1
00:00:00,040 --> 00:00:02,240
Speaker 1: It's turned out to one of our top interviews this

2
00:00:02,320 --> 00:00:06,600
Speaker 1: morning from Saudi Arabia's Future Investment Initiative sum Much. Bloomberg

3
00:00:07,000 --> 00:00:10,520
Speaker 1: has been speaking to CEO of Gold and Sachs David Solomon.

4
00:00:10,680 --> 00:00:14,360
Speaker 1: Our Horizons Middle East Africa anchor Jimani Bressacci has been

5
00:00:14,400 --> 00:00:17,560
Speaker 1: speaking to him. Here is the exclusive interview in full,

6
00:00:17,640 --> 00:00:20,560
Speaker 1: starting with David Solomon's thoughts on Saudi Arabia as an

7
00:00:20,560 --> 00:00:21,799
Speaker 1: investment destination.

8
00:00:22,200 --> 00:00:24,560
Speaker 2: We are excited to be opening up a new office

9
00:00:24,680 --> 00:00:28,360
Speaker 2: in the financial district, and I would say we are

10
00:00:28,400 --> 00:00:32,800
Speaker 2: committed to our presence here in Saudi Arabia. I was reflecting,

11
00:00:34,280 --> 00:00:37,519
Speaker 2: you know, last night, around the past eight years, seven

12
00:00:37,600 --> 00:00:39,200
Speaker 2: or eight years that I've been coming to this event

13
00:00:39,600 --> 00:00:41,519
Speaker 2: and just watching the progress, you know, and the progress

14
00:00:41,520 --> 00:00:45,440
Speaker 2: has been meaningful, and we've participated in that progress. It's

15
00:00:45,479 --> 00:00:47,879
Speaker 2: interested in what your clients here on the ground participate

16
00:00:48,000 --> 00:00:49,560
Speaker 2: in that progress and be in a position.

17
00:00:49,320 --> 00:00:51,199
Speaker 3: To try to help them. But also as you look

18
00:00:51,200 --> 00:00:52,720
Speaker 3: at the international community.

19
00:00:52,320 --> 00:00:54,760
Speaker 2: The international community is more interested in what's going on

20
00:00:55,080 --> 00:00:57,840
Speaker 2: from an economic development perspective here, and we're delighted to

21
00:00:57,840 --> 00:00:59,680
Speaker 2: be positioned to help our clients in this region.

22
00:01:00,080 --> 00:01:02,280
Speaker 4: Yeah, and it feels like there is so much deal

23
00:01:02,320 --> 00:01:05,600
Speaker 4: making even IPOs. Last year it was a great year

24
00:01:06,319 --> 00:01:09,560
Speaker 4: in terms of activity across all these exchanges, which means

25
00:01:09,600 --> 00:01:12,280
Speaker 4: also more and where banks are looking to get involved

26
00:01:12,319 --> 00:01:16,120
Speaker 4: in the action. Are you finding it difficult to retain

27
00:01:16,319 --> 00:01:19,440
Speaker 4: and attract talent given increasing amount of competition.

28
00:01:20,200 --> 00:01:23,240
Speaker 2: We have a very very deep bench of bankers around

29
00:01:23,280 --> 00:01:25,920
Speaker 2: the globe, including here in the region. We have a

30
00:01:26,000 --> 00:01:28,000
Speaker 2: number of bankers from the region, the base out of

31
00:01:28,000 --> 00:01:31,480
Speaker 2: London and sometimes move back to this region.

32
00:01:31,920 --> 00:01:34,920
Speaker 3: We've been able to attract talent. We're Golden Sachs.

33
00:01:34,959 --> 00:01:37,000
Speaker 2: We've been able to attract talent here in this region all.

34
00:01:36,920 --> 00:01:37,840
Speaker 3: Other places in the world.

35
00:01:38,120 --> 00:01:40,720
Speaker 2: I do agree there's more competition here, but that's positive

36
00:01:40,880 --> 00:01:43,120
Speaker 2: and actually the levels of activity are picking up and

37
00:01:43,200 --> 00:01:45,640
Speaker 2: I feel very very confident and our ability to have

38
00:01:45,680 --> 00:01:48,080
Speaker 2: really extraordinary people on the ground here to serve our

39
00:01:48,080 --> 00:01:49,040
Speaker 2: clients very well.

