US President Donald Trump has made housing affordability a centrepiece of his economic agenda, recently announcing policies designed to increase homeownership.

From restricting institutional investors from buying residential properties to urging “Fannie Mae” and “Freddie Mac” to buy billions in mortgage-backed securities, the administration has leaned on aggressive measures to ease costs.

However, these efforts are unlikely to deliver lasting relief to the housing market, Jake Krimmel, a senior economist at Realtor, told CNBC in an interview this week.

Why Trump’s initiatives are short-term fixes only

Krimmel isn’t particularly excited about Trump’s recently announced housing initiatives as they’re “short run” only – not long-term solutions to the deeper structural issues troubling that market. 

According to him, the ban on institutional investors or encouraging government-backed entities to absorb mortgage securities may boost demand in the near-term, but these policies won’t address the fundamental shortage of housing supply.

“I’d love to see more potentially long-run supply side solutions, not just ones to stimulate demand,” the economist explained, adding that without a significant increase in construction, affordability will remain a challenge.

Demand-side policies can temporarily stimulate activity, but they risk inflating prices even further, leaving first-time buyers hardly any better off in the long run.

Federal policy alone won’t solve the crisis

On “Squawk Box”, Jake Krimmel acknowledged the fragmented nature of the US housing market as another major challenge.

“Housing market isn’t a national market,” he argued, pointing to massive differences in affordability and supply-demand dynamics across regions.

Northeast and Midwest – for example – face tight inventories and constrained construction, while the South and West grapple with affordability pressures despite more active building.

Therefore, federal policies alone can’t uniformly resolve these divergent crises.

Local governments must step in with tailored initiatives like zoning reforms, incentives for builders, or “subsidies” for affordable housing projects.

Without regional alignment, national measures risk being blunt instruments that fail to address the nuanced realities of local housing markets.

Rate cuts could unlock inventory – but at a cost

One of President Trump’s most vocal demands has been for lower interest rates, pressuring the Federal Reserve to act.

Mortgage rates currently hover around 6.2%, and a drop to 5.5% could meaningfully shift the market.

“If rates come down, that’s going to push some first-time home buyers into the market for sure,” Krimmel noted.

Lower borrowing costs would ease the “lock-in effect,” encouraging homeowners with higher-rate mortgages to sell and freeing up inventory.

However, the benefits come with risks: cheaper financing could reignite price growth, undermining affordability gains.

So, the net impact would depend on whether increased liquidity outweighs the upward pressure on home values.

All in all, Trump’s housing policies may spark short-term relief, but lasting affordability demands deeper supply-side and local reforms.

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New car sales in the European Union rose modestly last year, driven by growing demand for electric vehicles, though overall volumes remain well below levels seen before the pandemic, industry data showed.

According to the European Automobile Manufacturers’ Association (ACEA), EU car registrations increased by 1.8% in 2025 to 10.8 million vehicles.

Sales picked up pace at the end of the year, rising 5.8% in December to 963,319 units, as electric and hybrid models continued to attract buyers.

Despite the improvement, the industry body cautioned that the recovery remains fragile, with sales still lagging historical norms amid high prices, tighter household budgets, and lingering supply chain challenges.

Electric cars take a larger slice of the market

Battery-electric vehicles accounted for a growing share of the EU market, with nearly 1.9 million registrations in 2025.

That represented 17.4% of total sales, up from 13.6% a year earlier.

Hybrid electric cars remained the most popular option, capturing 34.5% of the market.

By contrast, the combined share of petrol and diesel vehicles fell sharply to 35.5%, down from 45.2% the previous year.

Petrol car sales declined by 18.7% overall, with the steepest falls recorded in France, where registrations dropped 32%, followed by Germany, Italy and Spain.

Growth in electric vehicle sales was strongest in the bloc’s largest markets.

Germany posted a 43.2% rise, while the Netherlands, Belgium and France also recorded double-digit increases.

Together, these four countries accounted for nearly two-thirds of all battery-electric car sales in the EU.

