The Purse

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

Welcome to our #39 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 Friday, stocks fell and the US dollar climbed as Donald Trump tested positive for Covid-19. The market move reflected investors’ concern about whether the US President would be incapacitated and how long for.

The European Central Bank (ECB) is likely to follow in the US Federal Reserve’s footsteps, as they will consider inflation to exceed its 2% target. The Eurozone is currently experiencing deflation at -0.3%.

The pace of US jobs growth has slowed in September, however the US unemployment rate fell to 7.9%.

The British pound fell after the EU launched legal action against the UK for infringing the Brexit withdrawal deal.

And the UK’s economy record contraction in Q2 has been revised to 19.8% vs the forecast 20.4%. However the UK still experienced the worst slump (compared to other major economies).

In the Future Focus section, the Bank of America has issued a $2bn bond which aims to curb America’s race inequality.

The pandemic may leave a permanent mark on European dividends.

And Twitter CEO, Jack Dorsey has said that Bitcoin and the blockchain is the future. We think so too.

A whole new generation of personal finance experts are changing the rules for managing your money today.

And we Spotlight how the coronavirus is a threat to the European pensions industry.

In the Have You Seen This section, we highlight a new report by McKinsey & Co called Women in the Workplace 2020: read about why the pandemic can set women back half a decade and what needs to change.

We’re tracking the Content Catalyst Fund (CCF) based in Canada: it’s a new development and funding company focused on content developed, delivered and designed by women and about women. We love this!

Read our money habits of the week.

And if you have time, watch the TED talk about what makes a good life.

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:

* On Friday, stocks fell and the US Dollar climbed as Donald Trump tests positive (for Covid-19)

* European and US futures fell sharply.

* S&P 500 future -1.0%.

* The market move is more about the US President becoming incapacitated.

* The European Central Bank (ECB) to consider inflation to exceed target

* This follows in the US Fed’s footsteps.

* Eurozone inflation drops to -0.3% (slow price growth).

* Letting inflation rise will help to keep rates lower for longer.

* Pace of US jobs growth slowed in September

* The US economy added 661,000 jobs last month

* Unemployment fell to 7.9%

* (Since the WWII no US President has gone into an election with higher unemployment rate than Trump).

* The EU launched legal action against the UK; the pound fell

* It first fell after the EU launched legal proceedings against the UK for infringing the Brexit withdrawal deal.

* It later rallied after ‘positive’ Brexit free trade talks.

* The UK economy’s record contraction in Q2:

* Actual 19.8% vs forecast 20.4%

* The Office for National Statistics (ONS) revised the Q2 figure.

* However the UK still experienced the worst slump (compared to other major economies).

* More than one third of UK employers to make staff redundant

* According to research by YouGov, 60% of managers in larger businesses will make redundancies this year.

Future Focus

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

* Bank of America issues $2bn bond which aims to curb America’s race inequality

* This is the company’s 8th environmental, social and governance-themed bond. It’s total issuance in the category is almost $10 billion.

* “This has the potential to help Black and Latino communities through activities such as mortgage lending, financing for businesses and medical practices, and equity investments, with some proceeds going toward renewable-energy and clean-transportation projects”.

* September’s global green-bond issuance has already exceeded $30 billion, beating the prior record of $26 billion, set in November 2018.

* The pandemic may leave a permanent mark on European dividends

* The impact will be even greater on markets such as the U.K., as it heavily relies on dividend-rich industries such as banks and big oil.

* This crisis has accelerated structural pressures. And the UK has over-exposure in these sectors.

* Twitter CEO, Jack Dorsey says that Bitcoin and Blockchain are the future

Your Money

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

* Personal finance experts: new rules for managing your money today

* Erin Lowry:

* create a ‘bare-essentials’ budget.

* your emergency fund should cover 1 year’s worth of expenses (but 6 months is still reasonable).

* Monika Halan:

* 60 is the new 40; plan to earn well beyond 60 years of age.

* asset allocation is the most important part of getting your financial planning right.

* Sam Dogen:

* we need to be saving more for retirement, withdrawing less in retirement, or plan to make supplemental retirement income.

* Scott Pape:

* avoid buy-now-pay-later services.

* financial planning is key.

Companies: winners & losers

Companies to watch and share price movements

* Bayer drops more than10%, the steepest drop since March

* The German group warned that the coronavirus pandemic would hit profits harder than expected, particularly at its ill-fated Monsanto acquisition.

* Bayer will take a several billion euro writedown of assets in its agricultural business (most of which was bought from Monsanto for $63bn in 2018).

* Bayer reported a net loss of €9.5bn for the second quarter of the year, largely due to setting aside €12.5bn to settle a series of legal challenges.

* The company said it would cut €1.5bn of costs in 2024, on top of the already announced €2.6bn from 2022, and potentially cut more jobs (in order to meet its long-term profitability objectives).

In the Spotlight

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

How is the Coronavirus a threat to Europe’s pension industry?

* Big increases in unemployment will shrink tax revenues which fund state pensions. Contributions made by employers and individuals will also go down.

* Cuts to interest rates and new government-backed bond buying programmes have reduced what income pension funds can earn.

* According to research by Better Finance (before the pandemic), a 50:50 equity/bond tracker fund has outperformed the vast majority of pension products (for 18 European countries, for up to 20 years).

* There are concerns that older unemployed workers will raid their pension early and (by implication) will have less or no money left to retire on.

* Source: FT

* Note from The Purse: it is important to be well-informed and proactive when it comes to your money and building your net worth. Interest rates are low, inflation is likely to go up (above the 2% target) and it’s crucial that you plan for how to protect the value of your money and investments. On a very simple level, ensure your money is getting at least a 2% return (although UK inflation in August was 0.2% and is -0.3 in the eurozone, we are likely to see this start to rise over the coming months).

Have You Seen This?

Female-focused news, reports, research, campaigns

* US: McKinsey & Co: Women in the Workplace 2020 report published

* The Covid-19 crisis could set women back half a decade.

* Companies are stepping up but many are not addressing the underlying causes of stress and burnout.

* Covid could push many mothers out of the workplace.

* Companies are at risk of losing women in leadership.

* Black women are less likely to feel supported during Covid 19.

* What’s the path forward?

* Make work more sustainable

* Reset norms around flexibility

* Take a close look at performance reviews

* Take steps to minimise gender bias

* Adjust policies and programs to better support employees

* Strengthen employee communication

* Download the full report here.

Know this: globally women have faired worse than men during the pandemic crisis. Not only have more women been made redundant (and furloughed), women have had to bear the brunt of all household responsibilities, childcare and homeschooling. Research suggests that women feel less listened to or supported in the workplace. Outdated working practices continue to put more pressure on women as they work the ‘double shift’. Seek out employers who allow you to work flexibly and on your terms. Smaller businesses tend to be more open-minded, however larger employers who have forwarded-thinking policies are also worth exploring. Ask the difficult questions during the interview process and you will avoid nasty surprises later on.

What We’re Tracking

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

* Content Catalyst Fund (Canada)-founded by Julie Bristow, the former CEO and president of Canada-based prodco Bristow Global Media (BGM), CCF is a new development and funding company focused on content developed, delivered and designed by women and about women. (We love this!)

* CCF has been founded with the aim of supporting storytelling from a female perspective. It will develop and invest in unscripted and scripted content.

* The CCF has been seeded by Julie Bristow, along with “a small circle of like-minded investors”.

Money Habits of the Week

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

* Read up about investing in sustainable or impact bonds.

* Consider how you can invest via a stocks & shares ISA (in the UK).

* Until recently bonds have been a relatively untapped opportunity for sustainable finance.

* Bonds represent a loan made by an investor to borrower, for a return, over a specific period of time. They can be issued by governments or by companies.

* Study up on the various ways you can invest in sustainable bonds online.

* Keep learning and stay engaged.

What We’re Watching

* Robert Waldinger is the Director of Harvard Study of Adult Development, one of the most comprehensive longitudinal studies in history.

* Watch the TED talk about what makes a good life? As the director of a 75-year-old study on adult development, Waldinger has access to data on true happiness and satisfaction. In this talk, Robert Waldinger shares three important lessons learned from the study as well as some practical wisdom on how to build a fulfilling, long life.

Coffee Break? Read This

* Why people get away with being rude at work

* Preventing burnout is about empathetic leadership

* The internet is divided over Zoe Ball asking the BBC for a pay cut because she’s uncomfortable with her £1.3m pay rise

* Investing in women isn’t a fucking charity

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 #38 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

It was a turbulent start to the week; stocks fell amid concerns of Covid-19 resurgence and an investigative bank report.

The European stock markets suffered their worst week since mid-June.

And according to the Bank of America, US stocks had suffered their third-largest outflow of funds, with investors pulling $25.8bn out of equities in the past week.

The US private sector has slowed slightly in September and the UK economic recovery loses its momentum.

The UK has now borrowed £173.7bn since the start of the financial year in April, to cover the economic damage of the pandemic.

Meanwhile eurozone firms continue to load up on credit. Bank loans to firms rose by 7.1% year-on-year, extending the borrowing boom (since March).

The UK Chancellor, Rishi Sunak cancelled the autumn budget and has introduced wage subsidies, to support workers after the furlough scheme ends in October.

Brits are worryingly exposed to financial shocks and read about why leaving your money in a cash ISA is a bad idea.

BP share price dropped to a 25 year low after it unveiled its new climate change strategy.

And we spotlight whether the US dollar could crash in 2021, according to economist Stephen Roach.

In the Have You Seen This? section we highlight the pension gender gap and how to make up the financial shortfall.

And forcing women into debt is now a marker of domestic abuse.

We’re tracking a new project called Balance the Load: it is a collaborative project which aims to solve the problem of the mental load. Women everywhere will understand how powerful this is.

If you have time, watch the TED Talk by sociologist Liene Ozolina about why social policies fail during economic 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:

* Gloomy Monday: stocks fell amid Covid 19 resurgence fears and investigative bank report

* Major indexes pared losses in late trading.

* The FTSE 100 was down 22% since the start of the year (dominated by bank, travel, mining stocks-all hard hit).

* Investors are concerned about the resurgence of Covid-19 cases, a possible mini-lockdown in the UK and the political uncertainty ahead of the US election (and the death of Ruth Bader Ginsberg, the US Supreme Court Justice).

* Read more about the investigative bank report

* The European stock markets suffered their worst week since mid-June

* European equity markets are largely lower because of growing concerns about the health crisis.

* The FTSE 100 briefly hit its lowest level since May.

* The Stoxx 600 lost 0.8%, taking its weekly losses to 3.7% - the worst in 3 months.

* Eurozone firms continue to load up on credit (borrowing). Bank loans to firms rose by 7.1% year-on-year, extending the borrowing boom (since March).

* Companies have been forced to borrow money to cover their expenses (as the economies came to a standstill and consumers were unable to spend due to lockdown).

* US private sector slows slightly in September

* The monthly dip may suggest that growth peaked in August, with election uncertainty and pandemic fears both weighing on the economy.

* US stocks see third biggest outflow in history as investors flee tech

* Bank of America said US stocks had suffered their third-largest outflow of funds, with investors pulling $25.8 bn out of equities in the past week.

* Technology stocks suffered their biggest fund-flow redemption since June 2019.

* UK economic recovery loses momentum

* The outlook for business at its weakest since May and jobs being shed at a rapid rate. “The economic recovery decelerated in September and is set to stall in the fourth quarter, in response to rising Covid-19 infections.”

* UK borrowing surges (£35.9bn in August)

* The UK has now borrowed £173.7bn since the start of the financial year in April, to cover the economic damage of the pandemic.

* UK Chancellor cancels the autumn budget and introduces new jobs protection

* Rishi Sunak has announced a replacement of the coronavirus furlough scheme, with a German-style system of subsidies. Read how it works here.

* Employers will continue to pay the usual wages of their staff for the hours they work. For hours not worked, the government and the employer will each pay one third of the equivalent salary.

* However, 1m more UK workers are forecast to lose their jobs.

Future Focus

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

* US: One paradox of the recent bull-market is that it has taken place in face of consistent selling by investors in ETFs & mutual funds.

* Monthly flows of actively managed stock funds have been negative for years, but now even passively managed ETFs are seeing outflows.

* Europeans’ household savings surged during lockdown

* With economies in lockdown and millions of consumers forced to stay home, people in the Euro-area were forced, rather than unwilling, to consume, as usual in the first half of 2020.

* Recent surveys indicate that consumers plan to spend less on big-ticket items over the next 12 months.