40
00:01:49,320 --> 00:01:51,680
Speaker 4: One of the stories that our Bloomberg News team have

41
00:01:51,720 --> 00:01:53,640
Speaker 4: you been reporting on is the fact that the PIF

42
00:01:53,760 --> 00:01:57,280
Speaker 4: have been sort of refocusing some of their investment efforts

43
00:01:57,400 --> 00:02:01,120
Speaker 4: at domestically, which means that in terms of the relationship

44
00:02:01,120 --> 00:02:03,040
Speaker 4: with asset managers in the region, there's been a lot

45
00:02:03,080 --> 00:02:06,080
Speaker 4: more focus on or questions asked about what some of

46
00:02:06,120 --> 00:02:09,480
Speaker 4: these asset managers are delivering on the ground within Saudi Arabia.

47
00:02:09,600 --> 00:02:11,959
Speaker 4: How do you think that is going to shape up

48
00:02:12,160 --> 00:02:16,160
Speaker 4: the asset management's ambitions within the region and specifically with

49
00:02:16,160 --> 00:02:16,480
Speaker 4: those lives.

50
00:02:17,000 --> 00:02:18,720
Speaker 3: It's a very very natural progress.

51
00:02:19,160 --> 00:02:21,080
Speaker 2: And we've been talking about what's going on here in

52
00:02:21,120 --> 00:02:25,280
Speaker 2: the kingdom, but the level of investment in diversifying the

53
00:02:25,320 --> 00:02:27,840
Speaker 2: economy here in the kingdom is significant, and of course

54
00:02:27,840 --> 00:02:30,760
Speaker 2: that's a significant focus of the PIF.

55
00:02:31,680 --> 00:02:32,400
Speaker 3: For a firm like.

56
00:02:32,320 --> 00:02:35,680
Speaker 2: Golden Sachs, where we're well positioned to serve as an

57
00:02:35,680 --> 00:02:37,920
Speaker 2: investment banker, to serve as a trader, to serve as

58
00:02:37,919 --> 00:02:40,000
Speaker 2: an asset and wealth manager, I think the firm is

59
00:02:40,000 --> 00:02:42,840
Speaker 2: incredibly well positioned to help in this part of the world,

60
00:02:42,840 --> 00:02:44,200
Speaker 2: regardless of the trajectory.

61
00:02:44,360 --> 00:02:46,120
Speaker 3: So we're excited about what's going on here.

62
00:02:46,280 --> 00:02:48,639
Speaker 2: I'm excited about the opportunities we'll have to help serve

63
00:02:48,680 --> 00:02:49,400
Speaker 2: our clients here.

64
00:02:49,639 --> 00:02:51,400
Speaker 4: I can I ask you what your level of concern

65
00:02:51,560 --> 00:02:54,400
Speaker 4: is vias to be the geopolitical situation in the region

66
00:02:54,480 --> 00:02:54,920
Speaker 4: right now.

67
00:02:55,360 --> 00:02:59,000
Speaker 2: I'm concerned about the geopolitical situation in the region. It's

68
00:02:59,000 --> 00:03:01,320
Speaker 2: not good for security. It's not good for safety, it's

69
00:03:01,320 --> 00:03:05,120
Speaker 2: not good for economic growth. And I'm hopeful that leaders

70
00:03:05,160 --> 00:03:07,480
Speaker 2: both in the region and around the world, and important

71
00:03:07,520 --> 00:03:10,160
Speaker 2: governments around the world will be able to find a

72
00:03:10,200 --> 00:03:11,320
Speaker 2: path to settle.

73
00:03:11,040 --> 00:03:12,440
Speaker 3: It down as we move forward.

74
00:03:12,480 --> 00:03:15,600
Speaker 2: But of course, anytime you have geopotocon certainty, that's not

75
00:03:15,639 --> 00:03:17,359
Speaker 2: good for economic growth and prosperity.

76
00:03:17,400 --> 00:03:19,639
Speaker 3: And one of the things I just noticed i spend.

77
00:03:19,440 --> 00:03:21,400
Speaker 2: Time with people here on the ground, people want to

78
00:03:21,440 --> 00:03:26,079
Speaker 2: find a path to a secure, prosperous, economically vibrant in

79
00:03:26,080 --> 00:03:26,640
Speaker 2: Middle least.

80
00:03:26,840 --> 00:03:28,960
Speaker 4: Has it impacted business trading.

81
00:03:28,760 --> 00:03:31,400
Speaker 3: In the region, You know, it's interesting.

