Welcome to our #64 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 Buffett Bubble indicator raises the alarm as the US market cap has risen 200%+ of US GDP. Money printing, vaccinations and the reopening of the economy is fuelling the market and investor confidence.
And it’s been a good week for crypto: the cryptocurrency market cap now exceeds $2tn+. Bitcoin crossed $60k for the seventh time this year, on Saturday. And ether reached a new all-time high (for the second time this week) at $2,197.
In the Future Focus section, read about the IMF lifting the global growth forecast but is warning about a diverging rebound.
Janet Yellen, the US Treasury secretary, has called on other countries to join Washington in setting a global minimum tax for companies.
Norway’s government, which oversees the world’s biggest sovereign-wealth fund, expects climate and social issues to dominate investment decisions in the coming decades.
Coinbase, the crypto exchange platform, will be listing on the 14 April (on the Nasdaq). The company released its Q1 financials and they were impressive: revenue generated in Q1 exceeded revenue for the whole of 2020.
New data have cast doubt on attempts to blame short-sellers for Deliveroo’s disastrous initial public offering last month and the share price fell by another 10% on Friday.
Meanwhile Asos profits have tripled as the pandemic has driven up sales.
In the Have You Seen This? section, read the report about women leading the way in responsible investing.
We are tracking Kim Kardashian who has officially become a billionaire due to the huge success of her two companies KKWBeauty and Skims (her shapewear company).
And don’t forget to listen to The Purse Podcast interview with Ulla Huotari, Investment Manager from FinnFund. We talk about gender equality, gender-lens investing in the developing world, how the FinnFund invest, measuring impact and 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
The Buffett Bubble indicator raises the alarm as the US market cap has risen 200%+ of US GDP:
Note: US stimulus (via money printing), vaccinations and the reopening of the economy is fuelling the market, as investors feel confident. This is inflating assets.
US: S&P 500 hits an new all-time high Thursday (after setting a new record on Wednesday)
The US stock market is high on hopes that the economy will roar back.
Bitcoin & cryptocurrencies
Global news, trends and insights
Bitcoin, the biggest digital currency, accounts for over 50% of the entire cryptocurrency market cap, and has been a big driver to $2 trillion.
Bitcoin crossed $60k for the seventh time this year, on Saturday.
Ether, hit a new all-time high of $2,151.25 on Tuesday and again on Saturday morning of $2,197.
Ether’s market cap is now $250bn+, meaning that ether makes up an eighth of the total market cap of the global crypto market-now $2.07tn+
State Street collaborates with Pure Digital to launch cryptocurrency trading platform
State Street, one of the largest asset management firms, is collaborating with crypto startup Pure Digital to set up a cryptocurrency trading platform:
‘Pure Digital will be a fully automated, high throughput OTC (over the counter) market for digital assets and cryptocurrencies with physical delivery and bank custody’.
Trading is expected to commence middle of 2021.
Publicly listed Meitu now holds $100m in Bitcoin and Ether
Meitu (Chinese tech company) announced Thursday that it has invested more cash in crypto with a $10m bitcoin buy. The publicly listed company now owns $100m worth of bitcoin and ether as part of its ‘cryptocurrency investment plan.’
The company invested because: ‘the Board takes the view that blockchain technology has the potential to disrupt both existing financial and technology industries, similar to the manner in which mobile internet has disrupted the PC internet and many other offline industries.’
Peter Thiel calls bitcoin a ‘Chinese financial weapon’
Peter Thiel is ‘pro-crypto’, ‘pro-Bitcoin maximalist’ and a venture capitalist, urged the U.S. government to consider tighter regulations on cryptocurrencies. He said:
‘It threatens fiat money, but it especially threatens the U.S. dollar… [If] China’s long Bitcoin, perhaps from a geopolitical perspective, the U.S. should be asking some tougher questions about exactly how that works.
Future Focus
Keeping an eye on key predictions, innovations and what’s going to impact the future
IMF lifts global growth forecast, warns of diverging rebound
The International Monetary Fund (IMF) upgraded its global economic growth forecast again:
The global economy will expand 6% this year, up from the 5.5% pace estimated in January (this would be the most in four decades of data).
The IMF sees advanced economies less affected by the virus this year and beyond, with low-income countries and emerging markets suffering more (a contrast to 2009, when rich nations were hit harder).
The long-time JPMorgan Chase chairman and CEO, Jamie Dimon is bullish on the U.S. economy-at least for the next few years:
“I have little doubt that with excess savings, new stimulus savings, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the U.S. economy will likely boom,” Dimon said. “This boom could easily run into 2023 because all the spending could extend well into 2023.”
