Monday morning briefing – January 21, 2019

How technology will impact banking this year. Private equity showing a lot of interest in franchise chains. Personalized service key for millennial banking customers. Here are some important trends family offices should be focused on. And much more in this week’s briefing.

Economic/industry news 

International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data

Canada’s inflation rate increased to 2.0% in December: Canadian inflation unexpectedly accelerates on airfare surge

U.K. inflation rate falls to 2.1% in December: Inflation falls to lowest level in nearly two years

Brexit deal rejected by Parliament: Theresa May loses Brexit deal vote in Parliament

Is debt the primary catalyst for U.S. growth?: Gundlach warns U.S. economy is floating on ‘an ocean of debt’

Alternative investments could help investors navigate through challenging markets: Increased volatility in 2019 will benefit alt investments, J.P. Morgan says

Liquid alternatives should be used for diversification within a well-constructed portfolio: ‘Liquid alts are a diversification tool not a hedge’

Obtaining ESG data is costly: The rising cost of socially responsible investing

Is now the time for a little more international diversification?: Time for more international exposure?

The investment industry’s approach to managing funds, and selling them, has changed: Data picks investments, storytelling sells them  

Waypoint to launch Waypoint All-Weather Portfolio: Waypoint seeking to start one of Canada’s largest hedge funds

MD Financial launches MD Precision Index Portfolios: MD Financial launches index portfolios

On the pulse – New frontiers in fintech

How technology will impact banking this year: 10 ways technology will change banking in 2019 

Keeping the focus on the customer: Digital banks are led by clear customer-obsessed principles

A look back at the first year of open banking: Infographic: one year of open banking 

Personalized service key for millennial banking customers: A year into open banking, 8 of 10 millennials would switch banks for personalised service

How to prepare your employees for AI: 3 ways to prepare your bank’s workforce for AI

How to obtain value from your data management efforts: 6 trends in insight driven data management

The questions that you need to answer for a successful digital transformation: Digital transformation: Three top questions answered

Facial recognition is a powerful tool, but needs to be regulated: Regulating facial recognition

Temenos to partner with Bloomberg for NAV estimates: Temenos signs strategic collaboration with Bloomberg to deliver industry-first solutions to buy-side institutions

Fintech merger estimated at $22 billion announced: Fiserv is buying First Data in a $22B fintech megadeal

Fintech firm, Plaid, purchases Quovo: Plaid buys Quovo in its first major acquisition

News and notes (U.S.)

 Founder of Vanguard, John C. Bogle, passed away at the age of 89: Jack Bogle, founder of Vanguard Group and creator of the index fund, dies at age 89

 The Barclay Hedge Fund Index fell 2.61% in December: Barclay Hedge Fund Index drops 2.61% in December; difficult 2018 ends with Index down 5.11% for the year

There could be a shift towards global macro managed futures and fixed income strategies: Rising concerns over slowing economic growth in 2019 could drive changes in hedge fund investing, says new survey 

PE had its biggest year since 2007: Massive 4Q leads to PE’s biggest year since the crisis

Private equity showing a lot of interest in franchise chains: Private equity is buying more franchise systems – here are the key legal issues they are looking at 

While assets are booming, costs continue to rise: Investors see PE opportunity but margins need to improve

End of trade dispute with China could boost equity markets: Head of world’s largest asset manager says stock market has hit a bottom – but this would make it surge

Looking to change the SEC’s Regulation Best Interest Proposal: Fiduciary groups meet in joint resistance to SEC Reg BI

Fixed income ETFs in the U.S. accrued $97 billion in assets in 2018: Fixed income ETF volume jumped in 2018, says BlackRock

Ten straight months of redemptions push Bill Gross’ bond fund under $1 billion: Bill Gross’s bond fund dips under US$1B after redemptions

High-net-worth topics

Here are some important trends family offices should be focused on: What do banks believe family offices should focus on?

Tax reform that could help the high-net-worth: Opportunities for wealthy clients under tax reform

BMO brings together private banking and full-service brokerage units: BMO creates BMO Private Wealth Canada and Asia

The total wealth of Canada’s high-net-worth fell 1.2% in 2018: Canada is 7th in the world for HNWIs but wealth has slipped

Polls & surveys – What financials are saying

Less than 15% of fund managers expect a global recession in 2019 (Merrill Lynch): Fund managers’ outlook for growth and profits is bleak: Merrill

Global growth is slowing (Fitch): Global growth is slower but not stalled: Fitch

Entrepreneurs to scale back investment in 2019 (BDC): Canada’s entrepreneurs are cautious about investment

Canadians feel that they don’t have enough for retirement (TD): Growing number of Canadians unprepared for retirement

Millennials say saving for a down payment is the biggest challenge to home ownership (Clever Real Estate): How millennial homebuyers approach the housing market

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