Monday morning briefing: A bicycle built for gains
There was big news on Wall Street last week. Citigroup Inc. announced Jane Fraser will become CEO in 2021 after current CEO, Mike Corbat, retires. Jane Fraser will become the first woman to be CEO of a major Wall Street bank. Across her career at Citigroup, she has headed the company’s Latin American operations, consumer unit and private bank. She has served as President since 2019. Across the U.S., there are 31 women leading companies on the S&P 500 Index.
Economic/industry news
The BoC holds its central interest rate steady at 0.25%: Bank of Canada re-commits to rate freeze and bond purchases
U.S. inflation rate hits 1.3% in August: U.S. consumer prices increase solidly in August
Why Ottawa should slow down on more stimulus: No reason for more fiscal stimulus right now, says Rosenberg
Responding to a dysfunctional market: A three-part strategy for upside potential and downside protection
Begin preparing for inflation risk: Investors are unprepared for a long-forgotten risk
Is now the time for ESG to shine?: Is this ESG’s big break?
What may be ahead for the global economy: 6 economic predictions for the next 5 years: Northern Trust, 2021
Reasons for hope
A look at the COVID-19 vaccine candidates: Dozens of COVID-19 vaccines are in development. Here are the ones to follow.
How banks are helping Canadians: Canada’s banks are standing by Canadians
Fund developed to help local small- and medium-sized businesses: New fund helping businesses survive, retain local jobs
Looking to make the seafood industry environmentally sound: How this impact investor is generating double-digit returns cleaning up the seafood business
Adapting your business
Best practices for a virtual AGM: Virtual annual meetings are here to stay: Best practices for re-imagining the AGM for our remote world
How some international CEOs are steering their companies through the pandemic: ‘Exceptionally challenging’: How Top CEOs are confronting COVID-19
The importance of capital markets in uncertain times: Amid COVID-19 uncertainty, public markets are more important than ever
Helping clients by using behavioural finance techniques: How behavioral finance can help clients and advisors
Groceries flown to your home: Walmart to test drone delivery as race to deliver the goods heats up
Chart of the week: A bicycle built for gains
With gyms closed in response to the COVID-19 pandemic, more people are working out at home these days. How do they do this? By using equipment from Peloton Interactive Inc. In its fiscal fourth quarter ending June 30, 2020, Peloton’s revenue increased 172% over the same quarter in 2019. Sales of the company’s stationary bikes and treadmills, along with monthly membership subscriptions, surged in response to people being forced to stay in shape while staying home. This marked the company’s first profitable quarter, which had a net income of US$89.1 million. The company also provided bullish projections for future sales. Can Peloton keep its momentum going, or will the eventual widespread reopening of gyms stall its growth? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
The richest hedge fund managers in the U.S.: The richest hedge fund managers on the 2020 Forbes 400 list
Hedge fund industry holding up strong amid the pandemic: AIMA and KPMG survey: Industry remains resilient during pandemic, with hedge funds “actively hiring” throughout market dislocation
Non-transparent ETFs could be popular among the advisor community: Why nontransparent ETFs may appeal to advisors
JPMorgan enters green bond market: JPMorgan makes debut in green bond market with US$1B deal
News and notes (Canada)
RBC launches four new ESG ETFs: RBC iShares launches 4 sustainable ETFs
Canada Life to launch 18 new mutual funds: Canada Life to launch new shelf of mutual funds
CI seeking a U.S. listing: CI Financial considers U.S. listing to boost deal spree
Strong Canadian banks will survive the pandemic: Report says banks can weather COVID-19 storm
Amazon opening two fulfillment facilities in Ontario: Amazon to create more than 2,500 jobs in Ontario by opening new fulfillment centres