Your Money

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

* Brits ‘worryingly’ exposed to financial shocks

* According to be report from Schroders Personal Wealth, Britons are not doing enough to prepare for the ‘financially unexpected’.

* UK: Have a cash ISA? Here’s why this may not be a good idea

* Women aged 25 to 34 are the most likely to hold Cash ISAs of all age groups, at 23% (811,000).

* Cash has been a less reliable investment since 1925, lagging behind global bonds (6.6%), rental property (7.2%), gold (7.7%) and UK equities (12.4%). 

* Interest rates are so low now, investing in a cash ISA is almost not worth it.

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

Companies: winners & losers

Companies to watch and share price movements

* BP drops to 25 year low after unveiling its climate strategy

* Shares of the oil giant fell 2.8% to lowest since October, 1995.

* “For BP to meet its low-carbon target of 50 gigawatts of renewable generation capacity by 2030, considerable growth is required over the coming years…”

In the Spotlight

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

Could the US dollar crash in 2021?

* According to the economist Stephen Roach, the US dollar could collapse by the end of 2021 (and there is a 50% chance the US economy could experience a double-dip recession).

* The current account deficit in the US (the broadest measure of our international imbalance with the rest of the world), suffered a record deterioration.

* He also said: ‘As we head into flu season with the new infection rates moving back up again, with mortality unacceptably high, the risk of an aftershock is not something you can dismiss’.

* Source: Business Insider

Have You Seen This?

Female-focused news, reports, research, campaigns

* Pension Gender Gap: how women can fight future financial shortfall

* As many as 1 in 3 women over the age of 50 do not have a private or workplace pension, compared to one fifth of men, according to SunLife.

* By the time women are in their early 60s, their wealth is just a third of men’s (according to the Pension Policy Institute).

* The average pension pot for a 65-year old woman in the UK is £35,800, just one fifth of the £175,000+ of the average 65-year old man.

* SunLife’s survey found 30% of women hope their spouse’s pension will support them in old age, yet women could leave themselves in financial difficulty if they go through divorce or are widowed early.

* Read the report: Finances over 50 (from SunLife)

* Set up a workplace or private pension.

* In the UK, you will receive tax relief, based on how much you earn.

* If you earn over £10, 000 per year, your employer will automatically enrol you in workplace pension.

* If you are self-employed, you can set up a self-invested personal pension (SIPP). You can set this up via an online investment platform.

* The earlier you start, the more time your money have to compound and grow (but it is never too late to start).

Know this: we talk about pensions a lot at The Purse because it is important. Women often prioritise others’ welfare and financial needs over their own. Research shows women are more generous in ‘helping out’ financially which puts them at a disadvantage later on in life. Prioritise learning about how you can set up a private pension if you do not qualify for a workplace pension (even if this is for a year or two as you take time out). Research online investment platforms that allow you to set up a SIPP.

* Forcing women into debt, is a marker of domestic abuse

* The Domestic Abuse Bill finally recognises economic abuse.

* Economic abuse is a form of control that restricts, exploits and sabotages a victim's economic well-being.

* A particularly common tactic (by perpetrators) is to force victims into debt.

* Women can be forced to take out loans, mortgages and credit cards and other credit agreements.

* Lenders need to see that coerced debt is real.

* And we need to see consumer law reformed to protect victims and hold perpetrators accountable.

Know this: always seek help. Visit Surviving Economic Abuse

What We’re Tracking

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

* Balance the Load (UK)-is a collaborative project which aims to solve the problem of the mental load. Women everywhere get this!

* Read more about how this project came about and why this can help balance any relationship.

* You can sign up to the beta version.

Money Habits of the Week

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

* Research your pension or retirement fund investments.

* Reach out to your pension provider and ask for a break down of your investments. You may be able to access all your information via an online platform.

* Find out where your pension provider stands on ESG investing and how they make their investment decisions.

* Ask to speak to someone who can answer your questions.

* It might make sense to work with a financial advisor.

* Keep learning and stay engaged.

What We’re Watching

* Liene Ozolina: teaches sociology and researches post-socialist politics and culture.

* Watch this TED talk about how the global financial crisis decimated Latvia. Sociologist Liene Ozoliņa examines how Latvian officials convinced their people to accept responsibility for the country's failing economy and highlights the rise of similar social policies upholding inequality worldwide.

Coffee Break? Read This

* Stereotyping makes people more likely to act badly

* 6 things we can learn from how women leaders handled the pandemic

* How the world’s most prominent women are mourning the death of Justice Ruth Bader Ginsburg

* Making a demon of JK Rowling is a wretched sport, born of misogyny and resentment

* The 100 most influential people in 2020

* Buying myself back.

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 #37 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

The combined balance sheet of the US Federal Reserve, the Bank of Japan and the European Central Bank has hit an all-time high at $21.3tn, which is equal to the US GDP.

The US Federal Reserve has signalled that interest rates will not increase until 2023.

Meanwhile the Bank of England (BoE) will keep interest rates at 0.1%, although economists expect rates to fall to -0.5% if Britain fails to strike a trade deal with the EU.

UK’s inflation fell to 0.2% in August (down from 1% in July), due to the government driven Eat Out Help Out scheme, which reduced the cost of living for consumers.

UK redundancies are on the rise, but UK Chancellor Rishi Sunak has signalled further job support after the furlough scheme ends in October.

The combined market cap of FANGMAN (including Facebook, Apple and Microsoft) has declined $1.4tn since the beginning of September.

Christine Lagarde, the President for the European Central Bank, has said that women face greater risk of inequality because of the coronavirus.

Women challenging the state pension age rise have been defeated in the Court of Appeal.

And why has Covid changed the conversation about money for women?

We spotlight why the BoE is considering negative interest rates and in the Have You Seen This? section we highlight how the BBC is closing the gender pay gap.

We’re tracking Chip, the UK startup which is building the world’s best savings app and is currently crowdfunding.

Don’t forget to listen to The Purse Podcast where I interview Katie Donovan, a leading pay equity specialist in the US, about closing the gender pay gap, how to negotiate for more pay and what this means for your money.

And finally we dedicate this edition of The Purse to Ruth Bader Ginsberg (RBG), the history-making jurist, feminist icon and national treasure, who died Friday 18 September. She has been a personal inspiration to me for many years.

We honour her work, the legacy she leaves behind and how she made the world better for women.

Read more here and here or watch a fascinating conversation with Ruth at the University of Chicago filmed in September 2019.

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 combined balance sheet of the US Federal Reserve, Bank of Japan and European Central Bank has hit an all-time high at $21.3tn, which is equal to the US GDP.

* This means that paper money continues to be devalued, which may not be reflected in consumer prices but in assets.

* The US Federal Reserve has signalled no interest rate increase until 2023

* Policy will not be tightened until inflation achieves 2%+ target.

* US retail sales lost steam in August;

* Retail sales increased by 0.6% (from July) vs the expected 1% increase.

* Expiration of government stimulation measures could be undermining economic recovery.

* However, overall retail sales are up 2.6% from August 2019.

* US unemployment claims are lower than expected

* Jobless claims 860,000 vs 870,000 (expected) last week.

* Continuing claims fell by more than 900,000 to 12.63m.

* The Bank of England (BoE) will keep interest rates at 0.1% (for now)

* Economists expect rates to fall to -0.5% if Britain fails to strike a trade deal with the EU.

* UK’s inflation fell to in 0.2% in August (down from 1% in July)

* This is the lowest UK inflation since 2015

* Driven by the government’s Eat Out Help Out Scheme, which reduced the cost of living for consumers.

* UK redundancies rise, as unemployment hits 4.1% (May-July)

* The number of employees in the UK on payrolls was down around 695,000 in August, compared with March 2020.

* More than 5m people are still furloughed.

* UK Chancellor, Rishi Sunak signals further job support

* The furlough scheme ends October and further government support is likely.

* 700,000 jobs have been shed due to the coronavirus.

Future Focus

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

* World economy seen to be withstanding virus better than forecast

* The world economy will shrink by only 4.5% this year; this is less than the 6% forecast in June.

* The UK will still contract more than 10% this year and only gain about 8% in 2021.

* Goldman Sachs boosts its 3-month stock forecast to ‘overweight’, cites strong profit growth recovery

* Goldman Sachs is forecasting ‘high single digital returns’ for global stocks over the next year.

* The most important ‘catalyst’ to lower near term risk, is when and how a vaccine will be deployed.

* President of the European Central Bank, Christine Lagarde: why women are at greater risk now of inequality

* In OECD countries, the gender wage gap is still 13%.

* Women are working more but are still under-represented in management positions.

* The coronavirus crisis has made the situation worse for women.

* Women make up almost 70% of the healthcare workforce; they are at greater risk from a health perspective. 

* As in every economic crisis, they are at greater risk of losing their jobs or of having their wages cut.

Your Money

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

* UK: Women challenging state pension age rise defeated in Court of Appeal.

* Many women born in the 1950s believe they were robbed of their state pension when the government introduced the changes to the state pension age (SPA) from 60 to 65, and then 66 in line with men, noting that it was ‘unlawful’ and ‘unfair’. Around 3.8 million women born in the 1950s have been impacted.

* Do you qualify for a State Pension? Read more here.

* Check your State Pension forecast here.

* US: How Covid has altered the conversation about money (for women).

* Women who have let their husbands deal with money matters can no longer bury their heads in the sand.

* Here are 5 important questions to ask your spouse, according to the financial planner Michelle Smith of Source Financial Advisors:

* How are assets titled and what is, and isn’t, in joint accounts? This is especially important for access in case of prolonged illness or death.

* Where are all the important documents? Do I have access and login information for all accounts, such as savings, investments, retirement, marital assets and trusts?

* Do I have enough funds in my own name to get through six months of my family’s total overhead expenses, like housing, taxes and personal expenses?

* Am I the owner or beneficiary of my husband’s life insurance policy? If the policy is owned by a trust, do I know who the trustees are or if I am a beneficiary of the trust?

* What is my legal or emotional recourse if my husband refuses to share information? (The quick answer: no recourse, unless you file for divorce, which compels financial discovery.)

Companies: winners & losers

Companies to watch and share price movements

* FANGMAN has lost $1.4tn in market cap since the beginning of September:

* Apple is down 22% from highs

* Netflix is down 18.3%

* Amazon is down 16.8%

* Kodak soars 84% (Wednesday) after special committee it hired finds no violations of law

* Kodak received a $765m loan from the US government.

* The special report said that the Kodak executives did not violate the US insider trading laws.

* Shares of Kodak soared more than 2000% in July after the camera company announced it won a loan from the government to begin producing pharmaceuticals. 

* UK tech giant ARM Holdings to be sold to US company Nvidia in $40bn deal

* One of UK’s most successful tech companies Arm Holdings is being sold by its Japanese owners for £31bn ($40bn).

* Nvidia, a US company, will pay SoftBank $21.5bn in shares and $12bn in cash for the chip designer.

* The deal is still subject to regulatory approval in the UK and could face opposition.

* The deal will see SoftBank and the $100bn Vision Fund, which has a 25% stake in Arm, take a stake in Nvidia of between 6.7% and 8.1%.

In the Spotlight

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

Why is the Bank of England considering negative interest rates?

* Central banks have tools they can use to stimulate the economy. They can print money, issue bonds and cut (or increase) interest rates.

* The Bank of England (BoE) interest rate is currently at a historic low ie at 0.1%.

* In theory, negative interest rates encourage banks to lend money (rather than deposit it), and businesses to borrow money which spurs the economy.

* For consumers, it could mean a cheaper mortgage or lower credit card fees. And this implies they have more money to spend.

* But economists can’t agree on whether negative interests are effective.

* In Japan, interest rates have been below zero for four years, and their economy has remained sluggish.

* It may actually be unprofitable for banks to lend and savers do not get a good return their money.

* The rising Covid infections and a lack of clarity over Britain’s trade relationship with the EU could threaten economic recovery. And the BoE may need to use less conventional methods, like introducing negative interest rates, to spur the economy on.

* Source: BBC

Have You Seen This?

Female-focused news, reports, research, campaigns

* Closing the gender pay gap at the BBC

* Match of the Day host Gary Lineker was the highest-earning star with an unchanged salary of £1.75m in the 2019/20 financial year. But he has signed a new contract with a 23% cut.

* Zoe Ball, the Radio 2 presenter, has seen her pay rise by £1m since taking over the breakfast show in 2019.