82
00:03:31,440 --> 00:03:34,079
Speaker 2: People are obviously concerned and very very focused, but it's

83
00:03:34,120 --> 00:03:37,440
Speaker 2: not had a significant impact on activity up to this point,

84
00:03:37,760 --> 00:03:39,520
Speaker 2: on activity in this part of the region.

85
00:03:39,680 --> 00:03:42,800
Speaker 4: Yeah, well, let's just stop. More broadly, your earnings came

86
00:03:42,840 --> 00:03:46,320
Speaker 4: out very strong, sur fascinating expectations. Obviously the stock has

87
00:03:46,720 --> 00:03:49,320
Speaker 4: had a good run this year. You must be feeling good.

88
00:03:49,320 --> 00:03:51,040
Speaker 4: But let me just ask you how you're feeling about

89
00:03:51,040 --> 00:03:52,040
Speaker 4: the outlook in general.

90
00:03:53,640 --> 00:03:55,000
Speaker 3: I feel good about the outlook.

91
00:03:55,080 --> 00:03:57,440
Speaker 2: I think you know, if you took a tour around

92
00:03:57,440 --> 00:04:00,760
Speaker 2: the world, the US economy is actually doing quite well.

93
00:04:00,760 --> 00:04:02,160
Speaker 3: It's been very, very resilient.

94
00:04:02,760 --> 00:04:05,520
Speaker 2: I'm a little bit more concerned about European growth and

95
00:04:05,600 --> 00:04:09,640
Speaker 2: also the economic situation in China, but overall, the engine

96
00:04:09,640 --> 00:04:11,840
Speaker 2: of the US has been quite powerful, and our building

97
00:04:12,040 --> 00:04:13,480
Speaker 2: our business while.

98
00:04:13,280 --> 00:04:17,240
Speaker 3: Global, is quite correlated to US growth. I can give

99
00:04:17,240 --> 00:04:17,480
Speaker 3: you a.

100
00:04:17,400 --> 00:04:19,920
Speaker 2: List of things to worry about, but generally I can

101
00:04:19,960 --> 00:04:21,800
Speaker 2: tell you also a list of things that I'm quite

102
00:04:21,839 --> 00:04:25,800
Speaker 2: optimistic about. The progress around technology and AI and the

103
00:04:25,839 --> 00:04:29,560
Speaker 2: opportunities to increase productivity, or real progress that we're seeing

104
00:04:29,600 --> 00:04:32,839
Speaker 2: around healthcare and medical technology or extraordinary and the impact

105
00:04:32,839 --> 00:04:33,279
Speaker 2: that they'll have.

106
00:04:33,839 --> 00:04:36,080
Speaker 3: So there are a lot of reasons to be optimistic about.

107
00:04:35,839 --> 00:04:40,200
Speaker 2: The growth and trajectory of economies around the world, but

108
00:04:40,800 --> 00:04:43,040
Speaker 2: there's also fragility and things can go wrong.

109
00:04:43,120 --> 00:04:44,559
Speaker 4: Well, I was going to pick up on that because

110
00:04:44,600 --> 00:04:47,520
Speaker 4: it's been really difficult to sort of track the narrative

111
00:04:47,560 --> 00:04:49,760
Speaker 4: around the US economy the last few months, because we've

112
00:04:49,760 --> 00:04:52,120
Speaker 4: gone from hard landing to soft lanning. Now people are

113
00:04:52,160 --> 00:04:53,919
Speaker 4: talking about no lanning. I'm not going to ask you

114
00:04:53,960 --> 00:04:56,479
Speaker 4: for a descriptor of the US economy, but what I

115
00:04:56,520 --> 00:04:59,360
Speaker 4: will ask you is, where are some areas of concern

116
00:04:59,400 --> 00:04:59,840
Speaker 4: that you're seeing?

117
00:05:00,160 --> 00:05:02,280
Speaker 2: Well, the base case in the US is certainly at

118
00:05:02,279 --> 00:05:04,720
Speaker 2: this point for a soft landing. That doesn't mean that

119
00:05:04,760 --> 00:05:06,840
Speaker 2: at some point there can't be, you know, some sort

120
00:05:06,880 --> 00:05:08,640
Speaker 2: of a slow down in economic growth. But what I

121
00:05:09,279 --> 00:05:11,120
Speaker 2: would say is the US economy is proving to.

122
00:05:11,040 --> 00:05:12,080
Speaker 3: Be incredibly resilient.

