WEBVTT - Goldman Sachs CEO David Solomon Talks French Hub 0:00:02.440 --> 0:00:06.800 Bloomberg Audio Studios, Podcasts, radio News. 0:00:07.120 --> 0:00:09.800 Very happy to say alongside me David Solomon of gomaz 0:00:09.880 --> 0:00:11.879 SAX David, good afternoon. 0:00:11.600 --> 0:00:12.920 Good Afternoon's good to see you. 0:00:13.360 --> 0:00:14.680 Fantastic to see in Paris as well. 0:00:14.680 --> 0:00:15.400 At Paris, France. 0:00:15.400 --> 0:00:17.040 I think we need to talk about France first and 0:00:17.079 --> 0:00:19.040 we'll move our way through the business and talk about 0:00:19.079 --> 0:00:21.760 the United States as well. Typically, I can say as 0:00:21.800 --> 0:00:24.239 a brit that we used to look at France as 0:00:24.280 --> 0:00:26.200 sort of anti business, not a place you'd want to 0:00:26.200 --> 0:00:29.200 put an employee. Perhaps you'd choose London over Paris. That 0:00:29.240 --> 0:00:31.400 seems to have changed, am I right, Well. 0:00:31.360 --> 0:00:34.480 It's involved a little bit, and Brexit had a big 0:00:34.479 --> 0:00:37.919 impact on that evolution. You know, we have between three 0:00:37.960 --> 0:00:41.320 hundred and fifteen four hundred people in Paris now, that's 0:00:41.400 --> 0:00:43.400 triple what we would have had, you know, five six 0:00:43.479 --> 0:00:46.880 years ago, So there's been an evolution. I do think 0:00:47.000 --> 0:00:50.960 it's still a complex place for a professional services person 0:00:51.000 --> 0:00:54.440 to put an employee. In our dialogues, you know, here 0:00:54.480 --> 0:00:57.120 we've talked about that. It's one of the things, you know, 0:00:57.160 --> 0:01:00.400 I'm encouraged by. I think the administration is looking to 0:01:00.520 --> 0:01:04.399 do things here that actually improve you know, this is 0:01:04.400 --> 0:01:06.160 a business environment. I think one of the things that 0:01:06.319 --> 0:01:10.200 is interesting is we've chosen France. It's a very very 0:01:10.200 --> 0:01:12.960 important hub for us here on the continent. But I'd 0:01:13.000 --> 0:01:14.920 also say, are people like living here? And one of 0:01:14.959 --> 0:01:17.600 the things in a competitive world for talent is we 0:01:17.640 --> 0:01:20.880 give our people much more latitude to work and operate 0:01:20.880 --> 0:01:22.200 out of places that they want to live. 0:01:22.319 --> 0:01:23.720 And it's certainly a very attractive place. 0:01:23.720 --> 0:01:25.720 So I wanted to ask you directly, have you chosen 0:01:25.760 --> 0:01:28.160 France because somewhere else is getting worse or because France 0:01:28.200 --> 0:01:29.400 and the continent is getting better. 0:01:29.480 --> 0:01:31.160 Well, I think it's a combination. 0:01:31.760 --> 0:01:35.440 France on the continent has gotten better, the regulatory structure 0:01:35.440 --> 0:01:37.919 requires that we have more people here for certain functions 0:01:37.959 --> 0:01:40.400 that are important to our business. Our clients are here, 0:01:40.440 --> 0:01:43.160 and we want to be near our clients, and so 0:01:43.520 --> 0:01:46.400 you know, it's a combination of things that make this 0:01:46.520 --> 0:01:49.000 an appropriate place for Golden Sacks to continue to grow. 0:01:49.120 --> 0:01:50.840 I think a lot of us going forward through twenty 0:01:50.880 --> 0:01:53.800 twenty four into twenty twenty five feel like we're flying 0:01:53.800 --> 0:01:57.160 blind a little bit. You have more clarity, more visibility 0:01:57.160 --> 0:01:59.640 on the future of Europal, the future of the United States. 