* Fiona Bruce and Lauren Laverne have also moved into the top 10 of the highest-paid stars, which features four women for the first time. Vanessa Feltz is also among the top earners.

* The report also showed 12.3% of BBC leaders were BAME, below its 15% target for 2020.

* The overall gender pay gap at the BBC has fallen from 6.7% to 6.2%. Previous director general Tony Hall had pledged to close the gender pay gap by 2020.

* Read: BBC Group Annual Report and Account 2019/20

Know this: in 2019 the gender pay gap was 17.3% in the UK, which means that on average, women were paid approximately 83p for every £1 men were paid. The pay gap is largest for those 40years+. The financial services industry has the largest gender pay gap. And the gender pay gap is bigger the more senior the role or position. It is estimated that women lose out on between £250,000 to a £1m+ in their lifetime.

What We’re Tracking

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

* Chip (UK): is building the world’s best savings app. And they have launched a crowdfunding campaign on Crowdcube. It is now raising its biggest investment round to date.

* Key facts include:

* 250,000 savers across the UK

* Deposits up 110% over the last 12 months

* Market leading FSCS eligible interest rates

* Full FCA authorisation

* NB: this is for informational purposes only.

Money Habits of the Week

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

* Compare your expenditure in the year 2020 to 2019.

* What are you saving money on? What are spending more money on?

* How much money do you have left over (if any?) every week, every month?

* If you have left over money, what are you doing with it?

* Have you considered increasing how much you put towards your pension or your stocks & shares ISA?

* Research online investment platforms and mobile apps which allow you to invest small amounts on a regular basis.

* Keep learning and stay engaged.

What We’re Watching

We honour Ruth Bader Ginsberg who died Friday, 18 September 2020.

* She was an American jurist who was an associate justice of the Supreme Court of the United States from 1993 until her death in 2020.

* She was nominated by President Bill Clinton and was generally viewed as belonging to the liberal wing of the Court.

* Ruth was the second woman to serve on the U.S. Supreme Court, after Sandra Day O'Connor. During her tenure Ruth wrote notable majority opinions, including United States v. Virginia (1996), Olmstead v. L.C. (1999), and Friends of the Earth, Inc. v. Laidlaw Environmental Services, Inc. (2000).

Ruth spent much of her legal career as an advocate for gender equality and women's rights, winning many arguments before the Supreme Court. (Source: Wikipedia)

Watch this conversation with Ruth at the University of Chicago:

Coffee Break? Read This

* Coronavirus: lockdown ‘blessing’ for women setting up business

* Women less likely to be hired than men during UK lockdown

* Women are drowning in unpaid labour at home. Don’t make them do it at work

* Reopening UK offices is risks excluding women and minorities, says business chief

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 #36 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.

“Our mission is to help women take control of their financial future”

-Jana Hlistova

From The Purse…

Editorial from the Founder

Global stocks lost $1.6tn market cap in a tech rout this week as investors shifted their money into more cyclical pro-vaccine beneficiaries. And global factories posted their fastest growth in almost two years.

The US economy has recorded a fourth straight month of job gains; unemployment has dropped to 8.7% vs the expected 9.8% by economists.

Meanwhile the eurozone dips into deflation (down by 0.2%) and unemployment rises to 7.9% (up from 7.7% in June).

And the Bank of England (BoE) warns of huge uncertainty about economic scarring from Covid-19.

In the Future Focus section, read about why investing for social good is finally becoming profitable.

And why according to US billionaire, Bill Ackman, mandatory investing accounts for children can help combat wealth inequality. We love this.

In the UK, households and non-financial businesses are likely to hang on to their cash.

Apple’s market cap, valued at an all-time high of $2.1tn, overtook the value of the FTSE 100.

We spotlight what a stock split is and how this has affected Tesla and Apple stock.

In the Have You Seen This? section we highlight why female fund managers have outperformed men during the pandemic.

And we‘re tracking a French startup called Coot, recently rebranded to Share (d), which helps separated and blended families stay organised.

If you have time, watch Michelle Greene give a TED talk about how the Long-Term Stock Exchange is reimagining public markets by holding companies to forward-thinking standards of diversity and inclusion, employee investment and environmental responsibility.

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 stocks lost $1.6tn market cap in tech rout this week against a backdrop of good macro data:

* Global factories have posted their fastest growth in almost two years.

* According to JP Morgan: global factory output expanded in August at the most rapid pace since November 2018:

* US unemployment falls to 8.7%, beating forecasts of 9.8%

* In August, 1.37m jobs were added.

* The US economy has recorded a fourth straight month of job gains.

* Eurozone dips into deflation

* Consumer prices in the euro area dropped by 0.2% year-on-year in August, new data.

* Low inflation is a boost to consumers, but it will cause alarm at the European Central Bank (who are aiming for 2%).

* Eurozone unemployment rises to 7.9%

* Up from 7.7% in June, which is the highest since 2017.

* Eurostat estimates that 15.184 million men and women in the EU, of whom 12.793 million in the euro area, were unemployed in July 2020.

* UK: Bank of England (BoE) warns of huge uncertainty about economic scarring from Covid-19

* The Bank has estimated it could mean GDP is 1.5% lower - but there’s much uncertainty over this.

* Two different views: people are ‘naturally cautious’ about re-engaging with the economy vs how much structural change there will be in the economy.

* More stimulus is likely to be needed in the economy.

Future Focus

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

* US: Investing is social good is finally becoming profitable

* Impact investments are outperforming traditional bets in the coronavirus crisis, which may be a turning point for wealthy investors looking to generate change:

* Over all, 64% of actively managed E.S.G. funds beat their benchmarks versus 49% of traditional funds through the first week in August, according to research from RBC Capital Markets.

* Top tip: It’s important for individuals to look at the authenticity of asset managers and how rigorous their screening methods are.

* Mandatory investing accounts for every child will help combat wealth inequality

* According to billionaire Bill Ackman wealth inequality poses a ‘black-swan-type’ risk to investors and US capitalism. He said:

* A $6,750 investment at birth, with average returns of 8% per annum, would yield more than $1 million by retirement.

* The government could also mandate that companies set aside a portion of workers' wages for a tax-free investment fund, similar to Australia's pension system.

* Read the letter to Pershing Square Capital investors.

Your Money

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

* UK: Households and non-financial businesses likely to hold more liquidity:

* According to Bank of England policy maker, Michael Saunders, households are likely to want to build up deposits in their bank accounts to protect against uncertainty and potential job loss.

* The cost of breaking up: getting a divorce is trapping women in debt

* Around 42% of marriages in England and Wales end in divorce.

* The latest estimate puts the average total cost of divorce at £14,561.

* Women who suffer from economic abuse are worse off.

* Check out the Surviving Economic Abuse website

Companies: winners & losers

Companies to watch and share price movements

* Tech stocks took a hit this week: combined market cap of FANGMAN (Facebook, Apple, Netflix, Google, Microsoft, Amazon, Nvidia) has lost $636bn within 2 days, almost equal to GDP of Switzerland.

* Apple overtakes the value of the FTSE 100

* The world’s most valuable company is now worth over $2.1 trillion, an all-time record.

* The Footsie (which is light on tech stocks) is now worth around £1.5 trillion, or roughly $2 trillion.

* Apple has surged by an astonishing 75% this year, the blue-chip FTSE 100 has lost over 20% of its value since 1 January.

* Apple’s shares also got a boost from its stock split. Investors now own four Apple shares for every one they owned last week.

* Zoom shares soar after revenue more than quadruples from last year

* Zoom rose almost 23% in after-hours trade after it reported a 355% rise in revenues to $663.5m for the July quarter, smashing forecasts for around $500m.

* Zoom’s market cap now stands at more than $129 billion, up from $25 billion a year ago. The company is now larger than IBM and AMD.

In the Spotlight

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

What is a stock split?

* A stock split is when a company divides the existing shares of its stock into multiple new shares to boost the stock's liquidity.

* Tesla has recently split its stock 5 to 1 which fuelled a 7% jump in the share price on Tuesday.

* Apple also recently split its stock 4 to 1: investors now own 4 Apple shares for every Apple share they owned last week.

* That makes the stock more affordable to small investors.

* Stock splits don’t actually make these companies more valuable, but investors have been enthusiastically buying up both Tesla and Apple shares.

* Source: The Guardian & FT.

Have You Seen This?

Female-focused news, reports, research, campaigns

* 1 in 4 women miss out on a pension

* The Resolution Foundation, a think tank, said that 24% of women were ineligible for automatic enrolment pensions, despite being in work. 

* Companies only need to enrol staff in a work pension if they earn over £10,000 per annum.

Know this: on average a woman’s pension is one fifth of the average man’s. Women are paid less, they are more likely to take career breaks and work part-time in order to take on the majority of childcare. This has a major impact on a woman’s purse. If you are not eligible for a work pension, you can set up a self-invested personal pension (SIPP) in the UK. There are a number of online investment platforms which allow you to set up a SIPP today. Make a commitment to invest monthly into your pension, however small the amount. Don’t forget that the UK government gives you a tax relief every time you make a pension contribution.

* Female fund managers beat men at stock picks

* According to Goldman Sachs, even after adjusting for risk, female-managed funds have outperformed their counterparts amid the pandemic-related market swings.

* Female-managed funds are benefiting from a preference for technology stocks, an industry that has dominated gains. Male managers lean toward financial shares, the second-worst performer in the S&P 500.

Know this: women are still a small minority in the industry. Only 3% of the mutual funds tracked by Goldman have an all-female fund manager team, collectively managing just 2% of total assets. In contrast, 77% are managed by an all-male team, with these funds accounting for 57% of assets.

What We’re Tracking

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

* Coot (rebranded at Share (d)) (France): founded by Anthony Amouyal, helps separated and blended families stay organised, and avoid disjointed multi-channel communications like across post-it notes, whatsapp and email.

* The start-up has just raised €3.7 million from a family office and Bpifrance.

* The fresh funds will prepare the team for its expansion across France and globally.

Money Habits of the Week

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

* Study how Big Tech stocks have performed since the pandemic compared to bank stocks or stocks in travel, retail or the leisure industry.

* Read up on tech companies including Zoom, Apple, Tesla and Salesforce (we have covered these in The Purse newsletter-also see previous editions).

* Consider UK based tech companies which are listed: how well have they performed and why?

* Track your findings and jot down any questions you have. Search for the answers online and add to your notes.

* Keep learning and stay engaged.

What We’re Watching

* Michelle Greene: is President of the Long Term Stock Exchange and she believes that we can use our financial system to change the way companies show up in the world.

* Watch this TED Talk: ‘about how the Long-Term Stock Exchange is reimagining public markets by holding companies to forward-thinking standards of diversity and inclusion, employee investment and environmental responsibility -and generating better outcomes for everyone involved’.

Coffee Break? Read This

* That discomfort you’re feeling is grief

* How women-led fashion tech companies are shaking up the industry

* US: A new report shows that the gender pay gap is closing for new hires, in July 2020

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 #34 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.

“Our mission is to help women take control of their financial future”

-Jana Hlistova

From The Purse…

Editorial from the Founder

The Federal Reserve has warned that the coronavirus will weigh heavily on the economy and China has injected $101bn into their financial system.

UK debt has hit £2trn for the first time since 1960, which means that national debt is now 100.5% of GDP.

The S&P 500 hit an all-time high but investors are betting on European stocks which are lagging behind. The tech/growth trade is now the biggest bubble in at least 50 years.

Meanwhile bitcoin rose above $12,000, as low interest rates and the risk of inflation means that investors are hedging with bitcoin and gold.

Apple became the first US company to reach a $2trn market cap and Tesla has hit $2,000 a share after a 378% rally this year.

We spotlight what has driven Apple’s growth.

And in the Have You Seen This Section? we highlight how the pandemic has made the gender pay gap worse.

We’re tracking the DeepTech Investing Report (and overcoming the double bias for women investors) and watch the TED talk by the late Sir Ken Robinson about whether schools kill creativity?

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 Fed warns the coronavirus will weigh heavily on the economy

* The US central bank noted:

* “Uncertainty surrounding the economic outlook remained very elevated, with the path of the economy highly dependent on the course of the virus and the public sector’s response to it”.

* The recent pick-up in employment has slowed since mid-June (and growth/job creation is heavily dependent on tackling the virus).

* China injected an additional $101bn into their financial system

* This is regarded as more ‘accommodative monetary policy’ from the Chinese government.

* Interest rate cuts could follow or other ‘easing’ methods to stimulate the economy.