123
00:05:12,440 --> 00:05:14,200
Speaker 2: We do have an election in the US and there'll

124
00:05:14,200 --> 00:05:17,560
Speaker 2: be policy decisions that come out of that election, and

125
00:05:17,640 --> 00:05:19,840
Speaker 2: so you know, certainly those will have an impact on

126
00:05:19,880 --> 00:05:22,360
Speaker 2: the trajectory in twenty twenty five and twenty twenty six.

127
00:05:23,640 --> 00:05:26,719
Speaker 2: With respect to you know, European growth, European growth is

128
00:05:26,720 --> 00:05:29,359
Speaker 2: more sluggish at the moment. And I'm concerned about the

129
00:05:29,360 --> 00:05:31,880
Speaker 2: same thing that many people I know are talking to

130
00:05:31,880 --> 00:05:36,440
Speaker 2: you about at this event, geopolitics US China relationship, the

131
00:05:36,480 --> 00:05:39,200
Speaker 2: situation in Ukraine, the situation we just touched on in

132
00:05:39,240 --> 00:05:44,360
Speaker 2: the Middle East. Also concerned, you know, broadly about inflation

133
00:05:44,480 --> 00:05:47,640
Speaker 2: in the world. Concerned about energy policy, which is obviously

134
00:05:47,640 --> 00:05:50,880
Speaker 2: a significant issue. I'm concerned about immigration and migration which

135
00:05:50,920 --> 00:05:52,760
Speaker 2: is an issue in different parts of the world. So

136
00:05:52,800 --> 00:05:55,560
Speaker 2: these are all issues that require leadership and policy direction.

137
00:05:55,960 --> 00:05:58,520
Speaker 2: And I'm hopeful as we get past the election in

138
00:05:58,560 --> 00:06:00,880
Speaker 2: the US and we continue to move forward we'll see

139
00:06:00,880 --> 00:06:03,160
Speaker 2: a clear direction of travel on some of these significant

140
00:06:03,160 --> 00:06:03,920
Speaker 2: policy issues.

141
00:06:04,040 --> 00:06:05,719
Speaker 4: Well, I mean, the other big development is obviously the

142
00:06:05,720 --> 00:06:07,960
Speaker 4: said have started cutting interest rates. And I think you

143
00:06:08,000 --> 00:06:10,880
Speaker 4: were asked about what your expectations were for the said

144
00:06:10,920 --> 00:06:12,800
Speaker 4: the last I already said a thirty percent chance of

145
00:06:12,800 --> 00:06:14,760
Speaker 4: a fifty basis one cut. So we'll give you that

146
00:06:15,120 --> 00:06:17,599
Speaker 4: they went for the fifty. But what matter is more,

147
00:06:17,600 --> 00:06:21,120
Speaker 4: as you think for financial markets, how quickly they go

148
00:06:21,480 --> 00:06:22,400
Speaker 4: or where they end up.

149
00:06:22,480 --> 00:06:24,840
Speaker 2: I mentioned I think there's an awful lot of attention

150
00:06:25,480 --> 00:06:28,520
Speaker 2: on short term rates. I'd actually be focused over time

151
00:06:29,200 --> 00:06:32,760
Speaker 2: on longer term rates. And you know, you know, I

152
00:06:32,800 --> 00:06:36,080
Speaker 2: continue to be concerned about the level of spending and

153
00:06:36,120 --> 00:06:39,120
Speaker 2: deficits in the United States. I don't think that's a

154
00:06:39,240 --> 00:06:43,320
Speaker 2: short term, you know, crisis factor. But unless we have

155
00:06:43,440 --> 00:06:46,480
Speaker 2: policy change and get our spending and our debt under control,

156
00:06:46,680 --> 00:06:48,640
Speaker 2: you know, ultimately that's kind of a bigger impact on

157
00:06:48,720 --> 00:06:51,320
Speaker 2: long term rates. And I think people are anticipating today

158
00:06:51,720 --> 00:06:53,400
Speaker 2: with respect to the short end of the curve. I

159
00:06:53,400 --> 00:06:56,360
Speaker 2: think it's going to be very data dependent, and that

160
00:06:56,480 --> 00:06:58,520
Speaker 2: data will be driven in part by what kind of

161
00:06:58,560 --> 00:07:01,080
Speaker 2: policy we see coming out of the Yeah, and so

162
00:07:01,600 --> 00:07:04,680
Speaker 2: I think it's important to watch carefully. It seems like

163
00:07:04,720 --> 00:07:08,000
Speaker 2: the FED has been relatively transparent that we'll get another

164
00:07:08,000 --> 00:07:10,280
Speaker 2: interest rate cut before the end of the year, But

165
00:07:10,360 --> 00:07:12,840
Speaker 2: after that, I think it will be very data dependent

166
00:07:12,880 --> 00:07:16,160
Speaker 2: on what kind of policy implementation. What happens to growth.