0:02:00.040 --> 0:02:02.040 I don't have a lot of visibility on the future 0:02:02.080 --> 0:02:04.880 of the world, let alone Europe and the United States. 0:02:04.880 --> 0:02:05.960 I know there are a lot of people that you 0:02:06.080 --> 0:02:08.680 talk to that are very sure as to how things 0:02:08.720 --> 0:02:11.440 will play out as we go forward. I tend to 0:02:11.440 --> 0:02:13.680 look at things and think about risks. How do we 0:02:13.720 --> 0:02:16.400 manage risks? What are the tails that are out there 0:02:16.440 --> 0:02:19.079 that we need to be concerned about. When I think 0:02:19.080 --> 0:02:23.320 about economic outcomes, I think about distribution of those outcomes, 0:02:23.360 --> 0:02:26.000 and so you know, there's a perception of the. 0:02:25.960 --> 0:02:26.840 Direction of travel. 0:02:26.880 --> 0:02:29.280 We can certainly talk about that, but I certainly I 0:02:29.320 --> 0:02:34.000 certainly don't you know what the direction of travel is. 0:02:34.360 --> 0:02:36.120 I will say, going back to what we were talking 0:02:36.120 --> 0:02:39.400 about here in France and just listening to you know, 0:02:39.440 --> 0:02:42.320 a number of officials that spoke at lunch today. They're 0:02:42.400 --> 0:02:47.160 talking about ways that they can accelerate more entrepreneurship, more investment, 0:02:47.600 --> 0:02:52.720 more flexibility, and also more strengthening and interdependency in Europe. 0:02:52.800 --> 0:02:54.880 Those things are hard to execute on, but I think 0:02:54.919 --> 0:02:55.880 they are very important. 0:02:56.000 --> 0:02:57.919 The White House is doing something similar, but it comes 0:02:57.960 --> 0:03:00.200 at a cost. I think the budget deficit was six 0:03:00.200 --> 0:03:03.000 percent of GDP note to six percent last year at 0:03:03.040 --> 0:03:05.720 a time when unemployment is sounth the full speaking of 0:03:05.800 --> 0:03:07.320 risks is not WMP. 0:03:07.840 --> 0:03:10.400 It's certainly one that I'm very focused on. I think 0:03:10.680 --> 0:03:12.600 the level of debt in the United States, the level 0:03:12.600 --> 0:03:16.240 of spending is something that we need a sharper focus 0:03:16.280 --> 0:03:20.120 on and more dialogue around than what we've seen. We 0:03:20.160 --> 0:03:22.640 obviously had a pandemic, we made a bunch of decisions, 0:03:22.680 --> 0:03:24.480 you know, in that pandemic, but we're long out of 0:03:24.520 --> 0:03:27.480 that pandemic, and the spending levels, you know, are continuing 0:03:27.520 --> 0:03:30.239 at a pace that I think is raising our debt 0:03:30.320 --> 0:03:33.080 level and creating issues for us down the road. So 0:03:33.160 --> 0:03:35.480 I think this is something that deserves a lot of attention. 0:03:35.760 --> 0:03:38.720 It's not getting as much attention as I'd like to 0:03:38.720 --> 0:03:41.480 see it yet right now. We're obviously in an election year, 0:03:41.560 --> 0:03:43.480 so I'm not you know, I don't have my head 0:03:43.480 --> 0:03:45.360 in the sand. I don't think you're going to see 0:03:45.400 --> 0:03:47.440 that get a lot of attention prior to the election. 0:03:47.520 --> 0:03:50.200 But I do think it's something that requires focus. 0:03:50.320 --> 0:03:52.280 We need to deal. 0:03:52.080 --> 0:03:54.920 With the debt and the deficits, and you know, hopefully 0:03:55.160 --> 0:03:56.920 there'll be a lot more discussion as we come through 0:03:56.960 --> 0:03:58.720 the election and move into the next administry. 