously believed..’

* This is based on UK’s low growth, high debt and fractious policy environment.

* They estimate a sharper peak-to-trough contraction for the UK economy compared to other G20 economies.

* UK Prime Minister, Boris Johnson says the UK is preparing to leave the EU without a trade deal

* The nation is preparing for an Australian-style trade deal with the EU.

* However many see Johnson’s comments as political ‘posturing’. Discussions are set to continue.

* The pound struggles for direction.

* US retail sales jumped 1.9% in September (exceeding estimates by 0.7%)

* Excluding autos, sales were up 1.5%.

* Both Dow and the S&P 500 increased their third straight weekly gain and the Nasdaq posted a four-week winning streak.

* Two Covid-19 trials halted on safety concerns

* US pharmaceutical companies, Johnson & Johnson and Eli Lilly announce pauses which dashes hopes for pandemic ‘cure’.

* Negative-yielding debt is a positive for Bitcoin

* The world’s stockpile of negative-yielding debt has soared to $16.3tn, highest since Apr 2019 and just $800bn shy of an all-time high.

* As the volume of negative yielding debt goes up, so does the price of Bitcoin.

Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future

* On Tuesday, the International Monetary Fund (IMF) turned slightly more positive on the global economy

* The global economy is now projected to contract by 4.4% (vs the forecast -4.9% in June). In 2021, the IMF sees growth of 5.2% (down from 5.4%).

* The US economy is set to fall by 4.3% this year.

* The economy in the UK, France, Italy and Spain is expected to contract by approximately 10%.

* US: Vaccine developments most important to stock market

* According to Goldman Sachs, finding a breakthrough vaccine for Covid-19 is more important to investors than the US elections or the Q3 earnings reports.

* Finding a viable vaccine is the best way to bring stock fundamentals back to pre-pandemic highs.

* BlackRock: the ETF company has $7.8tn in assets under management; a +12% YoY.

* BlackRock said that iShares raked in $2.3tn in assets during Q3, nearly 70% of that total was for stock funds.

* Bitcoin will surge to $1m in 5 years time (Raoul Pal)

* According to ex-Goldman Sachs hedge fund chief Raoul Pal, Bitcoin will increase from $11,000 to $1m in 5 years.

* Pal has allocated more than 50% of his capital to Bitcoin.

* He said that institutional funds would adopt the digital currency because the economy will take a long time to recover from Covid-19.

Your Money

Insights, trends and what this means for you and your purse

* An emergency fund is the most important piece to your investment portfolio

* US personal finance guru, Suze Orman, has said that ‘a robust emergency fund is the most critical component for your investment portfolio.’

* The coronavirus pandemic has laid bare the need to have money saved in the bank for unforeseen challenges.

* Suze advocates that everyone should have 8-12 months of expenses saved in their emergency fund.

Companies: winners & losers

Companies to watch and share price movements

* JP Morgan beat analysts’ expectations, profits soar

* Trading beat analysts’ expectations during the period, with revenues growing from $9.52bn to $11.5bn.

* Profit increased from $2.83bn to $4.3bn.

* ASOS profits increase during the pandemic

* It made £142m in pre-tax profits in the 12 months to 31 August, up from £33m from 2019.

* Young shoppers flocked to its site after high street clothes stores closed.

* However, ASOS’s shares are down 6%:

* it warned that its target market of younger consumers face disrupted ‘economic prospects and lifestyles’.

In the Spotlight

Is there a topic you'd like us to Spotlight? Please tweet @jointhepurse

How are investors protecting their money from low returns?

* In a world where bonds return little or no interest, investors must look for alternative ways to make a return above the rate of inflation.

* More worrying is the fact that over time government and high-quality bonds may register a negative return (as interest rates may become negative).

* The growing concern (or likelihood) that we are entering an inflationary period explains why investment strategists are shifting into equities, commodities and alternative assets (such as Bitcoin or art), for higher returns.

* According to BlackRock CEO, Larry Fink: ‘…The fixed income market will be substantially more of an ETF market in the future.’

* The near-zero yield environment has awakened investors, who are now looking at actively managed fixed income (bond) ETFs.

* In a yield-constrained world, investors will have to actively seek higher returns (as opposed to passively tracking an index).

* Source: FT

Have You Seen This?

Female-focused news, reports, research, campaigns

* The gender savings gap has widened as a result of Covid-19

* According to research, women now have a third less saved.

* Over a third of women (35%) admitted to dipping into their savings over the past six months, compared to just 15% of men.

* The widest gender savings gap is among millennials, with women aged 23 to 38 reporting 60% less in savings than their male counterparts — a difference of £16,000.