167
00:07:16,480 --> 00:07:18,800
Speaker 2: Are the inflation numbers actually improving further?

168
00:07:19,120 --> 00:07:19,280
Speaker 4: You know?

169
00:07:19,320 --> 00:07:20,840
Speaker 2: Those are all things I think the FED will be

170
00:07:20,840 --> 00:07:21,480
Speaker 2: watching carefully.

171
00:07:21,640 --> 00:07:23,600
Speaker 4: Can I just circle back to your first point vis

172
00:07:23,640 --> 00:07:26,320
Speaker 4: a vis spending, the send your treasuries trading around four

173
00:07:26,320 --> 00:07:28,400
Speaker 4: point three percent, so you think that is ad and

174
00:07:28,480 --> 00:07:31,080
Speaker 4: put the pricing in the fiscal premium in the years

175
00:07:31,080 --> 00:07:32,160
Speaker 4: to come to us.

176
00:07:33,440 --> 00:07:35,920
Speaker 2: The market's the market, and so it is absolutely pricing

177
00:07:35,960 --> 00:07:37,960
Speaker 2: in the premium that the market perceives today. What I

178
00:07:37,960 --> 00:07:40,360
Speaker 2: would just say, if you look at the trajectory of

179
00:07:40,400 --> 00:07:43,080
Speaker 2: our spending and our debt and the interest burden that

180
00:07:43,160 --> 00:07:45,800
Speaker 2: we have, I think over time and over time is

181
00:07:45,840 --> 00:07:47,840
Speaker 2: through the rest of the decade, et cetera, we'll have

182
00:07:47,880 --> 00:07:50,840
Speaker 2: to bring new buyers into US treasuries and that will

183
00:07:50,880 --> 00:07:53,960
Speaker 2: potentially have a risk of putting pressure on longer rates

184
00:07:54,160 --> 00:07:56,360
Speaker 2: unless we want to finance the whole treasury stack at

185
00:07:56,400 --> 00:07:58,160
Speaker 2: the front under the curve which will be a very

186
00:07:58,240 --> 00:07:59,480
Speaker 2: very significant policy shift.

187
00:08:00,440 --> 00:08:01,640
Speaker 4: I want to ask to you a little bit more

188
00:08:01,640 --> 00:08:06,360
Speaker 4: about your trading numbers, since they came in stronger than expectations,

189
00:08:06,840 --> 00:08:10,320
Speaker 4: and earlier on you had guided that fixed income trading

190
00:08:10,520 --> 00:08:13,920
Speaker 4: was gonnessee to clients, but overall for the quarter, you

191
00:08:14,000 --> 00:08:16,160
Speaker 4: ended up posting quite strong trading results, namely on the

192
00:08:16,160 --> 00:08:18,920
Speaker 4: back of your equity trading business. Was this sort of

193
00:08:18,960 --> 00:08:21,080
Speaker 4: a one off because there was so much volatility and

194
00:08:21,160 --> 00:08:24,160
Speaker 4: equities this quarter or can we expect that momentum to

195
00:08:24,160 --> 00:08:24,880
Speaker 4: continue more?

196
00:08:24,880 --> 00:08:27,520
Speaker 2: Equity franchise is performing very very well. We have the

197
00:08:27,560 --> 00:08:31,040
Speaker 2: leading equity franchise of the big banks. It's something we've

198
00:08:31,040 --> 00:08:32,840
Speaker 2: invested in, it built over a long period of time.

199
00:08:33,160 --> 00:08:36,720
Speaker 2: I can't tell you quarter to quarter what the market

200
00:08:36,800 --> 00:08:40,240
Speaker 2: environment will put up for that franchise, but we were

201
00:08:40,400 --> 00:08:42,480
Speaker 2: our positioned very well to serve our clients and have

202
00:08:42,520 --> 00:08:45,920
Speaker 2: a leading share position in that business. When I commented

203
00:08:45,960 --> 00:08:49,560
Speaker 2: about our trading revenues in early September, at the very

204
00:08:49,559 --> 00:08:52,280
Speaker 2: beginning of September at a conference in New York, the

205
00:08:52,320 --> 00:08:53,360
Speaker 2: business was softer.

