Welcome to our #70 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
Credit: Starling Bank and Lensi Photography
From The Purse
Editorial from the Founder
Global stocks rebound on Thursday after a day of cryptocurrency turbulence and concerns that central bank policymakers were contemplating winding down crisis-era support.
However, on Friday China launched its second ‘verbal attack’ against bitcoin/crypto in three days. Crypto prices fell again and also appeared to spill over into the US stock market.
UK inflation more than doubled in April: the jump to 1.5% in April from 0.7% in March, means consumer prices are rising at their fastest rate since March 2020 at the outset of the pandemic.
The FTSE 100 fell on the inflation news, but rebound towards the end of the day.
Meanwhile, UK labour markets have turned a corner: employment is rising, unemployment is falling faster than expected and hiring is accelerating in the run-up to the economy reopening.
It’s been a difficult week for the cryptocurrency market.
Crypto markets swung in chaotic trading after Chinese regulators signalled a crackdown on the use of digital coins.
Bitcoin has lost approximately $500bn in market cap; its price dropping from an all-time high of $60K+ to currently trading at $33K+.
Ether, the world’s second-most valuable crypto, plunged by more than 50%+ to $2K+, from an all-time high of $4,360 on May 12. It is currently trading at $1.9K+.
Meanwhile, MicroStrategy has purchased another $10m of bitcoin and the CEO of Ark Investment Management, Cathie Wood believes we are in the ‘capitulation phase’ which means this is a ‘good time to buy’.
Elon Musk confirmed in a tweet that Tesla is not selling its bitcoin (aka it has ‘diamond hands’) and tweeted that he prefers crypto to fiat.
In the Future Focus section, read about a report by the International Energy Agency (IEA) which says that energy groups must stop all new oil and gas exploration projects from this year if global warming is kept in check.
AT&T has announced a $43bn deal to merge WarnerMedia and Discovery. The merger is paving the way for one of Hollywood’s biggest studios to compete with media giants Netflix and Disney.
And in the Have You Seen This? section we cover research by Starling Bank and Brunel University about how stock imagery depicts women and money: it often either infantilises or mischaracterises women’s relationship with money.
We have included one of the license-free photographs created as a result of this study in this week’s newsletter. Let us know what you think?
We’re tracking Canadian e-commerce start-up founded by CEO Joanna Griffiths, which sells women’s underwear and apparel. Knix announced it has raised $53m in its funding round, led by New York-based private-equity firm TZP Group.
Joanna was pregnant with twins when she started raising investment. And she set an immovable ground rule: any investor who raised that as a concern would be immediately disqualified from bidding. Knix closed its funding round three days before Joanna gave birth in March. The timing was deliberate.
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
Global stocks rebound (Thursday) after a day of cryptocurrency turbulence (but dipped again on Friday)
Positive US jobs data helped boost global stocks on Thursday, a day after markets were roiled by a sell-off in cryptocurrencies and hints that central bank policymakers were contemplating winding down crisis-era support.
However, on Friday China launched its second broadside against bitcoin in three days. Crypto prices fell again and also appeared to spill over into the US stock market.
The price of gold, which benefits in times of heightened uncertainty, rose to its highest level since January. Gold is also viewed as a hedge against inflation.
The implication taken: the US central bank is in no hurry to reduce $120bn of monthly bond purchases that have boosted financial markets since March last year.
UK inflation more than doubles in April
The jump to 1.5% in April from 0.7% in March, means consumer prices are rising at their fastest rate since March 2020 at the outset of the pandemic.
Two weeks ago the Bank of England said that UK inflation is heading above its 2% target and is expected to hit 2.5% at the end of 2021.
FTSE 100 falls, as UK inflation more than doubles month-on-month (but ended trading 1% higher)
The FTSE 100 dropped 1.28% Thursday morning, ‘as the markets returned to last week’s inflation-fearing panic on Wednesday following a commodity-bloated CPI reading out of the UK’.
But it ended the day trading 1% higher.
UK labour markets turns a corner: employment is rising
Unemployment falling faster than expected and hiring accelerating in the run-up to the economy reopening.
The employment rate rose by 0.2% to 75.2%, but remained 1.4% below its pre-pandemic level.
Bitcoin & cryptocurrencies
Global news, trends and insights
The crypto market & bitcoin plunges on fears of regulatory crackdown
Cryptocurrency markets swung in chaotic trading and related stocks were hit after Chinese regulators signalled a crackdown on the use of digital coins, which have soared in price this year.
On Friday, cryptocurrency prices took a renewed dive after China launched its second broadside against bitcoin in three days.
Bitcoin fell by 12%, ether by 20% and dogecoin by 18%.
A Friday statement from China’s vice-premier Liu He that restated Beijing’s determination to curb cryptocurrency mining and trading triggered the latest decline.
Bitcoin, which soared past $60,000 last month, dived to nearly $30,000 at one point on Wednesday, before paring losses later that day.
On Thursday, bitcoin bounced back above $40,000 as the crypto market attempted to recover. Bitcoin was last trading 1% lower at a price of $39,703 on Friday, according to Coin Metrics data.
Elon Musk, Tesla’s CEO and crypto enthusiast, last week made a U-turn on accepting bitcoin as payment for the company’s electric cars on environmental grounds, also sharpening worries about the long-term future of bitcoin.
According to Richard Saperstein, chief investment officer at Treasury Partners: ‘Stocks and cryptocurrencies have been showing signs of froth over the past few months and were due for a pullback’.
Approximately $500bn has been wiped from the bitcoin market cap.
Bitcoin is currently trading at $33K+
Ether has plunged more than 50% from its ATH
Ether, the world’s second-most valuable cryptocurrency, has plunged by more than 50% to $2,050, from an all-time high of $4,360 on May 12.