0:03:58.720 --> 0:04:00.400 Well, let's give it a bit of time, now, can 0:04:00.600 --> 0:04:02.800 I think I often say that the United States has 0:04:02.840 --> 0:04:05.960 the privilege of behaving recklessly sometimes that maybe the likes 0:04:05.960 --> 0:04:08.400 of the Europeans do not have. You sense this's been 0:04:08.400 --> 0:04:11.640 any kind of pushback from the treasury market, from investors 0:04:12.040 --> 0:04:14.800 against the backdrop and this risk that we're talking about currently. 0:04:15.040 --> 0:04:15.320 Well, the. 0:04:17.080 --> 0:04:21.000 Reserve currency is a great privilege, and you know, I'm 0:04:21.040 --> 0:04:23.520 not going to sit here and say that I see 0:04:23.560 --> 0:04:25.279 in the near term, you know, a threat to that 0:04:25.320 --> 0:04:28.039 in any way, shape or form, but it's not something 0:04:28.040 --> 0:04:30.640 that you can take for granted. And the United States' 0:04:30.640 --> 0:04:35.359 ability to spend without constraint is not unlimited. Ultimately, the 0:04:35.360 --> 0:04:39.000 market will challenge that hasn't challenged it yet. Not saying 0:04:39.000 --> 0:04:41.240 that's something that's coming soon, but it's certainly something. 0:04:41.000 --> 0:04:43.159 That we should be very cognitive of and very protective of. 0:04:43.320 --> 0:04:45.360 If you think the experience of the UK A company 0:04:45.400 --> 0:04:47.000 years bank was maybe a case study for what we 0:04:47.040 --> 0:04:48.080 could face in America. 0:04:48.520 --> 0:04:51.920 You know that that was a disruption to the guilt market, 0:04:52.080 --> 0:04:54.000 and it's one of the things I think you need 0:04:54.040 --> 0:04:55.000 to be concerned about. 0:04:55.360 --> 0:04:57.200 It's a risk issue. I've highlighted before. 0:04:57.839 --> 0:05:00.160 You know, at the time the Bank of England to 0:05:00.240 --> 0:05:03.880 reserve had to reverse its course and become very accommodative 0:05:04.160 --> 0:05:06.120 to deal with that blip in the markets. We've had 0:05:06.120 --> 0:05:08.960 disruptions of the treasury market before. We certainly had a 0:05:09.000 --> 0:05:11.960 disruption in March twenty twenty. To the degree that we 0:05:12.040 --> 0:05:14.680 had a significant disruption in the treasury market sometime in 0:05:14.680 --> 0:05:17.560 the future, we don't have a lot of capacity through 0:05:17.560 --> 0:05:20.880 the banking system to intermediate that. It would require very 0:05:20.920 --> 0:05:23.840 accommodative policy. If that came at a time where that 0:05:24.160 --> 0:05:26.560 was not right for the Central Bank to be accommodated, 0:05:26.640 --> 0:05:28.000 that would be a risk issue that would have to 0:05:28.040 --> 0:05:28.560 be monitored. 0:05:28.600 --> 0:05:30.800 We've had some big moves in the last three four months. 0:05:30.880 --> 0:05:32.760 I can just think about the start of twenty twenty four, 0:05:32.760 --> 0:05:35.360 we were looking ahead to maybe seven rate cuts priced 0:05:35.360 --> 0:05:37.400 into markets from the Federal Reserve went all the way 0:05:37.400 --> 0:05:39.599 down to none. I think Jan Hatzis and the team 0:05:39.600 --> 0:05:42.640 are down to two July and November. Big swings and 0:05:42.680 --> 0:05:44.400 equity markets too, David, can we talk a little bit 0:05:44.400 --> 0:05:47.160 about that. I think we're seeing ten percent swings in 0:05:47.240 --> 0:05:50.200 trillion dollar names post earnings. Is that good for business 0:05:50.279 --> 0:05:52.440 that kind of market environment. It's not what you want 0:05:52.440 --> 0:05:52.920 to see. 0:05:53.160 --> 0:05:55.960 You know, the market's the market, and you know, I 0:05:55.960 --> 0:05:58.400 think there are a handful of things that are driving 0:05:59.279 --> 0:06:03.719 these platform worms to grow earnings very significantly and gain 0:06:03.839 --> 0:06:06.599 a larger importance in the overall market capitalization. 