206
00:08:53,440 --> 00:08:56,160
Speaker 3: It had been softer in August, particularly in fixed income.

207
00:08:56,480 --> 00:08:58,640
Speaker 2: We had a very very strong comp from the third

208
00:08:58,760 --> 00:09:02,520
Speaker 2: quarter in twenty two three, and ultimately our fixed income

209
00:09:02,559 --> 00:09:04,199
Speaker 2: business was softer.

210
00:09:04,280 --> 00:09:04,920
Speaker 3: Year over year.

211
00:09:05,600 --> 00:09:07,440
Speaker 2: But I did say when I made that comment that

212
00:09:07,520 --> 00:09:10,640
Speaker 2: it would be very very dependent on what happened in September,

213
00:09:10,920 --> 00:09:13,520
Speaker 2: and we actually had a more robust September than we expected.

214
00:09:13,720 --> 00:09:17,000
Speaker 4: Yeah, well, Marcus said, do you think you can continue

215
00:09:17,080 --> 00:09:18,560
Speaker 4: to gain market share of the trade inside?

216
00:09:18,760 --> 00:09:21,600
Speaker 2: We do believe there are opportunities for us to continue

217
00:09:21,600 --> 00:09:25,680
Speaker 2: to take share, although we're operating in a leading share position,

218
00:09:26,240 --> 00:09:28,520
Speaker 2: so those gains will not be as pronounced as they've

219
00:09:28,520 --> 00:09:30,599
Speaker 2: been over the last five years. But we think we

220
00:09:30,679 --> 00:09:33,080
Speaker 2: have a very very powerful ecosystem in our global Banking

221
00:09:33,120 --> 00:09:36,720
Speaker 2: and Markets franchise. Our one GS operating ethos is helping

222
00:09:36,800 --> 00:09:39,959
Speaker 2: us serve our clients in a very very you know,

223
00:09:40,120 --> 00:09:43,439
Speaker 2: forward and exceptional way. And if you are patient, you

224
00:09:43,520 --> 00:09:46,000
Speaker 2: take a long term view, you earn trust, you show

225
00:09:46,080 --> 00:09:48,680
Speaker 2: up for your clients, and good times and bad over time,

226
00:09:48,800 --> 00:09:50,440
Speaker 2: you gain share in these businesses and more.

227
00:09:50,520 --> 00:09:51,560
Speaker 3: Very focused on the.

228
00:09:51,559 --> 00:09:55,000
Speaker 4: Outlooks like right now for deal making, Yeah.

229
00:09:54,880 --> 00:09:58,079
Speaker 3: Look for deal makings improving. You know, I talked, I

230
00:09:58,160 --> 00:10:00,800
Speaker 3: talked on earnings on our earnings call about the fact

231
00:10:00,800 --> 00:10:02,480
Speaker 3: that our m and a backlog had improved.

232
00:10:02,880 --> 00:10:05,839
Speaker 2: I talked about some headwins, particularly on the regulatory side.

233
00:10:06,640 --> 00:10:09,120
Speaker 2: I think the regulatory environment has been a headwind to

234
00:10:09,200 --> 00:10:11,880
Speaker 2: some deal making. Obviously, with an election, we could see

235
00:10:11,920 --> 00:10:14,439
Speaker 2: a change in that context. But there's no question the

236
00:10:14,480 --> 00:10:17,240
Speaker 2: deal making environment is improving. And when you look at

237
00:10:17,280 --> 00:10:20,960
Speaker 2: what's going on with technology and the investment that's necessary

238
00:10:22,160 --> 00:10:24,199
Speaker 2: to power AI, I think that's a tailwind for deal

239
00:10:24,280 --> 00:10:26,600
Speaker 2: making over a period of time too. A lot of change,

240
00:10:26,920 --> 00:10:29,960
Speaker 2: a lot of opportunity, and when there's change, leaders are

241
00:10:30,000 --> 00:10:33,760
Speaker 2: constantly looking to make sure that their positions strategically to

242
00:10:33,880 --> 00:10:34,839
Speaker 2: have a leadership position.

243
00:10:34,920 --> 00:10:36,480
Speaker 3: As the world of olfs well, I.

244
00:10:36,520 --> 00:10:38,400
Speaker 4: Know you've also been making a big push into your

245
00:10:38,440 --> 00:10:42,360
Speaker 4: alternatives business. Private credits is an area of focus. What

246
00:10:42,559 --> 00:10:45,080
Speaker 4: is the opportunity that you see there, because it really

247
00:10:45,200 --> 00:10:47,959
Speaker 4: feels like that has become the major focus of the market.

