A new Goldman Sachs projection suggests China could become the world’s largest economy in the coming decades, but not permanently, as emerging markets are expected to reshape the global economic order by 2075. The report highlights the growing influence of countries like India, Indonesia, and other developing economies driven by population growth, technology, and expanding consumer markets. Analysts say the shift could redefine global trade, investment, and geopolitical power in the future.


Goldman Bets: China Will Top Charts, But Not Forever | Emerging Markets to Dominate by 2075?

In the last few days, major US banks with deep Wall Street trading presence reported strong to record profits for the first quarter of this year. Helped by Iran war-linked market volatility, several of them posted double-digit revenue and earnings growth in January–March. The boost is clearly tied to the war, which caused sharp swings in oil prices, equities, fixed income, commodities, and currencies. Investment banks and those with large trading desks benefited the most. They emerged as the winners through higher client trading volumes, wider spreads, and rebalancing activity. Here is a roundup:<h2>War, what war? Banks showed their strongest profits in a decade</h2>Standout performers who beat or strongly exceeded analyst expectations include JPMorgan Chase, with net income of $16.49 billion, up 13 per cent year on year, on revenue of $50.54 billion, up 10 per cent. Its trading revenue hit a record $11.6 billion, up 20 per cent year on year, with fixed income up 21 per cent and equities up 17 per cent.Citigroup net income was up 42 per cent year on year at $5.8 billion on revenues of $24.6 billion, the highest in a decade and up 14 per cent. Markets revenue was up 19 per cent at $7.2 billion, with equities-linked earnings up 39 per cent.Bank of America net income was $8.6 billion, up 17 per cent, on $30.3 billion in revenue, which was up 7 per cent. Equities trading revenues were up 30 per cent, with the desk remarkably avoiding any daily losses in spite of the war-linked turbulence in the markets.Morgan Stanley net income was up 29 per cent at $5.57 billion, while revenue grew 16 per cent to $20.58 billion. It had record equities trading at $5.15 billion, up 25 per cent.Goldman Sachs net income for Q1 was $5.63 billion on revenues of $17.23 billion, up 14 per cent. It also recorded equities trading at $5.33 billion, up 27 per cent year on year.Wells Fargo net income was around $5.3 billion on six per cent revenue growth to $21.45 billion.<a href="https://www.wionews.com/videos/us-eases-sanctions-on-venezuela-central-bank-us-opens-venezuela-financial-system-1776229160726/embed">https://www.wionews.com/videos/us-eases-sanctions-on-venezuela-central-bank-us-opens-venezuela-financial-system-1776229160726/embed</a><h2>$50 billion in Q1 profits: How did US banks benefit from Iran war volatility?</h2>The net profit of banking giants neared $50 billion, with JPMorgan, Citi, and Wells Fargo alone exceeding $25 billion.The Iran war, which started with joint US-Israel air strikes on the Islamic Republic, its counterstrikes targeting Gulf states, and the disruption of the Strait of Hormuz, definitely contributed to this growth, according to analysts.Also read: <a href="https://www.wionews.com/technology/claude-mythos-ai-is-being-tested-by-major-us-banks-for-system-vulnerabilities-reports-say-1776067023017">Claude Mythos AI is being tested by major US banks for system vulnerabilities, reports say</a>&nbsp;The war led to oil price spikes and broader market volatility, creating exactly the kind of chaos that the trading desks of these banks benefit from.Combined trading revenues for JPMorgan, Goldman Sachs, Morgan Stanley, Citi, and Bank of America were on track to exceed $40 billion, the highest since at least 2014, with a near 13 per cent annual jump overall.Record or near-record earnings came from trading desks in equities, fixed income, commodities, and derivatives. The volatility led to more client flows, hedging demand, and wider bid-ask spreads, said analysts and the banks themselves, who explicitly linked the surge to the war.Without the volatility generated by the conflict, trading revenues would have been meaningfully lower. Note that pure commercial banks like Wells Fargo benefited less from this tailwind, while investment or trading-heavy banks like Goldman Sachs, JPMorgan, Citi, and Bank of America had an exceptional quarter, thanks in large part to the Iran war's market turbulence.

