China becomes the first major economy to recover from the pandemic, bitcoin hits a 2020 high (& what's behind its price increase?), why women should have the 'right to know' what their co-workers earn
Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing
Welcome to our #42 weekly newsletter in 2020.
Every week we curate key content and apply a female-lens so you can stay informed and inspired about money and investing.
Stay in the know.
Keep on top of global economic, financial and investing news and trends. And read about what this means for you and your money in 2020 during Covid-19 and beyond.
“For women who are taking control of their financial future”
-Jana Hlistova
From The Purse…
Editorial from the Founder
Global stocks fluctuate as investors weigh up further reports on likelihood of a US stimulus package a further rise in Covid-19 infections around the world.
China becomes the first major economy to recover from the pandemic.
The UK borrowed £36.1bn in September-a new record for the month. Inflation rose to 0.5% and consumer confidence has fallen in October.
In the US, Gilead Science’s remdesivir just got the first FDA approval to be used as a treatment for coronavirus patients.
And bitcoin hits 2020 high after PayPal announced that customer can purchase cryptocurrencies on its platform.
A quarter of pension savers halt or cut contributions amid Covid-19.
MP Stella Creasy introduced her Equal Pay (Information and Claims) Bill in Parliament. She has argued that women should be given the ‘right to know’ how much their co-workers are paid in order to close the gender pay gap.
We spotlight what has driven the price increase in bitcoin so far in 2020.
And we’re tracking new data which shows the number of women-led VC funds is growing fast (US).
If you have time, watch the TED talk called ‘What Covid-19 means for the future of commerce, capitalism and cash’, by PayPal CEO.
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 fluctuate as investors weigh up further reports on likelihood of a US stimulus package and further rise in Covid-19 infections around the world.
Stocks ‘hold tight’ as US election caution sets in.
Gold price at $1,903
Bitcoin rises to $13,000.
China becomes the first major economy to recover from the pandemic
The Chinese economy grew 4.9% between July and September.
China is expected to be the only G20 economy to grow this year.
US jobless claims drop to their lowest levels since March
First-time claims for unemployment benefits totalled 787,000 last week.
Continuing claims again fell by more than 1 million.
UK borrowed £36.1bn in September; a new record (for the month)
That’s £28.4bn more than in September 2019.
September’s borrowing has pushed the UK national debt up to £2,059.7, or around 103.5% of GDP (the highest debt to GDP ratio since 1960).
UK inflation has risen to 0.5% in September
This is up from 0.2% in August.
Rising transport and restaurant prices pushed the cost of living up.
UK Chancellor, Rishi Sunak, announces new support deal amid concerns over mass unemployment
The government will pay a larger share of workers’ wages to protect companies struggling with Covid-19 restrictions.
UK consumer confidence has fallen in October
Remdesivir is the only antiviral drug approved by the FDA to treat COVID-19 patients.
A study from the World Health Organization found remdesivir did not stop patients from dying or shorten hospital stays in 2,750 COVID-19 patients.
Gilead, a 33-year-old company valued at about $76 billion, had a head-start in developing the COVID-19 drug because it used a failed Ebola treatment from 2009.
Bitcoin hits 2020 high after Paypal’s crypto move
On Wednesday, Paypal announced that it would accept crypto; bitcoin peaked at $12,817.17 (it has since been trading at circa $13K).
The billionaire investor and bitcoin bull Michael Novogratz says PayPal's move ‘the biggest news of the year in crypto’.
Future Focus
Keeping an eye on key predictions, innovations and what’s going to impact the future
Both Gold & Bitcoin ETFs have been experiencing strong inflows in 2020.
Potential long-term upside for Bitcoin is considerable if it competes more intensely with gold as ‘alternative’ currency.
According to JP Morgan, Millennials will become a more important component of the investor universe (& they tend to opt for Bitcoin).
US stocks will surge in Q1 of 2021?
According to billionaire Paul Tudor Jones, stocks will see a big surge after US stimulus is passed.
He expects stimulus to be passed in the next six to eight weeks and total around $1.7 trillion.