248
00:10:48,120 --> 00:10:49,920
Speaker 4: Many many of different players are looking to get.

249
00:10:49,760 --> 00:10:50,199
Speaker 3: Involved in that.

250
00:10:50,320 --> 00:10:52,199
Speaker 2: But we've been in the private credit business for over

251
00:10:52,320 --> 00:10:54,960
Speaker 2: thirty years. We have one hundred and forty billion dollars

252
00:10:55,000 --> 00:10:57,120
Speaker 2: in private credit assets. We've been a leading private credit

253
00:10:57,200 --> 00:11:01,559
Speaker 2: player since the nineteen nineties. What I would say is

254
00:11:02,120 --> 00:11:05,960
Speaker 2: there continues to be secular growth around the opportunity set

255
00:11:06,480 --> 00:11:10,160
Speaker 2: for additional private credit formation, and we're very very well

256
00:11:10,240 --> 00:11:13,280
Speaker 2: positioned given way the firm sits to be a very

257
00:11:13,360 --> 00:11:16,560
Speaker 2: very unique player in that. Obviously, in our asset management business,

258
00:11:17,120 --> 00:11:20,400
Speaker 2: we manage significant private credit assets, but we also have

259
00:11:20,520 --> 00:11:23,080
Speaker 2: one of the leading syndication franchises. We have an ability

260
00:11:23,400 --> 00:11:26,240
Speaker 2: to originate and distribute in addition to be an.

261
00:11:26,120 --> 00:11:29,200
Speaker 3: Investor through asset management business. That's a very unique combination.

262
00:11:29,600 --> 00:11:31,839
Speaker 2: I think it positions our firm very well, and you

263
00:11:31,960 --> 00:11:35,199
Speaker 2: will see, in my opinion, continued secular growth in private

264
00:11:35,240 --> 00:11:37,960
Speaker 2: credit formation. I still think we're early on that cycle.

265
00:11:38,120 --> 00:11:40,360
Speaker 4: What do you think lower interest rates do for the

266
00:11:40,559 --> 00:11:41,760
Speaker 4: private credit landscape?

267
00:11:41,800 --> 00:11:44,960
Speaker 2: Though give so much of the I think that private

268
00:11:45,040 --> 00:11:48,720
Speaker 2: credit it's not immune to lower interest rates, but there

269
00:11:48,720 --> 00:11:53,400
Speaker 2: are different ways that we can finance activity, and private

270
00:11:53,440 --> 00:11:55,280
Speaker 2: credit is a very important part of that. People use

271
00:11:55,320 --> 00:11:57,520
Speaker 2: private credit as a very very broad term. Are we

272
00:11:57,600 --> 00:12:01,439
Speaker 2: talking about insurance companies financing investment grade companies? We're talking

273
00:12:01,440 --> 00:12:04,400
Speaker 2: about investment grade financing. Are we talking about below investment

274
00:12:04,440 --> 00:12:08,119
Speaker 2: grade corporate financing? Are we talking about direct lending to small.

275
00:12:07,880 --> 00:12:09,240
Speaker 3: And medium sized enterprises?

276
00:12:09,600 --> 00:12:12,640
Speaker 2: These are all different forms of private credit and the

277
00:12:12,760 --> 00:12:14,800
Speaker 2: reality of it is regardless of what the interest rate

278
00:12:14,920 --> 00:12:18,040
Speaker 2: environment is, people need to finance, and so of course

279
00:12:18,080 --> 00:12:20,679
Speaker 2: in the short term movements and interest rates have an

280
00:12:20,760 --> 00:12:23,839
Speaker 2: impact in short term activity, but we're talking about the

281
00:12:24,000 --> 00:12:27,600
Speaker 2: engines of finance that drive capital structure in a whole

282
00:12:27,679 --> 00:12:28,439
Speaker 2: variety of ways.

283
00:12:28,520 --> 00:12:31,200
Speaker 3: This is not something that's cyclically tied to short term interstry.

284
00:12:32,240 --> 00:12:33,960
Speaker 4: Can I just in an updates on how you see

285
00:12:34,080 --> 00:12:37,199
Speaker 4: newer consumer finance business and the pathway ahead from Gorman.