This week, major US banks posted nearly $50 billion in combined Q1 profits. The growth, strongest in over a decade in some cases, was driven by Iran war-linked market volatility, oil price swings, and strong trading revenues

In the last few days, major US banks with deep Wall Street trading presence reported strong to record profits for the first quarter of this year. Helped by Iran war-linked market volatility, several of them posted double-digit revenue and earnings growth in January–March. The boost is clearly tied to the war, which caused sharp swings in oil prices, equities, fixed income, commodities, and currencies. Investment banks and those with large trading desks benefited the most. They emerged as the winners through higher client trading volumes, wider spreads, and rebalancing activity. Here is a roundup: War, what war? Banks showed their strongest profits in a decade Standout performers who beat or strongly exceeded analyst expectations include JPMorgan Chase, with net income of $16.49 billion, up 13 per cent year on year, on revenue of $50.54 billion, up 10 per cent. Its trading revenue hit a record $11.6 billion, up 20 per cent year on year, with fixed income up 21 per cent and equities up 17 per cent. Citigroup net income was up 42 per cent year on year at $5.8 billion on revenues of $24.6 billion, the highest in a decade and up 14 per cent. Markets revenue was up 19 per cent at $7.2 billion, with equities-linked earnings up 39 per cent. Bank of America net income was $8.6 billion, up 17 per cent, on $30.3 billion in revenue, which was up 7 per cent. Equities trading revenues were up 30 per cent, with the desk remarkably avoiding any daily losses in spite of the war-linked turbulence in the markets. Morgan Stanley net income was up 29 per cent at $5.57 billion, while revenue grew 16 per cent to $20.58 billion. It had record equities trading at $5.15 billion, up 25 per cent. Goldman Sachs net income for Q1 was $5.63 billion on revenues of $17.23 billion, up 14 per cent. It also recorded equities trading at $5.33 billion, up 27 per cent year on year. Wells Fargo net income was around $5.3 billion on six per cent revenue growth to $21.45 billion. https://www.wionews.com/videos/us-eases-sanctions-on-venezuela-central-bank-us-opens-venezuela-financial-system-1776229160726/embed $50 billion in Q1 profits: How did US banks benefit from Iran war volatility? The net profit of banking giants neared $50 billion, with JPMorgan, Citi, and Wells Fargo alone exceeding $25 billion. The Iran war, which started with joint US-Israel air strikes on the Islamic Republic, its counterstrikes targeting Gulf states, and the disruption of the Strait of Hormuz, definitely contributed to this growth, according to analysts. Also read: Claude Mythos AI is being tested by major US banks for system vulnerabilities, reports say The war led to oil price spikes and broader market volatility, creating exactly the kind of chaos that the trading desks of these banks benefit from. Combined trading revenues for JPMorgan, Goldman Sachs, Morgan Stanley, Citi, and Bank of America were on track to exceed $40 billion, the highest since at least 2014, with a near 13 per cent annual jump overall. Record or near-record earnings came from trading desks in equities, fixed income, commodities, and derivatives. The volatility led to more client flows, hedging demand, and wider bid-ask spreads, said analysts and the banks themselves, who explicitly linked the surge to the war. Without the volatility generated by the conflict, trading revenues would have been meaningfully lower. Note that pure commercial banks like Wells Fargo benefited less from this tailwind, while investment or trading-heavy banks like Goldman Sachs, JPMorgan, Citi, and Bank of America had an exceptional quarter, thanks in large part to the Iran war's market turbulence.

This week, major US banks posted nearly $50 billion in combined Q1 profits. The growth, strongest in over a decade in some cases, was driven by Iran war-linked market volatility, oil price swings, and strong trading revenues

Banks always win: Iran war, market volatility, oil price turbulence help US giants clock $50 billion in profits

