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MoneyWeek 1041

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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.

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United Kingdom
Dennis Publishing UK
51 Issues

in this issue

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

“The public markets are vital to wealth creation – we should make listing easier” On 1 March 2021 a new firm registered with the US Securities and Exchange Commission to list its shares. It is called Do It Again Corp. (yes, really) and has been formed “for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganisation or similar business combination with one or more businesses”. It is basically raising lots of cash to do – well, something – something you will find out about later. If this reminds you of the (unverified) story of the company floated during the South Sea Bubble to carry out an undertaking “of great advantage but no one to know what it is”, you won’t be alone. There is much concern that…

1 min.
court case of the week

Rodney Whiston-Dew, a former lawyer currently serving a ten-year prison sentence for “cheating the taxman”, is being sued by former client Baroness Jacqueline van Zuylen (pictured, left, with daughter Allegra) for allegedly swindling her out of more than £2m, writes Jonathan Ames in The Times. The Baroness told the High Court that Whiston-Dew, 70, had persuaded her to invest in a Seychelles-based trust in 2011 and 2012, but that she never saw her money again. Whiston-Dew was jailed in 2017 for being one of “five Eton and Oxbridge-educated businessmen who conned celebrities and others” into putting millions into a fake “green” investment scheme. In 2019, he was ordered to pay back more than £3m or face having his sentence extended. Van Zuylen, who court papers describe as “financially unsophisticated”, will…

1 min.
good week for

Billionaire hedge-fund manager Sir Chris Hohn was paid a record £343m after a year of soaring profits at his Children’s Investment Fund, say James Hurley and Dominic Walsh in The Times. Equivalent to £940,000 a day, it’s thought to be the highest amount ever paid to an individual in Britain. Hohn is one of the UK’s biggest taxpayers, paying around £58m in tax last year. A woman walking along the beach in Thailand after a rainstorm found a lump of “whale vomit” worth almost £190,000, says Sam Baker on Mailonline. Siriporn Niamrin and her neighbours confirmed that the “oval-shaped find” was a 12-inch wide, 24-inch long, 15lb chunk of ambergris, a rare ingredient used in the perfume industry. If verified by experts, its estimated value will be £186,500.…

1 min.
bad week for

Ann Herbert, the general manager of Nike’s North American division, resigned after a Bloomberg investigation found that her 19-year-old son had used a credit card in her name to buy $100,000-worth of limited-edition trainers to flip them for a profit from his reseller business, West Coast Streetwear, reports Lauren Thomas on CNBC. She had been at the company for over 25 years. Reality TV star Molly-Mae Hague (pictured) ofLove Island fame has “fallen foul” of the UK’s advertising watchdog after she ran an £8,000 prize draw on Instagram that “failed to prove that winners had been randomly and fairly picked”, reports the BBC. Hague has previously been pulled up by the regulator for failing to make clear that one of her posts was an advertisement for an online clothes shop.…

2 min.
the inflation scare is far from over

Is inflation a “tiger” or a “pussycat”? asks Gurpreet Narwan in The Times. Andy Haldane, the chief economist at the Bank of England, has warned that UK consumer price inflation will soon spike from its current level of 0.7% as the economy reopens. Haldane likened inflation to a “tiger” that has been “stirred by the extraordinary events… of the past 12 months”. It could prove “difficult to tame”. Not all of his colleagues agree. Deputy governor Dave Ramsden notes that UK inflation expectations (as measured by surveys) remain “well anchored” for now. Bond markets totter Concern about a more inflationary outlook rocked global bond markets last week. As bond prices fell, the US ten-year Treasury bond yield spiked towards 1.6%, a significant rise from the 0.9% level at which it started the…

1 min.
will oil reach $100 a barrel again?

Brent crude has gained 23% to around $64 a barrel this year. Its gains have already surpassed the most bullish of forecasts, says Avi Salzman for Barron’s. Bank of America thinks crude will hit $100 a barrel “from time to time” over the next five years. Before 2014 crude regularly traded above $100. That era ended when US shale drillers began to pour millions of new barrels onto global markets. There are two key factors currently capping oil below $100 a barrel. First, energy cartel Opec and ally Russia are currently withholding about seven million barrels per day (mbpd) of production to prop up prices; economic recovery this year will cause them to turn on the taps and flood the market. Second, the green-energy transition means that some analysts think the…