0:06:07.080 --> 0:06:08.719 These hyper scalers, as they're. 0:06:08.520 --> 0:06:11.320 Called, I think have enormous competitive advantages in the world 0:06:11.360 --> 0:06:14.080 that we're operating in. And it's you know, it's not 0:06:14.120 --> 0:06:16.560 been surprising, given some of the changes in technology in 0:06:16.600 --> 0:06:19.440 the last twelve months, that their market caps have accelerated, 0:06:19.880 --> 0:06:22.160 don't I don't worry about that. From a market perspective, 0:06:22.160 --> 0:06:25.120 I think markets are relatively efficient. I do worry that 0:06:25.200 --> 0:06:28.599 the structure of the equity markets, particularly in the United States, 0:06:28.600 --> 0:06:30.920 but this is true all over the world, are bringing 0:06:31.040 --> 0:06:34.919 fewer and fewer public companies, and that is concerning. 0:06:35.440 --> 0:06:36.280 That is concerning. 0:06:36.560 --> 0:06:39.719 There's obviously an abundance of capital available in private markets, 0:06:40.440 --> 0:06:44.120 but I do think it's important that we have open, accommodative, 0:06:44.200 --> 0:06:48.720 strong public markets. There's tremendous disclosure transparency in public markets. 0:06:48.760 --> 0:06:52.320 I think that's good for capital deployment, and you know, 0:06:52.360 --> 0:06:55.440 I am concerned that the breadth of the public markets 0:06:55.520 --> 0:06:56.920 is getting a little bit more narrow and I think 0:06:56.920 --> 0:06:58.479 that's something first of all, to watch and think about. 0:06:58.480 --> 0:06:59.840 The Eavego visits on the pint. 0:07:00.240 --> 0:07:01.520 Do you see that improve it at all? 0:07:01.839 --> 0:07:04.839 Well, it's easy to improve when it was zero, So 0:07:04.920 --> 0:07:07.720 the IPO market closed, it has opened up. We've seen 0:07:07.760 --> 0:07:10.960 some very successful IPOs during the course of the first 0:07:10.960 --> 0:07:11.720 few months of the year. 0:07:11.800 --> 0:07:13.640 I think the level of. 0:07:13.640 --> 0:07:15.840 IPO activity will pick up in the second half of 0:07:15.840 --> 0:07:18.120 the year into twenty twenty five. It's not going to 0:07:18.120 --> 0:07:20.800 be as robust as it was during twenty twenty one, 0:07:20.880 --> 0:07:22.680 but I think we'll move back to what i'd call 0:07:22.720 --> 0:07:27.520 a more normalized environment for IPOs. That said, the overall 0:07:27.640 --> 0:07:31.280 size or number of companies coming public. Companies are staying 0:07:31.280 --> 0:07:34.080 private longer, they have more access to capital, and that's 0:07:34.120 --> 0:07:35.800 something I think is important for us to think about. 0:07:35.800 --> 0:07:37.560 There are consequences associated with that. 0:07:37.680 --> 0:07:39.960 Let's think about M and A as well. It's difficult 0:07:39.960 --> 0:07:43.040 in my position to understand which deal can get done 0:07:43.040 --> 0:07:45.560 and which deal can't get done based on current regulation. 0:07:46.000 --> 0:07:49.320 Tapestry cap pre apparently that's the problem. The deals can 0:07:49.400 --> 0:07:52.240 go forward. How much is that holding back M and 0:07:52.240 --> 0:07:54.280 A activity in the United States. 0:07:54.840 --> 0:07:57.520 I think there's no question that the regulatory environment has 0:07:57.560 --> 0:08:01.160 been a headwind to M and A active I'd say, 0:08:01.160 --> 0:08:03.360 for example, a large cap tech has kind of closed 0:08:03.360 --> 0:08:07.320 out because of the regulatory environment from making significant acquisitions. 