Goldman Sachs has lowered India’s GDP growth forecast for FY26 to 6.5% from 7%, according to a report cited by Bloomberg on Friday (March 13). Meanwhile, Fitch Ratings expects India’s economy to grow at 7.5% in FY26 but sees the pace moderating to 6.7% in FY27. Goldman Sachs also estimates inflation to rise to 4.2% from 3.9%, while Fitch projects inflation could climb to 4.5% by December due to rising crude oil prices.&nbsp;For the remainder of the current fiscal year, Fitch expects domestic demand to remain the key driver of economic expansion. However, it projects growth to slow to 6.7% in FY27 and further to 6.5% in FY28. The rating agency also expects interest rates to remain unchanged in FY27 and FY28.&nbsp;Also Read: <a href="https://www.wionews.com/world/saudi-oil-production-falls-to-8-million-bpd-after-20-cut-amid-iran-war-report-1773410882494">Saudi oil production falls to 8 million bpd after 20% cut amid Iran war: Report</a><h2>India's Q3 FY26 GDP</h2>India’s economy expanded by a strong 7.8% in the October–December quarter of the current financial year, according to the first official data released under the government’s revised framework for calculating national output. The growth figure was higher than the 7.6% estimate projected by economists tracked by Bloomberg. Despite global trade tensions and geopolitical challenges, India continues to be one of the fastest-growing major economies. The government has also revised the GDP base year to 2022–23 from 2011–12 to better reflect evolving production and consumption patterns in the economy.&nbsp;&nbsp;Under the updated series, the government revised the FY26 GDP growth estimate to 7.6%, up from the earlier projection of 7.4%. The Economic Survey has also revised its FY27 growth projection upward to 7%–7.4% under the new series, compared with 6.8%–7.2% under the earlier series, Chief Economic Advisor V Anantha Nageswaran informed in a press briefing. "As per projections, India is on track to cross $4-trillion GDP mark in 2026-27," the CEA added.&nbsp;<a href="https://www.wionews.com/videos/us-iran-war-g7-tells-trump-to-ensure-opening-of-strait-of-hormuz-1773413058636/embed">https://www.wionews.com/videos/us-iran-war-g7-tells-trump-to-ensure-opening-of-strait-of-hormuz-1773413058636/embed</a>&nbsp;Earlier in FY26, the economy recorded an 8.2% expansion in the second quarter despite US tariffs reaching as high as 50% on certain Indian imports. Lower inflation also helped narrow the gap between nominal and real growth rates, with nominal GDP rising 8.9% during the December quarter.

India GDP outlook: Goldman Sachs lowers FY26 growth to 6.5%, Fitch expects gradual cooling

Goldman Sachs has lowered India’s GDP growth forecast for FY26 to 6.5% from 7%, according to a report cited by Bloomberg on Friday (March 13). Meanwhile, Fitch Ratings expects India’s economy to grow at 7.5% in FY26 but sees the pace moderating to 6.7% in FY27. Goldman Sachs also estimates inflation to rise to 4.2% from 3.9%, while Fitch projects inflation could climb to 4.5% by December due to rising crude oil prices. For the remainder of the current fiscal year, Fitch expects domestic demand to remain the key driver of economic expansion. However, it projects growth to slow to 6.7% in FY27 and further to 6.5% in FY28. The rating agency also expects interest rates to remain unchanged in FY27 and FY28. Also Read: Saudi oil production falls to 8 million bpd after 20% cut amid Iran war: Report India's Q3 FY26 GDP India’s economy expanded by a strong 7.8% in the October–December quarter of the current financial year, according to the first official data released under the government’s revised framework for calculating national output. The growth figure was higher than the 7.6% estimate projected by economists tracked by Bloomberg. Despite global trade tensions and geopolitical challenges, India continues to be one of the fastest-growing major economies. The government has also revised the GDP base year to 2022–23 from 2011–12 to better reflect evolving production and consumption patterns in the economy. Under the updated series, the government revised the FY26 GDP growth estimate to 7.6%, up from the earlier projection of 7.4%. The Economic Survey has also revised its FY27 growth projection upward to 7%–7.4% under the new series, compared with 6.8%–7.2% under the earlier series, Chief Economic Advisor V Anantha Nageswaran informed in a press briefing. "As per projections, India is on track to cross $4-trillion GDP mark in 2026-27," the CEA added. https://www.wionews.com/videos/us-iran-war-g7-tells-trump-to-ensure-opening-of-strait-of-hormuz-1773413058636/embed Earlier in FY26, the economy recorded an 8.2% expansion in the second quarter despite US tariffs reaching as high as 50% on certain Indian imports. Lower inflation also helped narrow the gap between nominal and real growth rates, with nominal GDP rising 8.9% during the December quarter.

