Monday morning briefing – January 28, 2019
The new technologies that European banks are prioritizing. The possible impact of an Amazon chequing account. The shift from passive to strategic beta and active. The practices FINRA will focus on in 2019. 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
The Chinese economy grew 6.4% in the fourth quarter: China sees slowest economic growth since 1990
ECB maintains benchmark refinancing rate at 0%: ECB holds rates steady, guidance unchanged
BoJ holds interest rates steady: Bank of Japan keeps interest rates steady and cuts inflation forecast
Central banks may hold steady in early 2019: What to expect from central banks in 2019
U.S. recession in 2020 possible, according to Ray Dalio: Ray Dalio, founder of the world’s biggest hedge fund, sees a ‘significant risk’ of a possible US recession in 2020
The intertwining of impact investing and philanthropy: How impact investing can amplify philanthropic efforts
Some ESG trends you need to know: Five ESG trends to focus on for 2019
SG funds continue to attract large amounts of capital: Bucking the trend, flows into ESG funds set another record in 2018
Desjardins has launched the Desjardins Alt Long/Short Equity Market Neutral ETF: Desjardins introduces alternative ETF
CIBC launches CIBC Smart Investment Solutions: CIBC combines active and passive strategies in new portfolios
CI Investments launches ETF portfolios: CI introduces actively managed ETF portfolios
Fidelity introduces new ETFs to its lineup: Fidelity launches new factor ETFs, mutual funds
Happy Birthday, TFSA: The TFSA turns 10
On the pulse – New frontiers in fintech
How businesses can seize the opportunity in a fast-changing world: Navigating a world of disruption
How banking experts would launch their brand new bank: How banking providers can get their digital strategy right in 2019
Here are a few technologies that could impact financial services firms this year: Five emerging tech trends to watch in 2019
The asset management industry could benefit from regtech: How regtech will digitally transform asset management in 2019
The potential impact of an Amazon chequing account: An Amazon checking account could displace $100 billion in bank deposits (but it won’t)
Financial services firms should be prepared to enter the “greenfield”: Banks should take a page from fintechs on innovation
A look at some digital transformation myths: Busting five myths of digital transformation
Governments should provide a supportive environment for AI: Artificial intelligence initiatives need government support
How SMEs will benefit from fintech: Emerging fintech innovations set to influence SME lending in 2019
The government shutdown putting the country at risk of cyberattacks: With cybersecurity threats looming, the government shutdown is putting America at risk
Which new technologies European banks are prioritizing: Improving product agility is now a priority for 51% of European Banks, according to Temenos
A view from the inside on new technologies: The promises and pitfalls of new technologies
AI versus humans in the credit decision-making process: AI to outperform human credit decisions by 2024 – survey
IBM a number of health care insurance companies are looking to create a blockchain network for the health care industry: IBM teams up with healthcare firms for blockchain initiative
Understanding of blockchain lacking: New research points to poor understanding of blockchain amongst senior business execs
News and notes (U.S.)
The hedge fund industry experienced $35 billion in redemptions in 2018: 2018 was a challenging year for hedge funds, says eVestment
Center Lake Capital posted a 76% return in 2018: This hedge fund blew the doors off in 2018
Get to know Seth Klarman: Hedge fund billionaire Seth Klarman: The ‘most influential investor you’ve probably never heard of’
JP Morgan’s outlook on the alternative investment industry: JP Morgan’s 2019 Alternatives Outlook highlights opportunities across hedge funds, private equity, private credit, real estate and real assets
The potential drawbacks of the significant capital raises by private equity: The consequences of PE’s fundraising arms race
Natural resources attracting private capital: Private investment in natural resources hits record high
A look at some trends in the U.S. PE industry: More deals, fewer funds and other US PE trends in 9 charts
Shifting from passive to strategic beta and active: ETF providers pivot to strategic beta, active management
Outflows from long-term U.S. funds at its highest level since 2008: Investors showed major risk aversion in 2018
Government shutdown forces Cboe’s withdrawal of its bitcoin ETF application: Cboe’s bitcoin ETF application pulled after repeated SEC delays
Portfolios need to be more diversified, according to BlackRock: BlackRock: Advisors are overweight equities and ill prepared for 2019
Here is what practices FINRA will focus on in 2019: Finra to target online sales practices of broker-dealers
A deep dive into the pros and cons of a wealth tax: Opinion: How a wealth tax would work in the United States
High-net-worth topics
It is getting harder to attract capital from the high-net-worth: Fleeing clients are grim reality in banks’ push to manage wealth
The number of high-net-worth individuals globally expected to grow over the next five years: Global wealthy projected to grow 6.1% annually in next 5 years
The average age of the rich is dropping: Survey of U.S. investors finds the rich are getting younger
How the high-net-worth should handle a divorce: What Jeff and MacKenzie Bezos (and all high-net-worth couples) need to do to avoid a messy divorce
Polls & surveys – What financials are saying
IMF expects global economic growth of 3.5% in 2019 (IMF): IMF cuts world growth forecast to 3.5%
42% believe that the Canadian economy will worsen in 2019 (FPSC): 4 in 10 Canadians think the economy will be worse this year
Almost 75% of portfolio managers expect a recession (BCG): Portfolio managers believe recession is near