MARKETS P4 PROFILE P29 PLUS Will the The economist fi A roaring trade US dollar shaking up in rare rum keep fall f John Lewis (ime | COMLECTABLES P35 MoNEYWEEK MAKE IT, KEEP IT, SPEND IT CE ei ee CMU m ele ea aeRO MU econ (wy, BRITAIN’S BEST-SELLING FINANCIAL MAGAZINE MONEYWEEK.COM.Siete eal Trade the next big thing Seek d acter euch uit nue tees get exposure to the emerging trends shaping business with low holding fees and zero commission. Ome lncexeolit) Start trading (ei WT ei cd eee Reith kegs FX Indices | Cryptos | Commodities | Shares Re a mplex instruments an with a high risk of lo: rapidly due 79% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should der wi you understand pread bets an: rk and whether you can afford to take the high risk of losing your money.7 August 2020 | Issue 1011 MoNEYWEEK 's best-selling financi From the editor-in-chief... Pye been trying rogetanew gas cylinder for iy barbecue in Edinburgh. Lean, Pe been to every Gistriburorin town no luck. Fm sure Lcould get oneif I ventured beyond the ring road but what with work, children, cooking and housework, leant devote Any more time to Calor chasing. We are back to cooking inside for, now (please don't write in and suggestcharcoal—'m trying to | make out life easier This is maddening, But also slightly tilling, Iesne just ‘gas that is in shore supply itis barbecues too. Look around and mostly you will se “sold out” signs. Capitalism will provide, of course (they'l be back in stock soon), but in the meantime think of itasa brillane reminder of how adaprable 4 people-driven economy is, We aren't mad for inside or abroad. So we have replaced them with a gasin'garden combo at home and abit of staycationing (which may also account for July’s 11% year-on-year risein new car sales~see page 11). "The UK will needa lot more ofthis flexibility. Theres more coronavirus ‘chaos to come (note the new lockdown, in Aberdeen, which rather detracts from Nicola Sturgeon’s not quite-true pater about Scotland having no Covid-19 deaths) Burthere are bigger things afoot too. Here stunner of a statistic, taken from The New Long Life by Andrew Scott and Lynda Gratton (see moneyweek.com for our Fundraiser of the week Daisy Watt (pictured), jedjust ten, has managed to rise ‘around £50,000 for charity over the ast four years, using her artistic talent, reports Spotted her daughter's 'ywhen Daisy, at garden scene fortwo ‘of her grandparents, both of whom had been diagnosed with cancer. ‘Mrs Wat asked Daisy ifshe would keto produce a second painting for: flowers. The painting was sold in 2017 for £9,500, ‘attracting bidders from all over the world. Meanwhile, 100 special edition prints ofthe original, priced at £10 ‘snapped up by buyers asfar afield Hong Kong, Daley's recent works include a daisy rainbow, featured on cards sold to raise funds forthe NHS. rmoneyweek.com “The shortage of barbecues is a great reminder of bow adaptable a people-driven economy is” ‘upcoming podcast with Scott) The UK's population has never been older (we are “obviously an ageing society). But we have also never been younger ~ thanks to the fall inthe average mortality rate, “the average British person has never had so long to live”, Ikisthis tend we mast adapt to, ‘There are small signs that we are getting, to grips withthe fact that the age at which ‘one is old has changed ~ ehink the removal of the automatic right toa free TV licence at 75 (see page 26). Bur there are bigger ‘ones too, Lockdown has driven some early retirement (also page 26), but this won't be along-ferm trend. The latest official data shows a major shift in people’ retirement expectations ~ 75% of us expect to retire later than 66 and we are all thinking hard about how our extra years should be used. ‘The shifein expected retitement dates is not just about the knowledge that more Good week fo cof us can play useful roles in the workplace for longer. I's also about the knowledge that we haveall those years to finance ina low-return world, Thisis wonderful, but challengin Temeans changing the way wellook at our long-term investments and being lor more aware ofthe dynamics driving them than in the past. TIemeans thinking about sustainable income generation, rather than just dividends when we build portfolios (consider this week's sharp cut to BP's payout ~ page 7). Iemeans regular rebalancing co keep the risks of capital losses lower. IF you hold lot of US tech (page 21), might ‘there be something we have seen before fan asset bubble) brewing? Might now be the time to switch to more of a European bias? Max reckons the new dealin the European ‘Union (seepage 18) —aclear step on the uneasy path towards fiscal union ~ should make us mote bullish on the region, and. perhaps even on the euro (see page 4). Finally, it means insurance. Our favourite, old, has just hita new record high. Fe may be that everything's going to be fine (asthe gas shortage might sugges) But that’s not an unhedged bet we want to take, We'll eep holding gold for now Lage Que Aen) ‘Merryn Somerset Webb editor®moneyweek.com | United's performances. Assuming the de: Lockdown seems to have unlocked our collective creative streak— trad crafa tar Hobbyerat soning sales have rbled a andemic. In the year to mid-February, onlin bylstunder20% But since branches were forced to close In tate March, internet sales are up 200%, the group reported last week. interconnected national networks, where itis difficult to charge end-users for value receiv ‘compete with China. Intel would pl natonel ie wh ee ea at os undoubtedly benefit from this. ‘here are good reasonstor . pecentagecofsalesinthe February 2020.They shot yp | wanting to protect an industry The boom in tkritetom2sisin _ganens0sinApeddroehe | ratoneimporance Bu ; ; ‘November 2006 to 18.9% pandemic. Some academics say there isa better way than online shopping thepandemichasaccelerted” | Mewingmancy atonebig bbecom/worklite theshifttoonline shopping | ingteadhelp encourage new Teall began in 1984 inthe byeworo three years. Online | Chipmanutacturrsts got UK, in Gateshead, when a grocery shopping, in particular, | better at competing with inte ‘7 yearold grandmother hrasseen a big surge. Most curting edge innovation Used her TV remote control to “Thelingering question is | intheearindustry, for example, placeanorderformargarine, © whether thischange wllsuevive | h#s come not from the Cornflakes and eggs, says, ascustomers head hack wothe | ¢stabished giants, but from Bryan Lufkin. That eaey highstrect I's posible thar | Tesla, a beneficiary oftex **Videotex” system morphed peoplehavealeadyadjsted | B08K8forcleanercars. AL cover the decades into the online tothe “new normal” and will | Goverment ten tare ea dye shopping we now take for remain converts now thatthey | young companies,could help granted. The Covide-19 crisis has seehow doable, easy and fast them grow and reach the scale Seen uptake boom tonew highs. | “There may already have been | where they ean compete atthe Internet salesasa total i a “change in expectations” technological front rmoneyweek.com 7 August 2020 Movin22 “Everyone wants to havea good hair day on Facebook and Instagram” Movnttinx Cover story Profit from the fast growth of the haircare industry Our society has become much more image-conscious, while new consumers worldwide want to look good too. From shampoos to new potential cures for baldness, here’s how to cash in, says Matthew Partridge No one likes to be considered vain, But the pas six ‘months suggest that both men and women care more about how their hair looks than they might admit. ‘When the lockdown restrictions were first imposed ‘everyone predicted that one ofthe first consequences ‘of our enforced isolation would be less time and money. spent on hair; Unilever duly reported a drop in sales ‘fshampoo and related products, However, since the restrictions were relaxed, the pent-up demand has seen some salons booked solid for weeks, despite running ‘extended hours. Haircare isa huge industey"The entire global beauty sector generates an estimated $500bn a year in sales, according to management consultancy McKinsey. ‘An increasingly large proportion ofthis um is spent on ‘our hait. Grand View Research, another consultancy, ‘estimates that the haircare seeto’s annual growth rate of around 3% a yearimpliesa value of §211bn by 2025. This includes contributions from the deugand biotechnology sectors, which are spending more time and money on finding treatments to slow down, stop, leven reverse age-related hair los. ‘A more image-conscious era Perhaps the main driver of the markers raid growth, isthat “people are much more intrested in their hait than they used tobe”, says Phil Smith, owner of Be Gorgeous, a company that produces a wide range of hairdressing products. When Smith started working asa hairdresser two decades ago, only a relatively small numberof people were interested enough in the appearance oftheir hair to spend large sums of money nit, and few men considered it important. However, thishas since changed dramatically, especialy with respect to male grooming, Some ofthis is down to the role of celebrities, notably the former footballer David Beckham who was “big, influence” on young men’s attitudes to their air. In contrast to footballers ofan earlier generation “who di’ reallycare about their hairstyle”, Beckham adopted “constantly changing hairstyles” as