Goldman Sachs has cut India’s FY26 GDP forecast to 6.5% while Fitch sees gradual slowdown ahead, even as Q3 growth beats expectations

In a significant blow, Kathryn Ruemmler, Goldman Sachs’s top lawyer has resigned on Thursday after the US Justice Department released new emails along with other material disclosing her good relationship with Jeffrey Epstein, a convicted sex offender. Earlier, Ruemmler and Goldman's representatives claimed she had a strictly professional relationship with Epstein. But the recent release of emails, text messages and photographs prompted Ruemmler to suddenly resign, surprising several.&nbsp;According to a report in the New York Times, the documents revealed that Ruemmler was a counsellor, confidante and friend to Epstein before joining Goldman in 2020. She assisted him in responding to tough questions in connection with his sex crimes, dating life, advised him to avoid unflattering media scrutiny and referred to him as “sweetie” and “Uncle Jeffrey.”&nbsp;In response, Epstein assisted Ruemmler with career advice, directing her to move to Goldman. Later, he introduced her to prominent businesspeople along with gifts of spa treatments, high-end travel and Hermes luxury items. The surprising fact is that Ruemmler's name appears in the Epstein file, along with over 10,000 documents.&nbsp;In addition, she has served as Goldman’s general counsel since 2021 and as a partner and vice chair of its reputational risk committee. She also acted as White House counsel under President Obama and was a white-collar defence lawyer at Latham &amp; Watkins. “My responsibility is to put Goldman Sachs’s interests first,” Ruemmler said in a statement while confirming her resignation.&nbsp;Following her resignation, David M. Solomon, Goldman’s chief executive, said he respected her decision and described her as “a mentor and friend to many of our people.”<h3>Reality of the relationship with Jeffrey Epstein</h3>Before stepping down, Ruemmler had said through intermediaries that her exchanges with the influential Epstein were limited to light-hearted banter and social contact aimed at securing introductions to potential clients. However, the records point to a much closer connection between the two beginning in 2014, which Ruemmler herself referred to in one email as a “friendship.”&nbsp;She also explained to him how the law distinguishes between minors who are victims of sex crimes and adult sex workers. “I think the point is that if she was underage, she could not legally consent to engaging in prostitution,” Ruemmler wrote to Epstein in 2015.&nbsp;In addition, she offered strategic guidance on undermining the credibility of one of his accusers, suggesting in an email that Epstein’s attorney could try to lure the woman into a “perjury trap.” Some of Ruemmler’s messages were signed “xoxo,” and the two exchanged photographs. She joked with Epstein about the weight of travellers at New Jersey rest stops and made remarks speculating about the sexuality of a prominent hedge fund billionaire.&nbsp;Across a series of meetings and messages, she also sought his counsel on both personal and professional issues, at one point expressing frustration in an email that “men aren’t interested in women my age.”&nbsp;Also read: <a href="https://www.wionews.com/world/was-jeffrey-epstein-really-involved-in-cannibalism-here-s-what-doj-files-reveal-1770370197051">Was Jeffrey Epstein really involved in cannibalism? Here's what DOJ files reveal</a>

The documents in the file disclosed that Ruemmler was a counsellor, confidante and friend to Epstein before joining Goldman, where she assisted him in responding to tough questions in connection with his sex crimes and dating life.

