U.S. jobless claims slip, 2020 calls for the ‘Renaissance banker,’ and housing is booming: This Week in Finance

Welcome to This Week in Finance, your weekly roundup of the conversations trending among financial professionals on LinkedIn. Click Subscribe above to be notified of each edition. This week:

U.S. unemployment claims fall below 1M

New weekly jobless claims slipped below 1 million for the first time since the coronavirus pandemic hit the U.S. Initial filings for unemployment assistance declined last week to 963,000, the lowest since March, while continuing claims fell to 15.5 million, the lowest since early April. Labor Department data show some strengthening in the market, with unemployment falling to 10.2% last month from a 15% peak in April. Still, total weekly claims of more than 16 million compare with a pre-pandemic peak of 6.6 million in 2009. ?? Here's what people are saying.

UK crashes into record recession

The UK entered its “largest recession on record” as lockdown measures pushed the country into the worst economic slump of any G7 nation. The economy shrank 20.4% in the second quarter, sending the UK into its first technical recession since 2009 — defined as two successive quarters of GDP contraction. Data from the Office for National Statistics confirmed that growth returned in May and strengthened in June as government lockdown measures began easing, but not enough to counteract the plunge. ?? Here's what people are saying.

• Employment slump is worst in a decade: The UK has experienced its biggest quarterly fall in employment since the financial crisis.
• One in three firms plan job cuts: UK employers expect to cut jobs by October as the government’s Coronavirus Job Retention Scheme winds down.

The worst quarter ever for Singapore

Singapore's second-quarter GDP fell by an annualized 42.9%, more than estimated. It marks the city-state's worst quarterly economic performance on record, with its lockdown dealing a large blow to the manufacturing, construction, and services industries. Prime Minister Lee Hsien Loong warned that business closures and layoffs are likely to rise in the next few months. The government now predicts full-year GDP to shrink 5% to 7%, canceling out growth generated in the past two to three years. ?? Here's what people are saying.

Airbnb may still IPO amid losses

While Airbnb experienced “tumbling revenue and mounting losses” in the second quarter, it still has plans to go public this year, reported Bloomberg. The home-sharing giant saw revenue drop at least 67% from the same period last year, as global travel dramatically slowed during lockdowns. With the IPO market almost at a standstill during the pandemic, the highly anticipated move “sets up the next few months to be an especially busy time for big IPOs,” said The Wall Street Journal. ?? Here's what people are saying.

Mastercard eyes more M&A: CEO

Payments giant Mastercard has been one of the more acquisitive fintech leaders in recent years — and incoming CEO Michael Miebach doesn't expect that to change. Miebach, who takes the reins in 2021, told me in an interview that diversification via M&A has enabled Mastercard to fare "fairly well" through the recent crisis and, as a result, he will seek to further bolster the company's capabilities in areas such as open banking, real-time payments, data analytics, and cyber security. ?? Here's what people are saying.

Wanted: The ‘Renaissance banker’

Bankers: Get ready for odd jobs. As big-ticket mergers and acquisitions have slowed during the pandemic, investment bankers are being relied on for a slew of new kinds of advice — “everything from supply chain disruptions to how to handle a trade war, or the best way to position a company for the outcome of the U.S. election,” Bloomberg reported. Banks are bolstering their stable of advisers in areas such as corporate restructuring, capital raising, blank-check deals, and growth industries such as health care and technology. “The renaissance banker is back in vogue,” said PJT Partners CEO and veteran banker Paul Taubman. ?? Here's what people are saying.

NAB asks 2,600 to reapply for their job

National Australia Bank will ask more than 2,600 employees to reapply for their jobs as the financial behemoth attempts to stem financial pressures created by the pandemic. NAB has employed consultants to help manage the process, The Sydney Morning Herald reported. Some 1,200 roles could be eliminated, but “hundreds of others” would also be created in technology and enterprise operations, risk, and finance by the end of the review. Chief executive Ross McEwan warned NAB’s staff that “costs were critical.” ?? Here's what people are saying.

Real estate’s pandemic ‘gold rush’

With more people working, eating, learning, and spending most of their time at home, the pandemic has sparked a boom in U.S. home buying. Low mortgage rates and a burgeoning desire for space are heating up competition for single-family homes. Existing home sales jumped 20.7% in June, with median housing prices rising in every region in the country, according to the National Association of Realtors. It’s another sign of how the crisis has transformed demand and investment, fueling bidding wars and even blind buying of available properties. ?? Here's what people are saying.

Virus slams millennials’ finances

The pandemic may have more of a lasting impact on millennials’ wealth than on any other generational cohort. For those born between 1981 and 1996, the economic hit of the past few months “could keep them from accruing the wealth of older generations,” according to The Wall Street Journal. Having largely entered the workforce during the previous financial crisis, millennials began the pandemic in a weaker position than older Americans. With many working in the hardest-hit industries, such as leisure and hospitality, they are now at risk of “falling further behind.” ?? Here's what people are saying.

• More insecurity over Social Security: Younger generations are increasingly concerned that Social Security won't be there by the time they retire.

?? Editors’ Picks: Must-read articles ??

Each week, editors at LinkedIn select thought-provoking articles that are sparking discussion among financial services professionals on the platform. Join the conversation by reading and commenting on them here.

With Cate Chapman, Natalie MacDonald, Siobhan Morrin, Yunita Ong, Jessica Hartogs, Andrew Murfett, Kelli Nguyen, Richard J. Chang, and Jake Perez.

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