a key part of his personal image. His success in gaining attention and, more importantly, endorsement deals, inspired other male celebrities, sch as footballers and ‘musicians to emulate im, which in turn has changed men’s attitudes towards haircare products. ‘Celebrites’ influence on our concern about our hair has been intensified by the rise of socal media, which means that we sea lot more of our favourite celebrities than we sed to, They encourage people to copy al cof thie lives, as Smith points out. However, Socal media's ole in making both men and women spend time taking care of their hair goes beyond the celebrity factor. “Everyone wants to fook good for Facebook and Instagram so tha they can project the perfect lifestyle.” The perceived importance of good haireare on social media is highlighted by the fact that no less than 207 million poses on Instagram (as of July 2020) came with the hashtag hair, while che hashtags haircut and hairstyle appeared in 47 million and 70 million Posts respective 7 August 2020 Emerging-market consumers seek out the salon “The image-conscious nature of modern society isn't the only factor driving demand for haircare products. ‘The rapid growth of the middle las in emerging ‘markets, particulary in Asia, as ed toa boom in ‘personal grooming and beauty items. ‘Asa result, sales of haircare products “are now growing significantly faster in emerging markets than they are inthe est ofthe world”, says Swetha Ramachandran of GAM Investments, an asset ‘manager. What's more, she expects this strong, growth of haircare in emerging markers o continue, since people in emerging Asia sill use fewer haircare ‘products than those in other parts ofthe world ‘Atpresent the biggest challenge for haircare ‘companies is getting many potential customers in temerging markets “to use their products forthe frst time”, However, Ramachandran is optimistic that ‘companies will beable to substantially inerease the uptake of premium haircare products in markets such as China. The haircare industry's shift in emphasis toward natural products als sits well with ‘he aspirations and values of younger consumers in emerging markets, ‘On that subject, a study by marker research group Mintel in November 2018 suggests that large personal- care companies are generally becoming more adept atunderstanding how the attitudes of consumers in ‘emerging markets differ from those in the rest ofthe ‘world and adjusting ther products to take account of this Forexample, many Chinese prefer to wash thei hairless frequently than consumers elsewhere because they are worried about hair loss. As a result, several ‘companies, sich as Procter and Gamble, have achieved succes by shifting thei range of products towards “dry shampoos” and products designed to protect, as well as clean, hair ‘The proliferation of premium products “The image-conscious nature of modern society and the global spread of Western attitudes to personal grooming have led toa large increase in the amount of ‘money spent on haircare. These factors have als led to ‘an increase in the number of different haircare products ‘on offer. When Phil Smith first entered the hairdressing business, both professional stylists and ordinary ‘consumers “had avery limited choice”. Today they can choose from a huge range of products, some catering to very specialised parts of the market. ‘Smith admits that this increased choice has been negative for some companies, especially ince some ‘consumers “are much more willing to look for bargains”. Competition between supermarkets and the rise of online retailers has also put pressure on them t0 cat prices, which has reduced margins for producers ‘Nevertheless some manufacturers have prospered. by finding ways to “persuade people to trade up to 'more expensive premium products”. Even the most cost-conscious consumers are “increasingly willing to pay more money if they fel that ths is justified by the ‘quality ofthe product”. smoneyweek.comIockdonon we all ashe straight the bairdresser Swetha Ramachandran notes that the level of competition in the haircare market is also tempered by a high degree of brand loyalty, with people sticking with particular products or buying from just one company. This makes the industry more stable than other subsectors ofthe beauty industry. Another advantage forhaitcare is that—ulike inthe cosmetics subsector = there is no need for companies to spend additonal rmoney on sales staff or counters in physical stores in order to sell haircare products. Combating hair loss The haireare-products industry may be the largest parcof the sector, but there i also mounting interest treatments for those who sufer from age-related hair loss In the past such hai loss used to be accepted as inevitable" says Smith. Asa result, people did nothing or “tried things like combovers to disguise i” However, now that we areall paying more attention to our appearance, people (especially me increasing pressure to try to take measureseither to slow it down, or even reverse it. While some ofthis drugand biotechnology companies are working hard con medical soluions. At present the main treatments for hair loss are the drugs Minoxidil (also known as ogaine) and Finasteride (propecia), These drugs ean “significantly slow down the rate of hair loss", ays Dr David Fenton ofthe British Association of Dermatologists. However both come with some significant drawbacks. For example, if people stop taking them, the air loss “will rmoneyweek.com immediately resume”, Another problem is that they ‘work by altering the prodaction of certain levels of hhormonesin the bods, with a small numberof patients experiencinga rediced libido, Finally, they only have “limited effectiveness” when it comes to regroving hair that has already disappeared All these downsides can be major deterrents for those considering such treatment, especialy if they are uncertain about the process to hegin with, Indeed, Fenton notes thara large number of his patients, especially those whose partners have urged them to see him, “immediately tell me that they don't want a product that they have o take every day forthe rest of their lives, or something that will alter their hormone levels", Asa result, after consulting with him, many people decide not to begin treatment However, Fenton believes that if these problems were eliminated people would be much more comfortable "undergoing treatment. They would be “particularly ‘open toa one-off treatment, as well as one that doesn’t involve hormones” Ifthisis true, then better treatments could boost spending on hair regrowth far beyond the current global annual level of $3.9bn. With male- pattern baldness affecting 30% of men under 30 and '80% of men over 80, the potential market seems huge Drugs for your rug The two drugs that Fenton is most enthusiastic about are Dutasteride, originally developed by GlaxoSmighKline, and Clascoterone, developed by Continued on page 24 7A = “Male- pattern baldness affects 30% ofmen under 30and 80% of those over 80”24 Continued from page 23 Cassiopea and Intrepid Therapeutics. Of the two, Durastrideis probably the less interesting, as it functions in a similae way to existing treatments, with similar drawbacks. The only difference is that it appears tobe more effective in halting hair loss in men. Like Minoxidil and Finasteride, ithas been aroun for so long thatits patent has expired, sharply reducing the profit potential. By contrast, Clascorerone shows much greater promise. Originally designed asa treatment for acne, Ichasnow been repurposed as a potential cute for hair loss after studies shovted that tinereased the density ofhairs on patients scalps. While iestil needs to be applied regula it doesn affect hormone levels in ten, with no observed changes in patients’ behaviour. The drug entered late-stage trials at the end of last year and pecliminary results suggest chat any side effects are relatively minor. However, other companies are also pursuing research in thisarea. The Swedish company Follicum. is developing a cream that can be applied to the sealp withthe aim of stimulating hair growth by helping individual hair follicles that have been damaged by the ageing proces (or other conditions such as diabetes) repair themselves. Early studies show that this produces. effects comparable to that of Minoxidil, but with far fewer side effects. Another key feature is that Follicum’s formula will only need tobe applied once every day, rather than twice a day ike Minox ‘Stem-cel therapy: the new frontier Perhaps the most exciting area of research isthe use of stem-cell therapy to trea baldness Stem cells are special types of cell found in the human bodys they ean be repurposed to become other types of cell, enabling cour systems to repair everyday wear and ear. The hope isthat combining these cells with hair follies extracted from our scalp willenable doctors to grow additonal hair follicles in the laboratory. These could then be reimplanted and used to grow hair on bald or thinning parts ofthe scalp. The stocks to buy now Cosmetics and personal care firm LOréal S.A (Paris: OR) is the worlds leading producer of luxury haircare products. Elvive isthe most well-known ofits brands. Itderives around a fifth of tsrevenue trom haircare products While it trades at 35 times estimated 2021 earnings, ithas Grown profitsandsalesby be around 8%a year