The Bank of England is facing pressure to hold onto more than a quarter of its bond holdings, potentially for decades, after recent market turmoil highlighted the fragility of demand for long-dated UK government debt. https://t.co/DbdxRxQNTA ...

Core Insights - Goldman Sachs reported strong earnings for Q1 2025, with a net revenue of $15.06 billion, reflecting an 8.6% increase from the previous quarter and a 6% increase year-over-year, despite a mixed performance across its divisions [2][3]. Financial Performance - The global banking and markets division generated net revenue of $10.71 billion, a 10% increase from the previous quarter and a 26% increase from the same period last year, driven by record equities trading revenue of $4.19 billion, which was up 27% year-over-year [4]. - Investment banking fees totaled $1.91 billion, down 8% from Q1 2024, with advisory revenue dropping 22% year-over-year to $792 million, and down 18% from the previous quarter [8]. - The asset and wealth management division saw assets under supervision rise to a record $3.17 trillion, with a $36 billion increase in Q1, generating $3.68 billion in total revenue [9]. Market Environment - The current political uncertainty and market volatility have negatively impacted the dealmaking environment, although Goldman Sachs reported an increase in its backlog of deals [5]. - The firm’s CEO highlighted that clients are turning to Goldman Sachs for execution and insight during uncertain times, indicating confidence in the firm's ability to support clients despite a changing operating environment [3].

Group 1 - Gold reached a record high above $3,200, outperforming Treasury bills as a protective asset amid market turmoil [1][2] - Concerns over the long-term impact of trade tariffs have led to a significant sell-off in US bonds, with the 10-year Treasury yield rising nearly 4.4% [1] - The dollar has weakened, hitting a three-year low against the euro and a ten-year low against the Swiss franc, indicating a shift in investment safety perceptions [2] Group 2 - Gold surpassed the $3,000 mark for the first time last month, peaking at approximately $3,150 following tariff announcements before regaining momentum as a safe-haven asset [3] - UBS analysts have raised their 2025 gold price target to $3,500, citing factors such as tariff uncertainty, weaker growth, and higher inflation [4] - Bank of America also projects a gold price target of $3,500, reinforcing the metal's status as a preferred safe haven compared to Treasuries and other currencies [4]