Tesla loses ground as BYD surges

The shift toward electric vehicles has reshaped competition among manufacturers, with Tesla suffering a sharp decline in Europe.

The US carmaker’s sales fell 31.9% in December to 21,485 vehicles, cutting its market share to 2.2%.

Over the full year, Tesla sales dropped 37.9% to 150,504 units.

Tesla lost ground to China’s BYD, whose European sales nearly tripled in December to 18,008 vehicles.

BYD more than tripled its annual sales to 128,827 cars, lifting its market share to 1.9%.

BYD overtook Tesla as the world’s largest electric carmaker in 2025, benefiting from aggressive pricing and a broad product lineup.

Tesla has also faced challenges following the rollback of US electric vehicle subsidies and emissions incentives, as well as consumer backlash linked to Elon Musk’s political positions.

Mixed fortunes across Europe’s wider car market; JLR sells one Jaguar in Dec

Across Europe as a whole, including the EU, the European Free Trade Association and the UK, car sales rose 7.6% in December to 1.2 million vehicles and increased 2.4% over the year to 13.3 million, the ACEA said.

Jaguar Land Rover continued to struggle after a cyber attack in September that forced factory shutdowns.

December sales fell 25.3% to 4,332 vehicles, while full-year sales declined 17% to 53,161 units.

The company sold just one Jaguar in December as it ended production of internal combustion engine models, marking its transition to an all-electric future.

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A long-awaited trade agreement between India and the United States is moving closer to completion, even as tariff frictions and geopolitical crosscurrents continue to shape negotiations.

India’s petroleum and natural gas minister Hardeep Singh Puri told CNBC that talks with Washington have reached a very advanced stage, adding to a busy day for New Delhi that also included the announcement of a fresh trade pact with the European Union.

The developments underline India’s push to position itself as an open trading partner across multiple blocs.

At the same time, they highlight the complexity of balancing parallel negotiations with the EU and the US, particularly as Washington maintains elevated tariffs on Indian exports linked to energy purchases from Russia.

With both deals unfolding against the backdrop of shifting global trade alliances, the next steps are likely to be closely watched by markets and policymakers.

Negotiations move closer

Hardeep Singh Puri told CNBC that discussions with Washington are progressing well and are nearing completion.

He indicated that officials directly involved in the negotiations have conveyed that talks are deep into their final stages, suggesting momentum despite the absence of a fixed signing timeline.

While no deadlines were outlined, the message from New Delhi was that dialogue remains constructive and that patience is required as complex trade agreements often take time to conclude.

India’s open trade stance

Indian officials framed the US talks within a broader commitment to multilateral trade.

This stance was reinforced earlier on Tuesday when India announced a free trade agreement with the EU.

Under the deal, the European Commission estimates that EU goods exports to India will double by 2032 as New Delhi removes or lowers tariffs on 96.6% of EU exports.

The tariff cuts will apply to a broad range of products, including automobiles, industrial goods, wine, chocolates, and pasta.

In exchange, India’s Ministry of Commerce and Industry said the European Union will eliminate or reduce tariffs on 99.5% of imports from India over seven years.

India has positioned this approach as mutually beneficial for its partners.

Officials suggested that openness to trade strengthens India’s appeal as a negotiating counterpart, not only for the EU but also for Washington and other economies seeking market access and supply chain diversification.

Tariffs and political pressure

Despite ongoing talks, the US continues to apply punitive tariffs on imports from both India and the EU.

European exporters currently face a 15% duty on shipments to the US, while India has been hit harder with a 50% levy.

The higher tariff on Indian goods is partly linked to New Delhi’s continued purchases of Russian oil.

These measures add an element of uncertainty to the negotiations.

There is also unease in New Delhi over how US President Donald Trump may respond to India’s newly announced EU trade agreement.

US criticism of EU deal

While the US President Donald Trump hasn’t responded to the trade deal, the US administration had already criticised the EU for the deal.