between 201dand 2019 and boasts an impressive return on capital expenditure, akey gauge of profitability, of 16%. times 2021 ‘Shi Japanese cosmetics than doubled since 2014, it ‘vades ata reasonable 16.3, rings. Italo offers a dividend yield of 2.4% ido Tokyo: 4811) 59 ‘conglomerate that makes a Significant potion ofits income: ‘rom haircare. talso owns the rights toa treatmentfor ness based around stem- celltechnology developed by Canadian biotechnology frm RepliCel Life Sciences. ‘Although Covid‘'8 has led to.temporary drop in sales, Cover story Style like Beckham: the former footballer seta rend with his interest ar tying AsaLresulhair transplants, which are increasingly | “Follicum’s popular, could be used to increase the amount of hair fn our head, rather than just move itaround fromless MW cream visible parts of our body to cover bald patches.Anda prompts ‘much smaller numberof hair follicles would have to beextracted during surgery, which could drastically reduce the post-surgery discomfort. Inte 2018 scientists at Yokohama National University announced thac they had founda way to multiply extracted hair follicles using stem cell Inthe longer run stem cells could be applied directly tothe patients scalp, removing the need for any follicles to be extracted. While such treatments are still ina relatively early stage of development there have bheen some important breakthroughs. Researchers at California's UCLA have aso found ways to stimulate existing stem cells in hair follicles to make them start growing hairs again; South Korean scientists have found that stem cells derived from fat could be used to increase the thickness and density of hai, We look at several potential investments inthe growth potential of haircare in the box below. damaged hair follicles to repair themselves” Salons and Sassoon Salons, Cost Cutters, Roosters and st Choice Haireutters The company has embarked on a restructuring programme aimed at boosting profitability by moving toa fully franchised model. While revenushas been hitby the Closure of salons owing to social-distancing rules, the Felaxation of such restrictions ‘means thatitshould return {oprofitailty this year. Ittrades on 22021 price! earnings ratio of 15. itis ahighly risky investment, especially ince itis not yet making any money. However, ifthe results of early stage ‘wials ofitshait lose drug are sustained, then itcould be on ‘ackto make alarge sum of money through licensing ito larger drug company. ‘Another small drug ‘company worth looking ais ‘Cassiopea (Zurich: SKIN). Like Felicum, Cassiopeais burning cash whileits drugs go through clinical testing, 30 this isnot a company forrsk- ‘Asmallercompany worth sales have been increasing Follicum (Stockholm: averseinvestors. However, researching is Aim-listed byaround8%ayear overthe FOLLI)is a Swedish Cassiopea's acne drug Brand Architekts (Aim:BAR). past five years and the biotechnology company spun Clascoterone sclose to being itis developing a portfolio of skincare and naireare brands and attempting to bolster theirvalue by launching them overseas. its haireare brands include kind Natured and MR, which has been developed by celebrity hairdresser Jamie Stevens. Even though earings per share have more Movni¥isx 7 August 2020 ‘company has made a return oninvested capital of 11%. IReurrentiy trades at 25 times 2021 earnings: Consider also global salon ‘conglomerate Regis (NYSE: GS). Regis controls 7.368 Its brands include SmartStyle, Supercuts, MasterCuts, Regis outof Lund University tis ‘working on atreatment for baldness as well asa diabetes drug thas also patented a process for developing peptides short chains of ‘amino acids) that could be Used by other biotechnology ‘companies tahalp them manufacture drugs. Like any small biotechnology company approved by regulators, while there salsa strong clinical evidence that tcould be used to treat har lose, ‘The company also has other drugs, including a new ntibioti, inthe pipeline Several brokerages, including Barclays, provide accoss tooth the Swedish and Swiss markets. rmoneyweek.comPersonal finance The best money apps These tools will help you to track spending, save and invest Ruth Jackson Kirby Money columns ile many things cameto.a bale dling lockdown, the spread of digital banking accelerated. More than one infive of ustried online banking forthe frst time, according to research by MeKinsey 8 Co,a consultancy. We havealso seen. shift anway from eashas we all ty to keep our ‘stance with contactless payments, Ii you've familiarised youself with bank and creditcard apps during lockdown, how aout aking things a step Farther? Here arethe best money aps to hep you with everything from fling your tx return to investing your spare change. Ifyou want personalised hep cutting your bills conser Snoop is “designed toidentify waysin which youcouldsave money based on what you're already doing” says Jayna Rana on ThslsMoney: coaik, “Teil take note ofthe stores you shop atand then let you know ithere are voucher codes available fr next time” It youcollect reward points, Sop can help by alerting you vo opportaniiesto ‘cam more ofthe types of points, sch as airmils, that youeollet. wills help you shop around for the best energy deals Snoop is registred and authorise by the Financial Conduct Authority (FCA), the City regulator Get help filing your tax return with Untied. allows users to link the app to up to three bank accounts and two income streams. Ithen gives you lanestimate of what your tax ill islikely oe, For £11.99 a month you get Untied’s “essential” version, which “allows you to link more bank accounts and sources of income, and ‘will submaica tax return on your behalf,” says Kate Palmer in The Sunday Times, ‘The average accountant charges £150. £250. file your tax return. Untied is regulated by the FCA and supervised by the Chartered Institue of Taxation, Delegating management of yourdived denis ‘The average adul spends £39 a month conunased drectdebits, standing orders and recurringcard payments, according to NatWest, The most Common unused subscription sa sgym membership. But many of us frealso paying for mobile phones ‘we nolonger use and video streaming Services we don't watch. Gethelp sorting through your subscriptions with Emma. This free app is “described as “your best financial fiend designed to help you avoid overdrafts, cancel wasteful subscriptions track debe andsavemoney”, says Rana. 20 You can use Emma toset bbudgets and track al of your accounts, including. investments and Pensions, i one lace. The app has “the ability to find and cancel any wasteful subscriptions you ‘may have signed up to but forgotten about”. The Emma app isregistered with the FCA and uses “state-of the-art security measures, $0 you can rest assured your data issafe™ hum, meanwhile, will halp you develop the habit WE ofsaving. The free app ‘tracks your spending habits and gauges how smuch you can afford tosave, then puts some money aside for you every few days, Upgrade for £2 ‘month and your savings ean automaticaly be invested into shares and bonds via Plamlsa. Plam isregistered and. authorised by the FC. Finally keep an eye out for Jamim Today, which should appear later this year le will help users find the best online investment platform, comparing ees at various robo- Advisors based on how mach you plan = 5 Reasons to Buy Physical Gold... 1 Gold is a safe haven asset coisis reqventy wsed a a safe haven asset in tes of economic turmol or geopolitical uncertainty. For this feason, ‘many aavsors recommend allocating acund Si 15% of th partflos to gla 2 Gold has a history of holding its value - nie paper curency, gos has maintained ts va Hough te ages I's an ideal way of preserving Weath fom (pe generation to another Plus vestment goiis not subject to VAT in theUK 3 Gold is a hedge- cals has siorcay nao a negate comeation to ‘movernants nthe financial markets ands equerty used 28a hedge against Iraton ort offset faling stock markets, Scarcity -oeposis of gold ae relatively scare and new supplies of physical gold are rtd This natural star and igh producto costs the late reason why Sol ols ale No counterparty risk - nen you investin physica gold you own it outight. ‘You ate nt relanton Bank onal insttutans I corifat you are relat on rms for gol future, goo cerfestes, o ETFs exposing you o counterpart risk cena BE BullionByPost The UK's No.1 Online Bullion Dealer” 0800 084 8888 www.BullionByPost.co.uk oii Mosrtvinx rmoneyweek.com 7 August 202026 Pensions Drawbacks of drawdown Tapping your pension savings for income can be risky Income drawdown, a means ofsecuring an income from your pension without buying Am annuity, has been an option Since the pension-freedom reforms were introduced in 2015, But itis not suitable for ‘everyone, Insurer Prudential reveals that 56% of savers with drawdown plans have felt compelled to reduce the income they ake from thei pension plans during lockdown, The research highlights the crucial difference berween a drawdown scheme, which gives savers the flexibility of being able orake money directly from their pension funds as and when they see fit, and an annuity purchase, the traditional way toconverta pension fund into ‘While annuities pay ‘guaranteed level of income for life, savers with drawdown schemes must manage their funds carefully to ensure the money lasts throughout their retirement. When markets