But he thinks the end of 2020 could be shakier for stocks.
Your Money
Insights, trends and what this means for you and your purse
Quarter of pension savers halt or cut contributions amid Covid-19
According to research by Hargreaves Lansdown, 1 in 4 people have either stopped or reduced their pension contributions in order to make ends meet since the onset of the Covid-19 crisis.
32% aged 18-34 are considering stopping or reducing their pension payments since the start of the pandemic, compared to 16% of over-55s.
Companies: winners & losers
Companies to watch and share price movements
Market cap of #FANGMAN dropped 0.7% this week on disappointing Netflix subscriber numbers and as investors rotating into select value stocks and away from the FANGMAN mega-cap Tech complex.
In the Spotlight
Is there a topic you'd like us to Spotlight? Please tweet @jointhepurse
What is behind the bitcoin price increase in 2020?
Bitcoin, currently priced at approximately $13,000, is up 80% so far this year.
To put this in perspective, bitcoin has outperformed the S&P 500 by 1600% in 2020.
PayPal’s recent announcement to allow millions of US customers to purchase cryptocurrencies (bitcoin, ether, bitcoin cash, and litecoin) and to make this available to international customers in 2021, has led to the recent price surge.
Major institutions and multi-billion dollar asset managers including Square and MicroStrategy have allocated a percentage of their portfolio to bitcoin.
Investors increasingly regard bitcoin as a hedge against inflationary pressures.
The excessive government borrowing and spending to ‘revive’ the global economy due to the economic fallout of the pandemic is debasing fiat currency (for example, the US dollar).
And investors are looking for an alternative to the current global financial system.
Have You Seen This?
Female-focused news, reports, research, campaigns
Women should know colleagues’ salary to tackle pay gap
Walthamstow MP Stella Creasy introduced her Equal Pay (Information and Claims) Bill in Parliament: women should be given the ‘right to know’ how much their co-workers are paid.
Greater pay transparency would help to close the gender pay gap.
‘Unless a woman knows that a man who is doing equal work to her is being paid more she cannot know if she is being paid equally…’
Know this: it is easier to perpetuate the gender pay gap because salary information is not disclosed and recruiters ask about current salary. As women are paid, on average, 20%-30% less than the average man, this means that the gender pay gap is often perpetuated and the difference adds up over time. Women lose anywhere between £250K-£1m+ in earnings and investment returns over their lifetime.
Listen to our podcast interview with Katie Donovan called ‘Closing the gender pay gap: how to negotiate more pay and what this means for your money’.
What We’re Tracking
Female-focused products or services, start-ups and businesses led by women, investment, crowdfunding campaigns and research.
US: New data shows the number of women led VC funds is exploding
Based on new data: of all U.S.-based VC partners:
only 4.9% are women, with 33% of them being women of colour.
Less than half (2.4% of the total) are founding partners, who control an outsize proportion of a firm’s investment decisions.
275 new VC funds started and led by women represent a massive economy-wide opportunity. These funds are poised to invest in 7,000 companies in the coming years, potentially creating more than 80,000 jobs.
Read more: The Untapped Potential of Women-Led Funds
Money Habits of the Week
Do you have a money habit you would like to share with us? Tweet @jointhepurse
Read up on bitcoin this week and explore the ways you might invest in bitcoin (or another cryptocurrencies).
You can invest online and only buy a fraction of bitcoin or another cryptocurrency.
Even if you invest a very small amount, you’re more likely to pay attention.
Keep learning and stay engaged.
What We’re Watching
Watch the TED talk: What Covid-19 means for the future of commerce, capitalism and cash. ‘Capitalism needs an upgrade, says PayPal CEO Dan Schulman, and it starts with paying people enough to actually invest in their futures. He discusses why companies need to cultivate trust to recover and rebuild after the COVID-19 pandemic -- and how we can use this defining moment to create a more inclusive, ethical economy’.
Coffee Break? Read This
How Fortune ranks business’s Most Powerful Women in the Covid era
For women in lockdown with kids, it’s impossible to be seen as anything other than a mother
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.
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