The country's share in treasury notes has dropped by more than 80 percent since March. For many years Russia has been one of the largest holders of U.S. Treasury bonds, but that seems to be no longer the case. Since March, Russia has significantlycut its holdings from $96.1 billion to $14.9 billion in May, which means it's no longer a leading investor in the U.S. government bonds, and it’s now well behind China, Chile and Kazakhstan. Russia's total investment in U.S. bonds has almost returned to mid-2007 levels ($14.7 billion). According to Elvira Nabiullina, head of Russia’s Central Bank, the sell-off came as part of efforts to diversify the country’s international reserve portfolio. “We have increased ourgold reserves almost 10 times in the past 10 years,” she said. “We are diversifying our currency portfolio … assessing all the risks, including financial, economic and geopolitical.” (link in Russian) Experts believe … [Read more...] about Why is Russia selling off its U.S. bonds?
U s bank wealth management
For the second time this year, UBS Group AG’s investment bank is causing a headache for Chief Executive Officer Sergio Ermotti by outshining the business that investors really want to see do well.More volatile markets were a boon for Andrea Orcel’s traders at the investment bank, helping the business beat expectations. That contrasted with the bank’s key wealth management unit, which posted rare net new money outflows and slightly missed profit estimates. The unit saw large outflows in the Americas.Seven years after a sweeping revamp of the bank, whose tilt toward wealth management became a blueprint for rivals, Ermotti is overseeing one of the most stable lenders in Europe. But as the turnaround at peers gather speed, some investors have begun to ask whether UBS is doing enough to sustain its lead. That’s ramping up pressure to show better results from the merger of its wealth divisions into a super-unit that manages about $2.3 trillion.The net new money … [Read more...] about UBS Wealth Management Sees Outflows as Investment Bank Outshines
The U.S. demands follow a decision by the Organization of the Petroleum Exporting Countries last week to increase production. REUTERS U.S. oil prices rose to a three-and-a-half year high on Thursday, bolstered by supply concerns due to U.S. sanctions that could cause a large drop in crude exports from Iran. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 80 cents to $73.56 a barrel, a 1.1 percent gain, by 1:35 p.m. EDT (1735 GMT). It reached $74.03 earlier in the session, the highest since November 26, 2014, Reuters said. Brent crude LCOc1 futures fell 1 cent to $77.61 a barrel. Read also Ukraine's Supreme Court blocks gas production near Russian-occupied Crimea The United States this week demanded countries halt imports of Iranian oil from November, a hardline position the Trump administration hopes will cut off funding to Tehran. On Thursday, officials said they would work with countries on a case-by-case basis. China, the biggest importer of Iran’s oil, … [Read more...] about U.S. oil prices hit three-and-a-half-year high on concern over Iran sanctions – media
By Renita D. Young NEW YORK (Reuters) – Confidence that the U.S. economy is still relatively strong kept investors away from gold as a safe haven during this week’s wild stock market ride. Gold failed to attract investors fleeing from the biggest selloff in six years in global equities as U.S. Treasury yields rose to four-year highs. Bullion was headed for a 1 percent weekly decline, having fallen to a one-month low of $1,306.81 on Thursday. Signals from the U.S. Federal Reserve, unexpectedly low U.S. unemployment figures and other data showing the country’s economy was robust drove investors to expect more U.S. interest rate hikes. Higher interest rates make gold less attractive to investors as a safe haven because it does not pay interest. “A safe haven is not necessarily something that soars when other markets fall,” said George Milling-Stanley, vice president and head of gold strategy at State Street Global Advisors. “Rather than sell their … [Read more...] about Confidence about U.S. economic growth repelled investors from gold
By Saqib Iqbal Ahmed and Trevor Hunnicutt NEW YORK (Reuters) – Machine-guided, numbers-obsessed fund managers could cause U.S. stock prices to weaken further as they adjust to the return of wild gyrations in global markets. Several years of generally low volatility, when shares have not experienced big day-to-day oscillations, in part due to money-printing and bond-buying policies pursued by the world’s major central banks, has led investors to shovel billions of dollars into some highly technical and risk-focused strategies. “There will be for the rest of this week a systematic selling,” from funds that each chase such trends in the market, said Jerry Lucas, senior strategist at UBS AG <UBSG.S> Wealth Management’s Chief Investment Office. These volatility-contingent strategies include volatility control funds, risk-parity funds, commodity trading advisers (CTAs) and trend followers, analysts said, although it was unclear what their impact was in … [Read more...] about U.S. stocks selloff: Will machines make it worse?