WEBVTT - Goldman Sachs CEO David Solomon Talks Middle East Conflict

0:00:00.040 --> 0:00:02.240
<v Speaker 1>It's turned out to one of our top interviews this

0:00:02.320 --> 0:00:06.600
<v Speaker 1>morning from Saudi Arabia's Future Investment Initiative sum Much. Bloomberg

0:00:07.000 --> 0:00:10.520
<v Speaker 1>has been speaking to CEO of Gold and Sachs David Solomon.

0:00:10.680 --> 0:00:14.360
<v Speaker 1>Our Horizons Middle East Africa anchor Jimani Bressacci has been

0:00:14.400 --> 0:00:17.560
<v Speaker 1>speaking to him. Here is the exclusive interview in full,

0:00:17.640 --> 0:00:20.560
<v Speaker 1>starting with David Solomon's thoughts on Saudi Arabia as an

0:00:20.560 --> 0:00:21.799
<v Speaker 1>investment destination.

0:00:22.200 --> 0:00:24.560
<v Speaker 2>We are excited to be opening up a new office

0:00:24.680 --> 0:00:28.360
<v Speaker 2>in the financial district, and I would say we are

0:00:28.400 --> 0:00:32.800
<v Speaker 2>committed to our presence here in Saudi Arabia. I was reflecting,

0:00:34.280 --> 0:00:37.519
<v Speaker 2>you know, last night, around the past eight years, seven

0:00:37.600 --> 0:00:39.200
<v Speaker 2>or eight years that I've been coming to this event

0:00:39.600 --> 0:00:41.519
<v Speaker 2>and just watching the progress, you know, and the progress

0:00:41.520 --> 0:00:45.440
<v Speaker 2>has been meaningful, and we've participated in that progress. It's

0:00:45.479 --> 0:00:47.879
<v Speaker 2>interested in what your clients here on the ground participate

0:00:48.000 --> 0:00:49.560
<v Speaker 2>in that progress and be in a position.

0:00:49.320 --> 0:00:51.199
<v Speaker 3>To try to help them. But also as you look

0:00:51.200 --> 0:00:52.720
<v Speaker 3>at the international community.

0:00:52.320 --> 0:00:54.760
<v Speaker 2>The international community is more interested in what's going on

0:00:55.080 --> 0:00:57.840
<v Speaker 2>from an economic development perspective here, and we're delighted to

0:00:57.840 --> 0:00:59.680
<v Speaker 2>be positioned to help our clients in this region.

0:01:00.080 --> 0:01:02.280
<v Speaker 4>Yeah, and it feels like there is so much deal

0:01:02.320 --> 0:01:05.600
<v Speaker 4>making even IPOs. Last year it was a great year

0:01:06.319 --> 0:01:09.560
<v Speaker 4>in terms of activity across all these exchanges, which means

0:01:09.600 --> 0:01:12.280
<v Speaker 4>also more and where banks are looking to get involved

0:01:12.319 --> 0:01:16.120
<v Speaker 4>in the action. Are you finding it difficult to retain

0:01:16.319 --> 0:01:19.440
<v Speaker 4>and attract talent given increasing amount of competition.

0:01:20.200 --> 0:01:23.240
<v Speaker 2>We have a very very deep bench of bankers around

0:01:23.280 --> 0:01:25.920
<v Speaker 2>the globe, including here in the region. We have a

0:01:26.000 --> 0:01:28.000
<v Speaker 2>number of bankers from the region, the base out of

0:01:28.000 --> 0:01:31.480
<v Speaker 2>London and sometimes move back to this region.

0:01:31.920 --> 0:01:34.920
<v Speaker 3>We've been able to attract talent. We're Golden Sachs.

0:01:34.959 --> 0:01:37.000
<v Speaker 2>We've been able to attract talent here in this region all.

0:01:36.920 --> 0:01:37.840
<v Speaker 3>Other places in the world.

0:01:38.120 --> 0:01:40.720
<v Speaker 2>I do agree there's more competition here, but that's positive

0:01:40.880 --> 0:01:43.120
<v Speaker 2>and actually the levels of activity are picking up and

0:01:43.200 --> 0:01:45.640
<v Speaker 2>I feel very very confident and our ability to have

0:01:45.680 --> 0:01:48.080
<v Speaker 2>really extraordinary people on the ground here to serve our

0:01:48.080 --> 0:01:49.040
<v Speaker 2>clients very well.