Know this: the gender pay gap which currently stands at 17.3% in the UK. This means that women, on average, have less money left over every month to save (& to invest). However single parents, (and specifically women) carry the heaviest burden having to balance work, household chores and childcare during the pandemic. The important thing to remember is whilst you may not be able to save as much as you would like right now, you can keep track of your outgoings and make a plan for how you can make up the shortfall. Knowledge is power. So keep on top of where you are financially. Keep a money journal or use a mobile app to track your progress. Stay engaged with your money.

What We’re Tracking

Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.

* Ada Ventures: (UK)-co-founded by Francesca Warner and Matt Penneycard, the London-based venture capital firm, named after the first computer programmer Ada Lovelace, has launched a £250,000 angel investor programme.

* The aim is to create a new generation of investors who may have otherwise been excluded from the industry.

* This new initiative was an evolution of the firm’s scout programme.

* ‘Ada’s Angels’ will be able to make five investments of £10,000 over the course of the next year. And the final investment will be a joint decision between the angel and Ada Ventures, and angels will receive 100 per cent of the carry on their £50,000. 

Money Habits of the Week

Do you have a money habit you would like to share with us? Tweet @jointhepurse

* We have been talking a bit about low or negative interest rates lately, and how this will impact your money.

* The lower the interest rate, the lower the return you will get.

* And as inflation continues to rise, the value of your money (savings) will be eroded.

* There is increasing focus on actively managed fixed income (or bond) exchange traded funds (ETFs).

* Look into what fixed income or bond ETFs are available.

* Compare the fees for passive vs active ETFs. (Note that actively managed ETFs will be more expensive than passive ETFs).

* Create a list of fixed income ETFs with the lowest fees.

* Keep learning & stay engaged.

What We’re Watching

* Tom Rivett-Carnac: is a political strategist focused on creating a better future. He works at the highest levels of business and government to find creative ways to accelerate solutions to the climate crisis.

* Watch the TED talk about how to shift your mindset and change your future. When it comes to big life problems, we often stand at a crossroads: either believe we're powerless against great change, or we rise to confront climate change - or whatever crisis may come our way -and sustain the action needed to build a regenerative future. As he puts it: ‘stubborn optimism’ can fill our lives with meaning and purpose.

Coffee Break? Read This

* Andreessen Horowitz publishes 'Crypto Startup School' documentary

* Women executives say that the pandemic is exacerbating gender bias

* Don’t grieve alone. Reach out.

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2020 & All Rights Reserved.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com

Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing

Welcome to our #40 weekly newsletter in 2020.

Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.

Stay in the know.

Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2020 during Covid-19 and beyond.

If you’re short on time, listen to the editorial on audio for a brief overview.

“For women who are taking control of their financial future”

-Jana Hlistova

From The Purse…

Editorial from the Founder

Global equity markets are on track for an all-time high, despite the resurgence in Covid-19 cases. Global stocks have gained $3.5tn in market cap this week, almost equal to the GDP of Germany. Investors continue to position ahead of Q3 earnings reports, the US elections and a ‘breakthrough’ vaccine.

The US Federal Reserve has warned of a weak US economic recovery ‘if adequate and timely stimulus is not passed’.

The Democrats have agreed on a stimulus bill for $2.2tn, however the Republicans won’t back the measure.

UK GDP slowed in August, rising just 2.1% month-on-month, versus the forecast 4.4% by economists.

And the UK furlough scheme has been extended to firms affected by the local and national lockdowns in the next 6 months.

Read about how billionaires have been able to increase their wealth by $10.2tn during the pandemic.

In the Your Money section, how can you financially prepare for a second wave of coronavirus and how do you protect your money from negative interest rates (this is likely to be introduced in the UK sometime in 2021).

We highlight the US payment company Square, which bought $50m of Bitcoin last week.

Meanwhile, older female divorcees could be missing out on £50,000 in state pension.

And we’re tracking UK sextech start-up called Kama founded by CEO, Chloe Macintosh. Kama is a sexual wellbeing app that combines modern science and ancient wisdom into easy-to-follow daily practices. 

If you have time, watch the TED Talk with Jacqueline Novogratz about What it takes to make a change. Jacqueline shares stories from her career dedicated to tackling poverty and offers three principles to spark and sustain a moral revolution.

Stay safe, look after yourselves and your loved ones.

I hope you enjoy this week’s newsletter. Until next week,

Jana

The Big Picture

Global markets and economy news, trends and indicators

The Coronavirus Effect:

* Global equity markets are on course for an all-time high, despite resurgence in Covid-19 cases.

