The Purse
The Purse
Global stocks gained $1.5 trillion last week, the Bank of England expect a 'V-shaped' recovery for Britain, all eyes are on Bitcoin, what is QE and women are working a 'double double' shift
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Global stocks gained $1.5 trillion last week, the Bank of England expect a 'V-shaped' recovery for Britain, all eyes are on Bitcoin, what is QE and women are working a 'double double' shift

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

Welcome to our #19 weekly newsletter in 2020.

Every week we curate key articles and content so you can stay informed and inspired about money and investing. And we spend hours sifting through content every week so you don’t have to.

We apply a female-lens to news and content about money and investing so that it is more meaningful to you.

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.

“Money fuels our life, it fuels our choices. It’s what allows us to have power and agency in our life. When we take control of our financial future we can live life on our terms” -Jana Hlistova

Source: Moose Photos


From The Purse…

Editorial from the Founder


The Bank of England (BoE) forecasts the worst recession for Britain in the last 300 years. It has predicted output will drop by nearly 30% in the first half of this year; the economy falling 14% in 2020 only to recover 15% by 2021.

However some economists do not agree with what they consider to be an overly optimistic economic forecast.

In the US, unemployment has hit a postwar high of 14.7% which is now over 30m Americans. Some expect the unemployment rate to rise to 20% in May.

As the global economy limps on, the global stock market has been rising since it hit the bottom towards the end of March. Last week global stocks gained $1.5 trillion.

Governments around the world have made it clear that ‘they will do whatever it takes’ to ‘cushion’ the coronavirus impact. Central banks are using tools such as quantitative easing (QE) in order to soak up the government debt. Read more about what QE is and how it can affect us all in the Spotlight section of this newsletter.

All eyes are on Bitcoin: the third halving event will take place on Tuesday, 12 May.

According to a new poll for the New York Times, home schooling is disproportionately being handled by women during the coronavirus lockdown. And Sheryl Sandberg writes about the ‘double double shift’ for women during the pandemic. As if women didn’t have enough to do already.

I interviewed Anna Sofat, Founder & Wealth Advisor for the Progeny Group: we talked about financial planning, how to make your money work for you and how to invest for social impact and more. You can listen here and 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:

  • UK: a net of £2.6bn was invested in equity funds in the UK in April

    • According to data provider Calastone, small investors poured into the stock market-up to six times more than in a typical month.

    • Global funds have been the most popular destination for investors followed by funds invested in UK equities.

    • Investors have also turned to active funds rather than passive funds.

  • US hits postwar unemployment high at 14.7%

    • In April, 20.5m Americans lost their jobs due to the coronavirus.

    • Unemployment has climbed higher for women in April to 15.5% compared to men which increased to 13%.

    • It is possible that unemployment in May could increase to 20%.


Looking Ahead in 2020


  • Andreessen Horowitz invests over $500m into the crypto trade

    • The enterprise capital agency will make investments $515 million into the long-term growth of “crypto networks and businesses.”

    • “Gold has long played the role of a fiat substitute, but Bitcoin is a digital alternative that is gaining acceptance and adoption around the world,” the a16z Crypto Fund II announcement particulars.


Coronavirus Impact: Your Money

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


  • Six money-saving ideas for for lockdown and beyond

    • Use tech to shop around

    • Chase refunds for services you can’t use

    • Claim the benefits you’re not entitled to

    • Clear the credit card quicker

    • Review rainy day savings

    • Return items even if shops are closed

  • Half of UK parents with young children face money woes

    • Parents are twice as likely as those without children to say they will struggle to make ends meet in the next three months, with 51% of parents of under-11s and 56% of single parents agreeing, compared with 27% of those who are not parents of young children, according to the research.

    • Women are also feeling more anxious: it found that among general workers 46% of mothers of younger children report anxiety compared with 36% of men, and 24% of men who are not parents of young children.


Companies to Watch: winners & losers

Companies to watch and share price movements


  • BT has cancelled dividends until 2022, shares plummet

    • The telecoms group announced Thursday it would cancel its dividend and would accelerate its investment programme during Covid-19.

    • They plan to invest in 5G and increased rollout of the Fiber internet.

    • The shares dropped 10% before recovering.

    • BT posted disappointing full year earnings as adjusted EBITDA fell 3% to £7.9bn. Revenue also fell 3%, but this was broadly inline with expectations.


In the Spotlight

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


What is quantitative easing and how does it affect me?

  • Today policy-makers promise to do whatever it takes to prop up the economy to limit the impact of the coronavirus.

  • We have seen governments around the world introduce stimulus packages in order to support individuals, businesses and even cities/municipalities through this pandemic crisis.

  • Quantitative easing (QE) is a tool used by central banks in order to inject money into the economy.

  • Often referred to as ‘printing money’, the central bank will create digital money in order to finance government spending directly.

  • In times of emergency and often during wartime, central banks lend money to the government.

  • Without limit, financing the government in this way can lead to hyperinflation.

  • But these risks can be manageable especially if these economies are met with increased demand.

  • Should inflation begin to rise, central banks can use tools such as increase interest rates or unwinding QE.

  • Alternatively we may experience deflationary pressures-like Japan.

  • Source: FT & and Bank of England

However, there is ongoing debate about printing money: how this devalues currency, will the US dollar remain as the world’s reserve currency, the risk of hyperinflation and the extent to which institutions should be allowed to intervene in a free-market economy.

It is for this reason that we see continued interest in Bitcoin: the first digital currency created, distributed, traded and stored with the use of the blockchain.


Have You Seen This?

Female-focused news, reports, research, campaigns



What We’re Tracking

Female-focused products or services, crowdfunding campaigns, start-ups and businesses led by female entrepreneurs & investment, research



Money Habits of the Week

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


Spend some time studying digital money and bitcoin this week.

We live in unprecedented times-government debt globally has never been higher as central banks print money around the world. What will happen to fiat currency over the medium to long term?


What We’re Watching


  • Don Tapscott: A leading analyst of innovation and the impacts of technology, Don Tapscott has authored or co-authored 15 widely read books about various aspects of the reshaping of our society and economy.

  • In this TED talk, Don Tapscott demystifies blockchain: this world-changing, trust-building technology which, he says, represents nothing less than the second generation of the internet and holds the potential to transform money, business, government and society.


Coffee Break? Read This



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

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