Coronavirus effect: unemployment is on the rise, women are hard hit financially, global markets bounce back, Britain could be heading for a deep recession, check out Tully to help manage your debt
Welcome to our #13 weekly newsletter in 2020.
Every week we curate key articles and content so you can stay informed and inspired about money and investing without the boring bits!
This is your weekly go-to place to read up on all things money-related.
We spend hours sifting through content every week and apply a female-lens to news and content about money and investing so that it is meaningful to you.
Ultimately we want to support you in making well-informed financial decisions, grow your net worth and ensure your financial security.

Photo by Retha Ferguson
From The Purse…
Editorial from the Founder
We have seen markets respond positively this week due to the central banks and governments taking action to limit the impact of the coronavirus.
However the markets continue to be volatile and unpredictable.
Unemployment is on the rise around the world as the global economy is slowing down due to countries and cities under lockdown.
It is impossible to know how long we will be in this ‘holding position’ however those who have lost their job are already feeling the negative repercussions.
Research shows that women are more likely to be hard hit, from an economic and financial perspective- due to working on the ‘frontlines’ in retail, hospitality and travel-sectors already heavily affected. Further research suggests that single mothers are likely to be in more debt. See free digital debt advisor Tully for help.
During these challenging times, it is vital to ensure sufficient liquidity- cutting back on unnecessary expenses is key whilst building up an emergency fund (covers 3-6months expenses).
As an investor with a long-term perspective, it’s good to remember that it is not about timing the market, but time in the market.
If you are in a position to invest income you may not need for five years or so, the focus should be on good stock selection rather than trying to figure out when the markets recover. Please speak to a financial adviser if you need to.
However you can also start investing very little (for example, £25 per month) and use this time to learn more about the stock market and the fundamentals of investing.
Stay safe, take care of yourself 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:
Unemployment is on the rise:
As well as an expansion of jobless benefits, the bill provides direct transfers of money to Americans through cheques up to $1,200 per adult earning less than $75,000.
It also provides $500bn in funds to sectors under strain
More than $350bn in loans to small businesses
And $150bn in aid of hospitals.
On Friday, the government confirmed they would pay employers the national insurance contributions and statutory pension contributions of ill employees, up to a salary of £2,500, as part of the job retention scheme.
This is likely to add £12bn over 3 months if 3m employees are affected.
This is in addition to the £9bn self-employment package announced on Thursday, £12bn of formal support announced in the Budget, £20bn on business rate relief and grants in some sectors and a £7bn package to improve social security.
The government has also offered £330bn in loan guarantees to businesses.
According to research economist Isabel Stockton from the Institute for Fiscal Studies: “A deficit of over £200bn in the coming financial year is well within the bounds of possibility”.
Global stocks gained $5tn this week as investors cheered the stimulus from central banks and on the $2.2tn US fiscal stimulus bill:
Fitch Ratings expects’s UK’s 2020 budget deficit to 9.1% due to the coronavirus. Expected debt to GDP to rise almost 100% in 2021. And UK’s credit rating is cut to AA-.
Looking Ahead in 2020
Britain heading for a deep recession, according to experts
The UK economy is plunging into a deeper recession than the 2008-09 financial crisis, according to the most reliable data published so far.
It is expected that the UK economy will decline by 15%-20% (from peak to trough).
The Bill and Melinda Gates Foundation has put up $100 million for programs to fund testing and science around the pandemic, and he has begun using his public profile, too, to shape the coronavirus conversation.
The post-virus economic recovery could be a green one
Investment in clean technology and infrastructure could help with economic recovery and ‘transition’ more quickly to grow and develop companies which protect against climate change.
According to Helen Mountford, vice president for climate and economics at the World Resources Institute: “I think the EU Green Deal—and more broadly taking an approach which brings together the low-carbon economy, a resilient economy and ways to protect and support social development—is exactly what we need to get out of this crisis,”
Coronavirus Impact: Your Money
Insights, trends and what this means for you and your money
In the Spotlight
Is there a topic you'd like us to Spotlight? Please email jana@jointhepurse.com or tweet @jointhepurse
What is a bear market?
A bear market is when the market experiences prolonged price declines. This usually happens when there has been a 20% price drop in securities from recent highs (for 2 months or more). Often steep declines are amidst negative investor sentiment-just like what we are seeing in the markets due to the coronavirus.
Bear markets are often associated with 20% declines in the stock market or market index such as the FTSE 100 or S&P 500 (US) and may accompany general economy downturns.
The FTSE 100 index has declined more than 30% since the beginning of the year.
Have You Seen This?
Female-focused news, reports, research, campaigns
Are pensions working for women?
In our research, we found that 52% of women felt unprepared for retirement – compared with 36% of men.
The Wisdom Council’s recent Yes She Can initiative revealed that “over 75% of women didn’t know that they were investors, despite the recruitment criteria specifying that they had to have a workplace or personal pension”.
Coronavirus: why women are being hit hardest by the economic fallout
While some 46% of female workers say money concerns prompted by the economic chaos has had a direct impact on their mental health, only 37% of men said the same.
Women, who are radically overrepresented in low-paid precarious sectors such as care and retail, were also more fearful they would become homeless — with 19% of women and 13% of men anxious about this.
What We’re Tracking
Female-focused products or services, crowdfunding campaigns, start-ups and businesses led by female entrepreneurs & investment, research
How investors are helping beauty brands navigate the coronavirus (US)
Investors are now trying to safeguard their portfolios by advising brands to cut back on unnecessary marketing and capital expenditures, access lines of credit to add cash to their balance sheets, and layoff staff or cut salaries.
After years of neglect, femtech is getting substantial investment.
The overall femtech (women’s health & technology) market is set to be worth $50bn by 2025. It has been a long time coming.
Product focus: conception, pregnancy, miscarriage, motherhood, menopause, disease diagnosis and sexual pleasure.
More than $1bn has been pumped into the sector since 2014, with around $750m of that in 2019 alone.
Examples of start-ups: Natural Cycles, Gennev
Money Habits of the Week
Do you have a money habit you would like to share with us? Tweet @jointhepurse
During times of uncertainty and potential loss, we all need sufficient funds to keep everything ticking over.
Build up an emergency fund which covers at least 3-6 months expenses.
Cut back on all unnecessary expenses and monitor your spending every day.
Remember: being in control of your money puts you firmly in the driving seat.
Caught Our Eye
Digital tools for managing your money and investing
Tully: (UK) digital debt advisor: receive free personalised debt advice:
“Together we’ll create a plan of action. Simply tell us a bit about you, share your online bank statements, then together we’ll build an accurate budget. Using your new budget we’ll give you free independent debt advice to deal with your debts”.
What We’re Reading
Thinking in Bets: making smarter decisions when you don’t have all the facts
Poker champion turned business consultant Annie Duke teaches you how to get comfortable with uncertainty and make better decisions as a result.

Coffee Break? Read This
Women lose most through climate change. How can we empower them?
Women’s Aid issues safety advice for women self-isolating in abusive households
Uncomfortable truth: women are allowed to be mean bosses, too.
Art investing broadens appeal, draws in more millennials and women
We’d love to hear from you. Do you have feedback? Have we missed anything? What would you like to see more of? Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.

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