Welcome to our #258 weekly newsletter.

“For women taking control of their financial future”

-Jana Hlistova

From The Purse

In this week’s newsletter, we highlight the key findings from the latest Pipeline report: “Women Count”.

Female representation on FTSE 350 executive committees has declined from 33% to 32% in 2024.

So what are the implications on businesses and investors? And what are the solutions? Read on..

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And you can review the news in brief so you stay on top of global financial, economic and investing trends.

I hope you enjoy this week’s newsletter.

Until next week,

Jana

FTSE 350 Women in Leadership: A Step Back in 2024

The latest "Women Count" report by Pipeline reveals a concerning trend in gender diversity among FTSE 350 companies, with implications for investors and company performance.

The report emphasises how men continue to predominate in leadership jobs even though women make up 50%+ of the workforce in the UK.

There is no room for complacency: businesses that prioritise gender equity have a 60% higher chance of experiencing increased productivity and profits.

Key findings

Female representation on FTSE 350 executive committees has declined from 33% to 32% in 2024. This setback is particularly notable in key leadership positions:

* Only 9% of CEOs are women. The figure has hardly changed in the past eight years.

* 18% of CFO roles are held by women. This is despite making up 44% of chartered accountants.

* A mere 19% of commercial boardroom positions are occupied by women. These roles are really important stepping stones to CEO and CFO positions— filled by women.

The Pipeline chair Professor Geeta Nargund has said:

“Female leadership is good for business. Organisations which are performing the best in terms of gender parity are 22 per cent more likely to have improved profits versus those that perform the worst. Gender parity means economic prosperity, and so fair representation is not just a ‘nice to have’ or a tick-box exercise – it is a business imperative…”

Implications for lack of gender parity

* Performance concerns: research consistently shows that companies with diverse leadership teams tend to outperform their less diverse counterparts. This decline may signal potential underperformance for affected companies.

* Risk management: lack of diversity can lead to groupthink and poor decision-making, potentially increasing investment risks.

* ESG considerations: as Environmental, Social, and Governance (ESG) factors become increasingly important to investors, companies with declining gender diversity may face scrutiny and potential divestment.

* Long-term value: the stagnation in female CEO representation (only increasing twice in eight years) suggests a systemic issue that could impact long-term value creation.

So what are the solutions?

Business leaders must actively demonstrate personal commitment to gender parity and link gender diversity to business strategy. Women must be sponsored and promoted to senior positions.

Company culture should accommodate women’s life and health changes. And robust and clear data must be captured to track progress and hold leaders accountable.

The recruitment process must be improved and high-performing women developed as part of a talent programme.

And whilst mentorship and sponsorship programmes are important, specific targets for female representation need to be set, and linked to performance.

Workplace policies need to improve and greater focus being given to increasing the number of women in in profit and loss-accountable roles.

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It's crucial to recognise that gender diversity is not just a social issue but a key indicator of a company's ability to innovate, adapt, and perform in an increasingly complex business environment.

The decline reported by Pipeline should serve as a wake-up call for both companies and investors to redouble efforts in promoting women to leadership positions.

News in Brief

Financial news

* Global public debt to pass $100tn this year, IMF warns. “Risks to the debt outlook are heavily tilted to the upside”.

* S&P 500 bulls drive the longest weekly winning streak in 2024. On the 37th anniversary of the “Black Monday” market crash, the S&P 500 is up for the sixth straight week.

* Assets in US money market funds have hit a fresh ATH at $6.5tn, although the relevant Fed Funds Rates have fallen and are likely to fall further.

* Gold tops $2,700 for the first time to extend its record-breaking run. It is now up 31% YTD and on course for its best year since 1979.

* China’s $562bn loan push for unfinished homes disappoints as Chinese home prices in worst slump on record.

* Euro drops on dovish rate cut. ECB says inflation may reach 2% sooner than previously thought. Lagarde says economy somewhat weaker than expected.

* ECB cut the key rates by 25bps as expected. Depo rate to 3.25%, Main Refi to 3.4%.

* UK employer national insurance hike threatens jobs and pay rises, firms warn.

* Pay growth in Great Britain falls below 5%, making interest rate cut more likely. Gap between wages and inflation narrows in August, as UK unemployment rate dips to 4%.

Crypto: bitcoin, ethereum, DeFi

* Bitcoin's price has also risen by 8.33%+ in the past week. The current price is $68,374.22 per BTC

* US spot bitcoin ETFs reach highest recorded total asset value after six-day inflow streak.

* US SEC gives green light for options listing for spot bitcoin ETFs to NYSE.

* ETH held in accumulation wallets jumps 65% since the start of 2024. A crypto analyst highlighted a 65% increase in Ethereum held in accumulation wallets since the start of 2024, arguing that it's no longer just for "tech enthusiasts."

* SEC doubles down on allegations against Solana in amended Binance lawsuit.

* BlackRock pitches Binance, OKX and Deribit on using its BUIDL token for derivatives trading.

* DeFi can complement centralised financial systems, says Federal Reserve's Christopher Waller.

* Kamala Harris crypto regulation plans spark criticism—but also optimism.

Coffee Break? Read This

* Do you want kids? It’s finally OK to simply say no

* The 7 types of people you need in your life to be resilient

* Guilt, worry, resentment: how the ‘club sandwich’ generation juggles caring for parents, children and grandparents.

We’d love to hear from you. Get in touch with Jana via the The Purse ...