* UK debt hits £2trn for the first time (since 1960-1961)

* National debt is now 100.5% of GDP.

* The crisis has put the government under significant strain.

* Analysts believe the worst is yet to come (eg the furlough scheme ends in October).

* UK inflation jumps

* Inflation increased to 1% in July vs 0.6% in June. Why?

* Due to pent up demand eg clothing, haircuts, road trips.

* This is still below the Bank of England’s (BoE) 2% target.

* US jobless claims rise again in mid-August

* Claims are above 1m again (vs expected 923,000).

* S&P 500 hits new record high (on Tuesday)

* The US index has skyrocketed more than 54% since March 23.

* These gains are driven by Big Tech gains (eg Apple and Amazon).

* The equity markets are reflecting the massive fiscal and monetary injections over the last 4 months.

* European stocks are lagging behind US equities which are trading at all time highs:

* Bitcoin flies above $12,000 (last Monday)

* The most popular cryptocurrency has rallied more than 200% since March.

* Low interest rates and the risk of inflation means that investors are hedging with bitcoin and gold.

Future Focus

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

* US: JP Morgan pinpoints the triggers for a bond sell-off (that can cause large losses)

* If central banks extend their historic stimulus programmes, the result could be a giant market sell off, as investors react to the possibility that rates will stay at zero (for longer than it appears today).

* This could be ‘disruptive’ for safety and defensive-oriented investments.

* Cyclical stocks and oil prices are likely to rise in this case.

* Michael Novogratz says buy bitcoin not gold

* The founder of Galaxy Digital Holdings and veteran Wall Street investor has said:

* he sees gold climbing above its record highs but bitcoin is still the more worthy investment because it’s “harder to buy” than the traditional haven.

* “It’s only got a $20 billion market cap, while gold is over $10 trillion,” so bitcoin still has a long way to go.

* beginners should not put in more than 1-2% of their money into crypto.

* So far this year, bitcoin, the largest cryptocurrency, has slid below $4000 and surged above $12,000 (last week).

* Tech/growth trade is now the biggest bubble in at least 50 years

* The question everyone is asking: when will the bubble burst?

Your Money

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

* UK: how to prepare your finances for this uncertain period

* Diversification: increase your income sources

* Strip back on expenses

* Get aggressive on your savings

* Create a budget and stick to it.

* Millennial women share how they spent their money during lockdown

* Conscious consumerism

* Seesaw spending

* ‘Treat yourself’

Companies: winners & losers

Companies to watch and share price movements

* Apple becomes the first US-listed company to reach $2trn market cap

* This is two years after it became the world’s first trillion-dollar company.

* Even during the pandemic, Apple’s share price has surged 60%.

* Shares of the technology giant rose 1.2% to an all-time high of $467.84 on Wednesday to reach the milestone.

* See Apple’s share price here

* Tesla now hits $2,000 a share after a 378% rally this year. Tesla is now up 40% since announcing the stock split:

* Barrick Gold surged 12% after Warren Buffett’s Berkshire Hathaway bought a stake

* This is a surprise as Buffett has been critical of gold (in the past) saying it has ‘no utility’.

* Berkshire Hathaway 21 million shares of the gold and copper miner worth roughly $564 million in the last quarter.

* See their share price here

In the Spotlight

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

What’s driven Apple’s growth?

* Last Wednesday, Apple became the first US company to achieve a $2trn market cap valuation, just 2 years after it was valued at $1trn.

* The tech company, co-founded by Steve Jobs to sell personal computers and iPhone maker, hit a share price of $467.77 (to reach the milestone).

* Apple had expected to take a hit during the pandemic which is why it issued a revenue warning and withdrawing financial guidance in February.

* Instead, the share price has risen 50% since March; adding more than $1trn to its value.

* Since Jobs passed away in 2011, CEO Tim Cook has bet the company on moving away from being too dependent on the iPhone. He has seen a nine-fold increase in the Apple share price since he took over.

* It is Apple’s move in services and wearable products that had paid off-adding more than $13bn in the last quarter.

* The company launched Apple TV and even launched a credit card and Apple Pay (used by more than 400m people).

* However Apple has been criticised for its attitude towards paying corporate tax.

* Source: The Guardian

Have You Seen This?

Female-focused news, reports, research, campaigns

* UK: Women in banking are treated differently

* Former Virgin Money boss Dame Jayne-Anne Gadhia who left to set up fintech startup called Snoop, says she was labelled a ‘bloody difficult woman’ throughout her career.

* The Treasury launched the Women in Finance Charter as a result of a government review which considered women’s representation in financial services led by Gadhia.

Know this: the financial services industry has the biggest gender pay gap. Whilst the median pay gap in the sector is 28% (UK), HSBC Bank has a gender pay gap of 55.1% and Lloyds Bank has a gender pay gap of 34.9%. Note that the gender bonus gap is far greater: in the case of HSBC it is 60% whilst it is 71% at Santander. What this demonstrates is that there are still very few women in senior positions in financial services. And this has a significant impact on a woman’s purse, and therefore her net worth. (The UK average gender pay gap across all industries is 17.3% (2019), and this is likely to have declined further during the pandemic).

* US: How the pandemic is making the gender pay gap worse

* This recession is hitting women harder.

* Between February and April 2020, male unemployment increased 9.9%; female unemployment increased 12.8%.

* The unemployment rate is only part of the story:

* "This recession is not just a labor market shock, but it's also a huge shock to the requirements for time spent at home"

* Women are now more likely to drop out of the labor force or cut hours, hurting their future job prospects. 

* Economists predict that this will widen the gender pay gap: from women earning 83 cents for every average man’s dollar, to earning 76 cents for every average man’s dollar.

* They also predict it may take 10 years to close the gender pay gap to what it was before the pandemic.

* Read this study: This Time It’s Different: The Role of Women’s Employment During the Pandemic Recession

Know this: Harvard University's Claudia Goldin, finds that the primary driver of the gender wage gap is ‘female demand for temporal flexibility’. Breaking down the barrier in how we work by offering flexibility and remote working in high-paying jobs for women (beyond the pandemic) will help close the gender pay gap (especially once children go back to school). However, we also know that employers must get better at developing a company and team culture which does not differentiate or ‘discriminate’ between flexible or remote workers-so women really don’t miss out if they work from home. The other obvious solution is for partners to more equally share in the childcare and household chores.

What We’re Tracking

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

* DeepTech Investing Report: overcoming double-bias for women investors

* About 16% of decision-making partners at DeepTech VC (venture capital) firms are women.

* DeepTech is compounded by structural barriers and barriers challenging women in STEM.

* Women in DeepTech are often sole GPs (general partners) and are highly educated (with at least 2 degrees).

* Women sole GPs receive less capital than men sole GPs  — despite being almost twice as likely to have an advanced technical degree and more than twice as likely to have a PhD. 

* Network bias could explain why women GPs have a harder time raising capital in general.

* More than 55% of all-women VCs raise funds of less than $25M, compared to just 30% of all-men VCs. And, almost no all-women DeepTech teams raise more than $100M.

Money Habits of the Week

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

* Do some research this week on how much more you could get paid for your job and skills.

* Reach out to recruiters and headhunters and find out the maximum you could get paid.

* Consider how you might up-skill to negotiate more money.

* Apply for new work or a new job and negotiate a higher rate or salary.

* Armed with this information negotiate for more with your existing employer or client.

What We’re Watching

* Sir Ken Robinson is a creativity expert who challenges the way we’re educating our children. He champions a radical rethink of our school systems to cultivate creativity and acknowledge multiple intelligence systems.

* Watch this TED talk: Sir Ken Robinson makes an entertaining and profoundly moving case for creating an education system that nurtures (rather than undermines) creativity.

* We celebrate Sir Ken Robinson, who sadly passed on Friday, 21 August 2020 after a short battle with cancer.

Coffee Break? Read This

* If you can’t take a vacation, get the most out of minibreaks

* Making jokes during a presentation helps men but hurts women

* Female-led countries handled coronavirus better, research says

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 #33 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.

“Our mission is to help women take control of their financial future”

-Jana Hlistova

From The Purse…

Editorial from the Founder

Global stocks have hit a milestone: they are valued at more than 100% of global GDP. According to Warren Buffet, this is an indicator that stocks are in ‘bubble territory’.

China’s retail sales drop is fuelling concern about the global economic recovery even though China is the only major economy not in a recession this summer.

The UK fell into a recession in Q2, with a 20.4% decline in GDP-which is much worse than the US or the eurozone.

The FTSE 100 sank Friday: weeks of gains were wiped out due to the latest round of quarantine restrictions, poor Chinese data and a stalemate in the US stimulus package debate.

US retail sales is up but so is inflation, which according to Howard Marks, the billionaire investor, is a real risk to the US economy.

And as the combined balance sheet of central banks go up, so does bitcoin.

Read about how to recession-proof your money and we spotlight what a recession is and how it may affect you.

In the Have You Seen This Section?, we highlight a study by NOW: Pensions about single mums and why they have 88% of the pension men do.

And sexism in Silicon Valley is alive and well: Pinterest ex-COO, Francoise Brougher claims she was fired over sex bias complaint. Read about what happened on her blog. It’s worth noting that even her stock vesting schedule was different to her male peers.

Hmm, we’re not sure how we feel about Pinterest now.

Don’t forget to check out The Purse Podcast where I interview Jessica Robinson, Founder & MD of Moxie Future: we talk about responsible investing, why investing for impact is smart and how to start today.

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 stocks hit a milestone: 100%+ of global GDP (for the first time since 2018)

* According to Warren Buffett, this signals stocks are in ‘bubble territory’.

* This usually means it’s time to lean toward ‘risk off’.

* China’s retail sales drop fuels concern for global economic recovery

* Retails sales in July dropped by 1.1% (and for the 7th consecutive month).

* Overall the economic rebound has been uneven: the supply-side production has rebounded faster than then demand-side.

* China is the only major economy to avoid a recession.

* FTSE 100 sank on Friday

* Weeks of gains were wiped out due to the latest round of quarantine restrictions, poor Chinese data and a stalemate in the US stimulus package debate.

* UK falls into recession: in Q2 declines 20.4%

* Britain’s economy shrank by more than a fifth (Q2), much worse than the US or the eurozone. Why? Read this.

* UK Chancellor, Rishi Sunak warns ‘hard times’ have arrived

* The government expects the ‘economic pain’ to continue.

* US inflation has risen faster than expected

* Consumer prices jumped by 0.6% in July compared to June, pushing annual inflation up to 1%:

* US retail sales rise for the third month in a row

* In July, retail sales was up 1.2% vs the projected 2.3% (by Dow Jones economists).

* However, the retail sales ‘bounce back’ has cooled as resurgence in Covid-19 infections has slowed reopening activities.

* Bitcoin is on the up:

* Negative real interest rates means investors are buying cryptocurrency.

* The price of bitcoin is following the combined balance sheet of central banks:

Future Focus

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

* US: Howard Marks warns of long-term inflationary risk

* The billionaire investor said that the Federal Reserve’s emergency relief funds helped the US economy avoid a depression.

* However, we are likely to see inflation go up.

* And another by-product may be a rise in zombie-companies; businesses which are saddled with enormous debt. They usually need to borrow money to service their debt and probably should go out of business.

* US/global: George Soros says that the stock market is trapped in a Fed-fuelled liquidity bubble

* The legendary investor said that the lofty stock valuations are ‘underpinned by hopes for another round of fiscal stimulus and the expectation that President Donald Trump will announce a reliable coronavirus vaccine before the presidential election’.

* He also sees the US better equipped than Europe to deal with the pandemic economic fallout.

Your Money

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

* UK recession: how will it affect women?

* Female-dominated industries have been hard hit

* Higher unemployment for women in those industries

* Women are more likely to be furloughed

* The furlough scheme will come to an end in October

* Note from The Purse: upskill where you can. Look into how you can develop your digital skillset and experience.

* 6 ways to recession-proof your money

* Update your CV

* Don’t panic about your pension (for now)

* Check your emergency fund

* Maintain a good credit score

* Reduce your expenses

* Sort your savings

Companies: winners & losers

Companies to watch and share price movements

* Moderna share price surges 10%

* The US government has reached a deal to purchase 100 million doses of the company's coronavirus vaccine. 

* This deal is worth $1.53 billion.

* See Moderna’s share price here

* Daily Mail publisher cuts 100 of jobs as revenue falls

* Quarterly print advertising down 69%.