Janet Yellen calls for global minimum corporate tax
Janet Yellen, the US Treasury secretary, has called on other countries to join Washington in setting a global minimum tax for companies. She said:
‘Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and spurs innovation, growth and prosperity’
The age of fintechs: banks are finding it hard to compete
When Square (payments company) went public at the end of 2015, it was worth just under 6% of the combined value of storied giants Credit Suisse and Deutsche Bank.
Today, it's worth more than twice their combined value — although it's still a very long way from JPMorgan's $473 billion valuation.
Norway: $1.3tn fund sees ESG dominating for decades
Norway’s government, which oversees the world’s biggest sovereign-wealth fund, expects climate and social issues to dominate investment decisions in the coming decades (the fund returned 10.9%, or $123bn, on its total investments last year):
The goal is ‘to increase the competence related to climate risk, investment opportunities, the consequences associated with the transition to the low-emission society’.
About 25-30% of portfolio companies will be cut. However this only represents about 2% of the fund’s total market value.
In February, the fund said it wants the companies in which it invests to start living up to explicit gender diversity goals. Boards on which women make up less than 30% of the total should consider setting targets for gender diversity, according to a position paper published Feb. 15.
New York’s cannabis market means business
Governor Andrew Cuomo on March 31 signed into law a bill that legalises recreational marijuana use-making New York the 15th state in the US to do so.
The bill's ‘social equity’ clause creates significant opportunity for small business owners and aspiring founders.
It recommends that 50% of cannabis licenses-go to minority-or women-owned businesses, distressed farmers, or service-disabled veterans.
The legal market's first year of sales could deliver at least $1 billion in sales, according to both published studies and internal projections from cannabis companies, with the potential to reach $4 billion by the end of the decade.
Companies: winners & losers
Companies to watch and share price movements
Coinbase: releases financials & direct listing set for 14 April (on NASDAQ)
Q1: Coinbase profit more than doubles 2020 profit (in total).
Q1: Revenue generated: $1.8bn vs $1.3bn (2020 total revenue)
The company has 56m verified users in Q1.
Investors regard Coinbase ‘fair value’ to range from $25bn to $150bn.
The company is expected to debut on 14 April under ticker COIN.
UK: Deliveroo shares slide (again) as data does not show evidence of short-selling
New data have cast doubt on attempts to blame short-sellers for Deliveroo’s disastrous initial public offering last month.
The stock price dropped more than 30% on the first day of trading. And the stock fell by another 10% on Friday.
Many observers now believe the deal was either badly timed or mis-priced by its joint global coordinators, Goldman Sachs and JPMorgan, missing last year’s tech stock growth spurt and overestimating London investors’ appetite for a loss-making business with growing regulatory challenges.
UK: Asos profits triple as pandemic boosts sales
Asos has more than tripled first half profits to a record £113m and raised full year expectations as the online retailer continues to prove to be a major winner during the pandemic:
Asos reported a 253% year-on-year increase in pre-tax profits to £106.4m in the six months to 28 February.
Total group revenues climbed 24% to £2bn.
Have You Seen This?
Female-focused news, reports, research, campaigns
Client survey reveals growing interest in ESG and responsible investing, especially among women
A recent client survey conducted by RBC Wealth Management shows that responsible investing, namely Environmental, Social and Governance (ESG), is gaining traction.
Client respondents who identified as women are more than twice as likely as men to say it is extremely important that the companies they invest in integrate ESG factors into their policies and decisions.
The survey also found that 74% of women were interested in increasing their share of ESG investments in their current portfolios and were significantly more likely than men to have an interest in learning more about ESG investing.
Know this: global research indicates that women (& millennials) are the driving force behind ESG or responsible investing. Whilst we know that women consider performance important, women tend to think more holistically about how to invest and therefore the wider impact this will have.
What We’re Tracking
Female and diversity-focused products or services, start-ups and businesses led by women/diverse founders, investment, research & crowdfunding campaigns.
Kim Kardashian: is officially a billionaire -thanks to the huge success of KKWBeauty & Skims:
KKWBeauty was reportedly bringing in about $100 million every year since its launch in 2017 and valued her company at $1bn when she sold a 20% equity stake. According to Forbes, the company is worth around $500 million on its own.
Kim launched her line of shapewear, Skims in 2019.
Last year, Skims pivoted to cosy loungewear and matching sets (due to the pandemic and lockdown), though the 'sculpting bra' and 'Fits Everybody range' have been the brand's latest viral successes.
Kim holds a majority stake in the company and Forbes estimates her ownership to be valued at $225m.
Coffee Break? Read This
Research: adding women to the C-Suite changes how companies think
Women reach 40 and hit their stride…only to be cruelly shoved aside at work
Women’s pain is routinely underestimated, and gender stereotypes are to blame
Stress from work and social interactions put women at higher coronary heart disease risk
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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