News & Politics

MoneyWeek Issue 1011

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.

United Kingdom
Dennis Publishing UK
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R 85,25
R 2 367,31
51 Issues

in this issue

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

“The shortage of barbecues is a great reminder of how adaptable a people-driven economy is” I’ve been trying to get a new gas cylinder for my barbecue in Edinburgh. I can’t. I’ve been to every distributor in town –no luck. I’m sure I could get one if I ventured beyond the ring road but what with work, children, cooking and housework, I can’t devote any more time to Calor chasing. We are back to cooking inside for now (please don’t write in and suggest charcoal – I’m trying to make our life easier). This is maddening. But also slightly thrilling. It isn’t just gas that is in short supply, it is barbecues too. Look around and mostly you will see “sold out” signs. Capitalism will provide, of course (they’ll be back in…

1 min.
fundraiser of the week

Daisy Watt (pictured), aged just ten, has managed to raise around £50,000 for charity over the last four years, using her artistic talent, reports the Daily Mail. Daisy’s mother, Karen, spotted her daughter’s ability when Daisy, at the age of six, painted a garden scene for two of her grandparents, both of whom had been diagnosed with cancer. Mrs Watt asked Daisy if she would like to produce a second painting for a local gallery to auction off in aid of cancer charities. Daisy, who has been described as a “mini-Monet”, agreed, creating a landscape of forget-me-nots and other flowers. The painting was sold in 2017 for £9,500, attracting bidders from all over the world. Meanwhile, 100 special edition prints of the original, priced at £100 each, were snapped up by…

1 min.
good week for

Lockdown seems to have unlocked our collective creative streak – arts and crafts retailer Hobbycraft’s online sales have trebled during the pandemic. In the year to mid-February, online sales rose by just under 20%. But since branches were forced to close in late March, internet sales are up 200%, the group reported last week. Jadon Sancho, 20, could end up being one of the most highly valued players in football, as Manchester United close in on a deal to transfer the England international from German side Borussia Dortmund. Reportedly, the German team are asking for around £108m –£70m upfront, with the rest conditional on Sancho and United’s performances. Assuming the deal is done, Sancho will also enjoy a big increase in his current wage of £75,000 a week.…

1 min.
bad week for

Farmers are enduring a rising crime wave – the cost of rural crime across the UK rose sharply last year, as organised gangs target valuable farming equipment and livestock to sell on black markets. According to NFU Mutual’s annual report, thefts totalled £54m, up 9% on 2018. The cost of thefts of Land Rover Defenders, for example, rose by 31% from £7.4m to £9.3m. A Harley Street hair surgeon had to pay £9,000 to an unhappy client after a transplant went wrong. Opera singer Ivan Luptak claimed the £5,000, 11-hour surgery, conducted in 2015, left him with an “unreasonably asymmetric” hairline. Luptak and Rejuvenate Hair Clinics agreed a settlement of £45,000: £9,000 from surgeon Dr Luca De Fazio, £6,000 from the clinic, and £30,000 in legal costs.…

2 min.
us dollar ripe for sharp depreciation

Has the greenback reached a turning point? The US dollar index gained more than 10% between March 2018 and April 2020. The index measures the greenback’s value against a basket of six major trading partners’ currencies. Yet that trend has now gone into reverse, with the dollar falling by 4.4% in July, its worst monthly performance in nearly a decade. It is down by 9% from a mid-March high and has reached a two-year low. Debasement, debt and dodgy institutions The dollar’s reversal will have broad implications, says Amrith Ramkumar in The Wall Street Journal. The strong dollar was driven by US interest rates, which were higher than those on offer in Europe or Japan. That encouraged yield-hungry investors to park cash in dollar assets. Yet the US Federal Reserve has now…

1 min.
is the bond market wrong about inflation?

US GDP had its worst fall on record in the second quarter. It shrank by 9.5% from the previous quarter, a 32.9% slump in annualised terms. “That is... the equivalent of the first three years... of the Great Depression accelerated into just three months”, says Tim Price of Price Value Partners. GDP is a backward-looking indicator, but US weekly jobless claims have increased for two weeks running as the virus has forced renewed closures in southern states, says Alexandra Scaggs for Barron’s. The bond market is now sending a “warning signal” about the recovery, says Giles Coghlan on fxstreet.com. The yield on US ten-year Treasury bonds hit its lowest level since early March last week, while three- and five-year yields hit new record lows. Bond yields move inversely to prices, so…