Treasury Secretary Scott Bessent publicly questioned the EU’s decision to proceed with a trade agreement with India, pointing to what he described as unequal sacrifices between Washington and its European partners.

“The US has made much bigger sacrifices than Europeans have. We have put 25% tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India,” Bessent said in an interview with ABC News on Sunday.

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Investors have been loading up on small-cap stocks as they take a breather from the larger, possibly overvalued artificial intelligence (AI) names in recent weeks.

This shift in sentiment that experts have dubbed the “Great Rotation” has pushed the Russell 2000, a benchmark index that represents the US small-cap stocks, up some 8% since the start of this year.

Still, Jeffrey Hirsch, a senior editor at the “Stock Trader’s Almanac”, believes the small-cap index will push meaningfully higher from here in the months ahead.

What’s driven small-cap stocks up in 2026

Russell 2000’s year-to-date performance sure makes you believe that good things do often come in small packages.

The small-cap index has rallied nearly “double digits” this month, printing new highs, and leaving the S&P 500 trailing far behind as large-cap names continue to wrestle with keeping pace.

According to Jeffrey Hirsch, several forces are driving this surge.

For one, investors are expecting the Federal Reserve to lower interest rates further in its upcoming meetings – a move that tends to benefit smaller companies more directly because of their heavier reliance on borrowing.

Additionally, seasonal factors are playing a role as well. Hirsch pointed to the so-called “January Effect”, where investors scoop up smaller names at the start of the year, especially ones that were beaten down by tax-loss selling in the final quarter.

Why Russell 2000 could push further up this year

In his recent report, Jeffrey Hirsch also projected continued upside in the Russell 2000 index ahead.

Historical data suggests small-cap stocks often outperform in February – with the aforementioned index averaging a modest gain while the SPX tends to tread water.

Moreover, in midterm election years like 2026, the advantage is even more pronounced.

Portfolio manager Daniel Lysik echoed his view, saying beyond seasonality, fundamentals are starting to look more attractive as well.

Small-cap earnings growth has finally edged past that of larger companies – a milestone not seen in over three years.

Lysik also highlighted valuations: small caps are trading at a deep discount relative to their larger peers, with a forward P/E multiple roughly 30% lower.

This could attract “value-seeking” investors who believe the market has overlooked smaller firms.

Bottom line

All in all, sentiment is shifting. After a year dominated by AI giants, many traders are eager to diversify into areas of the market that haven’t yet been bid up to extremes.

If rate cuts materialise and economic growth remains steady, small-cap stocks could be positioned to capture outsized gains.

For investors, the message is clear: don’t overlook the smaller names.

They may not carry the same headline-grabbing weight as the tech titans, but in 2026, the underdogs of the equity market are proving they can deliver big results.

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Global markets started the week on edge as investors grappled with geopolitical tensions, currency volatility, and shifting risk appetite across assets.

Gold surged to fresh record highs above $5,000 an ounce, buoyed by safe-haven demand and a weaker dollar, while sharp swings in the Japanese yen reignited speculation over possible currency intervention.

Elsewhere, Canada pushed back against US pressure over China trade ties, South Korea’s small-cap stocks surged, and cryptocurrencies slid as investors rotated away from risk.

Safe havens rise as yen volatility hits Asian markets

Gold surged past $5,000 per ounce on Monday, lifted by safety flows amid dollar weakness after a turbulent week marked by tensions over Greenland and Iran.

Investors also remained unsettled after violent spikes in the Japanese yen.

The yen was trading at 154.3 per dollar, following sharp moves on Friday that sparked speculation about potential intervention.

According to Reuters sources, the New York Federal Reserve conducted rate checks on Friday, raising the possibility of joint US–Japan action to arrest the yen’s slide.

“The market’s inclination is to short the yen but the possibility of co-ordination means it no longer is a one-way bet,” said Prashant Newnaha, senior rates strategist at TD Securities in Singapore, in the Reuters report.

