Monday morning briefing: Shutting down sales
Fear of a second wave of COVID-19 infections is intensifying. There has been a spike in cases in many states across the U.S. California had its largest one-day jump in COVID-19 cases, while Texas has seen a surge in hospitalizations due to COVID-19. In China, Beijing was forced to close schools and cancel flights in response to an outbreak of the coronavirus. A jump in cases is causing Iran to consider another lockdown. A second wave could have a harmful impact on the global economy and hinder the economic recovery, which could also be a catalyst for further volatility in global equity markets.
Economic/industry news
Consumer prices in Canada fell 0.4%: Canada May CPI falls 0.4% as gas prices plunge
The BoC is likely to hold interest rates at their current levels for some time: Bank of Canada has no immediate intentions to raise interest rates, Macklem says
The BoE holds its central interest rate steady at 0.10%: Bank of England steps up virus fight with bond-buying boost
The Canadian economic recovery dependent on the strength of households: Household resilience a key factor in COVID-19 recovery
Asset classes highly correlated in the current market: JPMorgan sounds warning on market correlations at 20-year highs
Investors’ risk-on sentiment rising, but proceeding with caution: ‘Peak pessimism’ in markets is over, but hope is fragile: BofA survey
ETFs and ETPs posted US$48 billion of net inflows in May: Global ETF and ETP assets surpass US$6T in May
Reasons for hope
WHO hopeful on vaccine doses by the end of the year: WHO eyes hundreds of millions of COVID-19 vaccine does before 2021
Keeping NBA players safe with fitness wearables: The lengthy plan to restart the NBA season features fitness rings for temperature tracking
Spending on dining out should pick up again: Restaurants will be back, I promise
Adapting your business
The time is now for a digital transformation: COVID-19 accelerates urgency for digital banking transformation
How the RIA workplace may change: Will COVID-19 change the way we work forever?
Using digital tools to connect with clients: Why firm hosted more than 55,000 virtual meetings in May
Look professional during a virtual meeting: Get ready for your close-up
Experts provide tips on implementing a CRM process: CRM process automation: how to implement in your organisation
Chart of the week
April was the first full month in which non-essential businesses and forced lockdowns were in effect in Canada in response to the COVID-19 pandemic. Sales across the supply chain posted considerable declines. Retail sales, wholesale sales and manufacturing sales all fell at their steepest pace ever in April, declining 26.4%, 21.6% and 28.5%, respectively. This is sure to weigh heavily on Canada’s economic growth for the second quarter. The spread of COVID-19 has had a considerable impact on the Canadian economy, including Canada’s labour market. Hiring should increase as the Canadian economy begins to reopen, which may raise spending and aid in Canada’s recovery. The question is, how quickly will jobs and spending recover? A slow pace could mean a slow recovery. Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
When will hedge funds return to the office?: Hedge fund industry split over return to work and client meetings, as lockdown measures ease
Bill Ackman’s next opportunity: Billionaire Bill Ackman plots his next deal
Why public tech companies could go private sooner: What happens when private equity firms fall for tech companies
Digital transformation comes to the construction industry: Pandemic speeds up digital transformation in construction
The FHFA has extended its ban on evictions and foreclosures: Home foreclosures and evictions banned through summer
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: June 17 edition
News and notes (Canada)
Wealthsimple launches two ETFs: Mackenzie and Wealthsimple unveil responsible-investing ETFs
Canadian VC activity down in the second quarter: Canadian VC investment threatened by COVID-19
Canada’s services sector could have sustained permanent damage: Report warns of ‘permanent’ economic damage wrought by COVID-19
Canadian CEOs want to reopen air travel: Open letter from 27 CEOs calls for Canada to lighten travel restrictions