* Digital income is down 17% despite an impressive increase of well over a third in traffic to its main digital property, MailOnline.

* See DMGT share price

* Cisco has been Silicon Valley’s early-warning signal: its share price fell

* This week the Cisco share price fell 11%; the worst 1 day drop in 9 years.

* See Cisco share price

In the Spotlight

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

What is a recession and how could it affect me?

* The UK is in a recession for the first time in 11 years.

* A recession is defined as the fall in Gross Domestic Product (GDP):

* the value of goods and services produced falls (for at least two consecutive quarters).

* The UK GDP fell by 2.2% in Q1 (January-March) and declined 20.4% in Q2 (April-June): the steepest fall on record due to the pandemic lockdown.

* Some people, and mostly women, have lost their jobs, it may be harder to find a job and a pay rise may be difficult.

* A recession is not felt equally across society; inequality is likely to rise.

* For example, for homeowners who have a job, mortgage interest payments fell leaving them with more money in their pocket.

* Public sector workers have done less well.

* According to the Bank of England (BoE), the UK economy will grow again in Q3 (July-September). However unemployment will continue to rise as the furlough scheme ends in October.

* Source: BBC

Have You Seen This?

Female-focused news, reports, research, campaigns

* Single mums retire on much less than other women

* According to a study by NOW: Pensions:

* They tend to be employed in low-paid part-time roles that fit around childcare.

* Unless you earn £10k, you miss out on being auto-enrolled into a pension.

* Single mums reach 65 with around £18,300 in private savings.

* Other women retire on £51,000 and men on £156,500.

* They are also worse off than divorced women, who end up with savings of around £26,100, while divorced men have £103,500 by the time they stop work. 

Know this: saving for retirement is crucial. Knowing that you have enough saved up to retire on gives you peace of mind. Sit down and make a plan for what you have to do. Seek out a financial advisor or someone who can help you. If you are an employee, make sure you (at least) match your employer’s contribution. And if you are self-employed, you can set up a self-invested personal pension (SIPP).

* Gender wealth gap is increasing during the pandemic

* Sally Krawcheck, Founder & CEO of Ellevest has said:

* Women have had to deal with a disproportionate amount of job loss during the pandemic because they're more likely to have jobs deemed ‘essential’.

* They are also likely to experience micro-aggressions and misogyny even more during the ‘Zoom era’.

* As a result, the gender wealth gap is accelerating.

Know this: we know it is difficult to save and to invest if you have lost your job or simply have less time due to childcare. However, as soon as you are in a position to start saving again, look into how you can make your money work for you. The time you put in today; the steps you take to invest for maximum return, will allow you to retire and live comfortably in later life.

* Sexism in Silicon Valley: Pinterest ex-COO, Francoise Brougher is fired and she sues over sex bias

* Brougher claims she was excluded from board meetings and eventually fired after she complained.

* Brougher also said she was paid less than her male counterparts and was criticised for not being ‘compliant’ or ‘collaborative’ enough.

* She also discovered, after Pinterest went public, that she was on an entirely different stock vesting schedule compared to her male peers.

* Read her full account here

Know this: this experience is common to women and minorities who do not have informal handshake relationships with their male colleagues and are regularly excluded from the rooms where decisions are made. It’s crucial to find an environment where you can prosper and grow. It’s not surprising we are seeing so many women ‘go-it-alone’ together. Whether this is starting a business or a venture capital fund; women are creating environments where they can prosper. And importantly, women are building environments where they can not be held back.

What We’re Tracking

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

* La Famiglia (Europe)-is a VC fund which invests in early stage B2B startups-founded by Jeannette zu Fürstenberg:

* They have raised €50m and their backers include European industry behemoths like Mittal (the steel company), Pictet (the wealth managers), Oetker (of the baking goods) and Swarovski (the diamond business).

Money Habits of the Week

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

* Did you know that ESG funds have outperformed traditional funds during the pandemic?

* Look into ESG or responsible investing and research how you can get started online.

* There are many online platforms and mobile apps you can easily access and invest with very little money.

* Even if you invest £25-£100 a month, you’re more likely to read up on your investments and start learning as you go.

* Listen to our podcast this week with Jessica Robinson who talks to us about responsible investing.

And don’t forget to tell us how you’re getting on @jointhepurse.

What We’re Watching

* Greta Thunberg: is a Swedish climate change activist.

* Watch the TED talk: in this passionate call to action, 16-year-old climate activist Greta Thunberg explains why, in August 2018, she walked out of school and organised a strike to raise awareness of global warming, protesting outside the Swedish parliament and grabbing the world's attention. ‘The climate crisis has already been solved. We already have all the facts and solutions,’ Thunberg says. "All we have to do is to wake up and change."

Coffee Break? Read This

* Why do boards have so few black directors?

* Breast screening of women in their 40s ‘could save lives’

* Follow the money: why women should be in powerful positions

* Kamala Harris: defusing ambition as an obstacle to women in power

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 #32 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.

“Our mission is to help women take control of their financial future”

-Jana Hlistova

From The Purse…

Editorial from the Founder

The global stock market gained $1.9tn last week as investors reacted positively to earnings reports and progress on developing a vaccine.

Yesterday, Donald Trump signed executive orders to extend unemployment benefits and suspend payroll tax after the Democrats and the Republicans failed to agree a new stimulus package for millions of Americans.

US unemployment claims fell last week however the pace of job growth has slowed, suggesting stalled recovery as coronavirus cases surged and states pull back on their reopening plans.

In the UK, the Bank of England (BoE) will maintain its all-time low interest rate of 0.1%.

The UK economy has had a strong recovery over the last few months and it is now expected that the economy will only decline 9.5% vs the projected 14% in 2020.

However, fear of surging unemployment continues as the UK furlough scheme is unlikely to be extended beyond October of this year.

The price of gold surged to record highs; it is up 34% this year.

Google’s parent company Alphabet has issued sustainability bonds valued at $5.75bn. This is the largest sustainability or green bond by any company in history.

We spotlight how to think about risk as an investor. And in the Have You Seen This? section read about why women feel less supported by their bosses during the pandemic and why a fear of investing leaves too many women without a decent pension.

If you are married, divorced or a widow it is possible that you might have been underpaid your state pension. Do check out the resources we list below.

We’re tracking two impressive female-led start-ups Orum and Topicals.

And watch the TED talk by Dr Lucy Hone called the three secrets of resilient people.

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 stocks have gained $1.9tn in market cap as investors react positively to earnings reports and progress on developing a vaccine.

* The global market cap is now equal to 100%+ global GDP

* China and the Rest of the World growth divide will increase

* China was back at pre-Covid levels end of Q2 (April-June).

* US won’t be back to pre-Covid levels until mid 2022.

* UK’s recovery will take longer: it won’t be back to pre-Covid levels until the first half of 2024.

* Source: Deutsche Bank

* US/China: Donald Trump continues with his ‘campaign’ against China

* Trump unveiled executive orders on popular social media apps Tik Tok and WeChat (Chinese technology companies).

* US: no agreement on new stimulus package reached but Trump steps in

* Democrats and Republicans are at odds on everything from unemployment benefits to financial aid for schools to extra funding for the US Postal Service.

* The Democrats passed a $3.4tn stimulus bill (3 months ago) but the Republicans have put forward a $1tn stimulus package which the Democrats will not support.

* Last night, Donald Trump signed one memorandum which partly renewed unemployment benefits and ordered the suspension of payroll tax.

* US: unemployment claims fall

* Weekly jobless claims fell 249k to 1.186m vs 1.4m (estimated).

* Continuing claims fell 844k to 16.1m vs 16.9m (expected).

* Unemployment at 10.2% vs 10.6%.

* But the pace of job growth has slowed, suggesting stalled recovery as coronavirus cases surged & states pulled back on reopening plans.

* The Bank of England (BoE) will maintain its all-time low interest rate at 0.1%

* The UK economy has had a strong recovery over the last few months.

* It is now expected to decline 9.5% (vs the projected 14%) in 2020.

* The economy is predicted to grow by 9% in 2021 and 3.5% in 2022.

* The BoE continues to be ‘ready to act’ if the UK economy needs further support.

* UK: furlough scheme will not be extended beyond October

* It is unlikely that the furlough scheme will be extended.

* Unemployment is expected to soar from 3.9% to 7.5% by end of 2020.

* Gold prices surged to record highs above $2,000

* This is a 34% increase this year.

* Gold remains an important hedge against inflation.

Future Focus

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

* US: maximum liquidity will push stocks to new all-time highs

* According to Bank of America, the stock market is to set to move higher in 2020, as the Federal Reserve continues to print money:

* However, low bond yields are creating a ‘stock bubble’.

* Investors should expect stocks to keep moving up until 2021.

* A Covid-19 vaccine is likely to mark a ‘big top’.

* Millennials buy bitcoin and older investors buy gold

* According to JP Morgan Chase & Co, your age determines what you invest in during the pandemic:

* Alphabet issues sustainability bonds

* As part of a $10 billion debt offering, the parent company of Google, issued $5.75 billion in sustainability bonds.

* This is the largest sustainability or green bond by any company in history.

* Proceeds from sustainability bonds support investment in both environmental and social initiatives. (Unlike green bonds which is directed solely for environmental uses).

* These bonds are an emerging asset class.

* Check out Alphabet’s Sustainability Bond Framework 2020

Your Money

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

* How can long-term home-working affect your finances

* You can claim tax relief on job expenses

* You should double-check your insurance

* Your costs could go down (but so could your income)

* You may have to work harder for a pay rise

* It could affect your property price

* It might help women’s finances

* More women, including widows and divorcees urged to check state pension

* Married women, widows and divorcees may be eligible for state pension lump sums (as they may have been underpaid).

* Read more here and contact the Pension Service here.

Companies: winners & losers

Companies to watch and share price movements

* The Hong Kong listed shares of Tencent fell by 10.1%

* Tencent is China’s second most valuable technology company with a market cap of close to $700bn.

* On Friday, Donald Trump ordered US companies to stop dealing with the WeChat platform, Tencent’s messaging platform.

* WeChat has more than 1billion users in China, but in the US it has only been downloaded 19m times since 2014.

* Warren Buffett buys back record $5.1bn in Berkshire Hathaway stock

* The buybacks come during a tough period for some of Berkshire’s wholly owned businesses.

* Berkshire’s operating profit fell 10% during the second quarter, dropping to $5.51 billion from $6.14 billion in the year-earlier period.

* However this was offset by a $34.5 billion gain from Berkshire’s investments in the public markets. 

* ITV cancels its dividend as earnings half and ad revenue takes a severe hit

* First half of trading has been adversely affected at the British media company.

* Both its adjusted and statutory EBITDA had halved year-on-year, down 50% and 49% to £165 million and £159 million respectively.

* The demand for advertising has declined across all categories, with total advertising revenue down 43% in Q1, and down 21% in Q2.

* Whilst total viewing has increased by 4% and online streaming up by 13%, the wider online viewing trend is a threat to ITV.

In the Spotlight

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

As an investor: how should you think about risk?

* Risk is inherent in everything we do. In a financial context, it describes the likelihood of receiving our money back and what the reward or return will be.

* There are different asset classes. And they all carry varying degrees of risk.

* The higher the risk, we can assume the higher the return. Conversely, the lower the risk, the lower the return on the investment.

* As an investor, you should always consider what the risk is for an investment. Understand the numbers, the assumptions and any vulnerabilities. Consider what you can do to reduce the risk of an investment you make.

* Diversifying your investments (or not putting all your eggs into one basket) is a common strategy amongst investors to manage or reduce risk.

* Pay close attention to your personal circumstances, the impact on your money (your net worth) if you do not get a good return or if you do not get your money back.

* And remember, it is not about timing the market, but time in the market.

* As an investor with a long-term horizon, your aim is to make a healthy return and outpace inflation (which erodes your money).

Have You Seen This?

Female-focused news, reports, research, campaigns

* Women feel less supported by bosses during the pandemic

* According to new research by Mercer:

* only 72% of women said senior leaders were doing a good job to keep staff informed about the state of their business in the pandemic, compared to 78% of men.

* 5% fewer women said they thought senior leaders were doing a good job of listening to employee concerns during the crisis.

Know this: women have had to take on the majority of childcare, homeschooling and household chores during the pandemic. Companies should be recalibrating performance goals, demonstrating empathic leadership and communicating regularly. We have seen female political leaders around the world ‘outperform’ male political leaders. What is needed is more ‘feminine leadership skillsets’ being adopted by all leaders regardless of gender.