The prospect of coordinated intervention weighed on the dollar and broadly supported other currencies.

Japan’s Nikkei fell about 1.6%, while S&P 500 futures slipped 0.14% and European futures were down 0.13% as traders awaited the Federal Reserve’s policy meeting later in the week.

Japanese Prime Minister Sanae Takaichi said on Sunday her government would take necessary steps against speculative market moves.

Carlos Casanova, senior Asia economist at UBP, said expectations alone could lend support to the currency, adding: “The Japanese yen is likely to stabilise to some extent – though the catalysts for significant appreciation remain limited – while long-term yields are expected to face continued pressure at their current elevated levels.”

Canada pushes back on China trade amid Trump tariff threat

Canada said it has no intention of pursuing a free trade agreement with China, Prime Minister Mark Carney said on Sunday, responding to warnings from US President Donald Trump, who has threatened punitive tariffs if Ottawa deepens ties with Beijing.

Carney said Canada would respect its obligations under the Canada–US–Mexico Agreement and would not negotiate a free trade deal without notifying its North American partners.

Trump has said he would impose a 100% tariff on Canadian exports if Ottawa “makes a deal” with Beijing.

“If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken,” Trump wrote on Truth Social.

Carney stressed that Canada’s recent “preliminary agreement” with China, concluded on Jan. 16, only lowers tariffs on selected goods and remains consistent with existing trade rules.

“We have no intention of doing that with China or any other nonmarket economy,” Carney said. “What we have done with China is to rectify some issues that developed in the last couple of years.”

South Korea small caps surge as retail frenzy builds

South Korea’s small-cap stocks jumped to their highest level in more than four years, sharply outperforming the benchmark Kospi Index and signalling a broadening rally in local equities.

The Kosdaq Index surged as much as 6.9%, triggering the Korea Exchange’s “sidecar” rule, which temporarily halts program trading to curb volatility.

While the Kospi opened higher, it later slipped as much as 0.9% after hitting the historic 5,000 mark last week.

Retail investors piled into higher-risk trades. The Samsung Kodex KOSDAQ150 Leverage ETF, which offers twice the exposure to the Kosdaq 150 Index, jumped as much as 23%.

A Korea Financial Investment Association website used for mandatory investor training reportedly crashed amid heavy traffic.

Bitcoin slides as investors retreat from risk

Cryptocurrencies weakened as geopolitical concerns drove investors toward safe havens such as gold.

Bitcoin dropped as much as 3.5% on Sunday to a 2026 low just above $86,000, before rebounding modestly to $87,733 in early Asian trading.

Ether slid as much as 5.7% before recovering 2% to $2,872.

Monday’s bounce “is more of a pause than a big bounce,” said Sean McNulty, APAC derivatives trading lead at FalconX in a Bloomberg report. “We are not seeing a ton of flows so far this morning.”

Spot Bitcoin exchange-traded funds recorded five straight days of outflows totaling $1.7 billion last week in the US, according to Bloomberg data, underscoring fragile sentiment as investors navigate rising geopolitical and macroeconomic risks.

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Britain’s economy is showing clearer signs of life after months of uncertainty, with business confidence improving and consumers becoming slightly less pessimistic.

The shift follows finance minister Rachel Reeves’ annual budget statement in November, which came at a time when households and employers were still adjusting to weak growth and stubborn price pressures.

Surveys published last week suggested January was the best month for businesses since before Keir Starmer became prime minister in July 2024.

Consumer confidence also moved higher, reaching its strongest reading since August last year.

Official data added to the brighter tone, with retail sales volumes rising in December at the fastest annual pace since April.

Still, Britain’s recovery remains uneven. The labour market continues to look subdued, partly linked to a payroll tax increase introduced by Reeves last year.

Inflation remains higher than in other major advanced economies, leaving the UK with the strongest price pressures among the Group of Seven.

Business bounce-back gains attention

Business surveys have been one of the strongest signals that the economy is stabilising. Purchasing managers’ index data showed the fastest upturn in activity this month since April 2024, led by services firms.

