Brexit talks go down to the wire, Wall Street packs its bags for Florida, and finance salary expectations surge: This Week in Finance

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

Europe prepares for no-deal Brexit

The EU published a list of “contingency measures” to stave off major disruptions in case a deal with the UK is not reached or ratified by the end of December. Though talks are ongoing and both parties said an accord would have to be reached by Sunday, the European Commission proposed four measures to prevent chaos in transport and fisheries. On the condition that the UK reciprocates, certain air services as well as road freight and passenger transport would continue for six months. The Commission also suggested letting EU and UK vessels fish in each other’s waters for another year. 💲 Here's what people are saying.

• Brexit uncertainty sparks port chaos: Japanese carmaker Honda drew up emergency plans to fly components into the UK after transport problems caused a shortage of parts. British bicycle-maker Brompton said it was “juggling like crazy” to keep production running after it faced delays.

Goldman mulls Florida move

Goldman Sachs may move one of its key divisions from the New York area to Florida, reported Bloomberg, citing unnamed sources. In what could be “another potential blow to New York’s stature as the de facto home of the U.S. financial industry,” the bank is said to be exploring potential office locations in South Florida for much of its asset management team. The firm is also eyeing Dallas. Its recent WFH success during the pandemic has led it to consider moving roles away from the New York area to save money, per Bloomberg. 💲 Here's what people are saying.

• Florida faces Wall Street takeover: Other firms have already expanded or relocated to the state, leveraging the benefits of Florida’s tax structure, weather, lifestyle, and travel access.

Airbnb, DoorDash soar in debuts

Shares of Airbnb soared in their debut following the home-sharing giant’s IPO. Airbnb’s market value shot past $100 billion, making it the 10th-best debut in 2020 based on price gain from its IPO, according to CNBC. Airbnb’s outsize pop revived a debate over whether recent offerings have been priced optimally, and it’s the latest sign of 2020’s hot IPO market following DoorDash’s Wednesday debut. While the pandemic has decimated the travel industry, Airbnb posted a $219 million third-quarter profit amid an uptick in local bookings. 💲 Here's what people are saying.

DoorDash shares skyrocketed in their market debut Wednesday, rising nearly 86%. The food-delivery company raised $3.4 billion in the IPO and notched a valuation of $39 billion, before ending its first day of trading valued at $71.8 billion. 💲 Here's what people are saying.

• Is year-end IPO 'insanity' a fluke?: Some companies are leery of the high-stakes gamble: The Wall Street Journal, citing unnamed sources, reported that point-of-sale lender Affirm and video-game company Roblox have postponed their IPOs over first-day jitters.

Finance salary expectations surge

While optimism about pay increases ticked up among U.S. finance professionals in the first few months after March’s downturn, salary expectations recently soared in November, according to the latest edition of LinkedIn’s Workforce Confidence Index. Almost half (46%) of U.S. workers in finance now expect their income to rise over the next six months. What do you think is driving such optimism in the industry right now, especially as it relates to pay? What are your expectations for compensation in the industry in 2021 versus 2020? 💲 Join the conversation and see what people are saying.

U.S. jobless claims jump by 20%

Jobless claims in the U.S. surged by almost 20% to 853,000 last week, as businesses began shutting down again in the face of a resurgent virus. Roughly half of the first-time applicants for state unemployment benefits were freelance and gig workers, who were filing under the federal Pandemic Assistance Program for those who don’t normally qualify for coverage. While the week ended Dec. 4 followed the Thanksgiving holiday, which can add to volatility in claims, the number of continuing claims also surged by 230,000, to 5.76 million. 💲 Here's what people are saying.

• Furloughs hit half of businesses: The Bureau of Labor Statistics said a nationwide survey between July and October showed 52% of private companies had furloughed workers.
• Restaurants fail by the thousands: More than a third of the country’s half a million operators — whether independent, franchise, or chain — expect to close permanently in six months unless conditions improve.
• U.S. child care weakens economy: If the U.S. kept pace with Norway, which has government-subsidized child care and whose female workforce matched America’s in the 1970s, the U.S. economy would be $1.6 trillion bigger today, according to S&P Global research.

Credit card balances drop in 2020

After years of steady climbing, Americans’ credit card debt took a record 9% dip in 2020, according to new Experian data. That brings total outstanding credit card debt to $756 billion, the lowest level since 2017. CNBC reported that government stimulus during the pandemic might account for some of the reduced debt. Experian also noted that people are still applying for new cards, but it’s happening at a slower pace, which implies that new accounts are being used to pay off debt or that newer cards are being used more responsibly while old ones are paid off. 💲 Here's what people are saying.

• Boomers not quite debt-free: Baby boomers, according to Federal Reserve data, are strapped with considerable debt well into retirement.

LinkedIn's Big Ideas for 2021

• Get ready for global recession, Act II: As a year that’s produced no shortage of surprises comes to a close, economists are already signaling a big one for 2021: This global recession may only be the opening act.
• K-recovery sparks courting of the wealthy: As the economy’s K-shaped bifurcation continues in the wake of the pandemic, companies will be forced to follow the money in order to thrive — or even survive.
• Millennials poised to remake investing: Wall Street was built for your parents and grandparents, but millennials are about to change all of that — and remake the finance sector along the way. Four major trends are accelerating to drive this changing of the guard.

• See the full list of Big Ideas that will shape 2021

Family firms show outperformance

Family businesses are handling the pandemic relatively well, wrote the Financial Times. Though family-owned firms generally have to make do with fewer resources, they outperformed other companies “in every region and sector” this year, according to Credit Suisse research. Their secret? There’s more solidarity between management and employees. Management tends to feel highly responsible for workers, which in turn leads to flexible employees who are prepared to put in more hours. Family firms were also aided by their long-term planning and their ability to adapt their business models. 💲 Here's what people are saying.

With Pieter Cranenbroek, Natalie MacDonald, Jessica Hartogs, Kelli Nguyen, Monica Fike, Jake Perez, Cate Chapman, and Scott Olster.

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