The digital coin was trading at $2,750 by Thursday morning, down, like Bitcoin, 38% from its recent highest-ever peak, but up more than 1,200% from a year ago.
However, Friday ether fell by 20% after China restated Beijing’s determination to curb cryptocurrency mining and trading.
Ether is currently trading at $1.9K+
MicroStrategy purchased another $10m of bitcoin
As of Tuesday, MicroStrategy is holding 92,079 bitcoins acquired for $2.251bn at an average price of 24,450 per bitcoin.
In an interview with CNBC, Michael Saylor, the CEO of MicroStrategy, said that ‘bitcoin is coming to life as an institutional treasury asset’ and that ‘the volatility is the price you pay for it to be 10x, outperforming the S&P index over a decade’.
In an interview on Bloomberg, the CEO of Ark Investment Management, Cathie Wood said that she still believes that the price of bitcoin will go to $500,000.
She also commented on the environmental issues regarding bitcoin: over 50% of bitcoin is mined with renewables and hydroelectric power in China.
Bitcoin mining could accelerate solar energy adoption.
Cathie Wood also believes we are in the ‘capitulation phase’ which means this is a ‘good time to buy’ ie bitcoin is ‘on sale’.
Elon Musk confirmed in a tweet that Tesla is not selling its bitcoin (aka has ‘diamond hands)
Tesla continues to hold its bitcoin (despite the announcement las week that Tesla will not accept payment in bitcoin).
Elon Musk said crypto miners should post audits of the renewables they use to erase concerns over bitcoin's energy use.
Elon Musk also confirmed that he prefers crypto to fiat
Future Focus
Keeping an eye on key predictions, innovations and what’s going to impact the future
Energy groups must stop new oil and gas projects to reach net zero by 2050, IEA says
Energy groups must stop all new oil and gas exploration projects from this year if global warming is to be kept in check, the International Energy Agency said (IEA).
The proposal is part of a scenario outlined in a report on ways to achieve net zero carbon dioxide emissions by 2050, a prerequisite to meet the Paris climate accord goal of limiting global warming to 1.5C above pre-industrial levels.
Aside from drastically cutting fossil fuel consumption, an unprecedented jump in spending on low carbon technologies would also be required — around $5tn in energy investments per year by 2030, up from around $2tn today, the report said.
It details an overhaul of energy supply and demand whereby coal demand would plunge by 90%, gas demand would halve and oil demand would shrink nearly 75% 2050.
Companies: winners & losers
Companies to watch and share price movements
AT&T announces $43bn deal to merge WarnerMedia and Discovery
The merger is paving the way for one of Hollywood’s biggest studios to compete with media giants Netflix and Disney.
Under the agreement, AT&T will unwind its $85bn acquisition of Time Warner, which closed just under three years ago and form a new media company with Discovery.
The deal would create a new business, separate from AT&T, that could be valued at as much as $150bn, including debt.
AT&T said it would receive an aggregate amount of $43bn in a combination of cash, debt and WarnerMedia’s retention of certain debt.
AT&T shareholders would receive stock representing 71% of the new company, while Discovery shareholders would own 29%, it added.
If approved by regulators, the deal could close by the middle of 2022.
The new company will be able to ‘offer.. a combination of news and sports on top of its entertainment properties like “Game of Thrones” and Harry Potter.’
Have You Seen This?
Female-focused news, reports, research, campaigns
Starling Bank calls for image equality around women and money
Stock photography far too often either infantilises or mischaracterises women’s relationship with money, according to research from Starling Bank and Brunel University.
The study looked at 600 images from three leading image libraries and found that women were four times more likely to be depicted as childlike with their money.
The CEO for Starling Bank, Anne Boden, pointed out that it’s the subconscious impact of these images is to reinforce stereotypes that ultimately influence behaviour, to the detriment of everyone.
Professor Shireen Kaji from Brunel, who co-authored the report, added: ‘These depictions really matter. They negatively affect not only how people are treated, but also how they feel about themselves in terms of money, which is typically used to symbolise power, influence and freedom’.
Know this: it is important to be aware of the biases and money myths that surround women and money. Much of this can be internalised and often explains why women feel ‘uncomfortable’ in managing and investing their money for growth. Becoming aware of our internalised dialogue and being intentional about our approach is often the first and crucial step to taking control of your money matters.
What We’re Tracking
Female and diversity-focused products or services, start-ups and businesses led by women/diverse founders, investment, research.
Knix: (Canada)-founded by CEO Joanna Griffiths, is a Toronto-based e-commerce company which sells women’s underwear and apparel:
Knix announced it has raised $53m in the funding round, led by New York-based private-equity firm TZP Group, and including some existing Knix investors such as Germany’s Acton Capital. Supermodel Ashley Graham has also invested. Ms. Griffiths remains the largest shareholder.
Knix plans to use its share of the proceeds (roughly one-third is going to buy out some early shareholders) to fuel an ambitious growth plan, including expanding further into the United States, opening more bricks-and-mortar stores, and launching more product categories.
Its sales jumped to $75m in 2020 from $50m in 2019. In the past 12 months, as of mid-May, sales have hit $100m.
Joanna was pregnant with twins when she started raising investment. And she set an immovable ground rule: any investor who raised that as a concern would be immediately disqualified from bidding.
Knix closed its funding round three days before Joanna gave birth in March. The timing was deliberate:
‘I wanted to show myself and show other female founders that this is possible, that the world is starting to change, that you can raise money while you’re pregnant, if you build a business that has metrics and you have a community that supports you,” Joanna said ‘... I wish I’d seen this four years ago.’
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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