Factories also reported improving conditions, with order books expanding at the quickest pace in almost four years.

The rebound stands out after a long stretch of hesitant investment decisions, slower demand, and tight cost control. Services activity has been particularly important, given its weight in the UK economy.

For manufacturers, the improvement in order books suggests demand is no longer as weak as many companies feared.

However, analysts have warned against assuming the jump in confidence will last.

Despite January’s rise, the S&P Global Purchasing Managers’ Index remains below its pre-COVID average under Starmer, showing that activity is still not fully back to the levels that were normal before the pandemic and the subsequent economic shocks.

Consumers turn slightly more positive

Consumers are still cautious, but some indicators suggest sentiment is beginning to shift. GfK’s consumer confidence index edged higher again this month, reaching its best level since August 2024.

That improvement hints that households may be feeling less anxious about spending decisions compared with late 2024.

Other measures, though, tell a different story. S&P Global said its shorter January survey showed consumer sentiment slipping to a nine-month low.

The contrast highlights how fragile confidence remains, and how quickly attitudes can change if households sense rising costs or job insecurity.

Spending data has also been mixed. Official figures showed retail sales volumes rose unexpectedly in December after weak results in October and November.

The increase was the fastest annual pace since April, offering some reassurance that demand held up heading into the end of the year.

Yet softer readings elsewhere suggest the recovery in spending may not be broad-based.

Some major retailers have reported underwhelming end-of-year sales, underlining that consumers are still selective, particularly for discretionary purchases.

GDP surprise adds to improving signals

Britain’s output data also delivered a stronger-than-expected reading late last year. The economy grew by 0.3% in November, marking the fastest monthly rise since June.

The figures surprised economists and offered more evidence that growth momentum was stronger than expected ahead of the new year.

Part of the boost came from Jaguar Land Rover returning to full production after a cyberattack disrupted activity earlier. The rebound in output helped lift manufacturing performance and contributed to the overall rise in GDP.

Stronger-than-expected services activity also played a role, once again highlighting how the services sector is often the key driver for UK economic performance.

While one month’s data does not set a clear trend, the November reading suggests the economy was more resilient than many indicators had implied in the second half of 2024.

Inflation and hiring remain weak spots

Despite improved activity signals, inflation remains a persistent challenge.

Consumer price growth rose more than forecast to 3.4% in December, keeping pressure on household budgets and complicating the wider economic picture.

The UK continues to record the highest inflation among the G7, reinforcing why cost-of-living pressures remain central to economic and political debate.

Inflation is expected to slow sharply in the coming months. Bank of England Governor Andrew Bailey has said it is likely to be close to the central bank’s 2% target by April or May.

However, not all policymakers share the same level of comfort.

Megan Greene said on Friday she remained concerned about lingering wage-driven inflation pressures, a factor that could keep price growth elevated for longer.

The labour market, meanwhile, is showing little sign of improvement.

The number of payrolled workers fell in December by the most since November 2020, although similar early estimates during that period were later revised upwards.

Even so, the latest drop has added to concerns that hiring demand is weakening.

Business surveys point in the same direction. The PMI data showed employers remained wary about recruitment, with employment in the services sector declining at a faster rate in January than in December.

This suggests that while business output and confidence may be improving, companies are still cautious about committing to new staff as costs remain high and demand remains uncertain.

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India is preparing to sharply reduce import tariffs on cars from the European Union, marking the biggest opening yet of its tightly protected automobile market as New Delhi and Brussels move closer to sealing a long-awaited free trade agreement.

The deal could be announced as early as Tuesday, according to sources cited by Reuters.

Under the proposed arrangement, India plans to cut peak import duties on EU-made cars to 40% from current levels of as high as 110%.

The move would represent a significant shift in trade policy for the world’s third-largest car market and could reshape access for European automakers that have long criticised India’s tariff regime.

