Covid-19 briefing
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- ECONOMIC IMPACT -
Latest update: 8 January
Past experience with the GFC suggests the second half of 2020 will be more challenging than the immediate crisis period.
Quantitative easing will boost asset prices long term as per the global financial crisis. The flood of 0% or near 0% cash is forcing a rethink of leverage.
The US robo-advice industry is forecast to exceed $1tn by the end of 2020, a marked increase in investor market share. The higher AuM gives major players within it the scale to be profitable and compete with even the largest traditional wealth managers, expect small scale robo-advisers to be acquired.
On average, GlobalData expects a 15% reduction in revenue over the course of 2020 compared to the strong results of 2019. Much of the red ink in reserving for credit losses seen at retail banks will be avoided.
-4.4%
IMF has revised its 2020 global GDP forecast to -4.4% from an estimate of -4.9% made in June.
5.3%
The global economy is estimated to contract by 4.2% in 2020 and bounce back by 5.3% in 2021.
Impact of Covid-19 on equity indices
- SECTOR IMPACT: Finance -
Latest update: 8 January
Clinical trial market impact
1,032
Trial disruption is leveling off and disrupted trials saw a small dip, with 1,032 trials still disrupted and 579 pharma/biotech companies and contract research organisations associated with disrupted clinical trials.
3,414
There are currently 3,414 clinical trials underway for Covid-19, including 172 multinational trialsroboto slab and 2,818 single-country trials.
UBS may allow remote work permanently for one-third of employees
UBS Group said that as much as one-third of its employees may work from home permanently in a post Covid-19 environment.
The Switzerland’s largest bank employs nearly 70,000 people in 50 countries and had 80% of its employees globally at home during the peak of the coronavirus pandemic.
UBS is now planning to allow employees to offices in a staggered approach by region as many as a third of its staff could work remotely on a permanent basis.
B2B wealthtech InvestSuite raises additional funds to fuel growth
B2B wealthtech company InvestSuite has raised €3m in a new funding round to drive its growth.
InvestSuite’s current, reference investor PMV, who has invested an additional €800.000, as well as AB Accelerator, 365.fintech and other investors participated in the round.
With the latest financing, the company’s overall capital raised to date since establishment in 2018 increases to €9m.
InvestSuite CTO and co-founder Laurent Sorber added: “Covid-19 has shown that we can remotely sell, build and deliver enterprise solutions to our global customer base.”
External global factors become principal driver in compliance progress changes
The impact of external global factors has surpassed regulatory hurdles as the principal driver in compliance progress changes.
This is according to the 6th Global Compliance Survey from Nasdaq. Representing both sell and buy side firms and market infrastructure, respondents of the survey cited external factors, notably COVID-19, as the main catalyst for the changes, unusually surpassing regulatory hurdles.
Expanding on the deviation, Valerie Bannert-Thurner, senior vice president and head of buy-side and sell-side solutions, market technology at Nasdaq, commented: “Year on year, the findings of the annual Global Compliance Survey typically show regulatory hurdles being the major factor in compliance planning and practices – but this year is different.”