Jefferies Financial Group

Jefferies has revised its valuation model for gold and places central bank reserve policy and fiscal deficits at the core, rather than real interest rates and the US dollar. The model identifies three extreme scenarios — a return to pandemic-like fiscal deficits, the dollar’s share of currency reserves falling below 40%, or a doubling of central bank gold purchases — each of which on its own could drive the gold price above $5,000. Jefferies targets $4,650 by end-2026 and confirms a $5,000 forecast for H1 2027; World Gold Council data on strong central bank buying support the thesis. » More on finanzen.net

Jefferies is shutting down its unit for outsourced trading of fixed-income securities, ending a business line that had only recently been scheduled for expansion. Head Joram Siegel is leaving the firm after joining Jefferies in early 2024. The move marks a reversal less than two years after the team was built and highlights the challenges of expanding outsourced trading. » More on de.investing.com

Jefferies Financial’s stock climbed 4.0% premarket to $54.95, supported by the quarterly cash dividend of $0.40 and a valuation that looks more attractive versus recent highs. Operationally the company delivered strong results: Q2 revenue rose to $2.21 billion (+35%) and net income jumped 157%, while advisory fees hit a record $674 million. Offsetting factors include diluted EPS of $1.02, which missed analyst consensus, and ongoing investigations by several law firms that could cap upside. Investor positioning ahead of the expected quarterly report at the end of September is also likely to influence demand. » More on de.investing.com