MoneyWeek 1072

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...

“Is it really ethical to pursue an investment policy that damages living standards?” Energy prices are on the up everywhere. Here, wholesale natural gas prices have just hit record highs – up 100% in a month. In the US, petrol prices are at their highest for seven years. In China the government has begun to ration electricity. In India, coal supplies are so low (a few days’ worth) that power cuts are almost definitely on the way. It rather looks, says Gavekal research group, as if the world is “in the grip of a full-blown energy crisis”. There is lots to think about as a result. You might want to have a good look at just how diversified your portfolio is: energy crises have a history of opening the door to…

1 min
scandal of the week

Ozy Media, an online media firm founded by Carlos Watson (pictured) and Samir Rao is in crisis after Rao apparently impersonated a YouTube executive as part of an attempt to raise $40m from Goldman Sachs, says The New York Times. Rao reportedly pretended to be YouTube’s Alex Piper on a conference call in February, in order to reassure Goldman that Ozy’s videos were performing well. Ozy has raised more than $80m from investors, including philanthropist Laurene Powell Jobs and media group Axel Springer, since it was set up in 2013. However, the NYT claims that the firm has exaggerated its audience and may only have a fraction of its purported 50 million monthly users. A number of investors, advertisers, journalists and board members have since cut ties with Ozy. Watson…

1 min
good week for

Hair model Aashna Roy has won nearly Rs20m (£200,000) compensation for a botched trim at one of Delhi’s top salons in 2018, says The Sun. A consumer tribunal awarded her the substantial sum after hearing that Roy suffered a severe mental breakdown and loss of work when staff at the salon at the Maurya Sheraton Hotel cut her hair too short and damaged it with excess ammonia in a treatment. University professor and former Pfizer executive Andrew Hopkins has amassed a $539m paper fortune after his drug-discovery company Exscientia floated on Nasdaq last week in a $2.9bn initial public offering (IPO), says The Guardian. The firm, which was founded in 2012 at the University of Dundee, uses artificial intelligence to speed up the process of designing drugs and has formed partnerships…

1 min
bad week for

Billionaire Oleg Tinkov (pictured) has pleaded guilty to US tax fraud and will pay more than $500m in back taxes, interest and fines, says Bloomberg. Tinkov hid more than $1bn in assets and income when he renounced his US citizenship after the IPO of Tinkoff Credit Systems, Russia’s largest online bank, in 2013 – a year when he declared net income of $206,000 and net worth of $300,000. Employees of Goldman Sachs have lost their pandemic meal perks, says the Financial Times. The investment bank was giving free breakfasts, lunches and ice-creams to staff in London, but these were withdrawn last month “to encourage support of the local restaurants and businesses”, now that over 50% of staff have returned to the office.…

2 min
spectre of stagflation shakes stocks

“With price increases slamming economies from all directions,” markets are getting increasingly jumpy, says Susannah Streeter of Hargreaves Lansdown. Investors also fret that weakening macroeconomic data could herald a slowdown. No wonder that in recent weeks concerns about stagflation, the combination of economic stagnation and high inflation, “seem to have turned from niggling worries to an anxiety attack”. Markets have hit a wall America’s S&P 500 finished September down 4.8%, its worst month since the crash in March 2020. The selling continued into this week, with the technology-focused Nasdaq Composite tumbling by 2.1% on Monday. Highly-valued technology shares are particularly vulnerable to rising interest rates and bond yields (which make bonds more appealing relative to equities). The FTSE’s exposure to commodity stocks has spared it the worst of the sell-off: the index…

1 min
japan’s new prime minister rattles the markets

Investors appear unimpressed with Japan’s new leader. The ruling party has chosen Fumio Kishida to replace Yoshihide Suga as the head of the world’s third-biggest economy. Kishida was the continuity candidate. That means more loose fiscal and monetary policy, “decarbonisation, digitalisation” and the “promotion of free trade”, says Ma Tieying of DBS. The new government is preparing to launch yet another stimulus package, worth at least 5.5% of GDP. Happily, Covid-19 is back under control in Japan, with vaccination rates now exceeding those in the US. Japanese stocks rallied in September when Suga announced his resignation, say Toshiro Hasegawa and Gearoid Reidy on Bloomberg. There was hope that Japan could turn the page on a difficult year. It is a measure of just how “uninspiring” investors find Kishida that the benchmark…