Welcome to our #67 weekly newsletter.
Every week we curate key content and apply a gender 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 total US market cap is equal to 226% of the US GDP which is way above the 100% Buffett bubble threshold.
The Federal Reserve Chairman, Jay Powell has said that the Fed still has ‘a long way’ from withdrawing monetary support-the money printing continues.
The US economy has soared 6.4% in the first quarter. Rising vaccinations, a massive round of government stimulus and a steady recovery in the jobs market has helped reverse some of the impact of the coronavirus pandemic.
Meanwhile, billionaire investor Warren Buffet, admits he is surprised at the economic rebound as his firm, Berkshire Hathaway has reported a $12bn quarterly profit. Buffett has said that they are ‘seeing substantial inflation’.
The UK economy is predicted to grow at the fastest rate since WW2 ie by 6.8% in 2021 – a sharp upgrade on the 5% growth rate estimated by EY Item Club (January). High levels of saving, the successful vaccination rollout and the easing of the lockdown set the stage for a surge in spending over the coming months.
And ETH, the second largest cryptocurrency, has reached a new all-time high again at $2,900+.
Nexon, the online games provider in Japan, has joined Tesla buying bitcoin worth $100m.
The European Investment Bank (EIB) plans to price bonds registered in the Ethereum network. And Germany opens up to institutional crypto funds.
In the Future Focus section, read about how Joe Biden’s $1.8tn tax plan could pave the way for women to power the US economic recovery.
Google parent company Alphabet said YouTube brought in revenue of $6.01bn (from advertising) during the first quarter (Q1) and at twice the growth of Netflix.
In the Have You Seen This? section, read about the results of a survey which says that the gender pensions gap is prompting women to take action (& invest more).
And we are tracking edtech startup Erase All Kittens (EAK), co-founded by CEO and Creative Director, Dee Saigal, which has raised $1m. The startup has created a ‘Mario-style’ web-based game designed for girls (kids) aged 8-12.
Don’t forget to listen to the The Purse Podcast interview with Founder & CEO, Wai Foong Ng, for impact startup called Matchable. We talk about how to build an impact startup, the fundraising journey as a female founder, the unconscious bias of investors, why networks are key and female angel investors. Please enjoy!
Stay safe, look after yourselves and your loved ones.
I hope you enjoy this week’s newsletter.
Jana
The Big Picture
Global markets and economy news, trends and indicators
Total US market cap is equal to 226% of the US GDP (way above the 100% Buffett bubble threshold):
Note: the US (& global economy) continues to be propped up by government stimulus, interest rates are low, investors are confident as the (US) economy is showing signs of recovery.
Jay Powell says the Fed still ‘a long way’ from withdrawing monetary support
The Fed chair confirmed that the US central bank was not yet ready to discuss reducing its massive programme of asset purchases.
Interest rates are close to zero and debt purchases steady at $120bn a month.
The US economy soars 6.4% (annual basis) in the first quarter
Rising vaccinations, a massive round of government stimulus and a steady recovery in the jobs market has helped reverse some of the impact of the coronavirus pandemic.
US: Warren Buffet says Berkshire hit by rising inflation amid ‘red hot’ US recovery
Billionaire investor, Warren Buffet, admits surprise at economic rebound as group reports $12bn quarterly profit.
‘We’re seeing very substantial inflation,” the 90-year-old chair said in his address to investors that was held virtually for the second consecutive year because of the pandemic. “It’s very interesting. We’re raising prices. People are raising prices to us and it’s being accepted.’
UK economy predicted to grow at the fastest rate since WW2
EY Item Club has upgraded forecasts for 2021 after businesses adapted better to Covid controls.
The group said it now expected UK GDP to grow by 6.8% in 2021 – a sharp upgrade on the 5% growth rate it had estimated in January.
‘The UK is primed for a sharp snapback in consumer activity,” said Ian Stewart, the chief economist at Deloitte. “High levels of saving, the successful vaccination rollout and the easing of the lockdown set the stage for a surge in spending over the coming months.’
Bitcoin & cryptocurrencies
Global news, trends and insights
ETH reaches a new all-time high (again)
ETH (ether), the second largest cryptocurrency has reached a new all-time high at $2,900+
Investors point to increased institutional interest and upcoming upgrades to the Ethereum network.
Ethereum flips PayPal, nears top 25 global assets by market cap
ETH is now trading $2900+ and it's market cap is now $337.35bn+ (which is bigger than the market cap for PayPal).
Ethereum is currently in ‘price discovery mode’—meaning, since its price has never been higher, traders are still trying to sort out what its current value should be.
Nexon joins Tesla in Bitcoin bet with $100m purchase
The online game provider (Japan) acquired 1,717 Bitcoin at an average price of about $58,226 each, including fees and expenses.
The purchase represents less than 2% of Nexon’s total cash and cash equivalents on hand, and is the largest-ever purchase of digital currency made by a company traded in Tokyo.
The CEO, Owen Mahoney said in a statement: ‘Our purchase of bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets...’
European Investment Bank (EIB) price €100m in bond on Ethereum
According to a report by Bloomberg, the EIB’s inaugural blockchain bond sale will consist of €100 million in two-year notes.
