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News & Politics

MoneyWeek Issue 1022

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.

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United Kingdom
Dennis Publishing UK
51 Issues

in this issue

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

“UK stocks are now trading at their biggest discount to global equities in 40 years” Everyone wants the same thing out of an equity investment: the kind of longterm sustainable earnings growth that eventually turns into long-term income (see page 28 for one fund manager’s ideas on this). The problem is that if everyone wants the same thing, that thing is rarely cheap. But every now and then the markets chuck us a bone in the form of a group of perfectly good stocks going cheap. Right now the UK might be such a bone. UK stocks are trading at their biggest discount to global equities in 40 years (see page 5). This is partly to do with the composition of the market (lots of banks) but possibly more to do with…

1 min.
have we reached “peak” box set?

The boost Netflix saw from “lockdown life” has come to an end, says Anna Nicolaou in the Financial Times. The television streaming group added 2.2 million subscribers from July to the end of September, “well below the 16 million and ten million subscribers it added in the first and second quarters, respectively”. Netflix warned that the global economic recovery in 2021 would likely have an impact on new subscriber numbers, which the company expect to be lower in the first half of next year compared to 2020. Netflix shares slipped by more than 6% after the “tepid results”. To be fair, the company has repeatedly warned that its “coronavirus bump” was temporary, but its “rip-roaring results” had quietened sceptics. Another concern which will no doubt now re-emerge is that the…

1 min.
good week for

Kim Kardashian (pictured) settled a $6.1m lawsuit with her former bodyguard this week, whom she accused of failing to protect her during a robbery in 2016, says Jack Newman on MailOnline. Kardashian, 39, sued Pascal Duvier and his companies, Protect Security and Balali Investments Inc, for negligence after she was held at gunpoint in a Paris luxury rental apartment while robbers stole her jewellery. A pensioner, identified only as Mr S by the Financial Ombudsman Service, won back his £106,000 pension after losing it to “an infamous high-risk property scheme” ten years ago, says Jessica Beard in The Daily Telegraph. The 68-year-old lost the money after investing in Harlequin Property, a failed scheme to build villas in the Caribbean. His financial adviser was ordered to reimburse him after the ombudsman ruled…

1 min.
bad week for

James Dyson is selling his Singapore penthouse at a loss only one year after buying it, says the BBC. Dyson accepted an offer of S$62m (£35m) from US-based billionaire Leo Koguan, lower than the reported S$73.8m purchase price. Said to be Singapore’s largest flat, Dyson bought it last year after announcing he was moving his company’s headquarters to the country. An increase in requests by peer-to-peer lenders to withdraw their funds from the platforms has led to a huge backlog, with one saver being told her request is 19,050th in the queue, says Rupert Jones in The Guardian. “Billions of pounds” are tied up in the sector as investors rush to withdraw their cash from the illiquid investments.…

2 min.
china’s v-shaped stockmarket bounce

China was the first country into the Covid-19 crisis and is now the “first out”, writes Larry Elliott in The Guardian. The world’s second-biggest economy contracted by an annual 6.8% in the first three months of the year, but has since staged a V-shaped comeback. Official statistics show that GDP increased by 4.9% on the year in the third quarter. The International Monetary Fund (IMF) thinks China will grow by 1.9% in 2020, making it the only major economy set to expand. The debt question Industry continues to lead the recovery, says Bloomberg. Consumption for the first three quarters is still 7% down on the same period last year and “tourism, education and travel” lag behind other sectors. Yet the latest data shows that shoppers are starting to close that gap, with…

1 min.
us stocks don’t care who’s in the white house

“No stimulus, no problem,” say William Watts and Sunny Oh for MarketWatch.com. This week Democrats and Republicans continued to discuss another stimulus package, but the odds of any deal before the election looked increasingly remote. Nevertheless, bulls have decided that the American consumer can probably hold on until 2021 even without further help. Retail sales rose by 1.9% in September, the fifth straight month of gains. That news cheered the S&P 500, which continues to trade about 3% short of its early September highs. Benefits from the $2.2trn CARES act, America’s pandemic stimulus package, ebbed over the summer, but that has yet to curb the enthusiasm of American consumers. That is because many households have a financial cushion, says Nathaniel Meyersohn for CNN Business. The US personal savings rate hit the highest…