Welcome to our #62 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
The global market cap is almost unchanged this week at $108tn, which is equal to 123% of global GDP.
The European Central Bank (ECB) boost its bond-buying after it pledged to fight yield gains.
Meanwhile UK business activity returned to growth in March, UK unemployment fell to 5% and inflation also fell to 0.4% (city economists were expecting an uptick to 0.8%).
On Thursday bitcoin briefly fell below its average price over the past 50 days, which has been a key support level so far this year. Bitcoin fell $10,000 below a record of $61,742 set earlier in March. However, it is currently trading at approximately $56,000.
Tesla now accepts bitcoin as payment for cars. And Coinbase competitor Blockchain.com has raised $300m in a crypto funding frenzy.
In the Future Focus section, read about a report published by a coalition of NGOs which says that 60 of the world’s biggest banks have provided $3.8tn of financing for fossil fuel companies since the Paris climate deal in 2015.
WeWork has agreed to a SPAC deal that will take the company public.
And in the Have You Seen This section, we highlight a report by the Central and Eastern Europe (CEE) region which says that women-founded companies significantly outperform men-founded companies.
We are tracking BBG Ventures-founded by Susan Lyne and Nisha Dua, a New York-based seed-and early-stage venture firm that only backs founding teams which include at least one woman. They have just closed $50m (third fund).
And don’t forget to listen to The Purse Podcast interview with Jessica Robinson, the Founder & CEO of Moxie Future. We talk about ESG trends, how to get started as a sustainable investor, how to find a financial advisor (+ more). I hope you enjoy it!
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 market cap almost changed this week at $108tn, which is equal to 123% of global GDP.
Markets may showing signs of settling into an emerging ‘new normal’, with less volatility and strong opportunities for stock picking.
Wall Street: investors hunt for source of fire sale that sent stocks tumbling
The distressed stock selling spree caused a sharp slide in several Chinese technology companies and US media groups on Friday.
The mysterious share sales worth almost $19bn wiped around $33bn of market value off the companies involved including ViacomCBS.
Oil prices rebound (Friday) on fears Suez Canal blockage may last weeks
The trapped container ship is blocking traffic in the Suez Canal, one of the world’s busiest shipping channels for oil and refined fuels, grain and other trade between Asia and Europe.
Prices, however, were still headed for a third consecutive weekly loss.
The European Central Bank (ECB) boosts bond-buying after pledge to fight yield gains
Net purchases settled last week climbed by €21.1bn ($25.2bn), the most since the start of December.
Investors have been worried by a sudden surge in inflation, which meant bond prices have plunged and yields have gone up.
UK business activity returned to growth in March
This is the fastest growth since August.
UK unemployment falls to 5% (in the 3 months to January)
The latest snapshot showed a 68,000 increase in the number of workers on company payrolls in February, by compared with January.
UK inflation unexpectedly slows to 0.4% (February)
City economists had expected a slight uptick to 0.8%.
Normally, clothes prices rise into February following the end of the January sales, but there was increased discounting this year, especially for women’s clothes and shoes, as the UK embarked on its third Covid-19 lockdown.
Bitcoin & cryptocurrencies
Global news, trends and insights
Bitcoin drops as potential retail trader mania may be fading (Thursday)
Speculation is growing that the latest stimulus checks in the U.S. will be spent in the real economy vs in the markets.
Thursday bitcoin briefly fell below its average price over the past 50 days, which has been a key support level so far this year:
Bitcoin fell approximately $10,000 below a record of $61,742 set earlier in March.
We could now be in a ‘downward trend’ meaning the upside is also limited.
However, nothing has really changed from the institutional investor perspective: bitcoin is still considered a hedge.
See today’s bitcoin’s price ie approximately $56,000
Tesla now accepts bitcoin as payment for cars, Elon Musk says
Bitcoin paid to Tesla will be retained as bitcoin, not converted to fiat.
Tesla and other companies are showing that crypto is here to stay.
Coinbase competitor Blockchain.com raises $300m in crypto funding frenzy
The Series C funding round comes as the 10-year-old crypto company reported hitting 31m verified users across 200 countries.
The company has been able to raise $1.5bn since its founding as institutional interest continues to swell with bitcoin holding above $50,000.
Future Focus
Keeping an eye on key predictions, innovations and what’s going to impact the future
Big banks’ trillion-dollar finance for fossil fuels ‘shocking’, says report
The world’s biggest 60 banks have provided $3.8tn of financing for fossil fuel companies since the Paris climate deal in 2015, according to a report by a coalition of NGOs.
US and Canadian banks make up 13 of the 60 banks analysed, but account for almost 50% of global fossil fuel financing over the last five years.
The report was produced by six NGOs and is endorsed by over 300 organisations from 50 countries. It used Bloomberg data to analyse both direct loans by banks to fossil fuel companies and funding from other investors that the banks arrange via bond and debt sales.
Companies: winners & losers
Companies to watch and share price movements
WeWork agrees to SPAC deal that would take the company public
WeWork has agreed to merge with a special-purpose acquisition company in a deal to take the shared-office provider public nearly two years after its high-profile failure to launch a traditional IPO.
The planned merger with the BowX Acquisition Corp. SPAC values WeWork at $9bn including debt.
As part of the deal, WeWork plans to raise $1.3bn, including $800m in what is called a private investment in public equity, or PIPE, from Insight Partners, funds managed by Starwood Capital Group, Fidelity Management and others.
On Friday, WeWork posted a net loss of $3.83bn on $3.4bn of revenue for 2020, compared with a $3.78bn loss on a similar revenue level in 2019.
Have You Seen This?
Female-focused news, reports, research, campaigns
CEE report: women-founded companies significantly outperform men-founded companies
A new report commissioned and created by European Women in VC, Experior VC, and Unconventional Ventures found that in terms of capital productivity, women outperform men by as much as 96% in the CEE region.
In 2020 alone, women-founded startups in the CEE region saw just 1% of investment, 5% went to mixed-gender founding teams, while the remaining 94% landed in the hands of all-male founding teams.
Know this: According to the report, 85% of investment roles at any level in active VC funds in the region are occupied by men. When looking at ‘Partner’ level, the figure rises to 93%, and even higher at ‘General Partner’ level. Women-managed funds in the CEE region comprise just 3%.
What We’re Tracking
Female and diversity-focused products or services, start-ups and businesses led by women/diverse founders, investment, research & crowdfunding campaigns.
BBG Ventures (US): -founded by Susan Lyne and Nisha Dua, is an eight-year-old, New York-based seed- and early-stage venture firm that only backs founding teams which include at least one woman.
The firm just closed $50 million in capital for its third fund, a major leap over its first two funds, both sized at $10 million.
They have invested in (including) e-commerce platform Zola; the feminine hygiene brand Lola; and Spring Health, a mental health benefits platform for employers that recently closed on $76 million in Series B funding led by Tiger Global Management.
Coffee Break? Read This
Pinterest and the subtle poison of sexism and racism in Silicon Valley
Human beings are made to be touched-so what happens when we aren’t?
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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