* Fear of investing leaves too many women without a decent pension

* Women are often held back by:

* a lack of time, a lack of confidence, access to the right information, industry jargon and not knowing where to start.

* not understanding ‘risk’.

* missing out on market returns.

Know this: it is not uncommon to cite that women ‘lack confidence’ when it comes to money and investing. And this can become a self-fulfilling prophecy for many. It’s important to consciously commit to overcoming this belief. The best way to do this is to take small steps and engage. For example, find an accountability partner and/or choose an online investment platform where you can invest as little as £25-£100 a month: you can start learning about investing with very little risk.

What We’re Tracking

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

* Orum: (US)-founder and CEO Stephany Kirkpatrick, wants to shift the thinking around money movement from where the consumer figures out in which account money needs to flow, to one where everything is managed for the consumer.

* The New York based company has raised a seed round of $5.2m led by Homebrew, Inspired Capital, Acrew, Bain Capital Ventures, Clocktower, BoxGroup and angel investors.

* Kirkpatrick opened and closed the seed round during the pandemic.

* The company is now working with 50 customers and has a waiting list.

* Topicals: (US)-founded by Olamide Olowe and Claudia Teng-is a newly launched skincare company for people dealing with chronic skin conditions. (We love that the founders will be donating 1% of the profits to organisations which advocate for mental health issues):

* They raised $2.6 million in seed investment from (including) celebrity angel investors Netflix CMO Bozoma Saint John, entrepreneur and DJ Hannah Bronfman, and Insecure actors Issa Rae and Yvonne Orji.

Money Habits of the Week

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

* Make a decision to look into online investment platforms this week.

* Research how you can invest into a stocks and shares ISA (Individual Savings Account) or even a self-invested personal pension (SIPP).

* The good news is that a simple questionnaire will help you determine whether to invest as a (for example) cautious, moderate or adventurous investor.

* Your risk profile can be matched to potential ready-made online investment portfolios.

* Remember that your returns match your risk (profile) and this is also dependent on how volatile the stock market is.

* Learning by doing is one of the most effective ways to understand the market.

* Start small.

* Don’t forget to find an accountability partner or connect with your tribe at The Purse.

You got this.

What We’re Watching

* Dr Lucy Hone builds resilience among individuals, communities and organisations.

* Watch this TED talk: 3 secrets to resilient people. Everyone experiences loss, but how do you cope with the tough moments that follow? Resilience researcher Lucy Hone shares three hard-won strategies for developing the capacity to brave adversity, overcome struggle and face whatever may come head-on with fortitude and grace.

Coffee Break? Read This

* The ‘shecession’: why economic crisis is affecting women more than men

* The ‘female’ brain: why damaging myths about women and science keep coming back in new forms

* We need to talk about investors’ problem with vaginas

* How to handle a ‘friendly’ co-worker who’s really a total jerk

* How to build up trust at work

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 #31 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.

“Our mission is to help women take control of their financial future”

-Jana Hlistova

Photo: Christina @ wocintechchat.com

From The Purse…

Editorial from the Founder

Globally countries are dealing with an increase in Covid cases.

Whether this is Hong Kong, Australia or the UK, countries around the world are having to manage regional outbreaks or a second wave.

This week, hopes for a short lockdown with a V-shaped recovery were dashed. It is believed now that a vaccine or a medical breakthrough is necessary before economies can fully recover.

On Wednesday, Jay Powell, the Chairman for the Federal Reserve, said that Covid will impact economic recovery in the US and that ‘we’ve got to hope for the best and plan for the worst’.

The US economy shrunk by -32.9% (annualised) in Q2 and the Eurozone declined by a record 12.1%.

UK economic recovery is underway but concerns for job losses continue: closing the furlough scheme in the autumn could drive unemployment to 3m by Christmas.

According to think tank, EY Item Club, the UK economy will not fully recover until 2024.

Meanwhile shares in Kodak surged 2,441%, sending its market cap close to $2bn. The US government loaned the camera making firm $765m to help produce ingredients in key generic medicines to fight Covid-19. Crony capitalism? Probably.

Big tech is eating the world and we spotlight what this means for investors-especially if you’ve invested in the S&P 500.

In the Have You Seen This? section, read about women’s wealth in the US and why it will triple to $30tn within a few years. The UK economy is missing out on £47bn due to a lack of women in senior leadership.

And read about the hidden ways companies are paying women unfairly.

We’re tracking a US start-up, LOOM, co-founded by a black female founder who has just raised $3m in seed funding.

Check out Martha Brook, the personalised productivity startup and their crowdfunding campaign.

And listen to our podcast interview with Vicki Saunders, an entrepreneur and a leading advocate for entrepreneurship as a way of creating positive transformation in the world. We talk about radical generosity and the women working on the world’s to-do list. You can also listen here.

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:

* Globally, countries are dealing with an increase in the number of Covid cases

* Whether it is Hong Kong, Australia, Germany or the UK, countries around the world are dealing with either regional outbreaks or a second wave.

* This week, hopes for a short lockdown followed by for a V-shaped recovery ended. A vaccine or a medical breakthrough is needed before economies can fully recover.

* US: Donald Trump rattled the stock markets after he suggested he might delay the November election

* The US economy contracted -32.9% (annualised) in Q2 vs the expected -34.7%.

* According to Deutsche Bank, this was not the worst GDP decline in US history. The worst GDP decline was -42.3% in Q1 1946.

* The US GDP decline is alarming but ‘self-inflicted’ due to the pandemic lockdown.

* The Eurozone shrunk by a record 12.1% in Q2

* The data shows that this contraction wiped out more than a decade of expansion. Also:

* New Covid cases, increase the risk of reversed re-openings.

* An increase in unemployment, bankruptcies and weak investment means that recovery will be slow.

* Economists predict a 8% fall in output: this may be the deepest recession for the bloc since it was established.

* US: the Federal Reserve keeps interest rates the same and Covid will impact economic recovery

* In their meeting Wednesday, Jay Powell, the Chairman for the US central bank, said that ‘we’ve got to hope for the best and plan for the worst’.

* The Fed also said that Congress negotiating a new stimulus package ‘is a good thing’.

* UK economic recovery is underway but job loss concerns continue

* Closing the furlough scheme in autumn could drive unemployment to 3m by Christmas. As many as 9.5 million jobs have been furloughed since March.

* Record inflows into gold ETFs and the US price of gold up 17% in H2

* Investors unnerved by economic uncertainty, central banks printing money, rising Covid cases and the tension between the US and China, ‘flee to gold’.

Future Focus

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

* UK: full economic recovery by 2024

* EY Item Club predicted that UK’s economic recovery will be delayed by a further 18months.

* They predict the UK economy will contract by 11.5% (not by 8% as initially forecast).

* In May, the average UK household’s income dropped by 4.5%.

* UK’s biggest pension fund begins fossil fuel divestment

* National Employment Savings Trust (Nest, with 9m members) will begin divesting in firms involved in coal, tar sands or arctic drilling.

* The fund will shift £5.5bn into ‘climate aware’ investments as it anticipates a green economic recovery from coronavirus.

* Michael Novogratz: bitcoin and gold could continue to rise because of ‘global liquidity pump’

* CEO for Galaxy Digital said that bitcoin could reach $20,000 by the end of the year. (20% of his net worth is in bitcoin).

* He predicted that gold could rise too as long as the central banks continue to print money.

Your Money

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

* UK: ministers are studying a plan for over 40 year-olds to start contributing to the cost of care in later life.

* Under the plan, over-40s would have to pay more in tax or national insurance, or be compelled to insure themselves against the cost of care.

* Managing financial uncertainty: how to open up and talk about money

* Choose who to open up to

* Create a comfortable setting

* Prepare how you’re going to kick it off

* Listen as well as talk

* Check in with others around you

Companies: winners & losers

Companies to watch and share price movements

* Shares in Kodak surged 2,441% higher this week, sending its market cap close to $2bn

* Kodak, the camera making firm, has ‘won’ a government loan (valued at $765m) to help produce ingredients in key generic medicines to fight Covid-19.

* Kodak’s business was devastated after it failed to adjust to digital photography. The company does not have expertise or experience in the pharmaceutical industry.

* Read about how insider trading and crony capitalism might be at the centre of this deal, and funded by the US taxpayer’s money.

* Big tech is eating the world: the total market cap of Facebook, Amazon, Netflix, Google, Microsoft, Apple and Nvidia is now at $7.2tn, which is equal to the GDP of Japan and the UK.

* On Friday, Facebook, Apple and Amazon reported quarterly earnings which beat analysts expectations.

* Alphabet’s earnings exceeded expectations but reported its first revenue decline in the company’s history.

* Lloyds Bank reports loss after setting aside £2.4bn

* Britain’s biggest high street lender reported a loss of £676m for the three months to June, down from a £1.3bn profit during the same period last year.

* Lloyds, which is seen a bellwether for the UK economy as it is one of the most domestically focused banks, said it expects impairments to total £4.5bn to £5.5bn by the end of the year.

In the Spotlight

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

Big tech: what does this mean for investors?

* Apple, Microsoft, Amazon, Alphabet and Facebook now represent more than a fifth of the S&P 500.

* Big tech continues to grow its influence in the markets:

* For the first time in 42 years, the top five have accounted for 20% market cap in the S&P 500, and (for the first time) they are all technology companies.

* The greater sway in the market represents a significant risk for investors: when the shares in the top five decline, it will squash the gains of the broader market.

* There is a concentration of risk for investors holding an index fund.

* Tesla is the next contender to join the S&P 500: valued at $277bn, but it is not yet clear when they will be added to the index.

* It looks like big tech will only get bigger unless new regulation is introduced.

* Source: FT

Have You Seen This?

Female-focused news, reports, research, campaigns

* US: Women’s wealth will triple in the next decade

* Women currently hold $10tn in wealth.

* Men currently control 70% of total assets.

* According to a survey by McKinsey & Co:

* In the next 3-5 years, approximately $30tn will shift into the hands of women. This is largely driven by baby boomers inheriting wealth after their spouse dies and younger financially savvy women.

Know this: women are taking centre stage when it comes to money and wealth. The wealth management industry has been tracking this data for many years but has been slow to change. In the US, women represent just 15% of financial advisers. There has never been a better time to study and engage with your money so that you can choose the right advisers, at the right time. Stay in control of your wealth, grow your net worth and build your financial future.

* UK economy is missing out on £47bn due to a lack of women in leadership

* Women Count 2020, report reveals that:

* FTSE 350 companies with more 33% of women on executive committees have a net profit margin more than 10 times greater than those companies with no women at this level. 

* There is an abysmal number of women in leadership positions. In 2020, there are just 13 female CEOs of FTSE 350 companies. That is a mere 5% of company leaders. 

* There may still be a lack of desire for positive change in many businesses and the prospects for women seeking to make it to CEO.

* The pace of progress is too slow.

Know this: company culture is often very slow to change. We know the more senior women there are in a business, the more senior women are hired and retained. Look for companies with women in senior and executive roles, ideally above 33% (this is the point at which we start to see the impact of women’s insight, decision-making and management).

* European retailers: male bosses still decide

* Bloomberg survey of 12 retailers found:

* on average, 63% of women make up the retail workforce

* Less than 25% of these companies have women in leadership

* In Britain, not a single retailer in the FTSE 350 is run by a woman.

Know this: women make 85% of all consumer purchasing decisions. And in the UK, large firms whose executive boards are one-third female are 10 times more profitable on average than all-male boards. There is a huge incentive for firms to attract and retain women who want to move up the ranks.

* US study: the hidden ways women way companies are paying unfairly

* In July, women earned 84 cents for every dollar a man earned.

* Women miss out on equity-based rewards especially in the tech industry:

* these are stock grants or equity (where you own a percentage of the company) or

* stock option grants or employee stock options (which grants employees to buy shares in the company at the present price in the future).

* Based on a study, a gender gap emerged favouring men when it came to distributing stock options based on retention–but not based on potential.

Know this: men are perceived as more valuable in the workplace, which explains why companies will give men more equity or employee stock options (in order to retain them). Bear this in mind and remember to negotiate at least another 30% on your equity or employee stock option offer.

What We’re Tracking

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

* LOOM: (US)-founded in 2016 by Erica Chidi and Quinn Lundberg, is building an entirely new approach to online learning to help you thrive in your body at every stage. LOOM’s mission is to offer empowered education on everything from periods and sex to pregnancy and menopause, aimed at women and non-binary people.