0:01:49.320 --> 0:01:51.680
<v Speaker 4>One of the stories that our Bloomberg News team have

0:01:51.720 --> 0:01:53.640
<v Speaker 4>you been reporting on is the fact that the PIF

0:01:53.760 --> 0:01:57.280
<v Speaker 4>have been sort of refocusing some of their investment efforts

0:01:57.400 --> 0:02:01.120
<v Speaker 4>at domestically, which means that in terms of the relationship

0:02:01.120 --> 0:02:03.040
<v Speaker 4>with asset managers in the region, there's been a lot

0:02:03.080 --> 0:02:06.080
<v Speaker 4>more focus on or questions asked about what some of

0:02:06.120 --> 0:02:09.480
<v Speaker 4>these asset managers are delivering on the ground within Saudi Arabia.

0:02:09.600 --> 0:02:11.959
<v Speaker 4>How do you think that is going to shape up

0:02:12.160 --> 0:02:16.160
<v Speaker 4>the asset management's ambitions within the region and specifically with

0:02:16.160 --> 0:02:16.480
<v Speaker 4>those lives.

0:02:17.000 --> 0:02:18.720
<v Speaker 3>It's a very very natural progress.

0:02:19.160 --> 0:02:21.080
<v Speaker 2>And we've been talking about what's going on here in

0:02:21.120 --> 0:02:25.280
<v Speaker 2>the kingdom, but the level of investment in diversifying the

0:02:25.320 --> 0:02:27.840
<v Speaker 2>economy here in the kingdom is significant, and of course

0:02:27.840 --> 0:02:30.760
<v Speaker 2>that's a significant focus of the PIF.

0:02:31.680 --> 0:02:32.400
<v Speaker 3>For a firm like.

0:02:32.320 --> 0:02:35.680
<v Speaker 2>Golden Sachs, where we're well positioned to serve as an

0:02:35.680 --> 0:02:37.920
<v Speaker 2>investment banker, to serve as a trader, to serve as

0:02:37.919 --> 0:02:40.000
<v Speaker 2>an asset and wealth manager, I think the firm is

0:02:40.000 --> 0:02:42.840
<v Speaker 2>incredibly well positioned to help in this part of the world,

0:02:42.840 --> 0:02:44.200
<v Speaker 2>regardless of the trajectory.

0:02:44.360 --> 0:02:46.120
<v Speaker 3>So we're excited about what's going on here.

0:02:46.280 --> 0:02:48.639
<v Speaker 2>I'm excited about the opportunities we'll have to help serve

0:02:48.680 --> 0:02:49.400
<v Speaker 2>our clients here.

0:02:49.639 --> 0:02:51.400
<v Speaker 4>I can I ask you what your level of concern

0:02:51.560 --> 0:02:54.400
<v Speaker 4>is vias to be the geopolitical situation in the region

0:02:54.480 --> 0:02:54.920
<v Speaker 4>right now.

0:02:55.360 --> 0:02:59.000
<v Speaker 2>I'm concerned about the geopolitical situation in the region. It's

0:02:59.000 --> 0:03:01.320
<v Speaker 2>not good for security. It's not good for safety, it's

0:03:01.320 --> 0:03:05.120
<v Speaker 2>not good for economic growth. And I'm hopeful that leaders

0:03:05.160 --> 0:03:07.480
<v Speaker 2>both in the region and around the world, and important

0:03:07.520 --> 0:03:10.160
<v Speaker 2>governments around the world will be able to find a

0:03:10.200 --> 0:03:11.320
<v Speaker 2>path to settle.

0:03:11.040 --> 0:03:12.440
<v Speaker 3>It down as we move forward.

0:03:12.480 --> 0:03:15.600
<v Speaker 2>But of course, anytime you have geopotocon certainty, that's not

0:03:15.639 --> 0:03:17.359
<v Speaker 2>good for economic growth and prosperity.

0:03:17.400 --> 0:03:19.639
<v Speaker 3>And one of the things I just noticed i spend.

0:03:19.440 --> 0:03:21.400
<v Speaker 2>Time with people here on the ground, people want to

0:03:21.440 --> 0:03:26.079
<v Speaker 2>find a path to a secure, prosperous, economically vibrant in

0:03:26.080 --> 0:03:26.640
<v Speaker 2>Middle least.

0:03:26.840 --> 0:03:28.960
<v Speaker 4>Has it impacted business trading.

0:03:28.760 --> 0:03:31.400
<v Speaker 3>In the region, You know, it's interesting.

