By Madhvi Pokhriyal and Noor Zainab Hussain

(Reuters) – Canadian mergers and acquisitions are set to increase following a modest third-quarter recovery from multi-year lows, as market stability and access to capital give companies the confidence to negotiate and price transactions.

Equity offerings also picked up in the three months through September, as stock market recovery following a tumultuous few months early in the coronavirus pandemic encouraged issuers to tap markets to recapitalize.

Some $40.9 billion worth of M&A deals were announced in the third quarter, the highest since the onset of the coronavirus crisis in late 2019 and a 200% jump from the three months ended in June, Refinitiv data showed. But it was lower than the $50.7 billion worth of transactions from a year ago, the data showed.

“There are clearly indications that we’re in the early stages of recovery, a lot more strategic dialogue going on and private equity is continuing to be very active,” said Emmanuel Pressman, partner at Osler, Hoskin & Harcourt LLP.

Canadian security firm GardaWorld’s 2.95 billion pound ($3.8 billion) offer for Britain’s G4S <GFS.L> and cable operator Altice USA Inc’s <ATUS.N> C$10.3 billion ($7.7 billion)proposal to buy Canadian cable company Cogeco Inc <CCA.TO> were among the deals announced in the past quarter.

“We expect continued growth in M&A volumes in 2021, fueled by reduced volatility, increased market confidence and improved access to capital,” said Dany Beauchemin, co-head, Global Investment Banking and Canadian Corporate Banking at Scotiabank.

A deal frenzy in September led to a record third quarter with more than $1 trillion worth of transactions globally https://in.reuters.com/article/us-global-m-a-q3-idCAKBN26L23O.

In Canada, total equity linked deals rose 19% in the third quarter to C$10.5 billion from the previous quarter, though it was flat on the year.

“As volatility and COVID-19 concerns subside, we see both

The eurozone’s economic recovery ground almost to a halt in September, as a renewed fall in service sector activity countered faster manufacturing growth.

The IHS Markit Composite PMI output index, a GDP-weighted average of the manufacturing and service sector survey gauges, fell from 51.9 in August to 50.4, signalling only a mild increase in business activity.

While the survey continues to indicate that the economy rebounded strongly over the third quarter as a whole, thanks to a strong surge at the start of the quarter (after business activity contracted sharply during the height of the Covid-19 pandemic in the second quarter), the rebound lost almost all of its momentum as the third quarter progressed. As such, the survey indicates an increased risk of the economy sliding back into contraction in the fourth quarter.

Spain suffers greatest hit, only Germany shows resilient recovery

A downturn in service sector activity during September was widely blamed on a second wave of virus infection rates in many countries, with social distancing restrictions curbing recreation, leisure, travel and tourism activities in particular.

Spain’s service sector was especially hard-hit. With the exception of the March-to-May period at the height of the first wave of infections, Spain’s service sector collapse in September was the largest recorded since November 2012.

However, renewed service sector downturns were also recorded in France, Italy and Ireland, while a near-stalling was recorded in Germany, underscoring the broad-based geographical spread of the worsening service sector picture.

Furthermore, due to the relatively large size of service sectors compared to manufacturing, the weakening of the former exerted a marked toll on overall business activity. Output in France, Spain and Ireland consequently contracted in September, and remained broadly stagnant in Italy. Of the four largest eurozone member states, only Germany saw a robust overall expansion of

WASHINGTON, Oct 5 (Reuters)U.S. services industry activity picked up in September, pulling above a level that prevailed before the COVID-19 pandemic struck the nation, amid increases in new orders and employment.

The Institute for Supply Management (ISM) said on Monday its non-manufacturing activity index rose to a reading of 57.8 last month from 56.9 in August. That put the index just above its 57.3 level in February.

A reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of U.S. economic activity. Economists polled by Reuters had forecast the index slipping to 56.0 in September.

The improvement in services industry activity fits in with expectations for a record rebound in economic growth in the third quarter after a historic plunge in gross domestic product in the April-June period. The economy got a boost over the summer from fiscal stimulus.

