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(Reuters) - The board of Goldman Sachs Group Inc said on Friday it is withholding a bonus worth at least $7 million from former chief executive Lloyd Blankfein until investigations into the bank’s involvement in the 1MDB scandal are resolved. The bank also introduced a new forfeiture provision in its annual compensation plans for both its most senior executives, current Chief Executive David Solomon and former head Blankfein, relating to the ongoing 1MDB proceedings. The move underscores the perils the 1MDB scandal still holds for Goldman, which is being investigated by Malaysian authorities and the U.S. Department of Justice for its role as underwriter and arranger of three bond sales that raised $6.5 billion (£5 billion) for 1Malaysia Development Berhad.

The U.S, Justice Department has estimated that a total of $4.5 billion was misappropriated by high-level 1MDB fund officials and their associates between 2009 and 2014, including some of the funds that Goldman Sachs lannister filigree stainless steel cufflinks helped raise, Goldman Sachs has consistently denied wrongdoing, The company said in a regulatory filing on Friday that its board can reduce pay packages of top executives if it is later determined that the results of the ongoing investigations related to the 1MDB proceedings would have impacted their year end compensation decisions..

NEW YORK (Reuters) - While the U.S. Federal Reserve’s indication it is done raising interest rates - for now - has fueled stock gains, investors worry the U.S. central bank’s pledge is a double-edged sword and implicit confirmation of the markets’ lingering anxiety about growth. Fed Chairman Jerome Powell said on Wednesday that U.S. economic growth is “solid” and expected to continue. But in a sharp reversal of their stance just six weeks ago, Powell said the Fed has “the luxury of patience” in deciding whether to raise rates again.

The Fed’s soothing message sent the S&P 500 up 1.6 percent on Wednesday and extended into Thursday, helping the benchmark index post its biggest lannister filigree stainless steel cufflinks January percentage gain since 1987, But investors acknowledge that the Fed’s strongest signal yet that policymakers may have reached the end of its latest series of interest rate increases could reflect slower economic growth, “Both the stock and bond markets applauded the Fed for its more dovish tone,” said Michael Arone, chief investment strategist at State Street Global Advisors, “If you take a step back and evaluate why they’re doing it, it’s because they’re concerned, So why shouldn’t investors be concerned?”..

The U.S. bond market never fully bought into the enthusiastic tenor to risk markets, including equities, year-to-date given signs of cracks in the consumer and peaking corporate profit growth. U.S. 10-year government bond prices are trading around the elevated levels they commanded during last month’s stock sell-off, with yields at 2.63 percent today compared with 2.69 percent on Dec. 31. U.S.-based bond funds pulled in $16.7 billion in January, according to early estimates from the research service Lipper. Investors took $944 million out of domestic stock funds over the same period.

“The bond market always gets it before the stock market,” said Chuck Self, chief investment officer at iSectors LLC, Stocks’ sure-footedness this year may end up like 2018’s hot January rally only to peter out and end in the negative, Three- and 5-year yields are poised to dip below the 2.4 percent effective Fed funds rate for the first time since 2006, lannister filigree stainless steel cufflinks before the global financial crisis, noted Crescat Capital LLC analyst Otavio Costa on Twitter, Powell said there were “conflicting signals” about the economy - many of them negative - including sharply slower growth in China and Europe, Britain’s chaotic exit from the European Union, U.S.-China trade negotiations, effects of the U.S, partial government shutdown and rougher markets..

The Fed acknowledged that some market gauges of inflation have fallen in recent months, a trend more typical of growth slowdowns rather than an economy on fire. The International Monetary Fund predicted the global economy will grow at 3.5 percent in 2019, down 0.2 percentage point from last October’s forecasts, citing weakness in Europe and some emerging markets. It puts U.S. growth at 2.5 percent this year and 1.8 percent in 2020, in both cases likely slower than 2018’s figures, which have not been finalized due to the government shutdown.

(Graphic: Fed's Powell vs S&P 500 - tmsnrt.rs/2TqIcyK), “We’re not favoring the U.S, market, but we’re happy to own Treasuries,” said Schroders Plc portfolio manager Angus Sippe, He said he does not see a recession on the horizon and gives the Fed an “A-plus” on its management of the economy, But he would lannister filigree stainless steel cufflinks rather take risk in emerging markets and wait for more evidence of U.S, corporate earnings growth, Financial research service Refinitiv expects 14.9 percent earnings growth for the final quarter of 2018, but just 5.1 percent for all of 2019, leaving less margin for error if consumer and business fear translates into lower spending and investment..



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