Monday morning briefing: Gold bugs are buzzing
The retail industry took another hit as DavidsTea Inc. announced it is filing for creditor protection. COVID-19 lockdowns put substantial pressure on the company’s finances. In its plans to restructure, DavidsTea will close 82 stores in Canada, all of its stores in the U.S., and will bolster its online presence.
As online sales continue to grow, particularly amid the pandemic, more retailers may consider streamlining operations across fewer stores and focusing more on online sales. How will employment be impacted? Will there be an impact on commercial real estate? The pandemic is sure to result in a new normal for the retail industry.
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U.S. services sector returns to expansion: June US ISM non-manufacturing index 57.1 vs 50.2 expected
The Canadian government expects low growth through 2021: High unemployment, $343B deficit projected in Liberals’ fiscal snapshot
Fundraising for private debt is picking up: Private debt gets all the action
Understanding indexes, and index-tracking ETFs: Understanding the role of indexes in today’s markets
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Working together on a potential vaccine: Canadian company to collaborate on potential coronavirus vaccine with GSK
A few companies thriving amid the pandemic: 3 innovations meeting new demand in the COVID-19 era
Adapting your business
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Gen Z’s money habits could change in response to COVID-19: How the coronavirus changed Gen Z’s views about money
Calling Google Assistant for account information: Schwab clients can now say ‘Hey Google’ for account info
Needing more holistic wealth planning: Think you’re meeting enough with clients? They don’t agree
Chart of the week: Gold bugs are buzzing
The spot price of gold passed the US$1,800 per ounce mark last week, reaching levels last seen in 2011. After remaining weak for many years, the price of gold started to rise in late 2018, as U.S.-China trade tensions gave rise to heightened uncertainty about the global economy.
Prices have again spiked in 2020 in response to the COVID-19 pandemic, which brought the global economy to a near halt and resulted in a sharp rise in fiscal and monetary stimulus. The question now is how high can gold go? With more cases of COVID-19 challenging the global economic recovery, and potentially more stimulus on the horizon, is US$2,000 within reach?
Used with permission of Bloomberg Finance L.P.
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