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Global stock markets gained $2tn last week, Covid-19 could accelerate blockchain and crypto adoption, can money make you happy and how much are the highest paid female CEOs earning?
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Global stock markets gained $2tn last week, Covid-19 could accelerate blockchain and crypto adoption, can money make you happy and how much are the highest paid female CEOs earning?

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

Welcome to our #28 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

Source: Vlada Karpovich 


From The Purse…

Editorial from the Founder


Global stock markets gained $2tn last week despite a resurgence of Covid-19 cases. The Nasdaq hit an alltime high and Big Tech topped $7tn (which is the combined GDP of Germany, Italy and Indonesia).

Meanwhile the price of gold reached $1800 for the first time since 2011.

During economic uncertainty and because central banks are printing money at an unprecedented rate, investors look to gold as a store of value.

We may also see faster adoption of blockchain technology and crypto as a result of the pandemic.

Goldman Sachs has cut the US GDP estimate in the third quarter. Revived state restrictions and stay-at-home activity will slow economic recovery.

In the UK, unemployment could soar to 15% if there is a second wave of the pandemic.

UK Chancellor Rishi Sunak has introduced a £30bn package of measures to cushion the economy.

Read about the stamp duty holiday boost for buy-to-let investors, 71% of UK households have saved money during the lockdown and apparently money can buy you happiness (but it’s not as much money as may think).

We spotlight how much the highest paid female CEOs in the US are earning compared to Elon Musk. And the gender pay gap is widening for women during the pandemic.

Tesla is making headlines again and read about why online fashion retailer Boohoo lost £1bn in value.

We’re tracking female-led investment firm Operator Collective which connects industry operators making it easier for them to invest in early-stage businesses.

And check out my podcast interview with Lauren Winfield, the Founder & CEO of Signum City, a mobile app which illuminates the power of money by gamifying the stock market. Or listen here.

Stay safe, look after 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:

Source: The Guardian


Future Focus

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


  • UK unemployment could soar to 15% (if there is a second wave of the pandemic). Currently UK unemployment stands at 3.9%:

    • If the UK avoids the ‘second wave’, the unemployment rate is likely to rise to 11.7% by the end of 2020.

    • “In the UK, new online job postings for middle-skill occupations contracted twice as much between February and April 2020….and 40% more than for high-skill occupations- Covid-19 shock will reinforce the existing trend of employment polarisation.”

  • Covid-19 could accelerate the adoption of crypto

    • Coinbase’s former CTO, Balaji Srinivasan, has said that the pandemic could end up accelerating blockchain and crypto adoption.

    • As governments around the world increase and centralise their control, people and businesses seek decentralised alternatives.

  • Women-led activist firm bets on ESG reforms in emerging markets

    • ESG is gaining traction as an investment strategy and have driven outperformance during the recent coronavirus-led market turmoil.

    • Cartica Management LLC is a majority women-owned activist investment firm which manages about $1.2 billion in assets.

    • The firm sees opportunities for ESG investment in countries where such principles are less advanced, such as China or South Korea.

    • BlackRock noted that 88% of sustainable indexes did better than their non-sustainable counterparts in the first four months of 2020.


Your Money

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


  • UK: stamp duty holiday boost for buy-to-let investors

    • The stamp duty threshold has increased from £125,000 to £500,000 (England and Northern Ireland) and will apply until end March 2021.

    • The Treasury estimated that the changes meant 9 out of 10 purchasers would pay no stamp duty, with an average saving of £4,500.

    • Landlord investors can transfer their properties to a limited company structure and take advantage of tax relief on mortgage interest.

    • Read more about stamp duty here.

  • Investing for two or more children?

    • Junior ISAs are proving popular for parents who invest for their kids.

    • HMRC revealed £419m was subscribed into stocks and shares JISAs in 2018/19, up from £385m in 2017/18 and £333m the year before.

  • 71% of households have saved money during lockdown

    • Spending was reduced by an average of £2,879 each across the 13 weeks that Brits were told to stay at home during the peak of the pandemic.

    • The average weekly saving of £221.50 was achieved by people cutting back on their spending habits, such as drinking less and buying less clothes.

  • UK: How much money can buy you happiness

    • Raisin UK suggests that the happiest people are in Winchester:

      • where the life expectancy reaches 83.5 years of age

      • and where the average salary is £35,346 ,only a few thousand pounds higher than the national average of around £29,000.

    • According to a study by UCL, having a total household net worth of approximately £488,000 (including your home, savings and pension pot) by the time you reach your 50s can add nine years of good health to your life.


Companies to Watch: winners & losers

Companies to watch and share price movements


  • Boohoo, lost £1bn in value over ‘Leicester garment factory scandal

    • The online fashion retailer, which owns brands such as Pretty Little Things and Nasty Gal, has been working with a supplier in Leicester which exploits its workers.

    • An uncover investigation revealed that workers were not being paid a minimum wage nor were they wearing protective masks.

    • On Monday, shares slumped by 23% and reduced the company valuation to £3.7bn.

    • “It bothers me greatly that the emergence of a new garments industry in the UK is being built around the same production model and lack of accountability that we’ve seen leading to big problems with exploitation in the global south,” said Peter McAllister, the executive director of the Ethical Trading Initiative.


In the Spotlight

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


How much are the highest paid female CEOs earning compared to Elon Musk?


Have You Seen This?

Female-focused news, reports, research, campaigns



What We’re Tracking

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


  • Operator Collective: (US)-an investment firm for people who didn’t have a voice. Founded by Mallun Yen and Leyla Seka:


Money Habits of the Week

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


Technology stocks in the US have grown exponentially over the last 10 years.

If you had invested $1000 in Netflix 10 years ago, your investment would be worth approximately $70,000 today (annual compound rate of 47.5%).

Research online platforms or mobile apps where you can buy shares or fractional shares in US companies. Use the discovery tool in the app to look up Amazon, Facebook, Apple and Microsoft.

Take note of the share price today and trace back to what the share price was 10 years ago.

Spend some time reading about about how you might be taxed on any gains you make when you sell these shares (or fractional shares).

Reach out to a financial advisor or a financial coach for advice or support.

And don’t forget to connect to your tribe of women.


What We’re Watching


  • Chris McKnett helps institutional investors put money toward sustainable and socially-forward assets.

  • Watch this TED talk about sustainability and why institutional investors can make significant environmental progress by choosing to invest in this way. And why investors need to look at a company's environmental, social and governance structures too.


Coffee Break? Read This



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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