Today we are watching…
1. Bank of America (#bankamer)
Bank of America has increased its price target for gold to well above its record at $3,000 per ounce. It would be a 50% increase in price from levels today. The bankers argue that fiat currencies will suffer from the Federal Reserve’s “unlimited” quantitative easing. “You can’t print gold!” the bank’s latest report was titled, but traditional market players have a retort. They say the weakening currencies around the world will prove a tailwind for the US dollar, and that lower predicted demand for gold in jewellery could create an oversupply that hurts prices. Will time do its work and double the price of the yellow metal?
2. Metro Bank (#mtro)
Before this small bank opened its doors, no other had tried for over one hundred years in the United Kingdom. It almost went down the tubes last year as its controversial founder, “Big Vern” Hill burnt away its cash and refused to budge on turnaround efforts. Thankfully, he pledged to step down, and a windfall of financing rushed in. The stock rocketed, but the government just served up a reality check. Metro Bank failed to text over 130,000 customers to tell them they were in their overdrafts and racking up costs. The company has been ordered to shell out more than 10 million pounds in compensation, and now a brand rebuilding effort begins.