0:08:07.360 --> 0:08:12.160 And I do think the you know, the regulatory environment 0:08:12.280 --> 0:08:17.480 has made it harder to understand or really expect exactly 0:08:17.560 --> 0:08:19.880 how it will intervene. And so I think that's how 0:08:19.920 --> 0:08:23.200 a chilling effect. That said, the world's a competitive place. 0:08:23.520 --> 0:08:27.080 Scale matters everywhere you turn. People are going to do 0:08:27.120 --> 0:08:30.000 what they need to do strategically to advance their position, 0:08:30.600 --> 0:08:31.920 and if they have to litigate it. 0:08:31.840 --> 0:08:32.520 To litigate it. 0:08:33.040 --> 0:08:35.280 You know, generally those companies that have chosen to litigate 0:08:35.559 --> 0:08:39.160 have generally made progress. Nobody wants to go down that path. 0:08:40.280 --> 0:08:41.719 But I you know, I think at the end of 0:08:41.720 --> 0:08:45.319 the day's scale matters and confidence matters, and so confidence 0:08:45.360 --> 0:08:47.400 has been improving over the last twelve months. 0:08:47.760 --> 0:08:49.839 Certainly in twenty twenty two and twenty twenty. 0:08:49.559 --> 0:08:52.800 Three, you didn't have high CEO confidence that affects M 0:08:52.800 --> 0:08:55.720 and A. But based on the indicators that we can see, 0:08:56.600 --> 0:08:59.160 some that are visible, some that aren't, I think dialogue's 0:08:59.160 --> 0:09:02.000 picking up in my GUS is we'll move. 0:09:01.840 --> 0:09:03.880 Back to what i'd call more normalized levels as we. 0:09:03.920 --> 0:09:05.760 Finished the year, and these stock is picking up on 0:09:05.800 --> 0:09:08.640 that up double digits YERE today up something like sixty 0:09:08.679 --> 0:09:11.520 percent from the lows of October. I think Hopenheimus said 0:09:11.520 --> 0:09:13.920 the first quarter was a near perfect print. You must 0:09:13.920 --> 0:09:16.960 be fit and better, almost vindicated about where this business 0:09:17.000 --> 0:09:19.439 is going now, and how appreciated that is. Well. 0:09:19.480 --> 0:09:21.480 I've always felt good about Goldman Sachs and the way 0:09:21.520 --> 0:09:23.920 the businesses has been positioned for a. 0:09:23.840 --> 0:09:26.720 Long long time. We have a plan. 0:09:26.800 --> 0:09:28.600 We've made a bunch of decisions over the last five 0:09:28.679 --> 0:09:31.400 or six years to execute on that plan. That plan 0:09:31.440 --> 0:09:35.000 has included our one GS operating ethos. That plan has 0:09:35.040 --> 0:09:39.000 included putting more financial resources toward our client franchise and 0:09:39.080 --> 0:09:41.719 banking and markets, which has allowed us to meaningfully take 0:09:41.800 --> 0:09:45.400 market share from some of our competitors. We've grown our 0:09:45.440 --> 0:09:48.840 financing business financing our clients, which is plays to our 0:09:48.880 --> 0:09:51.600 strength given the way we're positioned. And we've also made 0:09:51.640 --> 0:09:54.040 some very strategic decisions over the last five years to 0:09:54.080 --> 0:09:57.360 bring a variety of businesses together in our asset wealth 0:09:57.400 --> 0:10:00.480 management business, so we now have a real scale platform 0:10:00.480 --> 0:10:02.920 and asset and wealth management supervising a little less than 0:10:02.960 --> 0:10:07.600 three trillion dollars of assets, and we're seeing margin improvement 0:10:07.640 --> 0:10:09.760 and growth in that business given the way we positioned it. 0:10:09.800 --> 0:10:12.600 So I think the firm is very well positioned. We're 0:10:12.720 --> 0:10:16.320 executing on our plan, we're staying focused on our clients, 0:10:16.320 --> 0:10:20.000 and we've always been confident. What we can't control is 0:10:20.040 --> 0:10:22.320 the environment. So you know, i'd say twenty twenty two 0:10:22.400 --> 0:10:25.080 and twenty twenty three was not a great environment for 0:10:25.120 --> 0:10:26.880 our business. The environment's improved. 