In a significant blow, Kathryn Ruemmler, Goldman Sachs’s top lawyer has resigned on Thursday after the US Justice Department released new emails along with other material disclosing her good relationship with Jeffrey Epstein, a convicted sex offender. Earlier, Ruemmler and Goldman's representatives claimed she had a strictly professional relationship with Epstein. But the recent release of emails, text messages and photographs prompted Ruemmler to suddenly resign, surprising several. According to a report in the New York Times, the documents revealed that Ruemmler was a counsellor, confidante and friend to Epstein before joining Goldman in 2020. She assisted him in responding to tough questions in connection with his sex crimes, dating life, advised him to avoid unflattering media scrutiny and referred to him as “sweetie” and “Uncle Jeffrey.” In response, Epstein assisted Ruemmler with career advice, directing her to move to Goldman. Later, he introduced her to prominent businesspeople along with gifts of spa treatments, high-end travel and Hermes luxury items. The surprising fact is that Ruemmler's name appears in the Epstein file, along with over 10,000 documents. In addition, she has served as Goldman’s general counsel since 2021 and as a partner and vice chair of its reputational risk committee. She also acted as White House counsel under President Obama and was a white-collar defence lawyer at Latham & Watkins. “My responsibility is to put Goldman Sachs’s interests first,” Ruemmler said in a statement while confirming her resignation. Following her resignation, David M. Solomon, Goldman’s chief executive, said he respected her decision and described her as “a mentor and friend to many of our people.” Reality of the relationship with Jeffrey Epstein Before stepping down, Ruemmler had said through intermediaries that her exchanges with the influential Epstein were limited to light-hearted banter and social contact aimed at securing introductions to potential clients. However, the records point to a much closer connection between the two beginning in 2014, which Ruemmler herself referred to in one email as a “friendship.” She also explained to him how the law distinguishes between minors who are victims of sex crimes and adult sex workers. “I think the point is that if she was underage, she could not legally consent to engaging in prostitution,” Ruemmler wrote to Epstein in 2015. In addition, she offered strategic guidance on undermining the credibility of one of his accusers, suggesting in an email that Epstein’s attorney could try to lure the woman into a “perjury trap.” Some of Ruemmler’s messages were signed “xoxo,” and the two exchanged photographs. She joked with Epstein about the weight of travellers at New Jersey rest stops and made remarks speculating about the sexuality of a prominent hedge fund billionaire. Across a series of meetings and messages, she also sought his counsel on both personal and professional issues, at one point expressing frustration in an email that “men aren’t interested in women my age.” Also read: Was Jeffrey Epstein really involved in cannibalism? Here's what DOJ files reveal

The documents in the file disclosed that Ruemmler was a counsellor, confidante and friend to Epstein before joining Goldman, where she assisted him in responding to tough questions in connection with his sex crimes and dating life.

Goldman Sachs’ top lawyer resigns after Epstein link surfaces in emails: How close were they?

The U.S. is facing fresh economic headwinds as foreign tourism pulls back sharply. International arrivals by air dropped nearly 10% in March compared to a year earlier, according to the International Trade Administration. Goldman Sachs estimates that, in a worst-case scenario, the combined impact of reduced travel and global boycotts of U.S. products could shave off 0.3% from GDP — amounting to nearly $90 billion in lost economic output in 2025. Watch in for more details!

Goldman Sachs: US risks $90 billion GDP hit in 2025

In recent developments, both Goldman Sachs and China are reacting to the evolving landscape of US tariff policies which have created significant uncertainty in the global markets. Goldman Sachs initially predicted a 65% chance of a US recession due to the tariffs, but quickly retracted this forecast after Trump announced a pause in reciprocal tariffs on April 9.

Goldman Sachs cuts China growth projection  to 4%

Goldman Sachs has raised the probability of a US recession to 35 per cent, citing concerns over rising inflation, escalating tariffs, and weaker economic fundamentals. This marks an increase from their earlier estimate of a 20 per cent probability.
The global investment bank points to waning confidence among businesses and consumers as key factors in the outlook. Economic indicators suggest that the US economy is slowing down, with GDP growth projections for 2025 reduced to just 1 per cent. Additionally, the unemployment rate is expected to climb to 4.5 per cent by the end of the year.
<h2>Bets on US recession rise</h2>
A significant driver of these concerns is the ongoing tariff war, which is expected to push inflation higher. Goldman Sachs forecasts that core personal consumption expenditure inflation will rise to 3.5 per cent by the end of 2025, much above the Federal Reserve's target of 2 per cent. This spike in inflation is linked to the anticipated increase in US tariffs, which are now projected to reach 15 per cent in 2025.
The slowing growth and higher inflation are expected to erode consumer purchasing power further, with real income growth forecasted to average just 1.4 per cent next year. The combination of these economic strains points to a potential recession, especially as early economic data from 2025 shows weak results.
As the US economy faces headwinds, policymakers may have to accept short-term economic pain in order to meet long-term goals, potentially making this period of volatility even more challenging for both businesses and consumers.
(With inputs from the agencies)

Business & Economy: Goldman Sachs has raised the probability of a US recession to 35 per cent, citing concerns over rising inflation, escalating tariffs, and weaker economic fundamentals.

