Welcome to our #65 weekly newsletter.
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 2021 during Covid-19 and beyond.
If you’re short on time, listen to the audio for a brief overview.
“For women taking control of their financial future”
-Jana Hlistova
From The Purse
Editorial from the Founder
Global stocks have gained $1.4tn in market cap this week: stocks are now worth $112.4tn which is equal to 128% of global GDP. Investors have reacted to strong economic data from the US and evidence that US consumers are spending their stimulus checks in stores.
The Federal Reserve chairman, Jay Powell, has said that the US economy is at an inflection point with growth and hiring set to accelerate, but he warned that new surges of Covid-19 could impede the recovery.
The UK economy returned to growth in February despite Covid restrictions.
And on Monday, England reopened non-essential shops as well as pubs and restaurants with outdoor space.
Bitcoin and ether hit new all-time highs on Tuesday ahead of the Coinbase direct listing on the Nasdaq. Ether hit a new all-time high for the second time this week at $2,500+.
Canada has approved three ether ETFs, and the funds will start trading this coming week. Canada is now the hotspot for crypto ETFs.
In the Future Focus section, we cover Apple launching a $200m ‘Restore fund’ to target carbon removal. And VC funds are increasing investment in blockchain startups and are bullish on crypto.
Meanwhile Coinbase closed at $328.28 per share when it debuted on the Nasdaq Wednesday, valuing the company at $85.8bn.
In the Have You Seen This? section, read about why experts say that the (financial) adviser community urgently needs to ‘improve gender diversity’ in order to close the gender retirement gap.
And we are tracking UK fintech PensionBee, co-founded by CEO Romi Savova. Her company is due to float on the London Stock Exchange on 26 April which could value the company up to £384m.
If you have time, read ‘7 pieces of career advice women should ignore’-it is co-authored by Founder & CEO, Cindy Gallop (who we have interviewed on The Purse Podcast).
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
Global stocks have gained $1.4tn in market cap this week
Investors react to strong economic data from the US and evidence that US consumers are spending their stimulus checks in stores.
All stocks now worth $ 112.4tn which is equal to 128% of global GDP.
Federal Reserve Chair says the US economy is at an inflection point
Jay Powell, speaking on CBS’ 60 Minutes programme, said that the US economy is at an ‘inflection point’ with growth and hiring set to accelerate, but he warned that new surges of Covid-19 could impede the recovery.
ECB seen slowing bond buying by July as vaccinations pick up
The European Central Bank (ECB) will slow its emergency bond-buying by July and signal at the end of this year that the program will come to a halt in March 2022, according to a Bloomberg survey of economists.
UK economy returns to growth (February) despite Covid restrictions
The Office for National Statistics said GDP rose by 0.4% in February from a month earlier as the economy showed some signs of improvement after a revised drop of 2.2% in January.
England ‘reopened’ to non-essential retailers on Monday
In addition to the pubs and restaurants with outdoor space.
It is a critical time for Britain as the country eases out of lockdown while trying to avoid a new wave of Covid-19 already taking hold in continental Europe.
Bitcoin & cryptocurrencies
Global news, trends and insights
Bitcoin & ether hit ATHs on the eve of the Coinbase listing (Tuesday)
On the eve of the Coinbase direct listing on the Nasdaq, Bitcoin rose 6% (Tuesday) reaching $63,661 (CoinDesk data) and ether, the second-largest cryptocurrency overall, set a new high at $2,271.
Analysts have signalled that the Coinbase listing might lead to an uptick in the pace of cryptocurrency adoption.
Ether sets a new ATH (again this week) at $2,500+
Ether is up 25% on last week.
Ethereum has had various notable developments that have helped its surge this year, including its Berlin hard fork.
At $2,500, ether’s market cap is now over $288bn. That’s more than Intel, Toyota, and Netflix.
Bitcoin plunged most in 7 weeks, after reaching an ATH
Bitcoin is currently down approximately 7.3% at circa $56K.
There is speculation that the US Treasury may crack down on money laundering that is carried out via digital assets.
Dogecoin reaches an ATH on Friday, reaching $52.2bn market cap
The value of Dogecoin jumped 203% in just the past 24 hours to an all-time high of $0.404, according to Coinbase.
Dogecoin is now the seventh largest cryptocurrency in terms of market cap.
The Dogecoin began as a ‘joke’ in 2013 and is based on the ‘Doge’ meme which depicts a cartoon version of a Shiba Inu, a breed of Japanese hunting dog.