0:10:27.280 --> 0:10:29.200 I wouldn't say we're back to kind of you know, 0:10:29.360 --> 0:10:30.360 average environment before. 0:10:30.360 --> 0:10:32.440 We're getting there, and we're going to continue to stay 0:10:32.440 --> 0:10:34.640 focused on our clients and execute on our plan. 0:10:34.880 --> 0:10:37.480 Let's talk about leaning into certain postsitive business. Would you 0:10:37.600 --> 0:10:40.480 be open some more acquisitions, particularly for asset management. 0:10:40.679 --> 0:10:43.560 We're we're we're always you know, looking to grow and 0:10:43.600 --> 0:10:47.720 extend our franchise. Great asset of wealth management businesses. 0:10:48.679 --> 0:10:49.520 You don't buy them. 0:10:49.600 --> 0:10:52.400 They're generally for sale at certain points in time. You 0:10:52.400 --> 0:10:54.360 don't get to pick when those points in time are. 0:10:54.720 --> 0:10:57.800 At the moment, we're very focused on our execution the 0:10:57.880 --> 0:11:01.359 bar to do something you know, very significant or transformative. 0:11:01.400 --> 0:11:03.040 I say this all the time when I'm asked, would 0:11:03.040 --> 0:11:06.480 be very very high. But if something came along at 0:11:06.480 --> 0:11:10.319 some point that we thought could accelerate our journey and 0:11:10.360 --> 0:11:13.439 asset wealth management, bring a creative return, strengthen our. 0:11:13.400 --> 0:11:14.840 Position, we'd certainly consider it. 0:11:14.880 --> 0:11:16.880 But at the moment, we've got a lot to do 0:11:17.000 --> 0:11:19.720 to drive our organic growth strategy and we're making good. 0:11:19.559 --> 0:11:21.480 Problem and she you think those alpachitess might be in 0:11:21.480 --> 0:11:23.160 Europe or else sweat well. 0:11:23.160 --> 0:11:26.120 We made an acquisition in Europe a couple of years ago, 0:11:27.080 --> 0:11:30.120 an NIP, which has been a good acquisition for us. 0:11:30.120 --> 0:11:33.280 It doubled the size of our asset management business in Europe, 0:11:33.320 --> 0:11:37.960 and it added certain capabilities, particularly around sustainable finance, that 0:11:38.040 --> 0:11:39.480 we felt were strategic for us. 0:11:39.840 --> 0:11:40.720 So we will you. 0:11:40.720 --> 0:11:43.559 Know, it wasn't in the context of Golden Sachs was 0:11:43.559 --> 0:11:44.840 a two billion dollar appetition. 0:11:44.920 --> 0:11:46.760 It wasn't. But we're going to look. 0:11:47.040 --> 0:11:49.640 We have a strategy around our asset and wealth management business. 0:11:49.679 --> 0:11:51.160 We're executing on it. 0:11:51.240 --> 0:11:53.480 We've been very very clear that we have room to 0:11:53.520 --> 0:11:55.800 grow and that we think we can grow this business 0:11:55.880 --> 0:11:58.320 high single digits and continue to improve the margins. And 0:11:58.360 --> 0:12:00.400 so we've got room to run and so we're going 0:12:00.440 --> 0:12:01.800 to continue on that execution path. 0:12:01.880 --> 0:12:04.559 You've been acquiring town as well. They full m Dallas President, 0:12:04.800 --> 0:12:07.080 mister Kaplan. Is Mike going a comeback? What's he going 0:12:07.160 --> 0:12:07.520 to be doing? 