Wells Fargo has divested $2 billion to face the uncertainty on US economy
Wells Fargo liquidated $2 billion of private equity investments to focus on core businesses amid uncertainty from the Federal Reserve’s soft landing for the US economy. The investments were in Norwest Equity Partners and Norwest Mezzanine Partners funds.
The Fed warn energy-driven can cause major concern
Powell highlighted energy-driven inflation as a major concern. The Fed hiked interest rates 11 times between March and July 2023, adding 5.25 percentage points. Treasury rates hit 16-year highs, and bond market selloff could end oil advance. The US Dollar Index remained unchanged, and the Personal Consumption Expenditure Index grew 0.4% last month.
Oil prices fell 92 cents but stay high on this months
Crude prices in the US plummeted on the last trading day of September due to concerns about the world’s future. Long oil also performed well this month and quarter due to supply chokes by Saudi Arabia and Russia. WTI crude fell 92 cents to $90.79 per barrel, while Brent closed at $92.20. Oil prices have…
Three giant banks of US got penalized over $50 million
The US Commodity Futures Trading Commission (CFTC) has ordered Goldman Sachs, Bank of America, and JPMorgan to pay over $50 million to settle swap reporting failure and other charges. The fines include $15 million, $8 million, and $30 million civil monetary penalties. Goldman Sachs must create a written repair plan and hire a consultant.
Allianz will lose its CFO who will join Italy’s insurance
Giulio Terzariol, Allianz’s CFO, will leave the German business to lead Italy’s largest insurer, Assicurazioni Generali (GASI.MI). Terzariol will report directly to Philippe Donnet and will lead Generali’s insurance and asset management businesses. The appointment is expected to be made soon. Allianz’s CEO Oliver Bäte’s contract expires on Sept. 30, 2024, and his supervisory board…
Oil prices may cause a global recession
Rapidan Energy Group founder Bob McNally predicts that Saudi Arabia’s oil output restrictions may end sooner than expected, as US crude prices reached a year-high. He warns that high oil prices may lower demand, which Saudi Arabia will avoid. The kingdom has indicated some openness to reducing output limits and is expected to make a…
Gold prices fall heavily in September
Gold prices reached a seven-month low on Friday, while copper prices climbed amid hopes of a Chinese holiday boosting economic growth. Gold recovered as the dollar fell and Treasury yields stalled, but lost heavily in September due to Fed interest rate hikes. Bullion prices fell below $1,900 an ounce.
China’s gold prices are surged due to lack of suppliers
China’s gold prices have surged, commanding a record premium above international prices, compared to less than $6 over the past decade. The Shanghai premium rose in June due to import limitations by the People’s Bank of China, but investors are buying dollar-denominated assets to protect value. The rise in demand is attributed to China’s property…