Sharp tariff cuts under proposed EU trade pact

Prime Minister Narendra Modi’s government has agreed to immediately lower import duties on a limited number of cars from the 27-nation EU bloc that have an import price above 15,000 euros ($17,739), two sources briefed on the talks told Reuters.

Over time, those duties would be reduced further to as little as 10%, the sources said.

The initial tariff reduction would apply to about 200,000 internal combustion engine cars annually, although that quota could still be adjusted before the final agreement is signed.

Battery electric vehicles will be excluded from the duty cuts for the first five years to protect domestic investments, with similar reductions expected to apply to EVs later.

India currently levies tariffs of between 70% and 110% on fully built imported cars, a policy that has drawn repeated criticism from global auto executives, including Elon Musk.

The proposed cuts would be India’s most aggressive move yet to liberalise the sector.

Boost for European automakers in a protected market

Lower import taxes would be a boost for European carmakers such as Volkswagen, Mercedes-Benz, and BMW, as well as manufacturers including Renault and Stellantis.

Many of these companies already manufacture locally in India but have struggled to scale up due to high import barriers.

Lower tariffs would allow carmakers to sell imported vehicles at more competitive prices and test the market with a wider range of models before committing to further local production, one of the sources said.

European brands currently account for less than 4% of India’s roughly 4.4 million-unit annual car market.

The sector is dominated by Suzuki Motor, along with domestic manufacturers Mahindra & Mahindra and Tata Motors, which together control about two-thirds of sales.

With India’s car market projected to expand to around 6 million units a year by 2030, several European automakers are lining up new investments.

Renault is revamping its India strategy as it looks for growth beyond Europe, while Volkswagen Group is finalising its next phase of investment through its Skoda brand.

‘Mother of all deals’ and wider trade implications

India and the EU are expected to announce the conclusion of negotiations for the comprehensive free trade pact, ending years of stalled talks.

After the announcement, both sides will finalise details and ratify what has already been dubbed “the mother of all deals.”

The agreement could significantly expand bilateral trade and support Indian exports such as textiles and jewellery, which have been hit by 50% US tariffs since late August.

The expected announcement coincides with a visit to India by Ursula von der Leyen and António Costa, who are attending Republic Day celebrations and holding summit-level talks with Modi.

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Lloyds Bank share price continued its strong rally as investors reacted to the recent US bank earnings and as traders focused on the upcoming earnings and as traders focused on its upcoming earnings. It was trading at 101.65p, up by 75% from its lowest level in April last year.

Lloyds Bank to publish its financial results this week

Lloyds Bank stock remained above the important resistance level at 100p this month as American banks released their financial results, which showed that their businesses continued doing well.

The company will publish its financial results this week, which will provide more information about the fourth quarter and the full year. 

Its consensus numbers show that analysts expect its business to have a strong performance in Q4 as the UK economy stabilized.

The net interest income is expected to come in at £3.54 billion, up from £3.451 billion in the previous one. Its other income, which includes ATM fees, wealth management, service charges, and rent from owned properties, continued rising, reaching £1.55 billion.

If these estimates are accurate, it means that it’s net interest income (NIM) for the year will be £13.648 billion, up from £12.84 billion a year earlier. The other income will be £6.08 billion, up from £5.5 billion from a year earlier.

The consensus report shows that its Q4 profit rose to £1.2 billion, bringing the annual figure to £4.57 billion. 

Lloyds, like other European banks, has benefited from the relatively high interest rates in the UK as inflation has remained at an elevated level. 

City analysts believe that the Bank of England will maintain rates higher for longer as UK inflation has remained much higher than the target of 2.0%. The most recent data showed that the headline Consumer Price Index (CPI) rose 3.4% in December.

The company has also benefited from its cost-cutting measures, including the increasing usage of digital banking technology. City analysts believe that the cost-income ratio dropped to 59.6% in the fourth quarter from the previous 68.4%. This figure is expected to keep going downwards, moving from 60.4% in 2024 to 47.2% in FY’28.