fall, they may have o cutback on income to avoid depleting the fund too rapidly In other words, income-drawdown plans come with more risk ‘They haveadvantages, ‘enabling you to take imp sums fr income from your savings while continuing to invest the money in pursuit of more growth, Savings in drawdown Aare also easier to pass on to heirs ifleft unspent, But there are no guarantees about how much Income you'll be able to take safely from your savings ~and nnocertainty that you'll have tenough savings to last your Finding the right plan ‘Choosing the ight drawdown plan can help you mitigate these problems. Look fora provider ‘ith a wide range of investment options, so that you can move imoles risky asset classes if necessary and seck out low Chargesthat won'eat ito your Savings too quickly. ‘financial advisercan help youdside whether drawdown Fright for you in the fis place, sven your circumstances and your atiude o isk: An adviser willalso check the terms of your pension plans; if you began saving some years ago, your existing plan may come with valuable guarantees that will be lost you transfer into an income-drawdown product Andif you do go for drawdown, Anadviser can also help you balance your need for retirement income with preservation of savings and furure growth. “The Association of British Insurers ABI) warns that many savers aren't getting this balance right in drawdown, Iesays 40% of pension savers are withdrawing an average ‘of 8% of their pension fund each year, which is unlikely 0 besustainable. The ABI says, annual withdrawals of up to 3.5% will give youa 95% chance of your savings lasting for your entire retirement (ere Chose rr in early retirement Thenumber of people retiring before theage of 65 ose by more than 55,000 as. the UK wentinto lockdown, official data event ‘suggesting that Covid-19 may be driving an increase in. early retirement, ‘The Office for National ‘Statistics (ONS) said thatin the March to May period of this year, the number of tunder-65s describing themselves as “retired” was 155,311 upon November 2019 to January 2020. The increase isthe largest Jump inthe numbers the ‘ONS has ever recorded According to pension ‘experts, the likelihood is that some savers would have lefttheir occupations eeriy in any case. ‘But many people may have been forced into early fetirement unexpectedly because of probiems inthe labour market caused by Covid-19, For example, older workers losing theirjobs may have decided twas Unlikely they would finda new role. Forthose planning forearly retirement, the change of ifestyle may have been very welcome. ‘Butretiring early can prove expensive, reducing theamountoftime for ‘savings o grow and requiring people to fund pension. Income or ionger, esearch published by Prudential nas suggested that people quitting the work {orceearly facean average reduction in their annual Fetirementincome of £3,400, Women’s state-pension campaigners win latest court battle Campaigners who say state-pension age women borninthe 1950s from 600 65 was Should be compensated implemented. However, becausesuccessive the Appeal Court's ruling governments feiledto _isjustoneelementof a inform them properly larger case on which aboutariseinthestate judges arenotexpacted Pension age forwomen topronounceunti have won an early theautuma, victory in ther latest ‘BackT060 court battle, campaigners hope the ‘Thegovernmenthad court willoverturn a hopediohaves judicial — High Court ruling ast review ofthe issue year that previous BackTob0 is one of Seclared unlawful, but governments did not act several groups fighting the Courtof Appest ast ilegallyinraising the onbehalfof those. ‘week rejecteditecase._state-pension age atlected, Another group The victory forthe “Thecaseisthoughtto involved is Wespi BackToGOcampaignis _affectaround38milion whichis campaigning significant, sincetne women, withthe cost of for better transitional Feview supported their compensating them in arrangements for complaints bouthow —fullrunningtotensof | women who have fanincreaseinwomen's billions of pounds over Tostout. Movies 7 August 2020 several decades. ©The 1.3milion pensioners ontow television licence. © Employers struggling ‘with Covid-19 may be Incomeswho.arefaiing tempted to coerce staffto toclaimPonsion Credit _optoutoftheiepension Include 590,000 over75s, schemesin order to save chatity Age UK has ‘warned.Thenumberis pension contributions, Significant since from p TAugust, the BBCno longerofferstheaver75s warnedempioyers't atreeTViicenco unless would be legal to they are claiming the benefit. Age UK urged ‘older pensioners to check their benefits tentitlements both to Secure the oredititeel Which guarantees a ‘minimum income of least £173.75week, and Department for Work toavoidhaving topay the and Pensions select £157.50 annualcostofa committee willaunch an the costof making the Pensions Regulator fears. Thewatchdog behave in this way and urged employees to get Intouch in such cases, ‘The alertcomes amid wider concern about a Fisein pension related seamen he wake of the pandemic. The Investigation into them. smoneyweek.comTrading 27 Wayfair will lose its way The online homeware retailer's ‘Matthew Partridge ‘Senior 'y most successful recommendation in the history of MoneyWeek’s Trading page \was to shore Wayfair, a US online furniture and homeware retailer, at $105 last October (Issue 969) and then take profits when the stock had fallen to just $24.92 after the global stockmarkee collapse in March (Isste 991 However, since then the stock has been on a tear, soaring to $266 ~a more than tenfold increase from the bottom and a 150% increase from its price atthe start ofthe yea price rise has been so great, [think that iis time ‘consider shorting it for a second time. You can see why investors are once again ‘enthusiastic about Wayfair. Lockdowns and fear of the virus ave encouraged Americans to desert shopping centres in favour of online shopping, Arte same time the shift ro working from home has prompted people to spend more on rying to ‘make their homes as comfortable as possible, ‘Given that Wayfaie’s business is selling furniture online, it stands to benefit from borh trends. Itschief financial officer claims tha sales were ‘up by 90% in April, the frst month of lockdown, ‘compared withthe same month last year Purchases brought forward Sill, even if Wayfair has indeed experienced a large surge in sales asa result of lockdowns, it's by no means certain that this, willlast ‘With most scientists now expecting a vaccine to be available by the end of the year, many of those who have been shopping at Wayfair to avo shopping centees wll return, Keen Co inspect potential new acquisitions in person. ‘What's more, there’ limit tothe amount ‘of money that people can spend on furnicure, “My suspicion i that much ofthe rovent increase Trading techniques.. Many traders keto pay attention othe gold! silver ratio, which denotes the price ofan ounce ot ‘old divided by thesame amount of silver. It currently around (s1,976' $24.36) Since both gold inthe has lad some peopl ‘thatthe goldisilver ratios at least partly determined by Fevertto the long-term average fof around 60 overtime, ‘Asaresult, many traders think thata temporary fal the" Whenthe wall and sen ‘average signals that gold may rmoneyweek.com Because the “Even optimistic analysts accept that the group will keep losing large sums” ‘be undervalued, while arise timeto sell gold and silver willdobetterthan gold, stock has bounced for no good reason ier may have come from people bringing forward purchases that chey would have made anyway, Which implies thae they wall cut back on spending later inthe year, especially with US unemployment now at 11% — higher than it was daring its peak in the aftermath ofthe Great Financial Criss of 2008/2008, Perhaps the most hasie problem with Wa is thac stil hasn't found a way to make money from its core business. As Inored last October, selling furniture online can be an uphill struggle ‘ince people often return their purchases and there is ferocious competition from ‘other online retailers such as Amazon, ‘Wayfair seems to be particularly prone to these problems. Losses are increasing, driven by huge spending on advertising. Even the most optimistic ‘analysts aceept that the company will continue to lose large sums of money next year. Overall, recommend shorting Wayfair at ‘the current price of $266 at £7 per $1. Given the volatile nature of the stock, I suggest chat you cover your position ifitrises above $400, giving youa potential downside of £938. the gold/silver ratio pushing the ratio down. However, when people are more bearish, the industrial demand for siver will be lower and it will ‘do worse than gold, propelling id egoldisiver ratio 1ay suggest that buy silver However, not everyone agroes ely, in recent years thatthe both approaches would have relationshipis so straightforward, Unlike gold, which ver the last decade up until a few months ago. ry, taking the easing goldsiver ratio as sign that the stockmarkot was entering a bearish phase would hhave kept you away from the huge equity bull market that ‘occurred after 2008. ‘economy is doing iment strong, My five ong tips have struggled inthe stockmarket’ overall, decline during the past fortnight, with four of them falling, International Consolidated Airlines Group dectined from 223pt0 173p, which triggered