All across Canada, cases of COVID-19 have increased and given rise to concerns about a second wave. Quebec is shutting down restaurants, cinemas, bars and museums for 28 days in an attempt to contain the spread.
Active cases in the province have increased to approximately 5,000, almost double the amount at the beginning of August. Meanwhile, the government of Ontario is considering restrictions as new cases climb. Canada’s gross domestic product is now within 6% of pre-pandemic levels after rising 3% in July, but increasing COVID-19 cases and new restrictions could hinder the recovery.
Canada’s economy expanded 3% in July: Statistics Canada says economy grew 3% in July
U.S. gross domestic product dropped 31.4% in the second quarter: U.S. economy plunges 31.4% in the second quarter but a big rebound is expected
The U.S. unemployment rate fell to 7.9% in September: U.S. employment growth slows in September; unemployment rate drops to 7.9%
A potential second wave is making investors nervous: Rising COVID-19 cases “unnerving investors,” report says
The dangers of panicking: The price of panic
Alternatives helped reduce risk: How to look at alternatives in the middle of market volatility?
Reasons for hope
Regeneron’s potential COVID-19 treatment shows positive signs in early trials: Early data shows promising results from Regeneron’s antibody cocktail for coronavirus
Tracking potential vaccines: COVID vaccine tracker: when will a coronavirus vaccine be ready?
A rapid test for COVID-19 approved by Health Canada: Health Canada green lights first rapid COVID-19 test
Helping retirement plan participants: Transamerica offers free advice to small-business clients
Adapting your business
The pandemic has created a shift in culture at many organizations: Most executives think COVID-19 changed their companies forever
Don’t make these estate planning mistakes: 16 big estate planning mistakes clients make: Advisor’s advice
Most financial professionals hope for a combined office/work-from-home arrangement: Finance pros say WFH boosts productivity – but what does that mean for the office?
Chart of the week: Job cuts rising in the U.S.
According to Challenger, Gray and Christmas Inc., announced job cuts in the U.S. rose 2.6% to 119,000 jobs in September. Even as the economy reopens, the impact of COVID-19 is impacting employers. Weak demand and restructuring plans were the major reasons for the announced job cuts. Year-over-year announced job cuts rose 186% in September, demonstrating the substantial impact the pandemic has had on the U.S. economy.
The announced layoffs have been widespread across industries, with the likes of The Walt Disney Co., Dow Inc. and United Airlines Holdings Inc. announcing significant job cuts. While the U.S. labour market has improved over the past few months, the announcements of more layoffs may be signalling a slower-than-expected recovery for the U.S. labour market. Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Hedge fund launches have dropped amid the pandemic: Hedge fund launches at “historically low” levels despite Q2 recovery, but liquidations ease following COVID crash
New ESG products from industry heavyweights: Vanguard, BlackRock, Transamerica launch new ESG ETFs: Portfolio products
Taking a long-term perspective: Are endowments contrarians?
U.S. equity funds posted substantial outflows for the week ended September 23: U.S. stocks see third-biggest outflow ever
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: September 29 edition
News and notes (Canada)
Canadians looking for more retirement security: Most Canadians would choose greater retirement security over more money now: survey
Canadians optimistic about the real estate market: Canadian housing market optimism climbs amid second wave
Population growth in Canada has slowed: Canada’s population growth stunted: StatsCan
Companies may lose business after suffering through a data breach: Canadian cybersecurity poll finds 84% rethink doing businesses hit by data breach