286
00:12:37,360 --> 00:12:39,480
Speaker 2: We've been very clear over the last few years that

287
00:12:39,520 --> 00:12:42,840
Speaker 2: we're narrowing our consumer focus and we've taken active steps

288
00:12:42,880 --> 00:12:45,439
Speaker 2: to do that. We continue to have a very very

289
00:12:45,880 --> 00:12:49,160
Speaker 2: powerful deposit platform under markets, but we continue to take

290
00:12:49,200 --> 00:12:51,800
Speaker 2: steps to narrow our consumer activity. We're focused on our

291
00:12:51,840 --> 00:12:54,079
Speaker 2: two big businesses, global banking and markets and asset and

292
00:12:54,120 --> 00:12:56,520
Speaker 2: wealth management, and we feel good about the way we're positioned.

293
00:12:56,840 --> 00:12:59,199
Speaker 4: Well. We've been speaking for I guess like fifteen minutes

294
00:12:59,240 --> 00:13:01,600
Speaker 4: and I still haven't up the big US election coming

295
00:13:01,640 --> 00:13:04,760
Speaker 4: off next week. Let me just ask you this, because

296
00:13:05,000 --> 00:13:06,959
Speaker 4: as a bank, I'm sure you would have run scenario

297
00:13:07,000 --> 00:13:10,160
Speaker 4: analysis on what will happen either way. What would you

298
00:13:10,280 --> 00:13:14,240
Speaker 4: say is the biggest risk for your business for either outcome,

299
00:13:14,360 --> 00:13:16,079
Speaker 4: a Harris win or a Trump win.

300
00:13:16,240 --> 00:13:19,160
Speaker 2: We're watching the election like everybody else. The good news

301
00:13:19,240 --> 00:13:21,719
Speaker 2: is it's coming up, you know, next week, and you know,

302
00:13:21,840 --> 00:13:23,840
Speaker 2: my hope would be, you know, shortly after election night

303
00:13:23,920 --> 00:13:27,000
Speaker 2: we have a clear direction of travel in terms of

304
00:13:27,040 --> 00:13:31,280
Speaker 2: what the next administration will be. Goldman Sachs is set

305
00:13:31,360 --> 00:13:34,920
Speaker 2: up in position to help and support either administration either outcome,

306
00:13:35,000 --> 00:13:36,280
Speaker 2: and to support our clients at.

307
00:13:36,240 --> 00:13:39,079
Speaker 3: Either of those outcomes. And so we're watching like everybody else.

308
00:13:39,120 --> 00:13:41,000
Speaker 2: It's going to be a close election and we'll see

309
00:13:41,040 --> 00:13:42,520
Speaker 2: in the next couple of weeks what the direction of

310
00:13:42,600 --> 00:13:43,000
Speaker 2: travel is.

311
00:13:43,200 --> 00:13:44,719
Speaker 4: Do you think it might have a knock on it

312
00:13:45,200 --> 00:13:47,439
Speaker 4: knock on effect on a regulation and some of the

313
00:13:47,520 --> 00:13:48,719
Speaker 4: regulatory stunts.

314
00:13:48,480 --> 00:13:51,839
Speaker 2: That's taken there is There's there's no question that the

315
00:13:51,920 --> 00:13:55,400
Speaker 2: regulatory pendulum has swung, you know, pretty significantly over the

316
00:13:55,520 --> 00:13:57,160
Speaker 2: last few years. And my hope would be an either

317
00:13:57,200 --> 00:14:00,200
Speaker 2: administration there'll be a fresh look at how we can

318
00:14:00,360 --> 00:14:03,559
Speaker 2: ensure regulations important to keep guardrails in the economy and

319
00:14:03,600 --> 00:14:06,319
Speaker 2: to keep our economy moving in an appropriate way. But

320
00:14:06,400 --> 00:14:08,400
Speaker 2: at the same point, that pendulum can swing too far

321
00:14:08,440 --> 00:14:11,120
Speaker 2: and then it can become a headwind to growth, and

322
00:14:11,160 --> 00:14:13,120
Speaker 2: I'm hopeful, you know, on both sides of the aisle,

323
00:14:13,120 --> 00:14:14,760
Speaker 2: there'll be a fresh look after the election to make

324
00:14:14,800 --> 00:14:16,000
Speaker 2: sure we get that balance correct.

325
00:14:16,960 --> 00:14:19,880
Speaker 1: So that was the CEO of Goldman Sachs David Solomon

326
00:14:19,920 --> 00:14:23,920
Speaker 1: there speaking to Bloomberg's Jumana Barsacchi at the Future Investment

327
00:14:24,120 --> 00:14:26,440
Speaker 1: Initiative summit in Saudi Arabia.