MoneyWeek 1074

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...

“The latest commodity we’re realising that we can’t cope without is magnesium” You can’t really escape from inflation right now. As Alex notes on page 6, the evidence now suggests that “inflation is definitely not transitory”. Energy prices are surging even as the government waffles on about ways to make heating our homes even more expensive and less efficient (anyone keen to swap their gas boiler for a heat pump? Thought not). The latest obscure commodity that we’ve realised the supply chain can’t do without is magnesium. Turns out that it’s not only a key ingredient in the aluminium alloys necessary to make almost any car, but that the supply is almost entirely monopolised by China. Finally, as Simon explains on page 18, we’re seeing an ongoing global labour shortage, which,…

1 min
literary hoax of the week

Fans of Spanish novelist Carmen Mola got a shock when they learned that she was a pen name used by a trio of male writers – Antonio Mercero, Jorge Díaz and Agustín Martínez (pictured, left to right) – says The Guardian. Mola’s ultra-violent thrillers had become hugely popular, helped in part by the author’s apparent identity as a mother of three and university professor who preferred to remain anonymous. But when Mola’s latest unpublished novel won the €1m (£845,000) Planeta prize last week (from Spain’s largest publisher), the truth was revealed. As well asthe cash – worth more than the Nobel prize for literature – the men won a contract for the new book, leaving their current publisher Penguin Random House for Planeta. Coverillustration: Howard McWilliam. Photos: Alamy; GettyImages;Phillips…

1 min
good week for:

Teenage artist Makenzy Beard (pictured) has been offered £10,000 for one of her paintings by Cardiff’s Blackwater Gallery, says BBC News. The 14-year-old Swansea-born prodigy began painting portraits as a lockdown hobby, but after posting her “contemporary realist” work on social media, she found instant success and has been exhibited at London’s Royal Academy of Arts. South Korean hit drama Squid Game has made an estimated $900m for Netflix since its debut this year, says The Daily Telegraph. The show features debt-saddled contestants competing in deadly games for a cash prize of 45.6bn won (£28.2m). Global audiences have so far spent a total of 1.4 billion hours watching the show, with roughly two-thirds of viewers finishing the series within its first 23 days on air.…

1 min
bad week for:

Ian Brackenbury Channell has lost his job as New Zealand’s official wizard, says BBC News. The 88-year-old, who was born in England, was hired in 1982 for NZ$16,000 (£8,300) a year by Christchurch council to promote the city via “acts of wizardry”, and proved an eccentric tourist attraction. However, his contract was repealed when the city decided to modernise its promotional strategy. Efforts in Colombia to control an unusual invasive species are proving costly and tricky, reports The Washington Post. The country has a population of at least 80 hippos, descended from one male and three females shipped in for drug lord Pablo Escobar’s private zoo in the 1980s. The hippos pose a threat both to humans and the environment, but locals oppose a cull, while it costs around $50,000 to…

2 min
inflation surge is definitely not transitory

“The inflation numbers are undeniable”, says John Authers on Bloomberg. US consumer prices rose by 5.4% year-on-year in September, a return to the 13-year highs seen in summer as the economy reopened. “There’s no longer [a] way to dismiss this inflation... as merely transitory”. US inflation stays hot US core inflation, a measure that strips out volatile food and energy prices, rose by 4% year-on-year. Inflation has been driven by a tight supply of goods such as microchips as well as shortages of workers (see page 18), says Neil Irwin in The New York Times. There are also reports of “shadow inflation”, where companies cut back on product ranges, or the size of goods (known as “shrinkflation”), instead of hiking prices. Policymakers have been betting that inflation will cool “substantially” over the coming…

1 min
china’s economy faces a triple shock

Can anything stop rising inflation? asks Daniel Moss on Bloomberg. How about a Chinese slowdown? The world’s second-biggest economy grew at a record 18.3% year-on-year in the first quarter of the year but has slowed sharply. GDP rose by an annual 4.9% in the third quarter, the slowest pace in a year and down from the 7.9% rate recorded between April and June, says Katie Silver for the BBC. Soaring commodity prices have seen many provinces impose electricity rationing, which is weighing on industries such as cement, steel and aluminium smelting. China’s benchmark CSI 300 stock index is down by 6.5% since the start of the year. A crackdown on debt in the property sector – highlighted by the woes of developer Evergrande – has also hit construction activity, says Martin…