0:03:31.440 --> 0:03:34.079
<v Speaker 2>People are obviously concerned and very very focused, but it's

0:03:34.120 --> 0:03:37.440
<v Speaker 2>not had a significant impact on activity up to this point,

0:03:37.760 --> 0:03:39.520
<v Speaker 2>on activity in this part of the region.

0:03:39.680 --> 0:03:42.800
<v Speaker 4>Yeah, well, let's just stop. More broadly, your earnings came

0:03:42.840 --> 0:03:46.320
<v Speaker 4>out very strong, sur fascinating expectations. Obviously the stock has

0:03:46.720 --> 0:03:49.320
<v Speaker 4>had a good run this year. You must be feeling good.

0:03:49.320 --> 0:03:51.040
<v Speaker 4>But let me just ask you how you're feeling about

0:03:51.040 --> 0:03:52.040
<v Speaker 4>the outlook in general.

0:03:53.640 --> 0:03:55.000
<v Speaker 3>I feel good about the outlook.

0:03:55.080 --> 0:03:57.440
<v Speaker 2>I think you know, if you took a tour around

0:03:57.440 --> 0:04:00.760
<v Speaker 2>the world, the US economy is actually doing quite well.

0:04:00.760 --> 0:04:02.160
<v Speaker 3>It's been very, very resilient.

0:04:02.760 --> 0:04:05.520
<v Speaker 2>I'm a little bit more concerned about European growth and

0:04:05.600 --> 0:04:09.640
<v Speaker 2>also the economic situation in China, but overall, the engine

0:04:09.640 --> 0:04:11.840
<v Speaker 2>of the US has been quite powerful, and our building

0:04:12.040 --> 0:04:13.480
<v Speaker 2>our business while.

0:04:13.280 --> 0:04:17.240
<v Speaker 3>Global, is quite correlated to US growth. I can give

0:04:17.240 --> 0:04:17.480
<v Speaker 3>you a.

0:04:17.400 --> 0:04:19.920
<v Speaker 2>List of things to worry about, but generally I can

0:04:19.960 --> 0:04:21.800
<v Speaker 2>tell you also a list of things that I'm quite

0:04:21.839 --> 0:04:25.800
<v Speaker 2>optimistic about. The progress around technology and AI and the

0:04:25.839 --> 0:04:29.560
<v Speaker 2>opportunities to increase productivity, or real progress that we're seeing

0:04:29.600 --> 0:04:32.839
<v Speaker 2>around healthcare and medical technology or extraordinary and the impact

0:04:32.839 --> 0:04:33.279
<v Speaker 2>that they'll have.

0:04:33.839 --> 0:04:36.080
<v Speaker 3>So there are a lot of reasons to be optimistic about.

0:04:35.839 --> 0:04:40.200
<v Speaker 2>The growth and trajectory of economies around the world, but

0:04:40.800 --> 0:04:43.040
<v Speaker 2>there's also fragility and things can go wrong.

0:04:43.120 --> 0:04:44.559
<v Speaker 4>Well, I was going to pick up on that because

0:04:44.600 --> 0:04:47.520
<v Speaker 4>it's been really difficult to sort of track the narrative

0:04:47.560 --> 0:04:49.760
<v Speaker 4>around the US economy the last few months, because we've

0:04:49.760 --> 0:04:52.120
<v Speaker 4>gone from hard landing to soft lanning. Now people are

0:04:52.160 --> 0:04:53.919
<v Speaker 4>talking about no lanning. I'm not going to ask you

0:04:53.960 --> 0:04:56.479
<v Speaker 4>for a descriptor of the US economy, but what I

0:04:56.520 --> 0:04:59.360
<v Speaker 4>will ask you is, where are some areas of concern

0:04:59.400 --> 0:04:59.840
<v Speaker 4>that you're seeing?

0:05:00.160 --> 0:05:02.280
<v Speaker 2>Well, the base case in the US is certainly at

0:05:02.279 --> 0:05:04.720
<v Speaker 2>this point for a soft landing. That doesn't mean that

0:05:04.760 --> 0:05:06.840
<v Speaker 2>at some point there can't be, you know, some sort

0:05:06.880 --> 0:05:08.640
<v Speaker 2>of a slow down in economic growth. But what I

0:05:09.279 --> 0:05:11.120
<v Speaker 2>would say is the US economy is proving to.

0:05:11.040 --> 0:05:12.080
<v Speaker 3>Be incredibly resilient.

