Weekly newsletter for women who want to be smart about money: financial news, personal finance and investing

Welcome to our #21 weekly newsletter in 2020.

Every week we curate key articles and content so you can stay informed and inspired about money and investing. And we spend hours sifting through content every week so you don’t have to.

We apply a female-lens to news and content about money and investing so that it is more meaningful to you.

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 2020 during Covid-19 and beyond.

If you’re short on time, listen to the editorial on audio for a brief overview.

“When we take control of our financial future we can live life on our terms”

-Jana Hlistova

Photo: August de Richelieu

From The Purse…

Editorial from the Founder

Global economies are slowly reopening as the pressure mounts to get ‘people working again’.

The global stock markets continue to be divorced from reality although the markets have been more cautious in May.

Investors consider: how fast will economies recover and what is the likelihood of new infections?

In April, Britain posted the largest budget deficit since records began and central government spending increased 57% whilst revenue fell 27%.

Inflation almost halved in April to 0.8% and unemployment is now at 2.1m. However things could get worse.

And for the first time the UK sold debt with a negative yield-which effectively means that investors are paying to lend to Britain.

The US is divided about a second $3tn stimulus package which would include handing out more $1,200 cheques as total unemployment reaches 38.6m Americans.

We spotlight what impact the coronavirus might have on inflation over the next ten years and what this means for your money.

And Chief, the US social network dedicated exclusively to women in professional leadership positions, has raised $15m in their most recent round of funding.

Overall, the pandemic is having a greater impact on women. More women are exposed to the coronavirus because they work in the healthcare and social care sector, more women have lost their job, and more women continue to shoulder the household, childcare and homeschooling burden.

Listen to the podcast by NPR in the Have You Seen This? section about how couples can balance household chores with Bridget Schulte, the director of the Better Life Lab.

Some good news: for the first time there are 37 female CEOs of Fortune 500 companies (US). Studies have shown that public companies with female CEOs or CFOs tend to be more profitable.

And if you have time, check out the TED talk about how to rebuild the global economy after the coronavirus.

Stay safe, take care of yourself and your loved ones.

I hope you enjoy this week’s newsletter. And until next week!

Jana

The Big Picture

Global markets and economy news, trends and indicators

The Coronavirus Effect:

* Germany and France have joined forces to push for a €500bn EU recovery fund.

* The fund would be raised by the European Commission borrowing on capital markets and would be used to support EU spending rather than loans to national governments.

* The member states currently do not agree on how the money should be made available ie as a grant or as a loan.

* US congress are divided over a second $3tn stimulus package as unemployment rises

* This includes another round of $1,200 means-tested “economic impact payments” for US adults earning up to $75,000 a year.

* Unemployment rose last week by 2.4m Americans; total unemployment is now 38.6m.

* Pandemic spending: Britain posted the largest budget deficit since records began. The deficit was at £62.1bn in April. Central government spending has increased 57% while revenue plunged 27%.

* UK inflation has nearly halved to 0.8%. In the Eurozone, the drop was from 0.7% to 0.3% last month

* In both cases inflation fell due to the decline in the price of petrol and discounting of certain items, not food.

* UK suffers a record fall in the month of April

* According to the Office of National Statistics, retail sales fell by 18.1% (compared to last month) and 22.6% (compared to last year).

* However online sales rose by 18% compared to last month; increasing the proportion spent online to 30.7%.

* The slow recovering and shift to online spending is likely to put a lot of high street shops at risk.

* UK’s unemployment benefit claimants rise by 69% in April

* According to the Office of National Statistics (ONS), 2.1m are now claiming Jobseeker's Allowance and Universal Credit.

* Labour market experts expect to see the unemployment rate to rise to 8% in the next few months.

* However, without the wage subsidies covering 8m workers who have been furloughed, unemployment could jump to 20%.

* UK 5 year bond yields turned negative. The rally sent the yield to a record low

* This means that investors who hold the bond to maturity will get slightly less than they paid. Investors pay to lend to Britain.

* Borrowing at negative interest rates is also a sign investors expect further economic stimulus from the Bank of England (BoE).

* This was also described as a ‘symbolic moment’ as investors become accustomed to negative yields on bonds around the world.

* Negative interest rates and quantitative easing (printing money) could weaken the pound/currency.

* Bitcoin price drop to $8.9K raising fear of a new bear market trend

* Since the second week of March, the price of Bitcoin recovered strongly from $3,600 to over $10,000.

Looking Ahead in 2020

* There are 6 reasons why the stock market is divorced from reality, according to the Bank of America, chief investment strategist (US/global)

* Central banks have deployed a total of around $4 trillion of asset purchases over the past eight weeks and the global equity market cap has surged by $15 trillion.

* Fake markets: the government and corporate bond prices have been fixed by central banks. Why would you expect to see stock prices rise rationally?

* Instead of looking at the $15 trillion market-cap growth, the global stock market rally should be viewed in context of the $30 trillion collapse between February and March.

* Most global stocks remain in bear market ie 20% or more below their all-time highs.

* The current rally is polarised: it is highly concentrated in growth-focused US technology stocks and "FAAMG" (Facebook, Apple, Amazon, Microsoft, and Google).

* Investors are positioned bearish as most expect a ‘U’ or ‘W’ recovery.

* Policymakers are causing an ‘immoral hazard’ forcing investors to buy, banks to lend, and corporate zombies to issue debt this year.

* UK angels are still investing during lockdown, but startup founders have to be quick

* According to a survey the pandemic has reduced angels’ total capital to invest in 2020 by just over 61%.

* Just under 60% think the effects of COVID-19 will negatively affect their ability to invest for the rest of 2020.

* JK Rowling, the author of Harry Potter, dives into the world of crypto and bitcoin and the Twitter community respond, including Elon Musk:

Coronavirus Impact: Your Money

Insights, trends and what this means for you and your money

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Britain posted the largest budget deficit since records began, how will Covid-19 impact inflation and your money, and how can couples better balance household chores

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