Monday morning briefing: U.S. economy on lockdown

The yield on the 10-year U.S. Treasury bond finished last week at 1.14%, up from 0.91% at the beginning of the year and surpassing 1.00% for the first time since March of 2020. Expectations for higher inflation, more fiscal stimulus and better economic conditions contributed to the rise. While there are reasons to believe the 10-year U.S. Treasury yield could move even higher, strong demand for long-term Treasuries at auction last week and continued purchases by the U.S. Federal Reserve Board could limit further increase.

Economic/industry news

U.S. inflation rate rises to 1.4% in December: Consumer inflation surges in December on higher gas prices, CPI finds

Initial jobless claims higher than expected: Jobless claims surge to highest weekly total since August

U.S. retail sales decline in December: U.S. retail sales fall again in December

Leon Cooperman’s top recommendations: Wall Street billionaire Leon Cooperman warns market is ‘not going to end well’ – but he still likes these 5 investments

Some personal financial themes for 2021: Forbes Advisor U.S. outlook 2021

What may be in store for ETFs in 2021: ETF trends for 2021

Reasons for hope

Positive results for J&J’s potential COVID-19 vaccine: J&J’s one-shot COVID vaccine is safe and generates promising immune response in early trial

Purchasing more doses of vaccine to speed up distribution: Feds secure extra 20 million Pfizer-BioNTech vaccine doses

From theme park to distribution centre: Disneyland Resort to become COVID-19 vaccination ‘super’ site

Adapting your business

People want empathetic leaders: The future of business leadership: Old-school micromanagers need not apply

Keep building your prospect pool: 10 easy ways to refill your prospect pool in 2021

Ideas to improve your business in 2021: Three things you can do to get better business results this year

Avoid these integration mistakes: Top 5 mistakes buyers make when integrating acquisitions

Chart of the week: U.K. economy on lockdown

Gross domestic product in the U.K. contracted in November for the first time since April. The decrease was in response to new lockdown restrictions that impacted the services sector, including retail trade, as well as the accommodation and food industries. As lockdowns carried on for much of November and December, the U.K.’s fourth quarter economic growth could be negative. As new restrictions were implemented early in 2021, the U.K. economy could be facing its second recession since the beginning of 2020. Policymakers are hoping a pandemic support plan and vaccine distribution will help the economy avoid a double-dip recession. Let us know what you think.
Used with permission of Bloomberg Finance L.P.

News and notes (U.S.)

Activism slows in 2020: Investor activism was down overall in 2020, but big companies faced scrutiny

Private equity mixed in 2020: Private equity in 2020: Not as bad as you thought

Many Americans fall short of retirement saving needs: American retirees have just 39% of recommended savings: Study

Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: January 12 edition

News and notes (Canada)

A new private investment product for HNW clients: CI launches new private markets product for HNW clients

Canadian debt underwriting reaches a record in 2020: A record year for Canadian securities issuance

CFIB believes more business may fail as Ontario ramps up further lockdown restrictions: More ‘zombie businesses,’ failures ahead in Ontario lockdowns: CFIB

The Conference Board of Canada expects Canada’s GDP to expand 5.3% in 2021: Will consumer confidence bounce back?

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