Goldman Sachs CEO said the market's greed has outweighed fears, Singapore's wealth tax is "not so easy", and U.S. Treasury bond trading will face stricter SEC regulations

21st Century Business Herald reporter Hu Tianjiao comprehensive report

UK inflation has jumped to its highest level in nearly 10 years, increasing pressure on the Bank of England to raise interest rates and pushing up the pound's exchange rate. The Consumer Price Index (CPI) rose 4.2 percent year-on-year in September, up from 3.1 percent in September, the fastest pace since November 2011, according to the Office for National Statistics (ONS). Inflation rose more than double the Bank of England's 2% target and also higher than economists' forecast of 3.9%. The pound rose to its highest level since February 2020, rising 0.4 percent to 1.19 pounds against the euro on Wednesday morning. Yael Selfin, chief economist at KPMG UK, said: "Confirmation that inflation is moving further away from the 2% target could make the Bank of England determined to raise interest rates in December after releasing strong labour data this week." Grant Fitzner, chief economist at the Office for National Statistics, said inflation climbed sharply in October, driven by rising household energy bills. In October, the cost of electricity, natural gas and other fuels rose by 23%.

The pound rose to its highest level since February 2020 on Wednesday after British inflation reached its highest level in nearly 10 years last month. The pound rose 0.5 percent against the euro to more than just over €1.19, its biggest single-week pair against the euro since January 2021, as markets prepare for a December rate hike by central banks in anticipation of a similar move remaining low. Data released on Wednesday showed that the UK Consumer Price Index (CPI) rose 4.2% year-on-year in October, more than double the Bank of England's target and also exceeded economists' expectations of 3.9%.

David Solomon, CEO of Goldman Sachs Group, said the market could face a tough time ahead as the global economy seeks to emerge from the sudden impact of the pandemic. Speaking at a forum in Singapore, David Solomo said: "Looking back on my 40-year career, there have been times when greed far outweighed fear – we were in a period like this. My experience shows that these periods do not last long. Some things will rebalance it and bring more insights. Interest rates are likely to rise, and if they do, that in itself will lose some vitality in some markets. “

Singapore's prime minister said efforts to alleviate inequality by imposing a wealth tax face challenges, including ensuring fairness, and the city-state's competitiveness is at risk. Lee Hsien Loong said late Wednesday: "We need to find a progressive, acceptable and fair tax system." Fairness means that everyone needs to pay some, but if you have the ability to pay more, then you should take on a bigger burden," he said. "If you're not too wealthy, you should enjoy more government support programs and benefits." Singapore's finance minister, Lawrence Wong, stressed in September that any wealth tax would need to conform to a "fair and progressive" tax system, adding that more details could be included in the next budget to be released in February.

Bezos' philanthropic fund donated nearly $100 million to organizations that provide food, shelter and support to homeless families across the United States, and Bezos, the world's second-richest man, said Wednesday that his fund has distributed $96.2 million to 32 beneficiaries from 21 states. In 2018, he and his then-wife, MacKenzie Scott, formed the Day One Fund, pledging $2 billion to help homeless families and create a nonprofit kindergarten network in low-income communities.

Turkish President Recep Tayyip Erdogan's vow to lower interest rates has led to speculation that Turkey's central bank will cut borrowing costs again on Thursday despite rising inflation. The lira fell for the seventh consecutive day, falling as much as 3 percent to 10.6364 trying to get to 1 dollar. This week, the dollar closed below 10 points a day against the dollar, the longest consecutive decline in a month. "We will reduce the interest rate burden on citizens," Erdogan said in a speech to his party on Wednesday, reiterating his unorthodox argument that interest rates are the cause of rising consumer prices. Inflation is close to 20 percent, the level that followed the currency crisis three years ago.

Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), has called for stricter regulation of high-frequency trading firms, which are responsible for most of the trading of U.S. Treasuries. Gensler said Wednesday that many companies are not registered with the agency and do not report their Treasury deals to regulators. He said further scrutiny of both companies would make the market more resilient. "It's time to fill regulatory gaps and make sure we have regulation. Requiring all companies that conduct large-scale transactions in this market to register as traders with the SEC also helps to create a level playing field in this market. ”

Despite U.S. government reports showing a decline in crude and refined product inventories, oil prices remained lower as investors focused on the possibility of strategic reserves in countries such as the United States. At one point, New York futures markets fell 1.6 percent on Wednesday. The United States continues to urge other oil-consuming countries to use their strategic petroleum reserves to smooth high consumer fuel prices. According to the U.S. Energy Information Administration (EIA), crude oil inventories fell for the first time in a month, and gasoline inventories fell for the sixth consecutive week. Ed Moya, senior market analyst at Oanda Corp., said, "The energy market will see if the United States will take coordinated action before it is bullish." "

OPEC said that as the economy's recovery from the covid-19 pandemic falters, the global oil market will turn from undersupply to oversupply as early as next month. The group's secretary-general, Mohammad Barkindo, made the remarks as U.S. politicians pressed U.S. President Joe Biden to lower gasoline prices, possibly by banning crude oil exports and releasing oil from the government's strategic reserves. Biden's next move has become a key topic in Abu Dhabi, where some of the world's largest oil and gas companies and many energy ministers are attending the Abu Dhabi Oil Industry Summit.

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