ZINIO logo

MoneyWeek Issue 1018

Add to favorites

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.

Read More
United Kingdom
Dennis Publishing UK
51 Issues

in this issue

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

“Private equity might offer outsize returns – but mostly only for the managers” Listen to financial experts at the moment and you will regularly be told that you need a large part of your portfolio in alternative assets – and that one of the best is private equity. All the real growth in the corporate world is here – so your money should be too. The first bit may be true: listings are picking up now (see page 7) but good growth companies have been staying private longer than in the past. However, the second is not. The vast fees charged by private equity (think 6%-7% a year with performance fees, says Jonathan Ford in the Financial Times) tend to gobble any growth there is. There may be outsize returns on…

1 min.
loser of the week

Street artist Banksy lost a battle with a greetings card company over the trademark of one of his most famous works, says the BBC. Yorkshire-based Full Colour Black challenged Banksy’s right to trademark his painting of aprotester throwing a bunch of flowers. The European Union Intellectual Property Office (EUIPO) threw out Banksy’s trademark, accusing him of being “inconsistent with honest practices” when trying to protect the famous image he spray painted in Bethlehem in 2005. The authority said Bansky had filed the trademark to avoid using copyright law instead, which would have required the “famously elusive” Bristolian to reveal his identity. The EUIPO added it was clear that Banksy “did not have any intention” of using the trademark but instead wanted to “circumvent the law”. Bansky’s decision to remain anonymous…

1 min.
good week for:

Bryson DeChambeau (pictured) won his first US Open last week, receiving $2.25m in prize money, says Jessica Marksbury in Golf. The 27-year-old’s win comes after he decided to bulk up, putting on 20lbs in an effort to win his first major, adds the BBC. Staff at insurer Admiral received a £10m present as a thank you from chief executive David Stevens to mark his retirement, says the BBC. Full-time workers at the Cardiff-based firm will receive £1,000, while part-timers will get £500 asa farewell gift. He said he was “proud and fortunate” to work with his staff, adding that their hard work had seen Admiral “grow from a start-up to over 11,000 staff worldwide”.…

1 min.
bad week for:

A Chinese stamp collector had £400m-worth of rare items stolen in a burglary in Hong Kong “believed to be one of the largest ever recorded”, says Richard Lloyd Parry in The Times. The memorabilia –including calligraphy by Chairman Mao – date back to the Chinese revolutionary period and were stolen from philatelist Fu Chunxiao’s flat. Fu said the items were “invaluable”, calling the burglary a “huge blow”. Two burglars were captured on camera, but there have been no arrests yet. Canadian police suspect that a“sophisticated” network of criminals is targeting transport firms across the country, after seven hot tubs and C$230,000 (£134,000) worth of beef were stolen “in a brazen daylight theft”, says Leyland Cecco in The Guardian. The thieves stole the hot tubs, valued at over C$150,000 (£88,000), by turning…

2 min.
markets wobble on second-wave fears

The eyes of global investors were trained on London this week, but not for good reasons. Speculation about a new lockdown in Britain saw the FTSE 100 slide 3.4% on Monday, its worst one-day loss since June. The drop wiped £52bn off the value of British companies. Concern about a second wave of the pandemic in Spain and France also hit European bourses, with Germany’s Dax falling 4.6% on Monday. The FTSE remained volatile the following day but finished higher as Boris Johnson announced milder measures than many had feared. Markets were already feeling woozy before this week’s new pandemic restrictions, says Rupert Thompson of wealth manager Kingswood. Global equities ended last week down 4.5% from their early September highs. “Central banks have now spent most of their ammunition,” but politicians…

1 min.
tech shows why it’s the new safe haven

US technology giants are now behaving like a defensive investment, says John Authers on Bloomberg. While global stockmarkets tanked at the start of this week, high-flying companies such as Apple and Amazon gained again. That goes to show that the tech pullback that rattled investors earlier this month was a sign of bullishness, not bearishness, says Authers. Growing confidence about economic reopening and hope that a vaccine will deliver us from the pandemic sparked a shift into sectors such as banks that are likely to benefit. This week’s second wave fears undid that, sending them fleeing back into tech. With an “entrenched competitive position” and “relative immunity” to pandemic disruption, technology has become the equity investor’s safe-haven of choice. This year’s tech rally has drawn comparison with the heady years of the…