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Integrated Insights -- Week of August 17, 2020

Integrated Insights -- Week of August 17, 2020

August 18, 2020

One of the more difficult parts of this event-driven recession is getting perspective of the virus's impact on the total economy. While investment markets have rallied considerably so far, Main Street in parts of the US continues to suffer closures of small businesses.  It is a great divide that is difficult to reconcile. One concern around this (among many) is whether the job losses in these small businesses will have a "trickle up" effect on larger business.  

Part of what I hope to share each week is a dose of perspective, as data is presented from pockets of the country or world community. Here's what I'm reading this week.

Weekly Commentary -- Implications of a Weaker Dollar -- BlackRock

  • Europe’s more favorable virus and policy dynamics versus the U.S. have helped pressure the U.S. dollar, underscoring our preference for European equities.
  • Negotiations over a new U.S. fiscal package to cushion the virus shock dragged on as key benefits expire and states face budget shortfalls.

  • U.S. and German data this week will shed light on consumer sentiment amid ongoing concerns about renewed spread of the coronavirus around the world.

Cloud Demand is Sky High -- Capital Group

COVID 19 has hastened the growth of cloud services even more than before.

Capital Group equity manager Cheryl Frank: “I think an ever-larger number of companies will go cloud-first or cloud-only,” says Frank, a portfolio manager at Capital Group  who has spent years covering software companies. She notes that with global information technology spend around $3.7 trillion in 2019, even a moderate increase in companies switching to the cloud could have a massive impact on the bottom line for market leaders.

COVID 19 Tracker -- First Trust 

With the narrative around COVID-19 constantly changing, First Trust has published a weekly chart book of important data to keep an eye on to help gain some perspective.