0:05:12.440 --> 0:05:14.200
<v Speaker 2>We do have an election in the US and there'll

0:05:14.200 --> 0:05:17.560
<v Speaker 2>be policy decisions that come out of that election, and

0:05:17.640 --> 0:05:19.840
<v Speaker 2>so you know, certainly those will have an impact on

0:05:19.880 --> 0:05:22.360
<v Speaker 2>the trajectory in twenty twenty five and twenty twenty six.

0:05:23.640 --> 0:05:26.719
<v Speaker 2>With respect to you know, European growth, European growth is

0:05:26.720 --> 0:05:29.359
<v Speaker 2>more sluggish at the moment. And I'm concerned about the

0:05:29.360 --> 0:05:31.880
<v Speaker 2>same thing that many people I know are talking to

0:05:31.880 --> 0:05:36.440
<v Speaker 2>you about at this event, geopolitics US China relationship, the

0:05:36.480 --> 0:05:39.200
<v Speaker 2>situation in Ukraine, the situation we just touched on in

0:05:39.240 --> 0:05:44.360
<v Speaker 2>the Middle East. Also concerned, you know, broadly about inflation

0:05:44.480 --> 0:05:47.640
<v Speaker 2>in the world. Concerned about energy policy, which is obviously

0:05:47.640 --> 0:05:50.880
<v Speaker 2>a significant issue. I'm concerned about immigration and migration which

0:05:50.920 --> 0:05:52.760
<v Speaker 2>is an issue in different parts of the world. So

0:05:52.800 --> 0:05:55.560
<v Speaker 2>these are all issues that require leadership and policy direction.

0:05:55.960 --> 0:05:58.520
<v Speaker 2>And I'm hopeful as we get past the election in

0:05:58.560 --> 0:06:00.880
<v Speaker 2>the US and we continue to move forward we'll see

0:06:00.880 --> 0:06:03.160
<v Speaker 2>a clear direction of travel on some of these significant

0:06:03.160 --> 0:06:03.920
<v Speaker 2>policy issues.

0:06:04.040 --> 0:06:05.719
<v Speaker 4>Well, I mean, the other big development is obviously the

0:06:05.720 --> 0:06:07.960
<v Speaker 4>said have started cutting interest rates. And I think you

0:06:08.000 --> 0:06:10.880
<v Speaker 4>were asked about what your expectations were for the said

0:06:10.920 --> 0:06:12.800
<v Speaker 4>the last I already said a thirty percent chance of

0:06:12.800 --> 0:06:14.760
<v Speaker 4>a fifty basis one cut. So we'll give you that

0:06:15.120 --> 0:06:17.599
<v Speaker 4>they went for the fifty. But what matter is more,

0:06:17.600 --> 0:06:21.120
<v Speaker 4>as you think for financial markets, how quickly they go

0:06:21.480 --> 0:06:22.400
<v Speaker 4>or where they end up.

0:06:22.480 --> 0:06:24.840
<v Speaker 2>I mentioned I think there's an awful lot of attention

0:06:25.480 --> 0:06:28.520
<v Speaker 2>on short term rates. I'd actually be focused over time

0:06:29.200 --> 0:06:32.760
<v Speaker 2>on longer term rates. And you know, you know, I

0:06:32.800 --> 0:06:36.080
<v Speaker 2>continue to be concerned about the level of spending and

0:06:36.120 --> 0:06:39.120
<v Speaker 2>deficits in the United States. I don't think that's a

0:06:39.240 --> 0:06:43.320
<v Speaker 2>short term, you know, crisis factor. But unless we have

0:06:43.440 --> 0:06:46.480
<v Speaker 2>policy change and get our spending and our debt under control,

0:06:46.680 --> 0:06:48.640
<v Speaker 2>you know, ultimately that's kind of a bigger impact on

0:06:48.720 --> 0:06:51.320
<v Speaker 2>long term rates. And I think people are anticipating today

0:06:51.720 --> 0:06:53.400
<v Speaker 2>with respect to the short end of the curve. I

0:06:53.400 --> 0:06:56.360
<v Speaker 2>think it's going to be very data dependent, and that

0:06:56.480 --> 0:06:58.520
<v Speaker 2>data will be driven in part by what kind of

0:06:58.560 --> 0:07:01.080
<v Speaker 2>policy we see coming out of the Yeah, and so

0:07:01.600 --> 0:07:04.680
<v Speaker 2>I think it's important to watch carefully. It seems like

0:07:04.720 --> 0:07:08.000
<v Speaker 2>the FED has been relatively transparent that we'll get another

0:07:08.000 --> 0:07:10.280
<v Speaker 2>interest rate cut before the end of the year, But

0:07:10.360 --> 0:07:12.840
<v Speaker 2>after that, I think it will be very data dependent

0:07:12.880 --> 0:07:16.160
<v Speaker 2>on what kind of policy implementation. What happens to growth.

