MoneyWeek 1064

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
51 Issues

in this issue

3 min
from the executive editor...

“Why did the US come off the gold standard? Because it wanted to, and because it could” This Sunday marks the 50th anniversary of a momentous occasion in financial and monetary history. On 15 August, 1971, then-US president Richard Nixon “temporarily” suspended the convertibility of the US dollar into gold bullion. Less than two years later, the US had entirely abandoned the gold standard. The global monetary system was no longer backed by gold in any shape or form. I look at what happened in more detail – and whether our current “US dollar standard” system can survive on page 13. But there’s a key lesson for investors worth emphasising. Gold felt like an essential component of the monetary system until it wasn’t. In my experience, a surprising number of people still…

1 min
lawsuit of the week

The ex-lover of Tiger Woods is being sued by the golfer after she broke an $8m non-disclosure agreement that prevented her from speaking publicly about him, says Alistair Dawber in The Times. Rachel Uchitel signed the 30-page agreement in 2009 after she had an affair with the then-married Woods (pictured). The deal was worth around £4.8m, to be paid in instalments over three years. However, she took part in the HBO documentary Tiger, about the golfer’s life, and filed for bankruptcy shortly after, having spent what she received from Woods on an Upper East Side apartment in New York, lawyers, and other fees. Woods’ lawyers are challenging her bankruptcy to take her to court for her violation of the deal.…

1 min
good week for

Latvian worker Albina Sokolova was awarded £10,800 in compensation after her employer demanded she only speak English to her Eastern European colleagues instead of her native language, says Richard Percival in the Daily Express. Sokolova took fruit and nut supplier Humdinger to an employment tribunal and won on the grounds the request was a form of discrimination. She had worked there for over ten years. North Devon Hospice looks set to receive a huge donation thanks to an 11-year-old boy who has been camping in his garden for more than 500 nights since last March, writes Steven Morris in The Guardian. Max Woosey’s fund-raising marathon began when he realised how much the hospice had helped people in his community. He has raised £640,000, more than half of what the hospice estimates…

1 min
bad week for

High street chains are charging in-branch shoppers up to double the price for products that they also sell online, says Louise Eccles in The Times. For example, Nadiya Bakes, a cookbook by celebrity chef Nadiya Hussain (pictured), costs £22 in WHSmith shops, versus £11 online. Retail experts argue that shops have to compete with Amazon online. McDonald’s is being sued in Russia by a devout Christian woman who claims she was “seduced by an advert for a cheeseburger” into breaking her fast over lent, says Tom Williams in Metro. Ksenia Ovchinnikova is seeking compensation of 1,000 roubles (around £10), claiming that the fast food chain’s marketing violated her “consumer rights”.…

2 min
us stocks ignore stellar earnings growth

American companies are posting “stellar results”, but the stockmarket has reacted with a shrug, says Patrick Mathurin in the Financial Times. Most have now reported their second-quarter earnings. The April-to-June quarter marked the peak of the reopening boom; the world’s biggest economy grew at an annualised rate of 6.5% as restrictions were lifted and consumers spent their government-funded stimulus cheques. Corporate America counts its cash Profits at 87% of firms have beaten analysts’ forecasts so far, says Karen Langley in The Wall Street Journal. That is the highest level of “earnings beats” in more than a decade. At the start of April, Wall Street analysts thought that second-quarter earnings would grow by 53% compared with a year before. That figure now looks closer to 90%. Companies have proven adept at “growing their sales…

1 min
emerging asia: the new epicentre of the pandemic

Southeast Asia is now the epicentre of the Covid-19 pandemic, say Michael Heath and Karen Leigh on Bloomberg. The region recently overtook Latin America as the area with the biggest weekly death rate. Indonesia’s death toll has already topped 100,000. Singapore, “the prosperous city-state at the heart” of the region, has been forced to ditch its zero-Covid-19 target in favour of learning to live with the virus. The city’s FTSE Straits Times Index has been treading water since the spring. The Thai SET stock index is down by more than 1.5% over the past month. Indonesia’s IDX Composite index has declined so far this year. The region’s lockdowns are putting new pressure on already-stretched global supply chains. “From Vietnam to Thailand”, key manufacturing sites are under pressure, say Heath and Leigh.…