0:12:07.800 --> 0:12:07.920 Uh? 0:12:08.120 --> 0:12:12.440 Well Rob, you know, Rob at a long and you know, 0:12:12.640 --> 0:12:14.360 a very very important career at Golden Sax. 0:12:14.360 --> 0:12:16.599 He ran the investment banking business. Yeah. 0:12:16.280 --> 0:12:20.240 Uh for a significant period of time. You know, Rob 0:12:20.800 --> 0:12:24.000 was looking to come back into the business, and you know, 0:12:24.160 --> 0:12:26.200 we decided he should come home to Golden Sacks and 0:12:26.240 --> 0:12:28.760 we're thrilled that'll spend time with our clients. Rob has 0:12:28.840 --> 0:12:31.880 deep client relationships. He'll spend time with our people. He's 0:12:31.880 --> 0:12:35.360 always been a leader as a mentor, uh, you know, 0:12:35.400 --> 0:12:37.839 to people. He believes deeply in Golden Sacks culture and 0:12:37.840 --> 0:12:40.360 so will be another senior leader that can spend time 0:12:40.559 --> 0:12:42.360 with all of us, you know, on the culture of 0:12:42.360 --> 0:12:45.480 Golden Sacks. We have four thousand people in Dallas, Texas now, 0:12:45.520 --> 0:12:48.480 and he adds it puts another senior leader in Dallas, 0:12:48.520 --> 0:12:51.240 which is obviously very very important for us. And he 0:12:51.320 --> 0:12:54.360 certainly has a view on the macro that our clients 0:12:54.400 --> 0:12:56.680 are going to want to hear. And so having Rob 0:12:56.720 --> 0:13:00.319 coordinated with our research team and and you know, able 0:13:00.360 --> 0:13:02.120 to talk to our clients about what we see going 0:13:02.160 --> 0:13:04.960 on in the macro is another area where we can contribute. 0:13:04.960 --> 0:13:06.880 So we're thrilled to have Rob back as a senior 0:13:06.920 --> 0:13:09.400 statesman at the firm, and and excited that he was 0:13:09.400 --> 0:13:10.640 excited to come back to Golden SEC. 0:13:10.720 --> 0:13:12.920 When I die one a hundred goldman full of left 0:13:12.920 --> 0:13:15.880 fet col do I called Jan Hatzias or mister Kamplin? 0:13:15.920 --> 0:13:18.480 Can you call Jan hatzik down to lead economists? But 0:13:19.080 --> 0:13:21.679 Rob is certainly somebody you should call to. And by 0:13:21.679 --> 0:13:23.280 the way, I'd be happy to give you opinions on 0:13:23.320 --> 0:13:26.360 that also, as with John Waldron and you know forty 0:13:26.400 --> 0:13:26.800 other parts. 0:13:26.840 --> 0:13:28.720 How they spend a lot of the teens right now. 0:13:28.920 --> 0:13:30.880 You know the range of opinions we have. We have 0:13:30.920 --> 0:13:33.559 a research opinion, but the range of opinions, it's one 0:13:33.559 --> 0:13:36.120 of debate. I think one of the things I feel 0:13:36.120 --> 0:13:38.640 so lucky there's so many smart partners at Golden Sacks 0:13:39.040 --> 0:13:41.319 that are out in the world talking to people. And 0:13:41.760 --> 0:13:44.480 as you do that, you learn, you bring perspectives to 0:13:44.520 --> 0:13:47.680 the table, and all those perspectives kind of go into 0:13:47.760 --> 0:13:51.640 the you know, into the mindset factory. Yana Hatzias is 0:13:51.679 --> 0:13:55.280 really really good at taking data and information and digesting it, 0:13:55.320 --> 0:13:58.160 and he sits in a very powerful place inside Golden Sacks, 0:13:58.160 --> 0:14:00.640 and all of us contribute to that and from flow, 0:14:00.920 --> 0:14:02.439 and so I think that's one of the advantages of 0:14:02.480 --> 0:14:05.520 the firm. Now we have a great ability to kind 0:14:05.520 --> 0:14:08.000 of listen and learn and talk to very smart people, 0:14:08.280 --> 0:14:10.120 and that gets incorporated into our views. 