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MoneyWeek

MoneyWeek Issue 1000

There's a reason MoneyWeek is Britain's best-selling financial magazine. We exist to help you ground your portfolio so that it keeps your money safe during rough patches and growing in the good times. We don't just look at how to maximise your returns and limit your losses, we also like to look at how you can keep more of the money you've made. 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.

Country:
United Kingdom
Language:
English
Publisher:
Dennis Publishing UK
Frequency:
Weekly
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51 Issues

in this issue

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

“Welcome to our 1,000th issue – and a big thank you to all of our subscribers” Welcome to the 1,000th issue of MoneyWeek (and the tenth done from home!). It’s been quite a ride. We’ve seen a few bear markets. We’ve seen emergency monetary (and now fiscal) policy seemingly change the way markets work completely (see Andrew’s analysis of this madness on page 6). We’ve watched the integration of China into the global economy; been front-row spectators as a 30-year interest rate and inflation cycle has played out; dipped in and out of a couple of commodity bull markets (see page 5 – time to buy again?); and seen technology transform our investing and personal lives along the way. We have also gathered quite a few readers. The main thing to say…

1 min.
ego of the week

Business magnate Masayoshi Son’s (pictured) technology conglomerate SoftBank reported a $13bn annual loss on Monday, as key investments it holds in the ride-sharing and hotel industries through its $100bn Vision Fund, struggled due to the measures taken globally to tackle the Covid-19 crisis, say Robert Smith and Kana Inagaki in the Financial Times. The 62-year-old founder compared himself to Jesus Christ while defending his investment strategy, reportedly saying that “Jesus was also misunderstood” as he set out his plans to weather the current crisis. Son has in the past quoted Yoda from the Star Wars films, urging investors to “listen to the Force”, and also suggested that the Beatles had not been “popular when they first started” out. SoftBank has announced that it may not be paying its annual dividend…

1 min.
good week for

Singer Rihanna (pictured) is en route to becoming Britain’s first billionaire musician – assuming she stays here. The 32 year-old moved to the UK last year, propelling her into the upper echelons of the Rich List, which estimates her wealth at £468m, says Jonathan Dean in The Sunday Times. Though she hasn’t released music since 2016, the singer’s successful cosmetics brand, Fenty Beauty, has earned her a reported £351.6m since its launch in 2017. The first quarter of 2020 was relatively quiet for most industries, but Sony Music posted its fourth billion-dollar quarter in a row, says Tim Ingham in Music Business Worldwide. Music revenues rose 13.5% year-on-year to $1.074bn in total, with streaming revenues up 27.4% to $641.7m, and physical music revenues up 10.9% to $196.3m.…

1 min.
bad week for

US investor Warren Buffet appears to have fallen foul of a £575m case of fraud, says Philip Oltermann in The Guardian. In 2017 a unit of Buffett’s Berkshire Hathaway bought German steel manufacturer Wilhelm Schulz for €800m, but a tip-off revealed that the German firm was at risk of bankruptcy, and worth no more than €157m. The company had allegedly inflated its value by creating fake orders and invoices, although the former owners deny the allegations. The company has since been asked to pay back the difference between the new valuation and the purchase price. US Retailer JC Penney has filed for Chapter 11 bankruptcy, says Emily Crane on DailyMail.co.uk. The retailer will be closing nearly 200 of its 846 stores as part of the restructuring. The 118-year-old department store has…

2 min.
us stocks should brace for bad news

“Investors have rightly overlooked the dismal economic data released in recent weeks,” says Jon Sindreu in The Wall Street Journal. It’s been impossible to determine how bad this recession is likely to be, since – unlike the global financial crisis of 2007-2009 – it’s entirely due to factors outside the economy. So once the “widespread panic” of the “fastest bear market in history” had run its course, investors have mostly just tried to price in the direct impact of the shutdowns. That’s been bad news for airlines – down 65% in the US this year – but good for technology companies that benefit from the rise in online shopping and remote working. “Now, though, the news is starting to become more meaningful.” A growing number of firms, such as vehicle manufacturers…

1 min.
the fed’s backstop keeps the bond market afloat

Corporate bonds have begun to recover their poise, says Marcus Ashworth on Bloomberg. High-yield credit spreads – the gap between yields on government bonds and those of riskier debt –are still double what they were before the crisis. “But almost half of the widening from the early days of the coronavirus lockdown has been reversed.” That’s partly because investors remain desperate for yield. However, sentiment was also buoyed by the US Federal Reserve’s announcement back in March that it would buy corporate bonds. This backstop, which finally started last week, may not cost the central bank very much, says Kate Duguid on Reuters: in the first two days it bought just $305m (through bond exchange traded funds) – trivial given that firms issued $58bn in investment-grade bonds and $11bn in high-yield…