* The company has just raised a seed round of $3m to go beyond its brick-and-mortar centre to offer a new digital product and platform.

* Erica is one of the few black women who has raised over $1m.

* Read more here

* Martha Brook: (UK)-founded by Martha Keith in 2013, is a personalised productivity startup, based in London. The company has shipped more than 200,000 pieces of stationary globally. In 2019, Martha Brook turned over £1m.

* Check out their crowdfunding campaign here. Key facts:

* Profitable every year since launch. In 2019 direct sales grew at 56%

* Widely featured in press including Daily Mail, Forbes, The Independent

* More than 40,000 followers across social media networks

* Customers across more than 50 countries including the US and Australia

* MacKenzie Scott pledges to give $1.7bn to causes supporting women, LGBT rights and racial equality

* Jeff Bezo’s ex-wife and writer, is estimated to have a net worth of $36bn and is the forth richest woman in the world, according to Forbes.

* One year ago she pledged to give all her wealth away ‘until the safe is empty’.

* Read MacKenzie Scott’s recent Medium post here.

Money Habits of the Week

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

* We all need an emergency fund or a financial cushion for those unplanned expenses or when life throws you a curveball.

* It’s good to check in regularly on how much you are saving into this account.

* If you have had to dip into your fund recently, make a plan for when you can start topping it up again.

* You may be in the fortunate position to be saving a lot more during the pandemic, do make sure that you also put more money away and pay off any credit card debt.

* And, don’t forget to look into ways you can invest your money.

* (Remember, interest rates are very low at the moment and you will be earning a low return on your hard earned money if it is sitting in a savings account or a cash ISA).

What We’re Watching

* Yanis Varoufakis is an economist and a former Minister of Finance for Greece and he is rethinking the economy, finance and capitalism.

* Watch this TED talk: Yanis believes that the mega-rich and corporations are cannibalising the political sphere, causing financial crisis. He maps out his dream for a world in which capital and labour no longer struggle against each other, ‘one that is simultaneously libertarian, Marxist and Keynesian’.

Coffee Break? Read This

* The evolution of women’s leadership

* Please don’t quit your job to homeschool your kid

* Cryptowriter: why women need blockchain

* This economist has a radical plan to solve wealth inequality

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 #30 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.

“Our mission is to help women take control of their financial future”

-Jana Hlistova

Photo: Christina @ wocintechchat.com 

From The Purse…

Editorial from the Founder

Global liquidity has hit an all-time high due to central banks around the world printing money.

The global stock market has rallied since late March for this reason and despite the damaging impact the pandemic is having on the global economy.

Tensions between the US and China continue which is unnerving investors.

It is not surprising that we are seeing the price of gold and silver go up.

The EU has agreed on a €750bn recovery fund which will provide grants to countries in most need of a Covid recovery.

UK retail sales beat June forecasts and business output hit a 5 year high in July. However consumer confidence has not recovered since the lockdown was lifted as consumers worry about losing their job and continued health risks.

The International Monetary Fund (IMF) is urging swift action by governments to protect women from the Covid-19 economic hit. And the World Economic Forum (WEF) writes about how women can help a green transition.

Read about what the ultra wealthy are doing with their money and how unmarried parents should protect themselves financially.

Shares in UK pharmaceutical company, Synairgen Plc soared 552% after it said that its inhalation product cut the risk of developing the worst symptoms of Covid-19.

In the Have You Seen This? section, read about Emily Kramer, who was VP of Marketing at software start-up Carta, where she helped to bring more diversity and transparency to the cap table. On Tuesday she sued her former employer for unequal pay and other forms of gender discrimination.

We highlight a survey carried out by Pregnant Then Screwed, which said that almost 50% of working mothers were laid off due to lack of childcare during the pandemic.

And we’re tracking Angel City-the new all women’s football team in Los Angeles funded by high-profile investors such as Serena Williams and Natalie Portman. Even Serena’s two-year old daughter is an owner. We like that a lot.

Check out our new podcast interview with Shelley Kuipers who co-founded the financial feminist platform The51. We talk about how she started on her investing journey, why female founders are designing and building the world they want to see, why impact investing is the future 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

The Coronavirus Effect:

* Global liquidity is the main driver for the stock market rally

* Global liquidity (or the easing of funding in global financial markets) has hit a new all-time high at $88.1tn due to central banks printing money and the US dollar weakness:

* US/China tension is on the rise

* China ordered the US to shut down its consulate in Chengdu.

* This is after the US demanded the closure of the Chinese consulate in Houston in order to protect American intellectual property and information of its citizens.

* Chinese stocks led losses in the Asia Pacific markets.

* Last week, Ray Dalio wrote about the potential of a ‘shooting war’ between the US/China if this ‘tension’ keeps escalating.

* EU recovery fund is agreed: €750bn

* The EU will raise commonly-issued debt and provide as grants (in the main) to countries most in need of a rebound.

* The deal has two elements:

* the regular EY budget worth nearly €1.1trn ($1.3tn) over 7 years;

* a one-off ‘Next Generation EU’ fund of €750bn to help countries recover from the Covid-19 recession.

* US dollar weakened, as gold and silver soar

* The US dollar index is close to setting a new 21 month low.

* Silver’s rally since March has been up 80%

* Gold is up to $1900/oz for the first time since 2011.

* Gold and silver is a ‘store of value’ for investors during times of economic uncertainty.

* US needs another stimulus package

* The reopening of the American economy is stalling.

* Business activity is weaker in July than expected.

* Politicians might struggle to agree to this before the current deal expires (in 2-3 weeks time).

* UK retails sales beat June forecasts & business output hits five-year high in July

* 13.9% month-on-month rise in UK retail sales last month vs the expected 8%.

* For July, the composite PMI reached 57.1 compared to 47.7 in June, which was the strongest pace of growth in 61 months (or just over five years).

* (UK) Consumer confidence survey: doubt over V-shaped recovery

* Fears of rising redundancies and concerns about health risks of high street shopping, has affected consumer confidence.

* Bank of England policymaker Professor Jonathan Haskel argues that demand, not supply, will be the key factor on whether the UK economy rebounds from the slump, or struggles.

* Read Jonathan Haskel’s speech here

Future Focus

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

* IMF urges swift action to protect women from Covid-19 economic hit

* The economic impact on women threatens to roll back progress in the last 30 years, widening gender gaps.

* The IMF has urged governments around the world to use the full power of their tax and spending toolkit to extend income support to the most vulnerable people, protect employment and provide incentives to balance work and family care responsibilities.

* Read Kristalina Georgieva’s article here

* WEF: How women can power the green transition

* According to McKinsey & Company, women leaders represent ‘a competitive edge in and after (the) crisis’. 

* Green-energy transitions can help tackle systemic gender discrimination and enable societies to reap the benefits of a more diverse workforce.

* Josef Stiglitz, a Nobel laureate in economics, believes that by investing in a green economy we will recover from the Covid crisis.

* US: equity prices could fall 20%-30% due to escalating US-China tensions and rising coronavirus cases

* Ed Yardeni, the president of Yardeni Research is less optimistic about a quick bounce-back. And US stocks ‘are not cheap’.

* Equities in China, Japan and Europe present ‘notable value’.

Your Money

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

* UK: Covid-19 lockdown boosts household financial confidence and savings

* Research suggests that Brit’s determination to save money during the lockdown has boosted their confidence in their future finances.

* UK dividends plummet £22bn in record quarterly fall

* Dividends were down 57.2% on Q2 2019 as three-quarters of companies cancelled or cut their payouts.

* The oil, gas and energy sector took the second biggest hit on £2.2bn of cuts (13.7% of the total fall).

* Link predicts that UK equities will yield 3.6% this year and 4.1% in 2021 its ‘best case’ scenario, ‘below the long-run average’ but in line with the last few years. 

* It could take until 2026 for dividends to return to their 2019 level.

* UBS: ultra wealthy clients are moving out of stocks and into illiquid assets

* During the big decline in the stock market in March, UBS’s richest clients took out loans to place billions into the stock market.

* They are now looking to pull their money out and invest in residential real estate and private equity, or to make corporate or strategic deals.

* UK: Unmarried parents: key financial considerations

* Almost half (48.5%) of babies were born to unmarried parents.

* The average age for women to have their first child was 30.7 years in 2019.

* Ensure you have a will specifying what your child/unmarried partner will inherit (in case of death).

* The birth mother will have parental responsibility but the birth father will need to register for parental responsibility.

* Both parents are jointly responsible for providing financial support.

* Drafting a co-habitation agreement can set out how money will be managed; who owns what and what will happen should the partners split up.

Companies to Watch: winners & losers

Companies to watch and share price movements

* Synairgen Pls: positive results from a trial of a COVID-19 treatment

* Shares soared 552% after the company said its experimental drug cut the risk of developing the worst symptoms of Covid-19.

* The inhaled product is a formulation of a naturally occurring protein lacking in those who are more susceptibility to the coronavirus.

* Its year-to-date gain is 3,194% with a market cap of about £289.2m ($365 million).

* See Synairgen’s share price here.

* Yamana Gold to list on the London Stock Exchange

* One of Canada’s biggest gold producers plans to list on the London Stock Exchange, as precious metal surges during the pandemic.

* Yamana Gold has a market cap of $5.3bn and expects to start trading in the next few months.

* Yamana’s focus on the Americas and record of paying almost $1bn in dividends since 2007, is likely to appeal to investors seeking exposure to the rising gold price. 

* ‘Directionally, it is (gold) going higher’.

In the Spotlight

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

What role will the US dollar play in the Covid recovery?

* According to the IMF, the dollar’s exchange rate will be a key factor in how quickly the global economy recovers.

* The US dollar is the dominant ‘invoicing and financing’ currency.

* Exports are mostly priced in dollars (plus commodity markets): demand does not go up when the domestic currency weakens.

* Because 23% of exports are invoiced in US dollars, it has become a key driver in global economic growth.

* When the US dollar strengths, imports are expensive which reduces demand.

* With the number of coronavirus cases on the rise and investors wanting to hold the US dollar, the dollar exchange rate could increase.

* And a higher dollar exchange rate will limit global trade and economic activity.

* Source: IMF and the FT.

Have You Seen This?

Female-focused news, reports, research, campaigns

* Are some of the world’s biggest pensions failing women?

* Women have less in their retirement pots (compared to men):

* UK: women have 35% less

* US: women have 32% less

* Denmark: women have 8% less

Know this: Pension funds are designed for full-time workers who do not have a break in employment. Women tend to take career breaks, take on low-paid or temporary employment but live longer. Seek advice about how you can make up for any income shortfalls.

* Woman who oversaw Carta study on gender pay gap sues startup (over unequal pay)

* Emily Kramer who was VP of Marketing at Carta, joined to help bring more diversity and transparency to the cap table.

* On Tuesday, Emily sued her former employer for unequal pay and other forms of gender discrimination.

* The company is valued at $3bn, having raised more than $600 million from top investors including Andreessen Horowitz, Lightspeed Ventures, and Goldman Sachs. 

* Emily outlines what happened here.

Know this: a significant amount of wealth is created from company ownership. Much like the gender salary gap, the average woman equity holder holds significantly less equity than the average man holder. This is why it is crucial that women entrepreneurs know how to protect their equity when raising investment. And women who work for startups should seek advice (at the very least negotiate ie think 30% increase) before they agree to equity and/or employee stock options. Remember: every time you aim higher, negotiate and protect what is yours, you grow your net worth and ensure your long-term financial future.

* Survey: almost 50% of working mothers laid off due to lack of childcare (during the coronavirus)

* A questionnaire which gathered responses from almost 20,000 working women in 48 hours, was a ‘cry for help’.

* According to Joeli Brearley, founder of Pregnant Then Screwed, a lack of childcare had a negative impact on how women were perceived or treated at work.

* Read the detailed results of the survey here

Know this: ‘maternal wall bias’ is a form discrimination many working mothers experience. And it occurs when colleagues view mothers—or pregnant women—as less competent and less committed to their jobs, and it limits the extent to which women can advance in their careers. If you have a partner, it’s important to agree that childcare is equally split between you. Seek out employers who genuinely support you and your work.

What We’re Tracking

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

* Angel City: (US)- a new Los Angeles all-women football team is being funded by high-profile women such as Serena Williams, Natalia Portman to launch in time for the 2022 National Women’s League Soccer League season.

* Serena Williams’ husband Alexis Ohanian is also listed as part of the ownership group, as well as their two-year old daughter Olympia.