0:07:16.480 --> 0:07:18.800
<v Speaker 2>Are the inflation numbers actually improving further?

0:07:19.120 --> 0:07:19.280
<v Speaker 4>You know?

0:07:19.320 --> 0:07:20.840
<v Speaker 2>Those are all things I think the FED will be

0:07:20.840 --> 0:07:21.480
<v Speaker 2>watching carefully.

0:07:21.640 --> 0:07:23.600
<v Speaker 4>Can I just circle back to your first point vis

0:07:23.640 --> 0:07:26.320
<v Speaker 4>a vis spending, the send your treasuries trading around four

0:07:26.320 --> 0:07:28.400
<v Speaker 4>point three percent, so you think that is ad and

0:07:28.480 --> 0:07:31.080
<v Speaker 4>put the pricing in the fiscal premium in the years

0:07:31.080 --> 0:07:32.160
<v Speaker 4>to come to us.

0:07:33.440 --> 0:07:35.920
<v Speaker 2>The market's the market, and so it is absolutely pricing

0:07:35.960 --> 0:07:37.960
<v Speaker 2>in the premium that the market perceives today. What I

0:07:37.960 --> 0:07:40.360
<v Speaker 2>would just say, if you look at the trajectory of

0:07:40.400 --> 0:07:43.080
<v Speaker 2>our spending and our debt and the interest burden that

0:07:43.160 --> 0:07:45.800
<v Speaker 2>we have, I think over time and over time is

0:07:45.840 --> 0:07:47.840
<v Speaker 2>through the rest of the decade, et cetera, we'll have

0:07:47.880 --> 0:07:50.840
<v Speaker 2>to bring new buyers into US treasuries and that will

0:07:50.880 --> 0:07:53.960
<v Speaker 2>potentially have a risk of putting pressure on longer rates

0:07:54.160 --> 0:07:56.360
<v Speaker 2>unless we want to finance the whole treasury stack at

0:07:56.400 --> 0:07:58.160
<v Speaker 2>the front under the curve which will be a very

0:07:58.240 --> 0:07:59.480
<v Speaker 2>very significant policy shift.

0:08:00.440 --> 0:08:01.640
<v Speaker 4>I want to ask to you a little bit more

0:08:01.640 --> 0:08:06.360
<v Speaker 4>about your trading numbers, since they came in stronger than expectations,

0:08:06.840 --> 0:08:10.320
<v Speaker 4>and earlier on you had guided that fixed income trading

0:08:10.520 --> 0:08:13.920
<v Speaker 4>was gonnessee to clients, but overall for the quarter, you

0:08:14.000 --> 0:08:16.160
<v Speaker 4>ended up posting quite strong trading results, namely on the

0:08:16.160 --> 0:08:18.920
<v Speaker 4>back of your equity trading business. Was this sort of

0:08:18.960 --> 0:08:21.080
<v Speaker 4>a one off because there was so much volatility and

0:08:21.160 --> 0:08:24.160
<v Speaker 4>equities this quarter or can we expect that momentum to

0:08:24.160 --> 0:08:24.880
<v Speaker 4>continue more?

0:08:24.880 --> 0:08:27.520
<v Speaker 2>Equity franchise is performing very very well. We have the

0:08:27.560 --> 0:08:31.040
<v Speaker 2>leading equity franchise of the big banks. It's something we've

0:08:31.040 --> 0:08:32.840
<v Speaker 2>invested in, it built over a long period of time.

0:08:33.160 --> 0:08:36.720
<v Speaker 2>I can't tell you quarter to quarter what the market

0:08:36.800 --> 0:08:40.240
<v Speaker 2>environment will put up for that franchise, but we were

0:08:40.400 --> 0:08:42.480
<v Speaker 2>our positioned very well to serve our clients and have

0:08:42.520 --> 0:08:45.920
<v Speaker 2>a leading share position in that business. When I commented

0:08:45.960 --> 0:08:49.560
<v Speaker 2>about our trading revenues in early September, at the very

0:08:49.559 --> 0:08:52.280
<v Speaker 2>beginning of September at a conference in New York, the

0:08:52.320 --> 0:08:53.360
<v Speaker 2>business was softer.