Goldman Sachs has raised the probability of a US recession to 35 per cent, citing concerns over rising inflation, escalating tariffs, and weaker economic fundamentals. This marks an increase from their earlier estimate of a 20 per cent probability. The global investment bank points to waning confidence among businesses and consumers as key factors in the outlook. Economic indicators suggest that the US economy is slowing down, with GDP growth projections for 2025 reduced to just 1 per cent. Additionally, the unemployment rate is expected to climb to 4.5 per cent by the end of the year. Bets on US recession rise A significant driver of these concerns is the ongoing tariff war, which is expected to push inflation higher. Goldman Sachs forecasts that core personal consumption expenditure inflation will rise to 3.5 per cent by the end of 2025, much above the Federal Reserve's target of 2 per cent. This spike in inflation is linked to the anticipated increase in US tariffs, which are now projected to reach 15 per cent in 2025. The slowing growth and higher inflation are expected to erode consumer purchasing power further, with real income growth forecasted to average just 1.4 per cent next year. The combination of these economic strains points to a potential recession, especially as early economic data from 2025 shows weak results. As the US economy faces headwinds, policymakers may have to accept short-term economic pain in order to meet long-term goals, potentially making this period of volatility even more challenging for both businesses and consumers. (With inputs from the agencies)

Goldman Sachs sees 35% chance of US recession in 2025

Goldman Sachs has raised its year-end 2025 gold price forecast to $3,100 per ounce, up from its previous estimate. The investment bank attributes this upward revision to sustained central bank demand, which is expected to add 9% to gold prices by the end of the year.

Goldman Sachs lifts 2025 gold forecast to $3,100

Gold s expected to soar to record highs next year driven by Central Bank purchases and anticipated US interest rate cuts. According to analysts at Goldman Sach's group the investment advisory highlighted gold as one of the top commodity trades for 2025. Watch in for more details!

Goldman Bets Big On Gold For 2025 Boom

Goldman Sachs has recently upgraded its growth forecast for China, highlighting a positive shift in the country's economic landscape.

The bank expects China’s gross domestic product to expand 4.9 per cent&nbsp;this year, up from 4.7 per cent previously. It also lifted its growth prediction for next year to 4.7 per cent from 4.3 per cent, according to a report released recently.

This adjustment comes as various indicators suggest a robust recovery following a challenging period marked by strict COVID-19 restrictions and a sluggish rebound as detailed in a report by Bloomberg.

Factors driving the upgrade<o:p></o:p>

The Bloomberg report further elaborated that, “The latest round of China stimulus clearly indicates that policymakers have made a turn on cyclical policy management and increased their focus on the economy,” Goldman economists including Hui Shan and Lisheng Wang wrote.

<o:p></o:p>

Several key factors have contributed to this optimistic outlook. Firstly, the Chinese government has implemented measures aimed at stimulating domestic demand, which have begun to yield results. Consumer spending is on the rise, bolstered by increased confidence among households and businesses alike. Additionally, infrastructure investments have gained momentum, further propelling economic activity.<o:p></o:p>

Goldman Sachs analysts noted that the recent data reflects a more resilient manufacturing sector, which has shown signs of stabilisation. The bank's report emphasises that improvements in exports and industrial production are critical components of this recovery narrative. As global supply chains continue to normalise, China's manufacturing capabilities are expected to play a pivotal role in meeting international demand.<o:p></o:p>

Implications for global markets<o:p></o:p>

This upward revision of China's growth forecast carries significant implications for global markets. As one of the world's largest economies, China's performance is closely watched by investors worldwide. A stronger Chinese economy could lead to increased demand for commodities and other goods, potentially driving prices higher.<o:p></o:p>