At the same time, the asset quality ratio is expected to keep rising, moving from 0.1% in 2024 to 0.27% in FY’28. More shareholder return data are also expected to keep growing in the coming years, with the dividend per share moving from 3.17p in 2024 to 5.77p in 2028. Its share buyback is expected to move from £1.7 billion in 2024 to £3 billion in 2027.

The other key catalyst for the Lloyds share price will be its falling remediation costs, which are expected to move to £1 billion in 2025 from £899 million in 2024. These costs will be because of the motor insurance crisis. It will then continue falling to £248 million in 2028.

Lloyds share price technical analysis 

The daily timeframe chart shows that the Lloyds share price has been in a strong uptrend in the past few months and is now trading at its highest level since 2008. It has formed an ascending channel and is now hovering near its upper side.

The two lines of the Percentage Price Oscillator have formed a bearish crossover pattern. Also, the Relative Strength Index (RSI) has pointed downwards.

Therefore, the most likely scenario is where the LLOY stock price pulls back after earnings as investors start booking profits. If this happens, the next next key level to watch will be at 95p, the lower side of the ascending channel 

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Private equity firm CVC Capital has agreed to acquire 100% of US-based Marathon Asset Management in a transaction valued at up to $1.2 billion, marking a major expansion of its credit business in the United States.

The Jersey-based firm said on Monday that the deal is expected to close in the third quarter of this year, subject to regulatory approvals.

Under the terms of the agreement, the initial consideration comprises around $400 million in cash and up to $800 million in CVC equity.

The transaction also includes an earn-out linked to Marathon’s financial performance between the 2027 and 2029 financial years, which could add up to a further $200 million in cash and $200 million in CVC equity.

Expanding access to the US credit market

CVC said the acquisition significantly enhances its access to the large and fast-growing US market through Marathon’s established positions in asset-based lending, real estate credit, opportunistic strategies, and public credit.

These areas are seen as complementary to CVC’s existing strengths in Europe.

The firm highlighted its leadership in liquid credit, where it is the largest European collateralised loan obligation manager, as well as its position as a top-three player in European direct lending.

By combining Marathon with CVC Credit, fee-paying assets under management are expected to rise to approximately €61 billion following completion.

CVC added that the broader credit platform will improve its ability to scale offerings across institutional investors, private wealth clients, and insurance companies globally.

Growth ambitions and strategic priorities

The transaction supports CVC’s longer-term ambition to deliver double-digit growth in fee-paying assets under management, targeting €200 billion by 2028 across its platforms.

The firm said the Marathon acquisition, alongside its recently announced strategic partnership with AIG, strengthens its position in the rapidly growing insurance channel.

Rob Lucas, chief executive of CVC, described the deal as “highly strategic,” saying it accelerates growth and reinforces the firm’s global platform.

“Expanding credit capability in the US to complement our market-leading European platform has been a clear priority for CVC, and we are delighted to partner with Bruce, Lou, and the team,” he said.

“Together, the Marathon transaction combined with our recently announced strategic partnership with AIG, means we are even better positioned to deliver for our clients across the Institutional, Private Wealth, and rapidly growing Insurance channels,” he added.

Leadership continuity and rebranding

Following completion, Marathon will be rebranded as CVC-Marathon.

Co-founders Bruce Richards and Lou Hanover will continue to co-head the Marathon credit strategies, ensuring continuity of leadership.

Richards will also join CVC’s Partner Board and, alongside Andrew Davies, will be responsible for managing the combined CVC Credit business.

Richards said Marathon’s culture closely aligns with CVC’s focus on investment performance, integrity, and collaboration, adding that CVC’s global reach would create a powerful partnership.

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For a while now, experts have said that gold and silver prices may experience significant corrections before moving higher. But it seems as though the precious metals did not get the memo. 

Both precious metals have hit historic highs in the past couple of trading days. 

On Friday, silver prices crossed the $100 per ounce mark for the first time ever on the back of increasing safe-haven demand. 