* Global stocks have gained $3.5tn in market cap this week, almost equal to the GDP of Germany.

* Investors continue to position ahead of Q3 earnings reports, the US elections and a ‘breakthrough’ vaccine.

* The US Federal Reserve warns of a weak economic recovery (unless more stimulus)

* The Federal Reserve Chairman, Jeremy Powell, has warned that ‘failure to pass adequate and timely stimulus endangers the US economic recovery’.

* The Democrats passed a stimulus bill for $2.2trillion, however the Republicans won’t back the measure.

* On Friday, Trump raised the coronavirus stimulus offer to $1.8trillion

* The plan is an increase from $1.6trillion, but still $400bn less than what the Democrats are proposing.

* UK GDP slowed in August (rising just 2.1% month-on-month)

* This is below economic forecasts of 4.4%.

* UK confirms extended furlough scheme for firms hit by lockdowns

* UK Chancellor, Rishi Sunak has extended the furlough scheme (beyond October 31), to businesses which will be affected by local or national lockdowns.

* The government will pay 67% of worker salaries, up to a maximum of £2,100 a month. 

Future Focus

Keeping an eye on key predictions, innovations and what’s going to impact the future

* Billionaires’ wealth rises $10.2tn amid Covid crisis

* A report by Swiss bank UBS found that billionaires increased their wealth by 27.5% (at the height of the crisis from April to July).

* They mostly benefited from betting on the recovery of global stock markets (from the global lockdowns in March and April).

* The shares in some technology companies – which are often owned by billionaires – have risen very sharply.

Your Money

Insights, trends and what this means for you and your purse

* How to financially prepare for a second wave of coronavirus

* Save while you can and pay off debts.

* Make a budget and cut corners where possible.

* Use free resources and be smarter with your money.

* Prep your CV and build your network now.

* Look after your mental health.

* UK: How can you protect your money from negative interest rates?

* In the UK, negative interest rates are unlikely until 2021.

* The biggest risk is for savers as the return on cash could be negative. And the value of sterling is likely to go down.

* Here are 3 alternatives to holding cash:

* Invest in overseas companies/equities away from sterling (your return will be higher).

* Invest in gold (often regarded as a store of value for investors).

* Invest in smaller companies as ‘good hunting ground for businesses which can grow in niche markets or utilise new technologies to transform industries’. (However this is not without its risks).

* Almost 90% investors are modifying their investment portfolio

* Many investors are turning to alternative investments to spread risk because of the pandemic.

* New research by cask whisky investment specialists, Whiskey & Wealth Club, revealed that many investors favour established alternative assets:

* 31% invest in art

* 28% invest in antiques

* 24% in wine. 

Companies: winners & losers

Companies to watch and share price movements

* Square, a payment company, buys 4,709 Bitcoin worth approximately $50 million

* This is approximately 1% of Square’s total assets (end of Q2 2020).

* ‘Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose’.

* Square has enabled it clients to buy bitcoin on its Cash App since 2018.  

* According to Outspoken technology investor Chamath Palihapitiya: ‘This is an instrument we use as a hedge…You buy it, you hold it, you put it away and you hope that you never need it’.

* Peloton’s market cap reached a record $34bn (but it may be worth less than half)

* Peloton Interactive, the luxury home fitness equipment provider, is one of Wall Street's darling stocks of the pandemic.

* For its fourth quarter, Peloton announced outstanding financial results demonstrating significant growth:

* There is concern by one Wall Street analysts (out of 23), BMO Capital Markets' Simeon Siegel, that Peloton is underperforming and is an overvalued stock. Specifically, Siegel is concerned about Peloton's expected market size and the growing number of viable competitors in the marketplace.

In the Spotlight

Is there a topic you'd like us to Spotlight? Please tweet @jointhepurse

Why are the global markets rising despite the slowing down of the economy?

* The FTSE 100 rose 0.5% on Friday morning, despite the UK economy growing more slowly than expected in August (2.1% vs the forecast 4.4%).

* And last week, global equities gained $3.5tn in market cap, despite the rise in Covid cases.

* Crucially, corporations have not felt the economic pain of the pandemic in the way small businesses have.

* Instead investors are focused on further stimulus talks in the US, after Trump made a new coronavirus stimulus offer of $1.8tn on Friday.

* Investors continue to position for Q3 earnings reports, the US elections and a breakthrough vaccine.

* Source: UK Investor Magazine

Have You Seen This?

