1. World’s Largest Bank Hit by Cyberattack
2. Global Luxury Demand Cools Across the Board
3. T. Rowe Price Clients May Withdraw $26.3 Billion
4. 46% of EY’s US Audits Found Deficient
5. Microsoft Hits Record High, Stocks Surge
6. Nvidia Designs Weaker AI Chips for China
7. Partners Group Seeks Bank Loan for Buyout
1. World’s Largest Bank Hit by Cyberattack
On Thursday, the U.S. arm of Industrial and Commercial Bank of China (ICBC), the world’s largest bank, was hit by a cyberattack that disrupted its ability to trade U.S. Treasuries.
Investigators suspect the Lockbit hacking group — previously linked to attacks on Boeing, ION Trading UK, and Royal Mail — was behind the breach.
The attack forced numerous dealers, brokers, and banks to switch trading channels.
Marcus Murray, founder of Swedish cybersecurity firm Truesec, said the incident was a wake-up call for global banks and would spark immediate upgrades in cybersecurity systems.
Eight months ago, ION Trading UK, a key derivatives service provider, suffered a similar attack.
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2. Global Luxury Demand Cools Across the Board
Swiss luxury giant Richemont warned today that luxury prices are unlikely to rise over the next two years. British high-end spirits company Diageo also slashed its profit forecast.
Richemont Chairman Johann Rupert told analysts that demand is falling across nearly every asset class — housing, autos, and more — exactly as central banks intended with rate hikes. High rates could persist longer than expected.
Accenture President Till Dudler noted luxury brands have lost their “automatic pricing power.” Brands like Chanel and Dior saw growth in recent years largely from price hikes, not volume.
Earlier this year, demand for luxury goods began cooling, with LVMH’s Hennessy among the early signs.
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3. T. Rowe Price Clients May Withdraw $26.3 Billion
Asset management giant T. Rowe Price said clients could pull $26.3 billion in Q4, as investors move away from actively managed mutual funds in favor of lower-fee products.
The firm lost $6.3 billion in assets in October alone and now manages $1.3 trillion.
Many investors are turning to private credit and passive index funds, pressuring traditional asset managers.
T. Rowe’s stock fell as much as 4.1% on the news before trimming losses to 1.7%.
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4. 46% of EY’s US Audits Found Deficient
On Friday, Big Four firm Ernst & Young (EY) said 46% of the 54 audits reviewed by U.S. regulators in 2022 were found deficient — more than double the 21% rate in 2021.
In July, the PCAOB said 30% of all Big Four audits fell short — but EY’s performance lagged well behind peers.
EY Chair Julie Boland called the results “completely unacceptable” and said the scores don’t reflect the firm’s commitment to high standards.
Meanwhile, Goldman Sachs led Wall Street in equity underwriting fees, earning $901 million in the first nine months of 2023.
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5. Microsoft Hits Record High, Stocks Surge
U.S. bonds saw little volatility today and the Fed made no market-shocking statements. These factors contributed to continued strength in equities this month.
Strong performance from the S&P 500’s largest components pushed the index above 4,400 and its 100-day moving average — a bullish technical signal.
The Nasdaq 100 also logged its biggest gain since May. Microsoft hit an all-time high, and Nvidia extended its rally to eight consecutive sessions.
LPL Financial’s Adam Turnquist said oversold conditions have eased, earnings look solid, and falling bond yields are fueling the market’s rally.
In the week ending Nov. 8, global equities attracted $8.8 billion in inflows.
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6. Nvidia Designs Weaker AI Chips for China
Sources say Nvidia has developed three new AI chips — the H20, L20, and L2 — specifically for the Chinese market, in line with U.S. export restrictions.
This marks the second time this year Nvidia has had to redesign chips for China, in an effort to retain access to a critical market.
The new chips are less powerful than previous China-specific models but remain competitive within the Chinese AI sector.
Last year, the Biden administration banned Nvidia from exporting its A100 and H100 chips to China. Nvidia then introduced A800 and H800 as substitutes.
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7. Partners Group Seeks Bank Loan for Buyout
Partners Group Holdings is reportedly applying for a bank loan — not a private credit loan — to acquire Rosen Group.
The Swiss firm is negotiating up to $1.2 billion in Term Loan B debt, which typically offers high yields and attracts institutional investors.
Talks are ongoing, and if the two sides fail to agree on valuation, Rosen — a European energy and testing firm — may opt out of a sale.
In recent years, private credit funds have dominated the loan market, making this a rare win for traditional banks.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.