Monday afternoon briefing: Services sink

We may not see a v-shaped recovery. Why PE firms may be looking at publicly listed companies. How COVID-19 may change banking. And much more in this week’s briefing.

Economic/industry news

Canada’s economy grew 0.1% in January: Economic growth slowed in January to 0.1%, Statistics Canada says

U.S. unemployment rate rises to 4.4%: US payrolls plunge 701,000 in March amid the start of a job market collapse

We may not see a v-shaped recovery: Economists are losing hope in a ‘v-shaped’ post-virus recovery

The Fed is stepping up to help global debt markets: Fed steps in once again to try to smooth out lending markets

How pension plans are approaching rebalancing amid the market volatility: Investment portfolio rebalancing in the time of coronavirus

Happy birthday to ETFs: Getting better with age: ETFs turn 30

Chart of the week

As COVID-19 continues to spread around the world, the services sector has been particularly hard hit. Travel, accommodation and food services, among others, have all come to a halt. In its most recent results from IHS Markit, services across the U.S. and Europe have had their steepest decline ever. Even if the spread of COVID-19 is flat-lines and people quickly return to work, it will likely take some time for the services industry to fully recover. Let us know what you think.
Used with permission of Bloomberg Finance L.P.

News and notes (U.S.)

Stay defensive in down markets: Billionaire Howard Marks pitches a defensive investing outlook

Why PE firms may be looking at publicly listed companies: Private equity will go after listed companies. And corporations will welcome it.

The impact of the U.S. government’s stimulus package on private markets: What $2T in stimulus does – and doesn’t do – for private markets

Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: April 1 edition

News and notes (Canada)

From skates to medical equipment: How private equity-owned Bauer pivoted from hockey gear to medical masks

Tax planning for business owners in the current environment: Tax tips for business owners navigating the pandemic

Real estate market in Canada could see significant declines: Distancing, economic uncertainty to hurt home sales: RBC

Counsel Portfolio Services makes changes to pricing: Counsel enhances tiered pricing program

On the pulse – New frontiers in fintech

With challenges come opportunities: Coronavirus: New challenges and opportunities for fintech

How COVID-19 may change banking: Reimagining banking during and after COVID-19

Fintechs can benefit from partnerships with private banks: Private banks may prove profitable partners for fintechs

Improving cash management systems: Firms look to better cash management capabilities

Answering questions about a digital transformation: Banks questions about doing digital transformation

Improving the process for online account openings: When opening accounts in branches becomes impossible

Helping advisors with remote client engagement tools, free until July: Wealthtech firm offers tool free of charge 

High-net-worth topics

Reviewing your estate plan: How to take advantage of new estate planning opportunities caused by the coronavirus

The wealthy still bullish on the economy over the long term: Wealthy U.S. investors and business owners look hopefully to long term

Polls & surveys – What financials are saying

Canada’s stimulus measures could help ease the impact of COVID-19 (DBRS): Thumbs up for Canada’s large stimulus effort: DBRS

24% of millennials bought stocks despite volatile markets (Bankrate): Quarter of millennials bought stocks amid recent volatility: Bankrate

In this time of rising uncertainty, please know that ext. is closely monitoring COVID-19 and its impact – current and potential – on our firm, our clients’ businesses and the overall financial services industry.

We remain committed to seamless service for our clients and the well-being of our employees during this time.

If you have any questions about business continuity at ext. – or how you can effectively communicate these and other timely issues with your clients, please reach out to your account manager or contact us 1.844.243.1830 or info@ext-marketing.com.