The sale of the Ethereum-based bonds is being overseen by investment banks Goldman Sachs, Banco Santander, and Societe Generale.
Jean-Marc Stenger, chief executive of Société Générale’s enterprise blockchain unit Forge, told The Block last year that the bank has a ‘natural preference’ for public blockchains.
Germany opens up to institutional crypto funds
A new law means that around 4,000 existing institutional investment funds will now be eligible to invest in crypto assets.
100,000 UK taxis to take crypto payments in Ethereum
Mobile payments firm HIPS and Nordic taxi payment rail The Payment House have partnered to allow cabs in the UK and Scandinavia to accept cryptocurrencies over the Ethereum blockchain.
The deal means that 10,000 taxis in the UK, and 20,000 in Scandinavia can use the payment gateway after it debuts in a beta test in November.
Future Focus
Keeping an eye on key predictions, innovations and what’s going to impact the future
Biden tax plan paves the way for women to power economic growth
US President Joe Biden is betting an investment in child care and other social programs will spur long-term economic growth.
Part of Biden’s new $1.8tn plan is aimed at increasing women’s labor force participation, boosting productivity and distributing benefits more equitably.
Biden’s new plan includes universal preschool, guaranteed paid family leave and an extension of the expanded child tax credit. He’s also proposing subsidised child care for low- and middle-income families and a $15 minimum wage for the million-plus child care labor force.
The U.S. lags rich countries in Europe and the rest of the world in providing paid maternity and paternity leave. Now, just 35% of U.S. workers get paid parental leave, according to a 2019 Kaiser Family Foundation survey.
Companies: winners & losers
Companies to watch and share price movements
US: YouTube earnings report vs Netflix
Google’s YouTube is already the world’s largest online video platform.
The video platform saw usage grow from 73% of U.S. adults in 2019 to 81% in 2021 (the social media winner during the pandemic).
Google parent company Alphabet said YouTube brought in revenue of $6.01bn (advertising) during the quarter (2x growth of Netflix).
YouTube will book between $29bn & $30bn in revenue this year. Netflix is expected to report $29.7bn in revenue for 2021.
Netflix revenue comes almost exclusively from its paying subscribers - (207m+ at the end of March) -while YouTube relies primarily on advertising.
YouTube users watch 1bn hours of video per day while Netflix viewers tune in for 400m hours.
YouTube growth has been driven by “direct response” (DR) ads and brand advertising: ‘YouTube is now best positioned to deliver on something we’ve talked about for a decade, which is two people watching the same live event, but getting different ads.’
US: Amazon’s sales increased 44% to $108.5bn in Q1
Amazon made a profit of $8.1bn for the quarter – $2.7bn a month – beating analysts’ forecasts after a series of better than expected results from tech companies and others.
While Amazon profited throughout the coronavirus downturn, there are now signs that the (US) economic recovery is spreading.
UK: PensionBee was admitted to the High Growth Segment of the Main Marker of the London Stock Exchange (Monday)
Have You Seen This?
Female-focused news, reports, research, campaigns
Gender pensions gap prompts women to take action
The difference between pension contributions between men and women can be as high as 50% in some parts of the UK. More women take career breaks, work part-time and are more likely not to qualify for the UK pension auto-enrolment scheme (min £10,000 pa).
According to a survey (of 433 pension-holding women) by Barnett Waddingham, 44% of working-aged women with a workplace or private plan have taken action after hearing about the gender pensions gap.
Women have increased their monthly contributions into their pension, with 14% of women saying they’ve done this already.
The rate is highest among 18-34-year-olds, at 19%, and is higher among those working full time (16%) than part-time (14%).
“It’s therefore not enough to simply say that women need to contribute more to close the gap. Instead, we need to consider fiscal, behavioural, and societal issues collectively, and work to create a more robust and inclusive pensions framework that offers fairer solutions for all.”
Know this: consider increasing your monthly contributions to your pension, even if this is only by 1%. If you are taking time off, for whatever reason, talk to your partner about making contributions to your pension. Become proactive about your pension to ensure you are clear on how much money you need to retire on, potential shortfalls and how you can make up the difference. Seek out a financial advisor who is skilled at providing advice 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.
Erase All Kittens (UK)-co-founded by CEO & Creative Director, Dee Saigal is an edtech startup that created a ‘Mario-style’ web-based game designed for girls (kids) aged 8-12.
It has raised a $1m seed funding led by Twinkl Educational Publishing, with participation from first investor Christian Reyntjens of the A Black Square family office, alongside angel investors.
It has reached 160,000 players in more than 100 countries.
EAK is currently being used in over 3,000 schools, mostly in the U.K. and U.S., and its traction increased by 500% during the lockdowns associated with the pandemic.
According to EAK research, 55% of its players are girls, and 95% want to learn more about coding after playing its game.
Coffee Break? Read This
Metro mayors are all men-but women’s voices are needed for the best pandemic recovery
35 is glorious, let’s stop calling women geriatric mothers whose fertility ‘fell off a cliff’
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.
The Purse Ltd. Copyright 2021 & All Rights Reserved.
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