Moreover, the anticipated growth may influence central banks' monetary policies across the globe. With China recovering, there is a possibility that other economies could benefit from enhanced trade relationships and investment opportunities. Analysts suggest that countries heavily reliant on exports to China may experience a boost in their economic performance as well.<o:p></o:p>

Investment strategies moving forward<o:p></o:p>

In light of this revised outlook, investors are urged to reassess their strategies regarding exposure to Chinese markets. As consumer confidence grows and infrastructure projects gain traction, sectors such as technology, consumer goods, and construction may present lucrative opportunities.<o:p></o:p>

Goldman Sachs' report serves as a reminder of the interconnectedness of global economies. As China navigates its recovery journey, stakeholders must remain vigilant and adaptable to the evolving landscape. The bank's insights underscore the importance of staying informed about economic trends that could shape investment decisions in the coming months.<o:p></o:p>

Hence, Goldman Sachs' upgraded growth forecast for China reflects a broader narrative of recovery and resilience. As the world's second-largest economy shows signs of revitalisation, both local and international investors are poised to benefit from this positive trajectory.<o:p></o:p>

Goldman Sachs has recently upgraded its growth forecast for China, highlighting a positive shift in the country's economic landscape. The bank expects China’s gross domestic product to expand 4.

Goldman Sachs has recently upgraded its growth forecast for China, highlighting a positive shift in the country's economic landscape. The bank expects China’s gross domestic product to expand 4.9 per cent this year, up from 4.7 per cent previously. It also lifted its growth prediction for next year to 4.7 per cent from 4.3 per cent, according to a report released recently. This adjustment comes as various indicators suggest a robust recovery following a challenging period marked by strict COVID-19 restrictions and a sluggish rebound as detailed in a report by Bloomberg. Factors driving the upgrade The Bloomberg report further elaborated that, “The latest round of China stimulus clearly indicates that policymakers have made a turn on cyclical policy management and increased their focus on the economy,” Goldman economists including Hui Shan and Lisheng Wang wrote. Several key factors have contributed to this optimistic outlook. Firstly, the Chinese government has implemented measures aimed at stimulating domestic demand, which have begun to yield results. Consumer spending is on the rise, bolstered by increased confidence among households and businesses alike. Additionally, infrastructure investments have gained momentum, further propelling economic activity. Goldman Sachs analysts noted that the recent data reflects a more resilient manufacturing sector, which has shown signs of stabilisation. The bank's report emphasises that improvements in exports and industrial production are critical components of this recovery narrative. As global supply chains continue to normalise, China's manufacturing capabilities are expected to play a pivotal role in meeting international demand. Implications for global markets This upward revision of China's growth forecast carries significant implications for global markets. As one of the world's largest economies, China's performance is closely watched by investors worldwide. A stronger Chinese economy could lead to increased demand for commodities and other goods, potentially driving prices higher. Moreover, the anticipated growth may influence central banks' monetary policies across the globe. With China recovering, there is a possibility that other economies could benefit from enhanced trade relationships and investment opportunities. Analysts suggest that countries heavily reliant on exports to China may experience a boost in their economic performance as well. Investment strategies moving forward In light of this revised outlook, investors are urged to reassess their strategies regarding exposure to Chinese markets. As consumer confidence grows and infrastructure projects gain traction, sectors such as technology, consumer goods, and construction may present lucrative opportunities. Goldman Sachs' report serves as a reminder of the interconnectedness of global economies. As China navigates its recovery journey, stakeholders must remain vigilant and adaptable to the evolving landscape. The bank's insights underscore the importance of staying informed about economic trends that could shape investment decisions in the coming months. Hence, Goldman Sachs' upgraded growth forecast for China reflects a broader narrative of recovery and resilience. As the world's second-largest economy shows signs of revitalisation, both local and international investors are poised to benefit from this positive trajectory.

Goldman Sachs upgrades China’s growth forecast amid economic recovery

Goldman Sachs Group Inc. has recruited veteran power banker Tyler Miller from rival Citigroup Inc. as a partner in its natural resources division.

At Goldman Sachs, Miller will serve as global co-head of power, utilities, and infrastructure, according to a memo reviewed by Bloomberg News.

