News & Politics

MoneyWeek Issue 967

There's a reason MoneyWeek is Britain's best-selling financial magazine. We exist to help you ground your portfolio so that it keeps your money safe during rough patches and growing in the good times. We don't just look at how to maximise your returns and limit your losses, we also like to look at how you can keep more of the money you've made. 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
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51 Issues

in this issue

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

“Is a mysterious cabal of financiers forcing Boris Johnson into a hard Brexit? Eh, no” Most of the questions surrounding Brexit are quite hard to answer. Is the backstop really so bad? Why can’t we just stick with EFTA? How can you have a border which has none of the normal mechanics of a border (see page 8)? What does Jeremy Corbyn actually want? If a majority of MPs really think Boris Johnson is unfit for office, why can’t we have an election? Will we ever actually be allowed to leave the EU? All tricky stuff. Good news, then, that there are a couple of questions we can give fairly definitive answers to. Here’s one for you. Is Boris Johnson being controlled by a mysterious cabal of international financiers working to force…

2 min.
legal victory of the week

Around 40,000 UK expats in Spain are celebrating after winning a legal victory that confirms the legal status of 327,000 homes in the southern region of Andalucia. Many had bought their villas in good faith, but fell victim to unscrupulous estate agents, says Graham Keeley in The Times. The villas turned out to have been built on rural land without planning permission, which rendered the properties worthless, as owners were unable to sell. Many of the homes were even threatened with demolition. The law was changed after the regional Socialist government, which had been in power for 36 years, was replaced by a coalition of the centre-right Popular Party of Andalucia and the liberal Citizens’ Party, backed by the far-right Vox Party. Good week for: Youth workers Jamie Cutteridge and James Fawcett…

2 min.
china at 70: a crucial turning point

After a remarkable four decades of “headlong growth” China is approaching a crucial turning point, say Louis Kuijs and Gary Duncan in the South China Morning Post. The country this week marked 70 years since Mao Zedong’s communists took power with a military parade in Beijing. For all the fuss about the trade war, China’s CSI 300 index is up by 28% so far this year, with investors reassured by official promises of “selective stimulus”. Yet with the economy registering its slowest growth in 27 years in the second quarter and total debt topping 300% of GDP, can the leadership keep the good times rolling? From Cultural Revolution to capitalism China’s Communist Party has now held on to power for one year more than the Soviet Union’s Communist Party did, notes Anna Fifield…

1 min.
will hong kong remain a major financial centre?

Protests in Hong Kong have overshadowed the festivities in Beijing, says Sebastian McCarthy in City A.M. Under the “one country, two systems” framework instituted after its return to China in 1997, Hong Kong has retained significant autonomy over its own affairs. Yet Beijing is increasingly undermining its freedoms. Over the last four months a quarter of the population has marched to demand the scrapping of a bill that would have allowed extradition to mainland courts, says The Economist. It was a “stunning vote of no confidence in China’s communist-controlled legal system”. The bill has now been withdrawn, but the wider pro-democracy movement it triggered remains vibrant. The unrest has cast doubt on whether the territory can retain its status as one the world’s pre-eminent financial hubs, says Jacky Wong in The Wall…

1 min.
us housing shows signs of life

America’s “sluggish housing market” seems to be “regaining its footing”, says Lucia Mutikani for Reuters. Housing starts and building permits soared to a 12-year high in August. New-home sales were up 7.1% from the previous month. Interest-rate cuts by the Federal Reserve, which feed through into lower mortgage rates, are boosting demand. A speculative bubble in US housing was at the heart of the 2007 sub-prime mortgage fiasco that preceded the global financial crisis. Zack Guzman on Yahoo Finance notes that between 1997 and 2005 the median US house price rocketed 75% in real terms, as measured by the S&P CoreLogic Case-Shiller index. House prices then fell 33% and hit a nadir in the early 2010s. Yet as economist Robert Shiller notes, between 2012 and 2018 US house price have regained…

1 min.

“Central bankers seem… flustered. Much like a long-haired Persian cat standing backwards to the wind…[it’s reminiscent] of 1927 when financial pressures where mounting following the late 1925 peak in the Florida real-estate boom, which was then devastated by the horrendous hurricane that arrived on 18 September 1926. With winds as high as 150mph, the property devastation if it hit today would be in the order of $250bn. This, with the brief recession that ran from October 1926 to November 1927, prompted the Fed… to be exceptionally easy. Indeed, in July 1927 Ben Strong, chairman of the Fed, quipped to a French central banker that he was going to provide “a coup de whiskey to the stockmarket.”… It was an example of the Fed’s ease for the wrong reasons during yet…