0:08:53.440 --> 0:08:56.160
<v Speaker 3>It had been softer in August, particularly in fixed income.

0:08:56.480 --> 0:08:58.640
<v Speaker 2>We had a very very strong comp from the third

0:08:58.760 --> 0:09:02.520
<v Speaker 2>quarter in twenty two three, and ultimately our fixed income

0:09:02.559 --> 0:09:04.199
<v Speaker 2>business was softer.

0:09:04.280 --> 0:09:04.920
<v Speaker 3>Year over year.

0:09:05.600 --> 0:09:07.440
<v Speaker 2>But I did say when I made that comment that

0:09:07.520 --> 0:09:10.640
<v Speaker 2>it would be very very dependent on what happened in September,

0:09:10.920 --> 0:09:13.520
<v Speaker 2>and we actually had a more robust September than we expected.

0:09:13.720 --> 0:09:17.000
<v Speaker 4>Yeah, well, Marcus said, do you think you can continue

0:09:17.080 --> 0:09:18.560
<v Speaker 4>to gain market share of the trade inside?

0:09:18.760 --> 0:09:21.600
<v Speaker 2>We do believe there are opportunities for us to continue

0:09:21.600 --> 0:09:25.680
<v Speaker 2>to take share, although we're operating in a leading share position,

0:09:26.240 --> 0:09:28.520
<v Speaker 2>so those gains will not be as pronounced as they've

0:09:28.520 --> 0:09:30.599
<v Speaker 2>been over the last five years. But we think we

0:09:30.679 --> 0:09:33.080
<v Speaker 2>have a very very powerful ecosystem in our global Banking

0:09:33.120 --> 0:09:36.720
<v Speaker 2>and Markets franchise. Our one GS operating ethos is helping

0:09:36.800 --> 0:09:39.959
<v Speaker 2>us serve our clients in a very very you know,

0:09:40.120 --> 0:09:43.439
<v Speaker 2>forward and exceptional way. And if you are patient, you

0:09:43.520 --> 0:09:46.000
<v Speaker 2>take a long term view, you earn trust, you show

0:09:46.080 --> 0:09:48.680
<v Speaker 2>up for your clients, and good times and bad over time,

0:09:48.800 --> 0:09:50.440
<v Speaker 2>you gain share in these businesses and more.

0:09:50.520 --> 0:09:51.560
<v Speaker 3>Very focused on the.

0:09:51.559 --> 0:09:55.000
<v Speaker 4>Outlooks like right now for deal making, Yeah.

0:09:54.880 --> 0:09:58.079
<v Speaker 3>Look for deal makings improving. You know, I talked, I

0:09:58.160 --> 0:10:00.800
<v Speaker 3>talked on earnings on our earnings call about the fact

0:10:00.800 --> 0:10:02.480
<v Speaker 3>that our m and a backlog had improved.

0:10:02.880 --> 0:10:05.839
<v Speaker 2>I talked about some headwins, particularly on the regulatory side.

0:10:06.640 --> 0:10:09.120
<v Speaker 2>I think the regulatory environment has been a headwind to

0:10:09.200 --> 0:10:11.880
<v Speaker 2>some deal making. Obviously, with an election, we could see

0:10:11.920 --> 0:10:14.439
<v Speaker 2>a change in that context. But there's no question the

0:10:14.480 --> 0:10:17.240
<v Speaker 2>deal making environment is improving. And when you look at

0:10:17.280 --> 0:10:20.960
<v Speaker 2>what's going on with technology and the investment that's necessary

0:10:22.160 --> 0:10:24.199
<v Speaker 2>to power AI, I think that's a tailwind for deal

0:10:24.280 --> 0:10:26.600
<v Speaker 2>making over a period of time too. A lot of change,

0:10:26.920 --> 0:10:29.960
<v Speaker 2>a lot of opportunity, and when there's change, leaders are

0:10:30.000 --> 0:10:33.760
<v Speaker 2>constantly looking to make sure that their positions strategically to

0:10:33.880 --> 0:10:34.839
<v Speaker 2>have a leadership position.

0:10:34.920 --> 0:10:36.480
<v Speaker 3>As the world of olfs well, I.

0:10:36.520 --> 0:10:38.400
<v Speaker 4>Know you've also been making a big push into your

0:10:38.440 --> 0:10:42.360
<v Speaker 4>alternatives business. Private credits is an area of focus. What

0:10:42.559 --> 0:10:45.080
<v Speaker 4>is the opportunity that you see there, because it really

0:10:45.200 --> 0:10:47.959
<v Speaker 4>feels like that has become the major focus of the market.

