News

Gelonghui, March 10｜Goldman Sachs cross-asset strategists have adjusted their stock rating to tactically neutral for the next three months and are overweight on cash, stating that the risk of a Middle East conflict triggering an energy shock comparable to the 1970s is intensifying. "The energy shock may persist, putting pressure on risk appetite and related assets, and investors are increasingly concerned that the global growth/inflation situation could significantly deteriorate," said Christian Mueller-Glissmann, Head of Asset Allocation Research at Goldman Sachs, and other strategists in a report on March 9. "Our commodities team believes that if oil flows through the Strait of Hormuz remain sluggish throughout March, oil prices are likely to surpass the peaks of 2008 and 2022." Goldman Sachs economists estimate that if oil prices reach $100 per barrel, global headline inflation could rise by 0.7 percentage points, and global economic growth could slow by 0.4 percentage points. They continue to recommend increasing resilience in multi-asset portfolios.

Gelonghui, March 10th｜Documents show that U.S. President Trump has spent over $1.1 million in the past three months purchasing Netflix bonds, at a time when Netflix and Paramount are competing to acquire Warner Bros. Discovery. Trump made two transactions on December 12 and 16, purchasing over $500,000 in Netflix bonds, and made two more transactions on January 2 and 20, purchasing over $600,000 in Netflix bonds. The range disclosed by the White House is slightly above $1.1 million to $2.25 million, rather than a specific amount. The U.S. President is not subject to conflict of interest laws that prohibit other executive branch officials from investing in companies doing business with the government. It is reported that Trump purchased these bonds through a trust fund managed by his children.

Trump stated that military action against Iran will end soon, and domestic energy and chemical futures have fallen across the board. Institutions indicate that the timing of the reopening of the Strait of Hormuz is more important for the future trend of oil prices. Once transportation issues are resolved, oil prices may return to a logic of premium recovery.