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MoneyWeek

MoneyWeek Issue 1004

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...

“An awful lot of people want an awful lot of things from the public purse this summer” An awful lot of people want an awful lot of things from the public purse this summer. The UK’s job-furlough scheme to run beyond October (that’s mostly Nicola Sturgeon). Some kind of “one-off final payment” to help workers in vulnerable sectors to find work. A new industrial strategy that offers tax incentives to growth businesses. Immediate tax breaks for start-ups. A new scheme to support directors of limited companies who (because they pay themselves via dividends) aren’t included in any other schemes. A bailout for actors (see page 12). A rise in out-of-work benefits for the newly unemployed. Yet more money for the still-failing NHS (see page 18). VAT cuts. National insurance holidays. Extra…

1 min.
will covid-19 end the triple-lock?

Chancellor Rishi Sunak is considering suspending the triple lock on increases in the state pension as it’s estimated it could cost the government up to £20bn in the wake of the coronavirus crisis, says Steven Swinford in The Times. The state pension bill is currently around £100bn. Ministers are concerned that pensioner incomes could rise by as much as a fifth in 2022 because of an “artificial dip” in wages caused by the government’s furlough scheme, which is currently paying nine million people 80% of their wages. Once it ends, average wages will increase sharply by comparison in 2021, forcing the Treasury to pay equally large increases to pensioners the following year. The policy was introduced by David Cameron in 2010, when the Conservatives committed to raising the state pension…

1 min.
good week for

Football fans rejoice, the Premier League is back this week as the season resumes after a three month coronavirus-driven pause. Fans on big screens, specific cameras for players to celebrate to and the option of artificial crowd noise are some of the “broadcast enhancements” being implemented, says Laura Scott on BBC Sport. Accountants Deloitte estimates the suspension has cost clubs £1bn in revenue, says The Guardian. Bosses at many FTSE-listed companies are back on full pay after taking a pay cut due to the pandemic’s effect on business, says the Financial Times. Foxtons, Persimmon, Severn Trent, Burberry and Bakkavor are among the companies to reinstate full salaries, a decision that has attracted scrutiny from investor groups and high-pay campaigners, “particularly after the UK revealed the largest drop in gross domestic product…

1 min.
bad week for

Prince Joachim of Belgium (pictured) was fined €10,400 by Spanish authorities for attending a lockdown party in the country after which he tested positive for Covid-19, says The Brussels Times. The 28-year-old prince was handed the maximum fine after he flew to Madrid and attended the party in Córdoba. Spanish authorities said he failed to observe the obligatory 14-day quarantine after arrival. The American beer industry stands to lose $800m to $1bn, as thousands of gallons have gone out of date during the coronavirus lockdown, says Naureen S. Malik on Bloomberg. Some firms plan to turn the leftover beer into natural gas for electricity production, or even into hand sanitiser, but much of it “will simply be decanted and dumped”.…

2 min.
stocks stumble – but bulls charge on

Stocks can go down as well up, says The New York Times. Markets have been rallying almost continuously since the March bottom, but last week brought a reminder that gains can quickly turn into losses. Global markets registered their worst day in months on Thursday, with America’s S&P 500 tumbling 5.9% and the Dow Jones index down 7%. The FTSE 100 shed almost 4%. Signs of a revival in Covid-19 are tempering the “exuberance”, says Randall Forsyth for Barron’s. Case numbers are rising in 20 US states and there are signs of a new outbreak in China (see page 11). Even this relentlessly optimistic rally would be unlikely to survive a second wave. Robinhood to the rescue Markets staged a patchy recovery during the first part of this week, but the pullback has…

1 min.
central banks top up the punch bowl yet again

The corporate bond market continues to deliver unlikely returns, writes Tom Howard in The Times. Investors rushed into blue-chip paper during lockdown and have since been richly rewarded. Intel’s $1bn 40-year bond has risen to nearly 145 cents on the dollar since it was sold in March. Another $1.25bn UPS bond is up to 140 cents on the dollar. For these instruments to deliver such large capital gains in such a short time frame is rare indeed. When markets plunged in March many feared that the overleveraged corporate debt sector would be at the centre of the fallout. But America’s Federal Reserve stepped in with unprecedented support, pledging to buy up to $750bn in corporate bonds. This week the Fed announced its first-ever purchases of individual corporate bonds. It had previously…