the stop loss 1200p. Energy giant Royal Dutch Shell slipped from 1,288p 101179; television company ITV declined from 85p %0 58 and pub chain JD ‘Wetherspoon fell from '840p to 853p, which triggered the stop loss at 9000. ‘The only tip that appreciated was United Rentals, which increased from $167 to $160. Counting the two newly closedttips, my long, tips are making losses off223, ‘The good nowsis that my shorttipshave done ‘much better, with two Outof three going down, ‘The most dramatic fall was eHealth, which plunged from $111 to $68. Electric truck manufacturer Nikola als fll, rom $39 0 $36, Exercise-bike maker Peloton increased from $68t0$72, Online education provider GSX “Techedu rose trom $60 oat However, since! suggested that you wait foritto fall below S60 before shorting it, this ‘wouldn't have eostyou ‘any money. Overall. my shorttips are making ‘otal profit of £1.80. “Thanks to the closure ‘ofboth International Consolidated Airlines Groupand JD. ‘Wetherspoon, Inow have an equal number ofong and shorttips, which fs 8 good balance Inthese uncertain times. Nevertheless, lam {going to reduce the point atwhich you cover your ‘eHealth shortto $120 (trom $168). Taleo nov think that youshouldshort Sx Techedu fit flls below $70{my previous threshold was $60), and ifyoudo shor the stock atthat price you should tly cover your position ifitvises above $95, (instead of $85) 7 August 2020 Mosini¥inx28 Personal view Bag some bargains in India’s mid-cap market India has been badly affected by Covid-19, But the virus cannot change the ‘compelling long-term growth outlook, With manufacturers seeking to reduce their exposure to China, India is emerging asa viable alternative. Prime Minister Narendra Modi’ offer of “red carpet” treatment to multinationals looking to ase their operations in India bodes well, as do the country’s favourable demographics: more than 50% of the population are tunder the age of 25 Hloveven itis in India’s small and mid-cap companies that we see some of the biggest opportunities, particularly asthey are welcoming home young. ‘entrepreneurial talent with a strong knowledge of best practice gained from ‘employment or education abroad. India's stall and mid-cap market has exciting growth potential and as valuations have fallen to near-15-year lows, now isan opportune time for investors to buy, For UK-based investors, 1g individual Indian stocks can bea icated process, burinvestment crusts such as ours offer aneasy way to tap inco India’s long term story, particularly when it comes to ‘owning illiquid but high-growth small and mid-cap companies, Consumers’ caffeine hit While masala chai remains the drink of choice, Indian consumers’ penchant for ‘coffe has proved resilient in the face of Covid-19, with CCL Products's (Mumbai: CLP) share price up by 19% so far this year. This consumption play forms part ofthe private-label instant-coffee aniafacturer’s new business model. It has launched its own brand, Continental Coffee, co take on the likes of current iy Pavone SHULD Be FORCED Te. MontsWink 7 August 2020 “CCLP’s Continental Coffee brand is challenging current market leader Nestlé” A professional investor tells us where he'd put his money. This week: David Cornell of the India Capital Growth Fund selects three favourites market leader Nestlé. This, along with ts strong reputation globally ~ CCL Products hhasa growing customer base across 90 ‘countries —has helped to maintain demand land we expect earnings to increase at ‘compound annual growth rate of 15% lover the next three years, With low-cost ‘manufacturing and high-quality products, CCL Products should continue to benefit from its reputable customer base and ‘capture domestic consumption growth, ‘Asswitch to greener energy As dia considers its carbon footprint and shifts away from coal, Gujarat Gas (Mumba: GUJGA), che country’s largest tran gas distribution company is one to watch. With the National Green Tribunal mandating a switch to cleaner sources of energy, natural gas consumption is steadily increasing. Gujarat Gashas lperations across 24 districts and is expanding ts pipeline newwork currently 23,000 kilometes long). The company expects fo sce earnings compound by an ‘annual 14% over the next few years The world’s Pharmacy India's pharmaccutial industry isa key beneficiary of the global drive to reduce reliance on Chinese imports Divi's Laboratories (Mumbai: DIV), 2 ‘manufacturer of active pharmaceutical ingredients, already has a steong order book, but we expect this to grow as new opportunities arise. The company’s long-term relationships with top global healthcare innovators, strong research and development capabilites and near: ‘complete programme co double its capacity make ita key contender. We expect Divi profits to compound at 16% over the next wo years. If only you'd invested in... ‘AO World (LSE:AO) ‘AO World (LSE: AO) san online ‘lectrical-products retailer. Fow stocks have fared as wel sincet ‘says Graeme Evansin the ‘Standard. CEO John Roberts said thatthe “seismic” shiftin customers’ shopping habits resulting from their enforced move onto the internet has given the ‘company a massive boost. Strong sales inthe early partoflockdown helped the ‘group secure annual revenues of €1.05bn inthe yearto 31 March, up by 16% from the year before. Theshareshave rocketed to a two-yearhigh of 168p. ‘They havejumped by 119% ina year. Be glad you didn’t buy. ‘Mitchells & Butlers (LSE: MAB) ‘Mitchells & Butlersis one ofthe largest ‘operators of pubssand barsin the UK. “The company reported ahalt-y ‘of 5tm shortly before the “Super Saturday” reopening of English pubs on 4 July. Revenues fllby an eighth year- justoveraEbninthe 28 weeks to 11 Apri. ‘dented footfall. The group warned that despite the reopening of mostofits sites, ‘social-distancing rules willhamper its capacity to cater for customers, ‘undermining the outlook forsales and profits. The stock has slipped by almost 49% inthelast year. lockdown severely moneyweek.comProfile 29 The economist shaking up John Lewis Dame Sharon White had no experience of retail when she fook the top job atthe nations favourite department store. Can she turn around an ailing industry? Jane Lewis reports When Dame Sharon White became chair ofthe John Lewis Partnership at the start of the year, she signalled he determination tobe radical. “The onslaught of Covid-19 has turbocharged that ambition, says ‘The Daily Telegraph, Last month, White announced plans toshuta supposedly flagship store in the centre of Birmingham ~a shocking but textbook response to predictions that lupo 70% of department-store sales ‘ould be conducted online, even after the threat ofthe virus has passed, Now wwe learn that her strategic review will ‘go much further. White’ plan to save the retailer includes ramping up its financialservices business, a move into horticulture and plans to turn some stores into affordable housing. Tal about “bringing down the curtain on the golden age of the department store” ‘An industry rookie takes the helm Given her CV— which rakes inthe World Bank, the British Embassy in Washington, the Treasury and Number reflecting. big shift in an institut 10° policy unit, and Ofcom White, Which, a5 she remarked, was een as 52, seemed an usual choice to lead “Tory grandee Ken Clarke having “quitea macho culture the nation’s favourite de Smee 3 ‘ability wo get results without Some wondered whether said she’s one of the brightest oduly ruffling feathers was to the was fortunate in er education at an all-girl comprehensive clearly prepared to push pupils to their full potential in the mid-1980s, she made itto Cambridge to study economics and joined the evil service in 1989, Results with no ruffled feathers White made her mark in government circles with a down-to-earth, approachable style— gaining a winning reputation as someone “extremely good ther job, but fun", says The Guardian, ‘The Tory grandee Ken Clarke described her as one ofthe brightest people he'd ‘ever worked with, In the mid-1990s, she ‘quit the UK Treasury for Washington with her husband, fellow economist Robert Chote are returning to resume ‘a swift ascentin Whitehall. In 2011, White led the review ofthe Treasury's response tothe financial crisis, says the Financial Times. Two years later she bbecame the second woman ~“and the first black person—to be appointed asa permanent seertary atthe Treasury”, Poie“cailcn eines ; ith” forest Okmt recheck og tembleverkiofalsostietines, PCDI he'd ever worked with” ree nn nomic Mardok Mitenoreadnestraniedaks slehalnsiharhyasiage-nuciala dynanyeotho nei gvemmaat Ths ievtencidelwahay ieesnceonir Inher ntreed niwiop clon, hafengeatjonn Lewsey die comgivemyeg hae 'staded Gamiih Vuirceigectionted Influicrescdal etna restructuring” under her predecessor a departure from the “white, privately that the partnership's love of democracy” Shae ayiclbemectbelWhiea edscaedmen ete hadeedtonat el andoatagenene comme nhew he ciapemeelbiag Geguoy Teesagex ef Woah dower scvterwien geet cis said thar some staff “wept with joy” generation Jamaican immigrants, White decisive leadership is vital, says The Times. whenkerapponmentasanvouneed,”nasbomand aedinLejeonsest_ Whrchasshowahecan be ough when noes the Carted Managemen Tandon her woe fr Both Ral fer felon ereahllegehacen Toston insiotthegroupssaffare andhermotberWasamachinst- Whee willone nha Great frauds in