Monday morning briefing: Job cuts rising in the U.S.

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.

Economic/industry news

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

For financial marketing and investment commentary help, contact us at 1.844.243.1830 or