America’s largest banks are now raising red flags about the health of those loans. Banks “are going to lose money on the loans they’ve made. That’s pretty evident — whether oil prices go to $30 or $80 a barrel,” said Dick Bove, an analysts who covers banks at Rafferty Capital. Source CNN Money
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Norway’s sovereign wealth fund hit $1 trillion for the first time on Tuesday, driven higher by climbing stock markets and a weaker U.S. dollar. Source: Bloomberg
The Federal Reserve has said that it will start to run down some of the investments it made to boost the US economy after the financial crisis. In October the Fed will start to reduce a $4.2trn portfolio of US Treasury bonds and mortgage-backed securities, it said. Source: BBC News
S&P Global Ratings downgraded China’s long-term sovereign credit rating by one notch on Thursday to A+ from AA-, citing increasing risks from the country’s rapid build-up of credit. Source: Reuters