history... shorting the East India Company et ne ae Eo Ne er ce ee Ser Aberlemin ToS hobtoty ctoughinecctyto mary tho snoughrecowe nogh forays desared ‘Steger afonca. incupty anid esa hat happened nt at be anageda ten What sth ean? Ponies secicoarens Seutiaranahyream: Withnoopctioiene sccncsarfaumtcetan eteurtagin sia Mimonubebetiagesatter Sthewpenesbegtenstien” Sfoceaarie toed wal Somrentenarac ting eseniciracats talon winre fan iyletomebelthant wigleednshicparmoretonck S600 (estan iclens but tHortadstaresinthecaetinda GpthepecesDayitrthe Reruaverson sseprd Sontskuris decttergood, EWEQOO{ETS aa vl and Saichvontinetonatie.” theesondedup geting rand Teecteuursiaciicn hamcintieltianiccl casmensdnmncte tvesquuetstjie miner EstidaCompanyeiods'"" moncyembisbarktocover Ry ostiusches steady becoveraperec otis cacnive ms bomcitvasayin ciaiweneteanus” stwinetaantsiatant fmingutentheeand other pacptteCuticrtsking pactantgwentietores states wero hedatea Foci leat ll rena oleate genta wee ne Ferenc it ep on gerbe ope) RE enti tno London,andspent £14,000 questions, heliedabout the _Britainalone. Thecrisiswas thoughttoolate fr Fordyce. (€1.8mintoday’smoney)inan bank’sfinances, temporarily halted only by the intervention Whenitcomes to short-selling, Unsuccessfulattomptto borrowing £10,000 (123m) in oftheBankof England andthe even the best predictions are becometheMPforColchester. cashforaday togivethefalse Royal Bank of Scotland, Useless without good timing. rmoneyweek.com wgust 2020 MovinMoneYWEEK —— WINE CLUB —— Six Summer Beauties from Lea & Sandeman Every one of the six wines below is a sensational example: Of its kind. Aussie Riesling, Verdicchio, white Graves, ed Burgundy, Southern Rhone and Aussie Shiraz, these are wines which power my wine passions and fire up my olfactory system. They are six of many hundreds of delicious botties on the Lea & Sandeman shelves but my job each month isto reduce large swathes of bottles down to six absolute belters and, in this often-quiet month of ————E_ / = All wines come personally Exclusive discounts and recommended FREE UK delivery ‘August, these are the loudest and proudest wines for your ultimate delectation. ‘These are also wines which, outside ‘of my wine waiting job, | drink with my family and friends ‘and this summer | strongly believe that we should do our best to spoil those closest to us and so | have selected precisely the right wines to achieve ths aim, Marthow Juteos. «ithe? e ‘© No membership needed ~ Prices shown below are per case of 12 bottles. Wines are also available in a 12 bottle mixed case (2 of each of the wines) cexcellently-priced at £200 (saving a huge £33.60). I's a chance for you to try them al, and iti the most popular choice with readers of Moneyleek. 2019 Pikes, Riesling Traditionale, Clare Valley, South Austral [always find it easy to weit tasting notes for the great, dry Rieslings from Pikes and this 2019 is a top-class example of thet epic, lime pith-imbued, insanely tight and fesonant wines. These are electrifying brilliant whit yrds Cottage, Bretforton, Evesham, Worcestershire. This Grade Irlisted corage retains its original wall and ceiling timbers and inglenook fireplace, and comes with a period barn with planning permission for conversion into a one bedroom annexe. 3 beds, bath, 3 receps, gardens £480,000+ Fine S¢ Country 01789-33260, Kencot, Lechlade, Oxfordshire. A period, semi-detached village cottage with a south-facing igarden set back from a private lane. The cortage has beamed ceilings, open fireplaces with ‘wood-burning stoves and a large conservatory currently used asa dining room, 2 beds, bath, 2receps, study, breakfast kitchen, garden, garden stores, timber children’s playhouse, greenhouse, parking, £450,000 Butler Sherborn 01993-82325. D> Hitt view, Wattesborough, Shrewsbury Shropshire. A renovated, late Georgian former farmhouse dating from 1830 set in the Shropshire Ai Victoria Road, Kingston upon countryside. The house Thames, London. Atwo-bedroom been extended to include a Victorian cottage close ro the town __itchen/breakfast room and centre. The cottage has wood floors, retains ts exposed beams a large reception room with a and stone work, inglenook feature fireplace with tiles and Fireplaces with wood-burning a wooden surround, and a stoves and bay windows, 4 ‘contemporary fitted kitchen with eds, baths, 2 receps, double French doors leading onto 7Sferear garage, stabling with cack garden. Bath, double recep, frontand room, Dutch barn, gardens, Fear gardens, £500,000. Hamptons paddocks, 1.3 acres, £550,000 International 020-3369 4380, Strutt & Parker 01743-816950, rmoneyweek.com 7 August 2020 MosntVeexThe reincarnation of the E-type a small engineering scompany in East Sussex is best iknown for taking cassie Jaguar E-types and giving them a mild makeover, says Jeremy Clarkson in The Sunday Times. Occasionally however it “makes a cae that stops the world Its Speedster was “the most beautiful thing made imall human history”. With this Eagle, “is done itagain”, The Eagle Lightweight GT costs close toa million pounds, including the donor ori ‘on which i's based, and that may seem a lt for a.cat that’s nearly 60 years old. “Bur the ceuth is, it sort of isnt, Irs actually about 60 minutes old This E-type is nothing lke Jaguar's original racers and nothing like the “continuation” cars the firm has made recently I's “civilised, even by modern standards", and is no stripped-down racer bua “grand rourer, a leather-lined air-conditioned long-dis with “ust the right amount of Tom Jones noises = when... you getall chose litle crackles and pops— ‘oo, does things to your hair”. And the interior “is 2 labour of love". Once you've managed to clamber inyou won't wanto get out again, “just wanted to sitin there, fo ever, touching stuff.” Eagle has made only around 60 cars over the last 30 years, but not for lack of demand, says Top Gear, Maximum production eapacity is Four ears year, and each one takes around 8,000 man hours ie cruiser”. The engine sounds glorious, eC 2018 Castlewood, Devon Minnow, Block Hi Clone GM Bacchus, Devon £24, 75l bottle, £50, 15001 magnum; castlewoodvineyard.co.uk ‘wine eame from fishing companions Robin Hutson, the Visionary hotelier, and renowned chet Mark Hix. Coming fram a ‘warm, steep, south-facing Vineyard called Block HH, this ‘wine was created to feature on Robin's, Mark's and other chef friends’ wine lists 7 August 2020 latthew Jukes ww Wine columns Castlewood speciaisesin sparkling wines, butittookthe decision to plant some Bacchus in 2016 and this wine isthe very first release. The inspiration and the {a Devon Minnow is. £200-year-old spinning lure) for this Jaguar's classic sports car has been reinvented for the modem age. The result i a thing of beauty. Nicole Garcia Merida reports to create. This GT follows the E-type recipe, but “everything, everywhere you look, is bespoke. Think of as commissioning a work of art, or investing in a family heirloom, more than buying acar*. Yetitis “so addictive in its manners and behaviout [that] all you're going to want to do is drive it”. Think of it asa classic car redeveloped with the benefit of hindsight, says Autocar ~“thisis the E-Type they'd have made at the time if only they'd known how”, The ride quality is emarkable and despite al the roaring and snarling from the engine, t's quiet enough in the interior for conversation at 120mph, “Nor chat you'd want 0 talk, or even have company... itisa carin which to be enticely alone with your thoughts, that engine, the gearshife and its supple, indulgent and sensitive chassis.” Forall its modern modifications, i's not less of an E-type, bur more Tapert mA “This is the E-type they'd have made at the time if only they'd known how” uncommon texture, palate plushness and perfect balance, The oak component alone is mind blowing. itis nottoo rich, while stil retaining luxurious patiseerle notes thataugmentthe ginger and lime blassom perfume and coat the filigree-inay palate. tis a staggering creation. Buy itfrom the Castiowood website arin Robin's, Pig Hotels and Lime Wood, Angola Hartnet’s Murano, The Oyster & Fish House in Lyme Regis and ‘also Mitch Tonks’ wonderful “The Seahorse in Dartmouth The 2018 was perfect vintage because the harvest was firstclass with fully ripe Bacchus fruit. The grapes were hand-selected and then whole bunch pressed into oak barrels for fermentation and a further sixmonths ‘of maturation. ‘This wineis such 9 differant take on the Bacchus grape. ‘There arenone of the pinched, nettle ‘and elderflower notes associated with tis variety Instead, tshows Matthew Jukes isa winner of the Intemational Wine & Spit Competition’s Communicator of the Year matthowjukes.com) MINNOW rmoneyweek.comCollectables Rum comes of age The party spirit has a serious side. Chris Carter reports Neionssinstte trots spirit of prety cocktails and beach parties, rum has come ‘of age. Sales shor up by 53 cover the past 12 weeks, making ithe “spirit ofthe summer", according to Waitrose. "We've been anticipating the year of rum for a while and ithas finally arrived,” says John Vine, a Spirits buyer ae the supermarket, And while white rum sstill the ‘overwhelming mass-market favourite, “sipping rams” are becoming more popular Globally, during the five years to 2013, sales at the cheaper end ‘grew by just 0.6% according toresearch from IWSR Drinks withthe mostinterestingflavour “We're Market Analysis. Burin that profiles. My tip would be to secing even same time, s Emily McAuliffe follow their lead.” Dawn Davies, recent borings notes for BBC News, the head buyer at The Whisky such as Destino by Foursquare high-end section ofthe market, Exchange, anonline retailer of and Velier going at auction for comprising bottles costing $28 awiderange ofrums,andsister double their release value,” adds and more, grew by 8.3%.I¢ company to Whisky.Auction, Davies. “The closed Caroni Seems the worldis developing agrees. “Thereisnocthe same distillery is where many rum autaste forthe finer stuff,even market foraged ums,” shesays. collectors begin bu in truth ifrumstill hassome way to go “Although those in the know every region, every island, has beforecatchingup withthe sky: willpaywellforold bodes of its own unique style so good high prices fetched by some rare Wray and Nephew~a 1940s____collectors quickly learn to whiskies. Buristharthe right Wray went for $55,000, the 1780 identify the bottlers, such as comparison to make’ Harewood rum went for over Velier, that routinely hunt down $100,000 fin 2014]-there is, che bestrums,”" says Graham Rum versus whisky definitly growinginceres.” _Yooll Davie also likes Caron, “Comparisons are often made along with Uitlage and “old between thewhiskyeradeand The best rum deals borings of Weay and Nephew, aged rams, but es not that So, where nextforthe rarerum and Bacardi Simple, Isabel Graham-Yooll, market? “In the last decade, Millennials are auction and private client havenoticedalor of rum brands “biggest colle direetorat Whisky. Auction, tells tryingrobreak through, but _arelotsof established spirits MoneyWeek.“Iewasnotabiethat thatisreally only partofthe collectors who are “good at Whisky enthusiasts in particular, story" says Graham- Yoo. identifying the best bores to withtheir pre-existing knowledge “Iesthe special rums¢hatare —_buy",says Graham-Yooll “Ie is Indesperienceofthespits—-mostsoughtafterand the ace not the general consumer baying market, were quick to dentify ison tofind the next great these tums, bur people with highly collectable rums, for cask, perfectly aged from an knowledge,” Davis agrees. example rom closed dsileres, underappreciated distillery.” “Twould say [is] rum geks.” Auctions Going... Gone.. Abottea the oldest Japanese whisky, ‘Aare bottle of 80-year-old Mouta, a {55-year-old Yamazaki (pictured), isto bbesold with Bonhams in Hong Kong on 21 August. twas released in June ‘through 8 ottery system to residents in Japan. All 100 bottles were dstledin brand of the traditional Chines sorghum-based sprit baiji, sold for ¥1.87m (£216,000) atan auction ineastern China last month—twice ‘the pre-auction estimate. Th ‘the 1960s and matured in Japanese bottle bears the “Lay Mau" label, ‘Mizunara oakand white oak casks, Which changed after the brand siving the whisky a “deep reddish merged with three other ‘amber colour with acomplexagarwood ‘istillersin southwestern China and sandalwood nose, ichin fruity Jn 1953t0 form the current. scents...and] a sweet aftertaste”. The state-owned company and ‘gold-dusted bottleishoused in black ‘Mizunara oak box with Suruga lacquer, widely known brand Kweichow ‘Moutai. Vintage barrels and. \while the bottle mouth is wrappedin bottles of ball are popular handmade Echizen Washi (atypeof ‘among collectors in China and | paper) and tied with atraditional Kyoto prices have been rising inrecent braided cord. thas been given an upper years, says Natalie Wang on price estimate of HK$780,000 (£7,000). The Drinks Business. rmoneyweek.com 35 Rum-based tiki cocktails, golden beaches and shaggy- haired dudes elut longboards are what springs tomind when ‘we think of surf culture Butthereis more toit, than that, says Bonhams. "Surfing isalifestyle, comprising not just ‘grown up around it” The history of surfing is "thestory of novation inthe pursuitof pleasure Therois always a ‘memorabilia at the house, whichis hosting an online sale inpartnership with PTA Fa ‘Turner Classic Movies (itruns.unet Wednesday). Bonhams willbe hoping that iment stil holds ‘trueamong the bidders {orits array of surfboards, such as the Pacific Systems Square Nose Redwood from ‘the 1920s. isvalued at ‘up to $10,000, Fender electric guitars and ukuleles are among the instruments ‘that provided the Popular “surf music” enjoyed by the young those depicted in a 1820s Hawaiian tourism poster (pictured), Valued at up to $500. Duke Kahanamoku, the native Hawaiian Olympic swimmer and “legendary father surfing’ isalso well Fepresentedin the sale. Apair of his "mammoth hand prints, dated 1943, is. Valued at upto $7,000. 7 Avgust2020 Mosier36 Blowing it Don't sully the beautiful game The Saudi regime has been denied a further stake in the Premiership. That's something to celebrate ‘thas been heartening to learn that money sn ‘everything, nor even in toxlays footballing word, Tntense opposition” on ‘moral grounds has scuppered the attempr by Saudi Arabia's sovereign wealth fund to buy Newcastle United football club for £300m, says the Financial Times, Crities of the deal pointed to the close links beeween the fund and the Saudi state-the und is chaired by the Kingdom's dt facto relee Prince ‘Mohammed bin Salman and some of his closes aides sit on board, Such inks would tarnish the English game”, «given the human-rights buses that have taken place fon Salman's wateh, Fans hold out for a hero There “may be les to this than meets the eye” though, says Jonathan Liew in The Guardian, The main sticking point wasn't somuch the Saudi regime's “Hagrant human-rights abuses" as its “apparent pirating of Premier League games va its beoutQ channel”. And withthe coronav pandemic having “devastated” the Kingdom's oil revenues, the fund may have simply decided that “ploughing untold fortunes” incoa “huge, open-ended project” may not be the most propitious investment. Besides, the Saudis already have a foothold inthe Premiership via Sheffield United, which was bought by a member ofthe Saudi royal family back when the Yorkshire side were in the tied tier of the game. | there remains something thrilling inthe “heavy irony” of Saudi Arabia's bid for Newcastle United being thwarted by ‘© Watching the ITV documentary Anne: The Princess Royal At 70, it's clear why the princess pictured) is often referred to as ‘the royal family's hardest working ‘member says Karen Brady in The Sun Lastyear she had more ‘than 500 engagements andithas been that way for haf century. “Shehas always been therein the background, just quietly getting on ‘with it with absolutely no fuss.” Her ‘work ethicis appealing. “loved the ‘tories from her children, Peter i ‘the animals. Zara sald'She'dcome home from engagements in exactly ‘what she was wearing, make-up on, put her welly boots on jacket on, do her chickens and gether eggs.” Movni¥isx 7 August 2020 clue egal process, “something so strikingly ‘optional in its own justice system’. Newcastle fans may be disappointed that the “hated Mike Ashley" remains in ‘control and emerges £17m richer, thanks to picking up the Saudi deposi, but they can take heart from the fact tha there are plenty of other potential owners out there ‘who “arent tied to abhorrent regimes". Eventually one of them will buy Newcastle and provide the “investment of time, energy and love that a club ofits tradition has always deserved". Indeed, it looks like one may be about toarrive sooner rather than later, says Luke Edwards in The Daily Telegraph, [American businessman Henry Mauriss, ‘who first expressed an interest late last year, believes he is tow in “pole position” to buy the clu. Negotiations have been speeding up since the start of the month ‘when the Saudi consortium lost its next year. This is “economic, Suicide” tis such asthe office supple wither without a © 1's “baffing” that so many major employers areallowing theirstafto ontinueto workfromhome, ospite the government having Sropped home-working from its guidance, says Nick Ferrariin the Sunday Express. In some instances, ‘workersin big companies will have boon away from their desks for upto ‘18months by the timethey get ack smaller, associated businesses that are going to suffer, sandwich shops and pubs. They will tadeifno one iscoming to work” Inthe City, Tootfalin some areasis down to 15% of what twas bosses dont start reopening their offices soon, Coronavirus willclaim yet another ‘Victim: “the nation's economy’ “There have been rumours that the club could end up changing hands for as much as £350m” exclusivity and there have been rumours that the club could end up changing hands foras much as £350m, Mauriss plans to follow inthe steps of Liverpool's owners, patting an emphasis on investment and “budgeted, gradual growth”. Noweastle fans may have preferred an ‘owner such as Abu Dhabi United Group, which was "quick to throw money” at Manchester City, which it bought in 2008 and then sparged £165m on transfers in 2011 alone, says George Ramsay on CNN. Bucthe chances of Newcastle matching that sortof spending are “remote” now that European financial fair-play rules limit club losses to $33m over three years. Mauriss’s ‘more modest strategy makes the most sense, both for Newcastle and the English game overall. Quintus Site {© Thank goodness the Johnny Depp Tine trial has ended, with just the ruling expected in September, says Jan Moir inthe Daily Mail We could