0:14:10.240 --> 0:14:12.439 We'll get a ton of information this week, we get CPI, 0:14:12.520 --> 0:14:14.760 we get retail sounds, a bit more dates, tons more 0:14:14.760 --> 0:14:17.240 fet speak. Can we finish on one of the business 0:14:17.320 --> 0:14:19.160 is telling you about the state of the US economy? 0:14:19.240 --> 0:14:21.400 But tronic age if we're slowing down, full en off 0:14:21.400 --> 0:14:23.120 a cliff or booming but well. 0:14:23.000 --> 0:14:25.000 And that pointing out we're definitely not falling off a cliff. 0:14:25.040 --> 0:14:28.520 I think the US economy is chugging along pretty well. 0:14:29.440 --> 0:14:32.720 I think the market is set up for pretty much 0:14:32.800 --> 0:14:34.880 what you see now is what you'll get. 0:14:34.920 --> 0:14:37.440 Throughout the rest of twenty twenty four. There have been 0:14:37.440 --> 0:14:38.479 a bunch of data. 0:14:38.240 --> 0:14:41.480 Points that indicate a slowing in what i'd call the 0:14:41.480 --> 0:14:44.920 bottom twenty five or thirty percent of the consumer economy, 0:14:44.920 --> 0:14:47.320 where people are making different choices and starting to tighten 0:14:47.400 --> 0:14:48.800 up on some of their spending choices. 0:14:49.000 --> 0:14:50.400 You've seen some earnings reports in the. 0:14:50.440 --> 0:14:53.760 Last few weeks that indicate that, But broadly speaking, the 0:14:53.800 --> 0:14:56.200 service sector is still relatively strong, and I think the 0:14:56.240 --> 0:15:01.080 economy is still in pretty good shape. You know where 0:15:01.080 --> 0:15:03.480 it'll be in six months. How much of that slowed 0:15:03.480 --> 0:15:05.920 down we see in the bottom quartile. We have to 0:15:05.920 --> 0:15:07.480 watch the data very very carefully. 0:15:07.600 --> 0:15:09.440 Just to final question, we alluded to it in a 0:15:09.480 --> 0:15:12.240 conversation a lit bit earlier. She still personally vindicates it 0:15:12.240 --> 0:15:14.720 about where the business is now versus some of the 0:15:14.720 --> 0:15:16.960 comforts to business going over the last twelve months. 0:15:17.200 --> 0:15:19.360 Goldman Sachs is a visible organization. 0:15:20.080 --> 0:15:23.840 The team that I have that helps us, the broad 0:15:23.920 --> 0:15:27.160 partners that help us serve our clients, run the firm 0:15:27.320 --> 0:15:29.800 move forward. We've had a high degree of confidence in 0:15:29.840 --> 0:15:31.480 our strategy over the last five. 0:15:31.320 --> 0:15:32.000 To six years. 0:15:32.320 --> 0:15:36.360 We continue to execute on that strategy. You know, when 0:15:36.440 --> 0:15:39.560 times are good, you know, things feel good. When times 0:15:39.560 --> 0:15:42.000 are tougher, things don't feel as good. But we kind 0:15:42.000 --> 0:15:44.920 of take a long view execute against that strategy, and 0:15:44.920 --> 0:15:48.640 we just know that if we have really really smart 0:15:48.680 --> 0:15:52.800 people working together, working collaboratively, really driving. 0:15:52.400 --> 0:15:54.560 For excellence to serve our clients. We're going to do 0:15:54.680 --> 0:15:55.640 just fine. 0:15:55.320 --> 0:15:59.040 And that's kind of true North serving our clients with excellence. 0:15:59.280 --> 0:16:01.320 We'll do just fine, and so we remain focused on that. 0:16:01.400 --> 0:16:03.120 David Solomon, thank you from very much for your time. 0:16:03.160 --> 0:16:05.280 We appreciate it. Thank you for France, and we'll catch 0:16:05.320 --> 0:16:07.400 up in New York next time. Absolutely stay with the flight, 0:16:07.440 --> 0:16:10.080 thank you, thank you. That was David Solomon of Goldman 0:16:10.160 --> 0:16:10.440 Sachs