Female-focused news, reports, research, campaigns

* Older female divorcees could be missing out on £50,000 in state pension

* A complex and little-known system means female divorcees are often unaware they are due extra income, which could cost them as much as £50,000 over the course of their retirement. The issue is whether they passed the state pension age when they split from their former husband.

* “Any woman who reached pension age before 6 April 2016 and has since got divorced should contact the DWP if she is not on a full basic state pension, to see if she is entitled to an increase based on her ex-husband’s contributions”.

* “State pensions are all too often disregarded during divorce when they should be one of the first things looked at.”

Know this: based on research, women often do not consider their partner’s pension during a ‘divorce negotiation’. The marital home is considered the primary asset and the pension can frequently be ‘forgotten’. Make sure you understand as much as you can about your own pension or you can set up a SIPP online (self-invested personal pension). And if you are married, talk to your partner about their pension assets.

* US: Women are leaving the workforce at four times the rate of men

* September, 865,000 women over 20 dropped out of the American workforce compared with 216,000 men in the same age group.

* "The child care crisis is wreaking havoc on women's employment."

* Women got hit hardest, earliest by layoffs in restaurants, retail, and health care — industries that were hard hit by the pandemic and which employ a lot of women.

Know this: we are going through what is now referred to as a ‘she-cession’. Women are more adversely affected than men during the pandemic crisis. The Purse has been covering this a lot during the pandemic. It’s crucial we understand what is going on for women and by implication, consider the impact this will have on our money, and more specifically, our net worth. This is not always easy to do with so many demands on our time. But make time to review your expenditure, if you have had to cut your pension contributions, can your partner make up the shortfall? It may be a good idea to set a regular ‘money date’ with your partner or with yourself once a week (or once a month). The idea is to monitor where you are, how you might ‘optimise your budget’ and track changes or reductions in savings/pension and investment contributions. And if you have had to reduce your contributions to your savings/pension or investments, make a plan for how and when you will be able to make up for these shortfalls.

What We’re Tracking

Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.

* Kama: (UK)-founded by CEO, Chloe Macintosh (co-founder of Made.com)-is a sexual wellbeing app that combines modern science and ancient wisdom into easy-to-follow daily practices. 

* The sextech startup has raised $3m in seed funding during the pandemic-(which is no mean feat).

* Investors include the Female Founders Fund and January Ventures among others.

* In 2017, the size of the global sexual wellness market was over $26 billion, and is forecasted to reach to about $37.2 billion by 2025. 

* Sextech feeds into mental health, fertility, and many other personal wellness and consumer healthcare categories, and with the rise of female empowerment this sector is poised for growth.

* US: Quarterly VC funding for female founders drops to three-year low

* Venture funding for female founders has hit its lowest quarterly total in three years.

* Firms invested a total of $434 million in Q3—the lowest figure since the second quarter of 2017, according to PitchBook data. The third quarter total also amounts to a 48% drop in funding from Q2, when female founders received $841 million across 132 deals.

* According to Leslie Feinzaig, founder and CEO of the Female Founders Alliance, in the face of uncertainty, many VCs have stayed closer to their networks (which shuts women and minorities out).

Money Habits of the Week

Do you have a money habit you would like to share with us? Tweet @jointhepurse

* Check how much you have in your emergency fund.

* Remember the goal is for you to be able to cover your expenses for at least 6 months (if you are made redundant)-ideally up to 12 months.

* This is should be in a separate account which you can easily access.

* You may need to dip into it now if you have lost your job or you are supporting your partner who has.

* If you are currently earning, work out whether you can increase how much you can contribute to your emergency fund, on a monthly basis.

* For example, if you are paying in 10% of your net salary a month, can you increase this by 1%-2%+ every 30 days?

* Reach out to a financial adviser if you need to.

* Keep learning and stay engaged.

What We’re Watching

* Jacqueline Novogratz works to enable human flourishing. Her organisation, Acumen, invests in people, companies and ideas that see capital and networks as means, not ends, to solving the toughest issues of poverty.

* Watch this TED talk called What It Takes to Make Change, Jacqueline shares stories from her pioneering career dedicated to tackling poverty and offers three principles to spark and sustain a moral revolution. Learn how you can commit (or recommit) to creating big, positive change in your lifetime -- and give back more to the world than you take from it. "It is in the darkest times that we have the chance to find our deepest beauty," Novogratz says.

Coffee Break? Read This

* Women bear the brunt of Covid-related work stress, UK study finds

* How to collaborate with people you don’t like

* Nobel Prize in chemistry awarded to two women for work on genome editing

We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

The Purse Ltd. Copyright 2020 & All Rights Reserved.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit jointhepurse.substack.com