Growth has, however, shifted into low gear as businesses exhaust government loans to help them with expenses like wages and funding for a weekly unemployment subsidy for millions runs out. New coronavirus cases are rising, with a surge expected in the fall, which could lead to some restrictions being imposed on businesses in the services sector.

The ISM reported last week that factory activity slowed in September as new orders retreated from a more than 16-1/2-year high. The government reported on Friday the economy added 661,000 jobs in September, the fewest since the jobs recovery started in May, after creating 1.489 million in August.

The ISM survey’s measure of new orders for the services industry increased to a reading of 61.5 in September after dropping to 56.8 in August. But backlog orders and exports orders fell last month. The survey’s index of services industry employment rebounded to 51.8 from a reading of

TOKYO, Oct 5 (Reuters)Activity in Japan’s services sector contracted for the eight straight month in September but at the slowest pace since the coronavirus pandemic started wreaking havoc on the economy, a private business survey showed on Monday, in a sign that demand is starting to steady.

The final Jibun Bank Japan Services Purchasing Managers’ Index (PMI) rose to its highest in eight months, coming in at a seasonally adjusted 46.9 from 45.0 in the previous month.

The headline index, while still below the 50 neutral level, was higher than a preliminary reading of 45.6, suggesting conditions were moving closer to stabilisation.

“Overall, there are signs of improvement in the sector, however recovery is far from secure,” said Shreeya Patel, economist at IHS Markit, which compiles the survey.

“Demand across the country remains subdued, with tourism and travel restrictions impeding new work volumes across the service sector.”

The main reading was pulled down by an accelerated decline in new orders from abroad, with surveyed firms citing depressed demand conditions in export markets as well as the closure of clients’ businesses.

However, the survey also showed strong optimism in companies’ outlook for the 12 months ahead on hopes of a recovery in demand, pushing the business expectations sub-index to its highest level of the year.

While job shedding continued for a seventh month, the pace of staff cuts was more modest and neared a neutral level.

The results echo a key Bank of Japan survey from last week that showed business sentiment improved in the third quarter from a 11-year low hit three months earlier, in a sign of a gradual economic turnaround.

The composite PMI, which includes both manufacturing and services, rose to 46.6 in September from the previous month’s final of 45.2.

(Reporting by Daniel Leussink; Editing

TOKYO (Reuters) – Activity in Japan’s services sector contracted for the eight straight month in September but at the slowest pace since the coronavirus pandemic started wreaking havoc on the economy, a private business survey showed on Monday, in a sign that demand is starting to steady.

FILE PHOTO: Chefs wearing protective masks to prevent infection, following the coronavirus disease (COVID-19) outbreak, wait for customers at Toshirhin restaurant in Tokyo, Japan May 8, 2020. REUTERS/Kim Kyung-Hoon/File photo

The final Jibun Bank Japan Services Purchasing Managers’ Index (PMI) rose to its highest in eight months, coming in at a seasonally adjusted 46.9 from 45.0 in the previous month.

The headline index, while still below the 50 neutral level, was higher than a preliminary reading of 45.6, suggesting conditions were moving closer to stabilisation.

“Overall, there are signs of improvement in the sector, however recovery is far from secure,” said Shreeya Patel, economist at IHS Markit, which compiles the survey.

“Demand across the country remains subdued, with tourism and travel restrictions impeding new work volumes across the service sector.”

The main reading was pulled down by an accelerated decline in new orders from abroad, with surveyed firms citing depressed demand conditions in export markets as well as the closure of clients’ businesses.

However, the survey also showed strong optimism in companies’ outlook for the 12 months ahead on hopes of a recovery in demand, pushing the business expectations sub-index to its highest level of the year.

While job shedding continued for a seventh month, the pace of staff cuts was more modest and neared a neutral level.

The results echo a key Bank of Japan survey from last week that showed business sentiment improved in the third quarter from a 11-year low hit three months earlier, in a sign of a gradual