Monday morning briefing: A welcome rebound
The U.S. economy and equity markets got some welcome news last week as 4.8 million jobs were added, surpassing market expectations of 3.2 million jobs. This lowered the U.S. unemployment rate to 11.1%. Rising job numbers bode well for the health of the U.S. economy and should help in its recovery. Consumer and business spending could get a boost from better job numbers as well. However, the labour market could face significant challenges as new cases of COVID-19 rise in some U.S. states.
Canada’s economic growth tumbled in April: Economy posted record 11.6% plunge in April: StatsCan
The U.K. economy contracted 1.7%, annualized, in the first quarter: Coronavirus: UK economy hit by worst contraction in 41 years
The USMCA went into effect on July 1: NAFTA 2.0 comes into effect; Lightizer vows enforcement
Companies hold back from going public: Stock markets rebounded. So why aren’t companies going public?
People are saving more: Good news: Clients are saving money during the pandemic
Issuance of debt surges in the first half of 2020: Global debt markets see record action in 2020
Expected returns from Bernie Madoff, the Mets and Bobby Bonilla: Bobby Bonilla Day is an annual reminder that fixed-income investments are worthwhile
Reasons for hope
Pfizer appears to be progressing toward a vaccine: Early trial results keep Pfizer vaccine development on track for possible 2020 distribution
Trying to stop pandemics: How the billionaire behind the movie ‘Contagion’ is working to stop this pandemic – and the next one
Taking the theatre outdoors: Walmart partners with Tribeca to turn 160 store parking lots into drive-in theaters
Adapting your business
What work may look like in the future: The future of work is not what you think
Why outsourcing can be valuable to reduce risk: Businesses focus on outsourcing as a COVID-19 survival strategy
Embracing digital innovation and the changes brought on by COVID-19: Realising the digital dream
Chart of the week: A welcome rebound
The S&P 500 Index experienced a sharp retreat in the first quarter of 2020, as COVID-19 brought the global economy to a near halt. After reaching its 2020 low on March 23, the S&P 500 came roaring back and surged higher over the second quarter. The index rose 20%, its best quarterly return since the fourth quarter of 1998. Investor optimism gained momentum on expectations of a quick economic recovery. Going into the third quarter, however, uncertainty has been rising in response to an increase in new COVID-19 cases. Will it be another strong quarter for U.S. equities, or will volatility return amid the further uncertainty? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Institutional Investor’s hedge fund industry award winners: These hedge funds thrived in 2019. Are they surviving 2020?
Hedge fund liquidations rose in the first quarter: Quarterly hedge fund liquidations rise to highest since 2015
Converting to a family office: Hedge fund celebrity John Paulson shuts firm to become a family office
Advisors expect an increase in their AUM: U.S. advisors expect 7% asset growth over next 12 months: survey
Aligning Fiduciary Rule with Regulation Best Interest: DOL reveals revised Fiduciary Rule
News and notes (Canada)
Waratah Capital Advisors to launch second liquid-alt fund: Waratah takes second shot into liquid-alt space with ESG strategy
Looking to eliminate trailers for discount brokers: Regulators sticking to their plan
Alberta’s credit rating reduced by Fitch: Fitch reduces Alberta credit rating, cites concerns on heavy borrowing
BIS Innovation Hub coming to Toronto: Bank for International Settlements tech hub coming to Toronto