Goldman Sachs' CEO David Solomon discussed the resilience of the U.S. economy and an improved trading environment, alongside concerns about escalating Middle East tensions. He noted that the U.S. economy is performing well, maintaining strong fundamentals for a soft landing. Earlier this month, Goldman Sachs reported a 45% increase in third-quarter profits, driven by unexpected growth in stock trading revenue and a rebound in investment banking.
Solomon acknowledged that the upcoming U.S. election could bring changes, but he emphasized an improving trading environment. He also highlighted global concerns, particularly the Middle East, where tensions between Israel and Iran have reached a worrying peak, affecting regional stability and growth.
The CEO also warned of regulatory risks as the U.S. prepares for elections. These elections could impact policy decisions and the economic trajectory for 2025 and 2026. Despite concerns about European economic growth, Solomon affirmed that the U.S. economy remains robust. This week, financial leaders, including Citi's CEO Jane Fraser and BlackRock's CEO Larry Fink, are attending a summit in Riyadh.
Regarding Goldman's financial performance, Solomon stated that their equity business is strong and ready to serve customers in any market environment. The third-quarter performance surpassed expectations, with strong equities but a decline in fixed income margins compared to the previous year. Goldman is shifting its focus towards global banking, asset, and wealth management, while reducing consumer activity.
Recently, Goldman opened a new office in Saudi Arabia’s financial district, emphasizing its growing presence in the Middle East's largest economy. Solomon remarked that attracting talent to Saudi Arabia or the region is not challenging amidst the growing competition between Riyadh and Dubai. With increasing client interest, Goldman plays a significant role in investment banking, trading, asset, and wealth management in Saudi Arabia.
