Warren Buffett Says Firm Hasn't Sold Any Wells Fargo Shares
Berkshire Hathaway Inc. hasn't sold any shares in Wells Fargo & Co. since the bank's sales-practices scandal, chairman Warren Buffett said in an interview with CNN released Friday.
Berkshire is Wells Fargo's biggest shareholder and owns about 10% of the bank.
The scandal was an "egregious mistake," Mr. Buffett said. "Wells Fargo designed a system that produced bad behavior. When you find that out you've got to do something about it, and the big mistake was they didn't do something about it."
Berkshire applied to the Federal Reserve earlier in the year for permission to expand its Wells Fargo holding and pledged to be a passive investor. Because of that, Mr. Buffett said, he couldn't speak out publicly about the scandal or directly advise the board of directors.
Iron-Ore Prices Jump To Highest Level Since 2014
The price of iron ore jumped on Friday, climbing to a more than two-year high due to a combination of better-than-expected demand, slower-than-expected iron-ore supply growth in recent months and speculative trading activity.
The benchmark spot price for delivery of the steelmaking ingredient into China rose 7.4% to $79.70 a metric ton, marking its highest level since October 2014, according to data from The Steel Index.
Brokerage firm SP Angel said in a note the rise is "driven by a potential pro-stimulus Trump administration and continuing Chinese government economic growth support measures.
Iron-ore prices have risen 18% since business tycoon Donald Trump won the U.S. presidential elections this week.
Other commodities such as copper also have rallied due to expectations that Mr. Trump will aim to fulfill his promise of spending more on infrastructure to rehabilitate the country's ailing industrial base.
The iron-ore price rise has defied some analysts who expected a price fall this year as some of the major miners suffered production setbacks and steel demand in China, the world's largest iron-ore consumer and steel producer, swung to growth from contraction.
ICE Could Limit Dubai Oil Positions
Limiting the size of positions investors can take in an influential Dubai oil-futures contract, aligning it with existing limits on Brent, the global benchmark, according to a consultation document.
Trading on ICE Dubai 1st Line, the benchmark for Middle Eastern oil, has grown rapidly in recent years, particularly with activity from Asia. It is the third most traded oil-futures benchmark behind ICE Futures Europe's Brent and CME Group Inc.'s WTI.
ICE is proposing a limit of 6,000 lots on the delivery month, equivalent to six million barrels of oil, according to the document, which was submitted to the exchange's members. The proposed changes would apply from the May 2017 contract onward. Firms can apply for exemptions from the expiry limit if they are able to provide a commercial rationale, the document said.
A spokesman for ICE confirmed the existence of the document but declined further comment.
(END) Dow Jones Newswires
November 12, 2016 02:47 ET (07:47 GMT)
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