MoneyWeek 1070

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
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51 Issues

in this issue

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

“We may be just at the start of a stunning information technology revolution right now” In this week’s podcast ( podcasts) I talk to Rob Arnott, the chair of Research Affiliates. We talked a good bit about the UK market. He is as convinced as we are that now with Brexit off the front pages (the gas shortage has nothing to do with Brexit – see page 14) and the UK’s Covid-19 strategy proving to have been more successful than one might have suspected last year, there is no good reason for our market to be trading at a 60% discount to the US market. We talked about the US market too – I wondered if it is possible that the valuation differential between the US and the UK might be…

1 min
novel tax payment of the week

Maya Ruiz-Picasso (pictured), 86, the daughter of artist Pablo Picasso and his muse and lover, Marie-Thérèse Walter, has handed over nine artworks by her father to the French state to help settle an inheritance tax bill, says John Reynolds in The Times. Among the six paintings is one entitled The child with the lollipop sitting under achair, said to depict Ruiz-Picasso as a girl. The oldest, a traditional portrait of Picasso’s father, José Ruiz y Blasco, is dated 1895, while the most recent, Head of a Man, was painted in 1971, two years before Picasso’s death, aged 91. The collection also comprises two sculptures and a sketchbook. While a value was not placed on the works at a ceremony in Paris on Monday, at which Bruno Le Maire, France’s finance…

1 min
good week for

Restaurant staff will be allowed to keep all their tips under a planned new law. Restaurant owners are currently prohibited from holding on to cash tips, but can keep tips given via plastic cards. This is estimated to cost individual staff an average of £2,000 a year, reports The Mail on Sunday. The state-owned British Business Bank has reported a pre-tax profit of £293.5m this year, compared with a loss of £2.1m last year, reports The Times. It made a 14.6% return on capital employed versus a target of just 0.1%. The bank, “probably the largest venture capital fund in the UK”, according to CEO Catherine Lewis La Torre, invests in promising tech businesses, such as fintech firms Revolut and Wise.…

1 min
bad week for

In the week that Victoria Beckham (pictured) was forced to slash prices on her clothing range in the hope of turning a profit, the ex-Spice Girl rushed to take action against aUS website that was selling “discounted” items under the banner “Beckham”, says The Daily Telegraph. The site’s co-founder claimed “harassment”, but the World Intellectual Property Organisation (Wipo) found in favour of Beckham, ordering that she be handed control of the website. Rare stamps dealer Stanley Gibbons has filed for Chapter 11 bankruptcy protection for its US business, Mallett, after a $1.3m rent row with Stella McCartney’s fashion brand, says The Times. The dealer had sublet ashop in Manhattan to McCartney, but when the fashion house shut the boutique last April, it also stopped paying rent. Stanley Gibbons, in turn, failed…

2 min
chinese property spooks global markets

“A wave of fear over Chinese economic growth swept through global markets on Monday,” say Narayanan Somasundaram and Jack Stone Truitt on Nikkei Asia. Markets dropped in Asia, Europe and the US, where the Dow Jones Industrial Average at one point fell 972 points (almost 3%) before paring losses to 1.8% before the close. Behind the bout of jitters lay the fate of Evergrande, China’s most indebted property developer, which is teetering on the brink of default (see page 7). An Evergrande bankruptcy would “amount to a financial tsunami”, says Caixin. The firm has ¥2trn (£227bn) in known liabilities (about 2% of China’s GDP), plus unknown amounts of off-book ones. Some analysts say it could be “China’s Lehman Brothers”, referring to the 2008 collapse of the US investment bank that helped…

1 min
xi’s crackdown spreads to macau and hong kong

“Recent crackdowns have proven that few sectors are safe from Beijing’s control,” says the FT’s Lex column. “No industry looks asvulnerable as Macau’s gambling market.” Shares in the territory’s casino operators fell sharply amid a regulatory review that may end up cutting the number of casino licences in the world’s largest gambling hub. “Should the new laws limit the number of licences below six, some operators could go out of business” when all current permits expire in June 2022. Even if that doesn’t happen, “it is clear that Macau will be more demanding than in past years”, says Katrina Hamlin on Breakingviews. Operators may face “unprecedented micromanagement, including state representatives scrutinising daily operations, and stricter oversight for junkets, which organise visits and credits for high rollers”. There’s even a suggestion that…