* The group includes 14 former US national team players, actresses Eva Longoria, Jennifer Garner, Uzo Aduba, Jessica Chastain and America Ferrera, plus investors from the technology and media sectors

* Forerunner Ventures: (US)-the early-stage venture capital firm known for its consumer focus, founded by Kirsten Green who is Managing Partner, has raised $500m in the middle of the pandemic.

* It has invested in companies including Glossier, Warby Parker, and Birchbox.

* This is their 5th fund and an increase of 39% on its last fundraise in 2018.

Money Habits of the Week

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

Follow the ‘energy’ to what interests you in terms of money and investing so you commit to learning on a daily, weekly and monthly basis.

Are you interested in how remote technology is changing the future of work?

Or are you drawn to women’s health and femtech in particular?

Are you excited about how women’s wealth can power female entrepreneurs?

Or do you want to join a community of women who are on a similar learning journey to you?

Whatever it is: decide to take one step towards that goal this week.

Tell us how you’re getting on @jointhepurse.

What We’re Watching

* Watch this TED talk: what if your attachment to being a ‘good’ person is holding you back from actually becoming a better person? Social psychologist Dolly Chugh explains why it's hard to spot your biases and acknowledge mistakes and shows how the path to becoming better starts with owning your mistakes.

* Dolly Chugh is a social scientist who studies the psychology of good people.

Coffee Break? Read This

* Finding a way

* Why women don’t negotiate their job offers

* Disrupt your own narrative

* Christine Lagarde has said that female leaders have proven themselves in the Covid crisis

* Alexandria Ocasio-Cortez being subjected to sexism at work is no surprise to any female employee

* The cost of male incivility

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 #29 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.

“Our mission is to help women take control of their financial future”

-Jana Hlistova

Photo: Christina @ wocintechchat.com

From The Purse…

Editorial from the Founder

The World Health Organisation (WHO) has said that the pandemic is getting worse. Coronavirus infections are rising in 40 US states and in other cities and countries around the world.

Although a V-shaped economic recovery is less likely, investors are feeling optimistic about a Covid-19 vaccine.

Moderna’s share price soared 18% after an early coronavirus vaccine trial produced antibodies in all patients.

Read about why Ray Dalio thinks that the US-China tension will escalate into a ‘shooting war’ and we spotlight why investors are worried about ‘Japanisation’.

We highlight a report about financial management in households and why women tend to do twice as much budgeting than men.

We’re tracking a femcare startup called Callaly which provides organic cotton period products by home delivery. Dr Alex Hooi, who founded the company, also invented the tampliner. The startup is crowdfunding at the moment so check out their pitch video.

We’ve also become a bit obsessed with Page & Bloom-a social enterprise set up to provide opportunities for women who have experienced domestic abuse. Ever thought about buying paper flowers and helping women at the same time? Well now you can.

And check out my podcast interview with Julia Elliott Brown, Founder & CEO of Enter the Arena, the UK's leading fundraising and growth advisor for women entrepreneurs. We talk about female founders, raising capital, why crowdfunding makes sense and how women can invest.

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:

* WHO: COVID-19 pandemic could get 'worse and worse and worse'

* The number of coronavirus cases is at 13m globally.

* The pandemic has now killed more than 500,000 people in 6.5 months.

* The US has more than 3.3m coronavirus cases confirmed.

* Coronavirus infections are rising in about 40 U.S. states.

* The EU is in deadlock over €750bn recovery fund

* The criteria for deciding how to allocate money is still to be agreed.

* UK: a V-shaped recovery is unlikely

* The economy contracted by 20.3% in April and rebound by 1.8% in May.

* Reuters economists had expected a 5.5% increase in May.

* Although the Bank of England has said that the UK economy is beginning to recover, it is unclear how much long term damage there will be.

* UK inflation rose to 0.6% in June

* Higher prices of games and clothes meant that inflation rose from 0.5% in May to 0.6% in June.

* UK unemployment continues to rise

* According to official figures, 650,000 jobs have been lost since March.

* The unemployment rate was 3.9% in May but will rise after the furlough ends in October.

* Unemployment could reach 15%-20%.

* US retail sales increased a better-than-expected 7.5% in June

* In May, retail sales also jumped by 18.2%.

* Reuters economists had expected a 5% increase in sales in June.

* Rising coronavirus cases threatens the economic recovery.

* Investors are optimistic over Covid-19 breakthrough

* “A study on Remdesivir showed that the drug reduced coronavirus fatalities by 62%. Boosting sentiment further Pfizer and BioNTech announced that their vaccine could be approved by the FDA as soon as December”

* Investors believe a vaccine is how the economy will be able to bounce back and stabilise.

Future Focus

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

* US: why stock market will continue to go up and why it is not disconnected from the economy

* Investment Strategist Brent Schutte believes that:

* the worst economic effects are behind us

* treatment capabilities have improved and progress towards a vaccine is underway

* and the Federal Reserve’s support of the markets will continue.

* Schutte said that the monetary and fiscal policymakers have done their job, the economy is reopening, a vaccine will be found soon and there was ‘nothing wrong with the US economic fundamentals’.

* Super-rich call for higher taxes on wealthy to pay for Covid-19 recovery

* The group is made up of 83 members including Disney heir, Abigail Disney Ben and Jerry’s ice cream co-founder Jerry Greenfield.

* Read the ‘Millionaires for Humanity’ letter here.

* US-China tensions could escalate into a ‘shooting war’

* In a Linkedin post, Ray Dalio has said that the US and China are now in an ‘economic war’ which could escalate.

* He wrote: ‘Severe economic downturns with large wealth gaps, large debts, and ineffective monetary policies make a combustible combination that typically leads to significant conflicts and revolutionary changes within countries…’

Your Money

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

* UK: how the coronavirus is impacting jobs and money:

* 9m+ have been furloughed and have taken a 20% pay cut.

* 2.7m self-employed have applied for income support

* Unemployment March-May was at 12.5% (but this is likely to increase)

* Universal credit applications are at a record high since March

* Households have paid off loans and credit cards.

* Less people are able to make their mortgage and rent payments.

* UK house prices soar 300% in the last 20 years

* However the average income has only risen by 70%.

* In 1999, the average price for a house in the UK was just £77,961 vs £230,735 today.

* A standard deposit is now approximately 76% of average income vs 43.5% of average income in 1999.

* The house market prices fell during the pandemic and it is expected they will fall by another 5% over the next few months and as unemployment rises.

* Family fortunes of the wealthy increase and the poorest are hit hardest by the coronavirus

* Based on a report, UBS found that 77% of the richest families had seen their investment portfolios ‘perform in line with, or above, targets during one of the most volatile moments in the history of financial markets’.

* The poorest households have seen a decline in average monthly earnings by 15% ie by £160 per month.

Companies to Watch: winners & losers

Companies to watch and share price movements

* Goldman Sachs second-quarter earnings exceed expectations

* Goldman generated $2.42 billion in profit, or $6.26 a share, crushing the $3.78 a share estimate of analysts surveyed by Refinitiv. 

* Revenue of $13.3 billion was more than $3.5 billion higher than expected.

* Bond trading revenue surged almost 150% to $4.24 billion, and equities trading revenue rose 46% to $2.94 billion. 

* ‘The Fed has been able to engineer a huge bounce-back in the markets by injecting trillions of dollars, benefiting investment banks primarily’.

* Moderna soars 18% after early coronavirus vaccine trial produces antibodies in all patients

* ‘The company plans to start a 30,000-participant Phase 3 study on July 27 to demonstrate our vaccine's ability to significantly reduce the risk of COVID-19 disease’ CEO Stephane Bancel said.

* Moderna’s share price is up 344%+ this year.

* See Moderna’s share price here

* Netflix shares drop despite despite positive second quarter earnings

* The company added 10.1m subscribers (vs the expected 8.07m) due to coronavirus lockdown, bringing revenue to $6.15bn (vs the expected $6.05bn).

* However Netflix predicts a dip in paid subscriber numbers in the third quarter as lockdown eases and furlough schemes come to an end.

* Shares fell by 10%.

* See Netflix’s share price.

In the Spotlight

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

Why are investors afraid of ‘Japanisation’?

* ‘Japanisation’ refers to a lost decade or two experienced by Japan as its economy stagnated.

* This is as a result of excessive global debt, an ageing population, the impact of technology (structural changes) or a lack of more broad investment from central banks and the government.

* The convergence of global economic and market indicators show that Europe (and everyone else) is heading towards it or is already there.

* Inflation in advanced economies and global government bond yields have converged with Japan ie they have declined.

* More reforms and monetary support is needed. And greater investment (is needed) in infrastructure and the middle class.

Have You Seen This?

Female-focused news, reports, research, campaigns

* A new report by Starling Bank in partnership with the Fawcett Society, explores the dynamics of financial management in households with women who are living with male partners.

* The key findings include:

* Women are twice as likely to manage the household budgeting.

* Men are more likely to shop for tools for the house and household insurance.

* More women than men would not be financially independent if they split up with their partner (46% women vs 56% men).

* 71% of women said they scored themselves 7 or higher in being confident they can manage their money vs 67% of men who scored the same.

* Read the full report here.

* Know this: women spend more time budgeting than men but tend to defer long-term investing decisions to their partner, regardless of their age. It’s a good idea to talk to your partner about sharing the ‘budgeting admin’. This should free up time for women to become more engaged as investors.

What We’re Tracking

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

* Callaly: (UK)-founded by Dr Alex Hooi, who invented the tampliner.

* The tampliner combines an organic cotton tampon with a soft mini-liner for built-in leak protection, with unique clean insertion and removal (no hard plastic applicator).

* As well as inventing the tampliner, Callaly offers a range of organic cotton period products in customisable mixes, by home delivery and on subscription.

* Check out their crowdfunding campaign here.

* Key facts include:

* £26bn global femcare market – their potential tampliner market is estimated at 2%-4% by 2024 

* Fast subscriber growth >160% between March and May 2020

* 4 patents cover 80% of the market; Deloitte valued it at £90m

* £7.9m angel & Innovate UK funding to date; bespoke machinery developed.

* Page & Bloom: (UK)- is a social enterprise created to provide fair employment and opportunities for women who have experienced domestic abuse. Ever thought about buying paper flowers and helping women at the same time? Well now you can.

* Page & Bloom is reinventing floristry with paper flowers, transformed from preloved books, maps and paper.

* Each of their paper flowers is individually hand made, transforming paper into stunning floral designs. We’re kinda obsessed.

* Bumble: (US)-is a (social and) dating site that allows women to swipe first; founded by Whitney Wolfe Herd in 2014 as an alternative to Tinder. (We like their mission-first ethos: Bumble has pledged that at least 15% of the company’s marketing spend goes to Black-owned businesses).

A bit of back story: Whitney co-founded Tinder, the popular dating app, and became the VP of marketing.

* She is credited for coming up with the name and growing the user base on college campuses. Whitney left in 2014 and filed a sexual harassment and discrimination lawsuit. She reportedly received $1m in settlement, moved to Austin, Texas and partnered with Andrey Andreev, founder of Badoo who approached her about creating a new dating platform. The rest is herstory as they say…

* The company already has over 100m users, however it will bring its sibling dating app Badoo under the same brand (Bumble).Together Bumble and Badoo will have 600m active users.

* The company announced Wednesday that it will be bringing on a new president, Tariq Shaukat, previously president of industry products and solutions at Google Cloud.

Money Habits of the Week

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

Don’t ignore money or making financial decisions which will have a lasting impact on your long-term security.

Strength and security is what is at the heart of women and money.

We know that most of the time women engage when there is a crisis or a life-altering event.

Small changes we can make every day, add up to big changes over time.

Pay attention, learn, study and engage with your money and investing.

And make it fun.

Check out some crowdfunding campaigns: watch their pitch video, review their pitch deck and documents. If you have time, sign up for one of the virtual events where you can ask questions and talk to the founder.

What We’re Watching

* Curtis ‘Wall Street’ Carroll overcame poverty, illiteracy, prison and a lack of outside support to become a stock investor, creator and teacher of his own financial literacy philosophy.

* Watch the TED talk where Curtis talks about financial literacy not being a skill but a lifestyle and why we all need to be more savvy with money.

Coffee Break? Read This

* Why working from home is not necessarily good for women

* Why do we think that women talk too much?

* Impact investing won’t save capitalism

* Fertility rate: ‘Jaw-dropping’ global crash in children being born

* The NHS should pay women to freeze their eggs

* Poor work life balance may be damaging your health

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