0:10:48.120 --> 0:10:49.920
<v Speaker 4>Many many of different players are looking to get.

0:10:49.760 --> 0:10:50.199
<v Speaker 3>Involved in that.

0:10:50.320 --> 0:10:52.199
<v Speaker 2>But we've been in the private credit business for over

0:10:52.320 --> 0:10:54.960
<v Speaker 2>thirty years. We have one hundred and forty billion dollars

0:10:55.000 --> 0:10:57.120
<v Speaker 2>in private credit assets. We've been a leading private credit

0:10:57.200 --> 0:11:01.559
<v Speaker 2>player since the nineteen nineties. What I would say is

0:11:02.120 --> 0:11:05.960
<v Speaker 2>there continues to be secular growth around the opportunity set

0:11:06.480 --> 0:11:10.160
<v Speaker 2>for additional private credit formation, and we're very very well

0:11:10.240 --> 0:11:13.280
<v Speaker 2>positioned given way the firm sits to be a very

0:11:13.360 --> 0:11:16.560
<v Speaker 2>very unique player in that. Obviously, in our asset management business,

0:11:17.120 --> 0:11:20.400
<v Speaker 2>we manage significant private credit assets, but we also have

0:11:20.520 --> 0:11:23.080
<v Speaker 2>one of the leading syndication franchises. We have an ability

0:11:23.400 --> 0:11:26.240
<v Speaker 2>to originate and distribute in addition to be an.

0:11:26.120 --> 0:11:29.200
<v Speaker 3>Investor through asset management business. That's a very unique combination.

0:11:29.600 --> 0:11:31.839
<v Speaker 2>I think it positions our firm very well, and you

0:11:31.960 --> 0:11:35.199
<v Speaker 2>will see, in my opinion, continued secular growth in private

0:11:35.240 --> 0:11:37.960
<v Speaker 2>credit formation. I still think we're early on that cycle.

0:11:38.120 --> 0:11:40.360
<v Speaker 4>What do you think lower interest rates do for the

0:11:40.559 --> 0:11:41.760
<v Speaker 4>private credit landscape?

0:11:41.800 --> 0:11:44.960
<v Speaker 2>Though give so much of the I think that private

0:11:45.040 --> 0:11:48.720
<v Speaker 2>credit it's not immune to lower interest rates, but there

0:11:48.720 --> 0:11:53.400
<v Speaker 2>are different ways that we can finance activity, and private

0:11:53.440 --> 0:11:55.280
<v Speaker 2>credit is a very important part of that. People use

0:11:55.320 --> 0:11:57.520
<v Speaker 2>private credit as a very very broad term. Are we

0:11:57.600 --> 0:12:01.439
<v Speaker 2>talking about insurance companies financing investment grade companies? We're talking

0:12:01.440 --> 0:12:04.400
<v Speaker 2>about investment grade financing. Are we talking about below investment

0:12:04.440 --> 0:12:08.119
<v Speaker 2>grade corporate financing? Are we talking about direct lending to small.

0:12:07.880 --> 0:12:09.240
<v Speaker 3>And medium sized enterprises?

0:12:09.600 --> 0:12:12.640
<v Speaker 2>These are all different forms of private credit and the

0:12:12.760 --> 0:12:14.800
<v Speaker 2>reality of it is regardless of what the interest rate

0:12:14.920 --> 0:12:18.040
<v Speaker 2>environment is, people need to finance, and so of course

0:12:18.080 --> 0:12:20.679
<v Speaker 2>in the short term movements and interest rates have an

0:12:20.760 --> 0:12:23.839
<v Speaker 2>impact in short term activity, but we're talking about the

0:12:24.000 --> 0:12:27.600
<v Speaker 2>engines of finance that drive capital structure in a whole

0:12:27.679 --> 0:12:28.439
<v Speaker 2>variety of ways.

0:12:28.520 --> 0:12:31.200
<v Speaker 3>This is not something that's cyclically tied to short term interstry.

0:12:32.240 --> 0:12:33.960
<v Speaker 4>Can I just in an updates on how you see

0:12:34.080 --> 0:12:37.199
<v Speaker 4>newer consumer finance business and the pathway ahead from Gorman.