Elon Musk has long championed Dogecoin, often tweeting his support of the cryptocurrency, prompting subsequent price gains.
A trio of ether ETFs set to launch in North America
Canada has approved three ether ETFs, and the funds will start trading this coming week.
The ETFs applications were filed by Purpose Investments, Evolve ETFs, and CI Global Asset Management.
Canada earlier this year approved the first Bitcoin ETFs in North America.
Canada is now the hotspot for crypto ETFs.
‘ETFs allow people to invest in the cryptocurrency ecosystem while staying on the financial guardrails—the traditional financial ecosystem’.
Future Focus
Keeping an eye on key predictions, innovations and what’s going to impact the future
Apple launches a $200m ‘Restore fund’ to target carbon removal
Apple on Thursday announced it is launching a $200m ‘Restore Fund’ that will ‘make investments in forestry projects to remove carbon from the atmosphere while generating a financial return for investors.’
The move is the latest step by the world's largest tech companies to invest in climate initiatives.
VC funds are bullish on crypto, increase investment in blockchain startups
Venture capital funding for crypto and blockchain startups looks set to break records in 2021.
Crypto firms received more funding in the first quarter of 2021 than the whole of 2020.
In Q1 2021, 129 crypto and blockchain startups received about $2.6bn in funding, according to a Bloomberg report culled from data by business analytics firm CB Insights. This figure is already $300m more than the total funding for such companies in the whole of 2020.
The potential for outsized returns continues to be a driving force behind increased equity investments in crypto startups both for blockchain and mainstream VC funds.
Companies: winners & losers
Companies to watch and share price movements
Coinbase closed at $328.28 per share on Nasdaq debut (Wednesday)
The cryptocurrency exchange directly listed on Nasdaq valuing the company at $85.8bn.
Coinbase’s market cap exceeded $100bn after its debut Wednesday morning on the Nasdaq, though the stock fell later in the day.
Nasdaq provided a reference price late Tuesday of $250, but because it’s a direct listing no shares changed hands at that price.
The shares opened at $381 and quickly shot up as high as $429.54, before reaching a low of around $310. The price was still well above the reference price of $250 set Tuesday night.
Founded in 2012 as a way to simplify the purchase of bitcoin, Coinbase has emerged as the most popular crypto exchange and soared in value alongside digital currencies bitcoin and ether.
The service now has 56m users, up from 43m at the end of 2020 and 32 million the year before that.
In its last private financing round in 2018, investors valued Coinbase at $8 billion.
Many regard the Coinbase listing as a ‘watershed’ moment for the cryptocurrency market.
Analysts say that Coinbase shares are worth $500.
Have You Seen This?
Female-focused news, reports, research, campaigns
Speaking at a virtual policy debate hosted by the Equity Release Council and Key, attendees discussed a range of factors impacting the gender gap in retirement savings.
The debate follows a recent report by the Council and Key, which explored gender differences in retirement planning and the impact of the pandemic on financial confidence in later life.
Key’s FY 2020 data shows 26% of equity release clients are single women compared to 14% of single men, highlighting the importance of property wealth as a source of later life funds for single women.
Government figures reveal the annual average pensioner income for single women has increased by just 2% over the last five years, compared to an 11% increase for single men.
The gender retirement income gap has more than doubled from £1,560 a year in 2014/15 to £3,276 in 2019/20.
Know this: women need to pay attention to how they will ensure they will have sufficient funds for retirement. Investing in a pension is one to do that. There are many more of course. And the point is that women need to consider all the options as early as possible with the support of a financial advisor, who is ‘tuned’ in speaking to female clients.
What We’re Tracking
Female and diversity-focused products or services, start-ups and businesses led by women/diverse founders, investment, research.
PensionBee: (UK)-co-founded by CEO Romi Savova, is an online pensions company which could be valued up to £384m when it floats on the London Stock Exchange (April 26).
The company, which helps people track down their old plans and consolidate them, has more than 81,000 customers who have moved pension assets to, or paid into, one of its investment plans.
In the year to the end of March, the value of assets it administered grew by 123% to £1.65bn, and it said the flotation would allow it to grow its business further.
The price range values the company at between £346m and £384m and Romi’s stake at £124m to £140m. PensionBee said it intended to raise £55m of which some would be used to fund future investment in its advertising and marketing initiatives and technology.
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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