MoneyWeek 1073

MoneyWeek is a weekly magazine that enables you to become a better-informed, smarter investor and enjoy the rewards of managing your money with confidence. Week-in, week-out we'll guide you through the financial world as it changes, alerting you to all the opportunities to profit and dangers to avoid, as they appear. Income strategies, rising-star companies, the best funds and trusts, clever ways to preserve your wealth during market turmoil... you will get the best ideas from the sharpest financial minds and investing professionals in Britain.

United Kingdom
Dennis Publishing UK
SPECIAL: Save 20% on your subscription!
$8.06(Incl. tax)
$191.78$153.43(Incl. tax)
51 Issues

in this issue

3 min
from the editor-in-chief...

“Rising rates effectively reduce the value of future cash flows” Worried about living costs? You aren’t alone. A survey from Aviva suggests that 74% of adults are too. And for good reason. It looks like Covid-19 has somehow shifted us from an age of plenty into an age of shortages, where supply just can’t meet demand and inflation kicks off as a result. Ships can’t get into ports. No one can get their hands on semiconductors (this is why new cars are so expensive). And energy prices are soaring – gas prices have rocketed and oil is well above $80 a barrel. So what’s going on? Three things, says research group Gavekal. First, overconfidence in the data revolution. The “newfound ability to measure everything” encouraged firms and governments to “optimise” the delivery…

1 min
let-off of the week

Chinese food-delivery group Meituan has been fined RMB3.4bn (£390m) for abusing its dominant market position, says the Financial Times. Antitrust regulators said that it charged higher fees to restaurants that were not willing to sign exclusivity agreements and had taken RMB1.3bn in deposits from sellers to ensure they remained loyal. The firm was also criticised for underpaying delivery drivers and failing to provide them with benefits. However, the fine was less than expected, at 3% of 2020 earnings, and was seen as good news by analysts, who argued that Meituan will not have to make other changes that might erode its near-70% share of the food-delivery market. The firm’s shares rose 8% in Hong Kong after the announcement. Meituan – which operates in a similar way to Deliveroo and Uber…

1 min
good week for

Songwriter and former Miss UK Kirsty Bertarelli (pictured) has won the largest divorce settlement ever for a British-born spouse, receiving £350m after the end of her 21-year marriage to Italian biotech billionaire Ernesto Bertarelli, reports the Daily Mail. She has also been given a £52m mansion by Lake Geneva. David Card, Joshua Angrist and Guido Imbens have received the Nobel prize in economics for their work on natural experiments (situations in which people are subject to different policies). Their research includes an analysis of the jobs market in neighbouring US states that found a rise in the minimum wage did not undermine employment. The trio will share an award of 10m Swedish kronor (£840,000).…

1 min
bad week for

California resident Mauro Restrepo is seeking damages of $25,000 (£18,350) from a psychic who promised to remove a curse placed upon his marriage by an ex-girlfriend, says BBC News. Restrepo’s lawsuit claims Sophia Adams promised to lift the curse for $5,100, but that despite paying a deposit of $1,000, he continued to suffer anxiety, anguish and sleepless nights. A group of 1,300 Kenyan workers are filing a lawsuit in Scotland against British-owned tea plantation firm James Finlay, says The Times. The workers say they were paid as little as £1.50 per day for up to 12 hours’ labour, carrying heavy loads that caused permanent spinal injuries. The firm says that it will “thoroughly investigate” the allegations and that tea on its plantations is no longer picked yhand.…

2 min
india: the next global growth engine

“India’s equity market is on the cusp of overtaking” Britain’s, say Abhishek Vishnoi and Swetha Gopinath on Bloomberg. India’s market capitalisation stands at $3.46trn and has soared by 37% so far this year. The former British colony is fast closing in on the UK’s $3.59trn market value. The benchmark BSE Sensex has delivered an annualised return of 15% in dollar terms over the past five years, more than twice the FTSE 100. Equities boom The BSE Sensex has gained 26% since the start of the year. It surpassed the 60,000-level for the first time last month. The rally has been powered by a listings boom, says Dev Chatterjee in Nikkei Asia. “Companies as varied as edible oil sellers and hotel-booking apps” are jumping into the “Great Indian IPO [initial public offerings] Rush”. So…

1 min
world faces chilly winter as energy prices climb

Chinese thermal coal prices have hit a record high. Flooding in the country’s northern Shanxi province, a major coal producer, sent prices on the Zhengzhou Commodity Exchange to ¥1,408 (£161) a tonne on Monday, says Laura He for CNN. That was an all-time high and more than double where they started the year. “Energy shortages have spread to 20 Chinese provinces in recent weeks, forcing the government to ration electricity during peak hours”. In Europe gas prices have retreated from record highs set earlier this month, but Dutch wholesale prices are still up more than fivefold compared with a year ago. The gas crisis has revealed Europe’s dependence on imported gas, says David Sheppard in the Financial Times. Gas demand is concentrated in the winter months: “About 40% of total gas…