not have taken much more of the Sordid exploits of the case. On the lastday, star witness Amber Heard seized the opportunity to unhook hor mikemaid pats, lt down her buttery Blonde hairand make a cheese-churning speech on the Courthouse steps." Then she went offwith her “gal gang” toa Soho sushi bar. Perhaps “adlsh called Revenge (Best Served Cola)" was on the menu. Meanwhile, Depp was busy handing out free bandanas to his fans. "Hollywood came to town and lft again, leaving behind an Lunedifying tale of people who have too much money, too much fame, too much everything, smoneyweek.comCrossword Bridge by Andrew Robson The Easy Life Finally, the English Bridge Union teaching programme has incorporated opening INT with a five-card major. I's the easy life “Thovr you do not have to find a rebidifpartner changes the sult Exports have boon routinely opening INT with such hands for years. Dealer South Nelther-side vulnerable 5 For $0342 Baxst072 $052 $4s8 Fosse ¥ 1064 $1063 Ales 43 50 $ks1073 ¥ aes air $086 The bidding South West North East aN Pase™* ante pass pass pass + Yes. ** Anyone fora2¥ bid? Or, even better, @ Landy 24, showing five-fourin the majors. {gamble based on the trck-source in Clubs. Sometimes such ‘2 bid may fail to maka, but succeed in anather way, Keeping the ‘pponents out of a making major sult contract, “The Chinese West led the King of Hearts, and continued withthe ‘Queen, The Portuguese declarer had to duck his Ace twice. He would row have made his game had West persisted with a third Heart, for he could win, cross toa Cub, lead 9 Diamond to the King, run dummy’s Clubs, then lead a Spade to his King. With East holding both Aves and no more Hearts, there would be no defence, However, ealising the pointessness of continuing Hearts, at trick three West found th fine ewitch to low Spade, and when East won the Ace and correctly returned a Spade (not his third Heart), declarer ‘was doomed. He elected to play the Knave, but when West won the {Queen and found the necessary Diamond switch, East could grab his Ace for down one, For Androw’s thee dally BridgeCasts, go to rbnh.convbridgecast Sudoku 1011 1 ‘Sudoku, fill in the squares 34 6 2 nine 3x3 squares contain all, Bf 2 |e _|teeame ent a Ae s u 5 936/81 5/472 52/9 3{8{4 814/237/5 69 8 7 27 5/6 9 4|18 3 3 127/38 9/645 se a[e7es2 1 Money Hee 46 8|152|9.97 neee etme — fSHz{elslait8 or visit RNIB.org.uk. 7/8 3}9 14 1j2:5.6 rmoneyweek.com 37 Tim Moorey's Quick Crossword No. 1011 ‘bot of Taylor's Late tiled Vintage willbe svento tho sander ofthe fist coret solution opened on 17 Aug TAY LORY’S* 2021, Answersto ManeyWeck’s Quick Crossword 325° No, 1017,31-32 Area Place, London, WCTETOP. 3 heres Across cue ore milly ype across Down “1 Among ish writer) 1 Along, narrow ag (8) 43 Crary aboutsmall daughter in 2 Usmakerofeonsumer alowed neckwear slectonics 5) 8 Tories correctly brought about 4 Biner pressure fora response 7) 5 Awards conforedas, 10 Store of money reported (6) fnhonour 1) 11 This onechose after shut? (2,2,6) 6 Mediterranean capital (7) 14 Centres tor chesp shaversboast 7 Toboggen Braun, sey) 8 Satisfactory upto 16 Crile regular Sunday lunch 6) row (2.3.2.4) 7 Cooker abiained trom Nagasaki(3}__ 2 School ests (6) 18 Displays tall hatin arresting 13 Guarantee (6). performance tt) 15 EU member state (7) 21 Lefewith old ship for slow passage 6) 19 Light dancing shoes (5) 22 Nostamp? Thatmight upset me! (7) 20 “Whats shame!” (3) 23 Deputies natnevertnelesscan ake 22 Play an words 3), partin stings? (53) 24 Isparty dropping painting for word game) Address Solutions to 1009 ‘Across 1 Hose homophone Dressege Dr es sage Aplenty anagram 1W inci 2 des 11 Heavenly body cryptic def Aap hden 16 Tori reversal 1 Pea poa (7/18 Cub sandwich hit =cl 21 Pez plier 2 Funfair funfor 23 Spittal anagram 24 Cade homophone. Dean 1 Hear hear 2 Sass 8 Ray8 Shipbuilding 6 Added up ‘Exes Binvertebrate 12 Larve 18 Warhors 1 Plaza 1lmage 20 Opus Bon ‘The winnr a Money eek Quick Crossword No 100s: Joh Alison o Balham Tim Moora is author of How To Crack Cryptic Crosswords, published by HomerColins, and ne crossword workshops Timhloory:nfo. Taylor's family firm for 32 years, is dedicated to the yoduction ofthe highest quality ports. Late Bottled Vintage s matured in wood forfour to six years, The ageing process produces a high-quality, immediately drinkable wine with a ong, elegant finish; ruby red in colour, witha hint of morello cherries on the nose, and cassis, plums and blackberry to taste. Try it with goats cheese ora chocolate fondant. 7 August 2020 MosntViex38 Have we hit peak gold? We wouldn't bet on it. This gold bull run has barely begun ‘old as its nose in the air, Like a dec in a dry forest, itsmells the smoke. Itknows it's time to get out oftown... We ist recommended a shift to gold 20 yearsago. Our view ofthe money world back then was amateurish, All we knew was that ‘gold was way down. And stocks were way up. We guessed that both would regress to the mean in time. "The stockmarket represents hope forthe future, Stock investors are said to “look ahead” tothe flash Stream of earnings that companies arelikely to produce. Gold, onthe other hand, is more ofa reminder of the pasta souvenir ofall the plans and projects that never paid out as ‘expected. Stocks are an indicator of giddy greed, Gold is a measure of sober fear. One is hope, The other isreality Last word Siil, withourknowing anything, bout the future it seemed likely that hope and realty would come closer together. By dumb luck, our timing was good. Aer hittin high justshy of 2 ounces of gold for the Dow in mid-1999, stocks hadciratow “Stocks arean indicator wie ic civinwsthae, of giddy greed. Gold isa soins. Al honehadtas — Neasure of sober fear” soma too many ‘martinis. The US was a the peak of its power and prestige ~ practically ‘unchallenged, No war against terror, No mortgage finance ctsis. No war against a virus Noshutdowns. No bailouts. The federal government was running surpluses. And the national debt was going down, All wesaw was upside. And to make the future seem even more fetching, a new technology =the internet — was offering dizzy dreams of avarice. was buy gold and sitighr. Today, you'd have ‘mulkipied your money seven times in dollar terms. Gold outperformed stacks by about 450%. And now? The US has been slipping for the last 20 years. A foolish “war” against error cost $7ern. The dotcom bubble blew up in 2000, Ultea-low interest rates caused another bubble in 2007. “The Wall Strct bailout fouled the economy even more. Butthe foulest ‘and most foolish moves came just a few months ago. Ina coronavirus- induced panie, the feds shut down the whole US economy... and then began printing money on a scale never before seen in US history. So, what do you think? Is this the end of the trend that began 20 years ‘ago? Ts this the “bottom” forthe US ‘economy and the peak in the yellow metal, oristhis just the beginning, the first act in a show that wil last for years more? Dea reade ‘we don't now any more about the furure than you do, But we've learned something over the last 20 years the fake money system is ‘corrupt, counterproductive and s destructive. There seems tous to bbe more than an even-odds chance that the tends now in motion will stay in motion... until the whole shebang ~the economy, politics And the social system, 100 — goes up in flames. As for the peak in gol, it isprobably still far ahead. The bottom line $25,000 the reported costofticketsto a charity fventheldin the upmarket Hamptons, in New York state, at which Goldman Sachs boss David "D-Sol Solomon was the DJ. The event wascriticised by state governor Andrew Cuome forts lack of social distancing, £29,6b0 the vatue of lostsales at pubs, restaurants and hotelsin Britain between April and ‘June, compared withthe same three monthslast ‘year, according to trade body UkHosptaly. Total sales during that lockdown period cameto just £4.6bn, Movni¥isx 7 August 2020 £2.2M How much atrio ‘of Banksy paintings that donated by the anonymous atistto 8 children’s hospital in Bethlehem, locatedin the West Bank, have fetched at ‘auctionin London. The triptych references the European refugee crisis £2.3bN The ost spending on smallitems Such as coffees, Sandwiches and afterwork ‘rinks in central London between March and June, ‘according tothe Canirefor Economics and Business Research. The fall was result ofcommuters, having to work from home, $250,000 aboard Virgin, plane VSS Unity the interiors which were Unveiledina seriesof virtual simulations lastweok ‘Around 600 ceustomers have paid deposits, although odate hasyet beenset fortakeott The price ofa seat Gotactc's space £500M thesize ofa ‘governmentfund that willefectively provide insurance cover or Vand film production to "estartin Britain, ‘The filming of programmes suchas Peaky Blinders (pictured) stopped during Tockdown and surers have been unwiling t0 provide cover against disruption to filming caused by Covid says BBC News. | ore aden sy inode smoneyweek.comy Youinvest like Simon Discover your inner investor youinvest.co.uk co : Which? rene rorsDOW JONES VOLATILITY. Lea aa (Cae WHAT’S YOUR NEXT MOVE? Volatility is the new normal. Make the most of the opportunity V7 aa =recon i Trade CFD indices spreads as low Caer) Eu unica RRR re RYT Loi coy ae) oto on TRADE WITHOUT COMPROMISE. 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