Vindication for two bankers. Questions for Britain's legal system
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Reuters
14 hours ago
- Reuters
Citi hires bankers for private credit in North America, tech in Europe
NEW YORK, Aug 13 (Reuters) - Citigroup hired two senior investment bankers this week, extending a recruitment drive by its head of banking, Viswas Raghavan. Aashish Dhakad will start in October in New York as head of private credit origination for North America as part of Citi's $25 billion push into private credit with Apollo Global Management. Dhakad, who previously worked at Ares Management and Bank of America, will report to John McAuley for private credit origination and Scott Sartorius and Ryan Williams, Citi's co-heads of leveraged finance on the continent. Separately, Amit Nayyar was appointed the co-head of tech investment banking in the UK, Europe, Middle East and Africa alongside Yishai Fransis, according to a memo seen by Reuters. He will start in the fourth quarter. Nayyar most recently served as JPMorgan Chase's head of EMEA fintech and payments coverage investment banking. He previously worked at Indian payments company Paytm and Goldman Sachs.
Reuters
a day ago
- Reuters
Gold rises on increasing Fed rate-cut bets, weaker dollar
Aug 13 (Reuters) - Gold rose on Wednesday as expectations of a U.S. Federal Reserve interest rate cut in September gained traction following mild inflation data, while a weaker dollar bolstered bullion's demand. Spot gold gained 0.3% to $3,354.77 per ounce, as of 0802 GMT. U.S. gold futures for December delivery inched up 0.1% at $3,403.20. "Market participants are starting to debate if the Fed will do a 50 basis point cut at its September meeting following the comments from U.S. Treasury Secretary Bessent yesterday, with a focus on incoming weaker U.S. economic data supporting that," said UBS commodity analyst Giovanni Staunovo. Markets are pricing in a more than 90% chance of a Fed rate cut next month, after July's mild inflation bump signalled limited impact from U.S. import tariffs on consumer prices, with at least one additional reduction anticipated by year-end. Gold, a non-yielding asset often viewed as a safe haven during times of economic or geopolitical uncertainties, typically benefits from a low-interest-rate environment. The dollar index (.DXY), opens new tab hit a two-week low, making greenback-priced bullion more affordable for overseas buyers. Europe and Ukrainian leaders will speak with U.S. President Donald Trump at a virtual meeting on Wednesday ahead of his summit with Russian President Vladimir Putin, as they try to drive home the perils of selling out Kyiv's interests in pursuit of a ceasefire. "Don't expect those talks to meaningfully influence the gold market, (they) might trigger some short-term volatility. Near-term prices are likely to move sideways, until incoming U.S. economic (data) starts to support a faster (Fed) rate cut cycle," Staunovo said. Meanwhile, the U.S. and China extended their tariff truce by another 90 days, averting triple-digit duties on each other's goods. Elsewhere, spot silver rose 1.3% to $38.39 per ounce, platinum was up 0.8% to $1,346.05 and palladium gained 0.4% to $1,133.72.
Reuters
2 days ago
- Reuters
Breakingviews - Premium-plastic battle risks race to the bottom
NEW YORK, Aug 12 (Reuters Breakingviews) - Plastic is getting more fantastic, but also more fanciful. As prestige-level credit card issuers crank up fees while inflation eats away at benefits, any whispered status that's conferred will start to fade. Opulent consumer lending has become a fierce battleground. Citigroup (C.N), opens new tab last month unveiled a new $595-a-year Strata Elite card, fresh on the heels of JPMorgan's (JPM.N), opens new tab decision to jack up the annual fee for its Chase Sapphire Reserve by 45%, to $795. American Express (AXP.N), opens new tab is preparing to overhaul, opens new tab its flagship Platinum card, which costs $695, while Capital One undercuts them all with the $395 Venture X. For some companies, the economics sparkle. Big spenders generate hefty swipe fees, rarely default and form a captive audience for money-management advice and other product pitches. Some 98% of Chase's cardholders, opens new tab have stuck around each year since 2019, one of the highest loyalty rates in finance. Card fees at AmEx have risen 17% annually over the same span, helping sustain a 36% return on equity. The number of customers splashing out for travel and dining extras is relatively small, however. Fewer than one in six U.S. card accounts carry, opens new tab an annual fee, typically, opens new tab around $105, according to the Consumer Financial Protection Bureau. Only 6% of users surveyed by Bank of America said they pay more than $500 a year, meaning it's a battle at the wealthy end of the curve. Wooing this group requires increasingly lavish perks, such as private jet credits, opens new tab and Peloton classes, to justify the upfront fee. Every extra prize chips away at the issuer's profit margin unless, opens new tab cardholders spend more. The complexity, opens new tab involved with redeeming rewards also can frustrate customers, hurting a card's perceived value. The math is also losing appeal. As of 2023, cardholders held roughly, opens new tab $34 billion of unredeemed points, whose buying power has slipped by about a fifth since 2018. This erosion fosters churn, especially among prized younger cohorts. More than a third of millennials opened, opens new tab a new card account over the past year, often motivated by added bonuses for signing up. Before long, artificial intelligence should make it easier to find the best deals and switch. Nearly half of customers also do not pay off, opens new tab monthly balances, resulting in interest charges that turn rewards into a net cost. In the United States, the richest 10% account for, opens new tab about half of consumption, making them prime targets for banks. If points inflation keeps outpacing perks inflation, however, luxury cardholders will feel less like VIPs and more like coupon clippers. This cutthroat competition at the top risks triggering a race to the bottom. Follow Sebastian Pellejero on LinkedIn, opens new tab.