Meanwhile, gold prices on COMEX breached the coveted $5,000 per ounce level on Monday. 

Experts believe that the rallies could continue as fundamentals remained strongly in favour of both metals. 

At the time of writing, the COMEX gold contract was at $5,125.66 per ounce, up 2.2%. The contract had hit a record high of $5,145.39 an ounce earlier in the day. 

Silver prices hit a record high of $109.320 per ounce on Monday, and were trading at $107.670 per ounce. 

Gold and silver continued their strong upward momentum from the start of the year, with both metals extending their already robust performance from 2025. 

More room for upside

Gold has increased by approximately 17%, and silver has seen a significant climb of 50%.

“The move has been driven by a series of geopolitical shocks. They include uncertainty about Washington’s stance on Greenland and lingering concerns about a potential US-Iran escalation,” Ewa Manthey, commodities strategist at ING Group, said in a note.

A weaker dollar, lower real yields, and persistent policy uncertainty have reinforced investor appetite for hard assets. 

Meanwhile, Goldman Sachs had recently increased its gold price projection for December 2026, raising the forecast from $4,900 to $5,400.

In a separate projection, independent analyst Ross Norman anticipated a high of $6,400 for gold this year, with an expected average price of $5,375.

Bank of America has set an aggressive forecast among major institutions for the yellow metal, raising its near-term gold target to a staggering $6,000 per ounce.

On the other hand, Bank of America’s Head of Metals Research Michael Widmer suggested that silver may be particularly attractive to investors who are willing to accept higher risk in exchange for greater potential gains. 

He points to the current gold:silver ratio of about 59 as an indicator that silver could continue to outperform gold. 

To illustrate the potential upside for silver, Widmer referenced the historical ratio low of 32 in 2011, which would imply a silver price of $135 per ounce. 

Furthermore, the 1980 low of 14 in the ratio suggests an even higher potential silver price of $309 per ounce.

Investment demand

“We expect investment demand to remain the most important support for the gold market in the current year,” Barbara Lambrecht, commodity analyst at Commerzbank AG, said in a report. 

The rally may pause in the short term, mainly because the dispute over Greenland seems temporarily settled.

Furthermore, the US Federal Reserve is expected to keep its key interest rates at their current level.

“However, we expect interest rate cuts in the US to accelerate in the course of the year following the appointment of a new Fed chair,” Lambrecht added. 

This should give the gold price a boost again.

The decision regarding the new Fed chair appointment, to be made by US President Donald Trump, is expected soon. Former Fed Governor Warsh is currently seen as the most likely candidate.

Retail investors’ demand for investment has increased substantially in recent months. This is evidenced by the 2025 inflows into gold-backed exchange-traded funds (ETFs) reaching their highest level since 2020.

Amid ongoing skepticism regarding the dependability of the conventional 60/40 portfolio split, gold is attracting increased investor interest. 

Research, according to Widmer, now suggests that allocating 20% of a portfolio to gold can be a successful approach.

Silver’s strength

The gold-silver ratio has fallen to its lowest point since 2011, hovering just above 50.

This demonstrates silver’s current strength, which is driven by a combination of persistent safe-haven interest and strong industrial demand.

“Silver’s smaller market size and dual role as both an industrial and investment metal continue to amplify price volatility,” ING’s Manthey said. 

Also, tightening physical balances amid constrained mine‑supply growth are adding further upward pressure.

Despite ongoing market volatility, the underlying environment for silver and gold remains strong.

Factors such as geopolitical tensions, central bank purchases, and structural supply shortages are contributing to their favorable positioning.

Manthey added:

Silver’s tight physical market and strong industrial demand should continue to provide a solid floor, though its elevated volatility means sharp swings remain likely. 

However, risks persist for silver prices, according to Manthey. Specifically, a more severe global economic downturn or consistently elevated prices could lead to demand destruction, particularly in industrial sectors.

“Silver’s inherent volatility also means it can overshoot in both directions,” Manthey further said. 

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