0:12:37.360 --> 0:12:39.480
<v Speaker 2>We've been very clear over the last few years that

0:12:39.520 --> 0:12:42.840
<v Speaker 2>we're narrowing our consumer focus and we've taken active steps

0:12:42.880 --> 0:12:45.439
<v Speaker 2>to do that. We continue to have a very very

0:12:45.880 --> 0:12:49.160
<v Speaker 2>powerful deposit platform under markets, but we continue to take

0:12:49.200 --> 0:12:51.800
<v Speaker 2>steps to narrow our consumer activity. We're focused on our

0:12:51.840 --> 0:12:54.079
<v Speaker 2>two big businesses, global banking and markets and asset and

0:12:54.120 --> 0:12:56.520
<v Speaker 2>wealth management, and we feel good about the way we're positioned.

0:12:56.840 --> 0:12:59.199
<v Speaker 4>Well. We've been speaking for I guess like fifteen minutes

0:12:59.240 --> 0:13:01.600
<v Speaker 4>and I still haven't up the big US election coming

0:13:01.640 --> 0:13:04.760
<v Speaker 4>off next week. Let me just ask you this, because

0:13:05.000 --> 0:13:06.959
<v Speaker 4>as a bank, I'm sure you would have run scenario

0:13:07.000 --> 0:13:10.160
<v Speaker 4>analysis on what will happen either way. What would you

0:13:10.280 --> 0:13:14.240
<v Speaker 4>say is the biggest risk for your business for either outcome,

0:13:14.360 --> 0:13:16.079
<v Speaker 4>a Harris win or a Trump win.

0:13:16.240 --> 0:13:19.160
<v Speaker 2>We're watching the election like everybody else. The good news

0:13:19.240 --> 0:13:21.719
<v Speaker 2>is it's coming up, you know, next week, and you know,

0:13:21.840 --> 0:13:23.840
<v Speaker 2>my hope would be, you know, shortly after election night

0:13:23.920 --> 0:13:27.000
<v Speaker 2>we have a clear direction of travel in terms of

0:13:27.040 --> 0:13:31.280
<v Speaker 2>what the next administration will be. Goldman Sachs is set

0:13:31.360 --> 0:13:34.920
<v Speaker 2>up in position to help and support either administration either outcome,

0:13:35.000 --> 0:13:36.280
<v Speaker 2>and to support our clients at.

0:13:36.240 --> 0:13:39.079
<v Speaker 3>Either of those outcomes. And so we're watching like everybody else.

0:13:39.120 --> 0:13:41.000
<v Speaker 2>It's going to be a close election and we'll see

0:13:41.040 --> 0:13:42.520
<v Speaker 2>in the next couple of weeks what the direction of

0:13:42.600 --> 0:13:43.000
<v Speaker 2>travel is.

0:13:43.200 --> 0:13:44.719
<v Speaker 4>Do you think it might have a knock on it

0:13:45.200 --> 0:13:47.439
<v Speaker 4>knock on effect on a regulation and some of the

0:13:47.520 --> 0:13:48.719
<v Speaker 4>regulatory stunts.

0:13:48.480 --> 0:13:51.839
<v Speaker 2>That's taken there is There's there's no question that the

0:13:51.920 --> 0:13:55.400
<v Speaker 2>regulatory pendulum has swung, you know, pretty significantly over the

0:13:55.520 --> 0:13:57.160
<v Speaker 2>last few years. And my hope would be an either

0:13:57.200 --> 0:14:00.200
<v Speaker 2>administration there'll be a fresh look at how we can

0:14:00.360 --> 0:14:03.559
<v Speaker 2>ensure regulations important to keep guardrails in the economy and

0:14:03.600 --> 0:14:06.319
<v Speaker 2>to keep our economy moving in an appropriate way. But

0:14:06.400 --> 0:14:08.400
<v Speaker 2>at the same point, that pendulum can swing too far

0:14:08.440 --> 0:14:11.120
<v Speaker 2>and then it can become a headwind to growth, and

0:14:11.160 --> 0:14:13.120
<v Speaker 2>I'm hopeful, you know, on both sides of the aisle,

0:14:13.120 --> 0:14:14.760
<v Speaker 2>there'll be a fresh look after the election to make

0:14:14.800 --> 0:14:16.000
<v Speaker 2>sure we get that balance correct.

0:14:16.960 --> 0:14:19.880
<v Speaker 1>So that was the CEO of Goldman Sachs David Solomon

0:14:19.920 --> 0:14:23.920
<v Speaker 1>there speaking to Bloomberg's Jumana Barsacchi at the Future Investment

0:14:24.120 --> 0:14:26.440
<v Speaker 1>Initiative summit in Saudi Arabia.