Glittering Gold

Wednesday, October 8th, 2025

World News — Trump Offers No Concession

FT

Donald Trump expressed optimism about repairing trade relations with Canada following a White House meeting with Prime Minister Mark Carney, though he offered no concrete concessions on tariffs affecting key Canadian industries. The two leaders discussed the $1.3 trillion bilateral trading relationship, with Trump calling Carney “a great prime minister” and praising Canada’s leadership while maintaining tariffs on steel, aluminium, and automobiles. Carney emphasized that the countries were “stronger together” and committed to investing heavily in the U.S., projecting $1 trillion over five years. Although the discussions were cordial, Trump’s administration continues a formal review of the USMCA agreement and recently announced new import duties on trucks, leaving major trade disputes unresolved despite both sides expressing willingness to keep negotiating.

Tech — Tesla To Offer a Cheaper Model

FT

Tesla has launched a lower-cost version of its Model Y priced at $37,990 — about 15 percent cheaper than its previous base model — in response to weakening U.S. demand following the end of federal EV tax credits. The new “standard” variant offers fewer features, a slightly reduced driving range, and eliminates capabilities such as auto steer and heated rear seats. Tesla also introduced a cheaper Model 3 starting at $36,990 as part of its strategy to sustain sales amid shifting market conditions and declining subsidies. However, analysts warned that these price cuts could pressure profit margins just as competitors like BYD, Ford, and GM expand hybrid and conventional lineups. With EV incentives withdrawn and demand softening in both the U.S. and Europe, Tesla faces intensifying competition and a challenging path toward Elon Musk’s ambitious long-term goals.

Finance — Gold, Baby Gold

Gold prices have surpassed $4,000 a troy ounce for the first time, doubling in less than two years amid surging central bank purchases and investor demand for a safe haven against inflation, rising debt, and political uncertainty. The rally — up more than 50 percent in 2025 and 20 percent in just two months — has been driven by record bullion buying to diversify away from the U.S. dollar and massive inflows into gold-backed ETFs. Hedge fund manager Ray Dalio called gold an “excellent diversifier,” while analysts noted parallels with past milestones reached during crises. Market watchers warn the move’s “parabolic” speed, fueled by the U.S. government shutdown and lack of official trading data, may heighten volatility, but Goldman Sachs now forecasts prices could climb to $4,900.

The Markets — The Retail Rush Into Private Market Creates Risks

Goldman Sachs money management head Marc Nachmann has warned that a surge of retail investment into private assets — especially evergreen funds — is pressuring managers to deploy capital too quickly, increasing the risk of acquiring poor-quality assets. Speaking at the FT’s Future of Asset Management conference, he cited cases where investment committees overruled deal teams to push deals through to meet deployment needs, raising reputational and industry-wide risks. The “democratisation” of private assets offers growth potential but could harm investors if not done responsibly, according to Nachmann, while Sixth Street’s Joshua Easterly cautioned that excess demand over available opportunities could lead to disappointing returns. He also noted that some private capital firms’ heavy advertising toward wealthy individuals, such as sponsorships at the US Open, may encourage brand-focused investing over performance-based decision-making.

The Daily Spark

The hiring rate measures the number of hires during the entire month as a percentage of total employment, and it is currently at recessionary levels, see chart below.

Similarly, the quits rate measures the number of employees who voluntarily left their jobs during a month, expressed as a percentage of total employment, and the quits rate is also low.

Combined with a declining number of job openings, rising unemployment, and slower job growth, the bottom line is that the labor market is at a standstill, where workers are not getting hired or voluntarily changing jobs.

Quote of the Day

“The ones that love us never really leave us.” - Harry Potter, J.K Rowling