Miller most recently led a similar team at Citigroup, where he was a managing director, as stated in the memo. He will be based in New York and commence his new role after a standard period of leave, according to a source familiar with the matter who requested anonymity because Miller’s hiring was not yet public.

A spokesperson for Goldman Sachs confirmed the details of the memo but declined to provide additional comment. A representative for Citigroup also declined to comment.

Miller, who has nearly 25 years of experience in power industry dealmaking, previously held positions at banks including Barclays Plc, Lehman Brothers, and Merrill Lynch.

His recruitment comes as utilities have experienced a surge in energy demand driven by the artificial intelligence boom, which includes data centres, generating excitement among investors.

Deal activity in the sector is also increasing. This month, Carlyle Group Inc. sold power producer Cogentrix to private equity firm Quantum Capital Group for $3 billion.

Goldman Sachs has recently countered after losing some talent to smaller rivals such as Evercore Inc. In recent weeks, it secured top aerospace and defence dealmaker Michael Tarulli from the boutique firm. It also hired Matt Beitzel from Citigroup to join its financial institutions division as a partner.

Goldman Sachs Group Inc. has recruited veteran power banker Tyler Miller from rival Citigroup Inc. as a partner in its natural resources division. At Goldman Sachs, Miller will serve as global co-head of power, utilities, and infrastructure, according to a memo reviewed by Bloomberg News.

Goldman Sachs Group Inc. has recruited veteran power banker Tyler Miller from rival Citigroup Inc. as a partner in its natural resources division. At Goldman Sachs, Miller will serve as global co-head of power, utilities, and infrastructure, according to a memo reviewed by Bloomberg News. Miller most recently led a similar team at Citigroup, where he was a managing director, as stated in the memo. He will be based in New York and commence his new role after a standard period of leave, according to a source familiar with the matter who requested anonymity because Miller’s hiring was not yet public. A spokesperson for Goldman Sachs confirmed the details of the memo but declined to provide additional comment. A representative for Citigroup also declined to comment. Miller, who has nearly 25 years of experience in power industry dealmaking, previously held positions at banks including Barclays Plc, Lehman Brothers, and Merrill Lynch. His recruitment comes as utilities have experienced a surge in energy demand driven by the artificial intelligence boom, which includes data centres, generating excitement among investors. Deal activity in the sector is also increasing. This month, Carlyle Group Inc. sold power producer Cogentrix to private equity firm Quantum Capital Group for $3 billion. Goldman Sachs has recently countered after losing some talent to smaller rivals such as Evercore Inc. In recent weeks, it secured top aerospace and defence dealmaker Michael Tarulli from the boutique firm. It also hired Matt Beitzel from Citigroup to join its financial institutions division as a partner.

Goldman Sachs recruits power banking expert Tyler Miller from Citigroup

A global swarm of hedge funds continued to add bearish equity bets to portfolios for the third week running after fresh figures indicated that the economy of the United States was slowing at a faster pace than had been estimated. That's according to a note from Goldman Sachs, which addressed the changes in hedge fund strategies toward more guarded positioning.

Hedge funds have added short positions at about three times the rate of long positions—adding one new long for every 3.3 short bets. The shift in sentiment follows a pair of troubling economic data releases back-to-back days that showed job creation slowing and manufacturing activity decreasing. Reflecting these concerns, the Nasdaq Composite slid into correction territory Tuesday, closing down 2.43 per cent.

Hedge funds have been reducing exposure to seven of the eleven global sectors, including financials, industrials, real estate, and energy. In addition, healthcare stocks have sold out at a rate not seen for almost a year. A broad reduction in sector exposure would underline growing unease among hedge fund managers over the health of the global economy.

Another Goldman Sachs report indicated that fundamental long/short hedge funds had their worst performance day since June 2022, with Friday's average losses amounting to 1.8 per cent. This marks weeks of unwinding risk bets that many hedge funds have done to cut probable losses amid rising economic uncertainty.

The overall summary is that hedge funds continued to bet bearishly on an economic slowdown. Weaker-than-expected economic indicators give hedge funds the reason to position for the turbulent market ahead, which is not very positive—it reflects deeper, broader concerns about the sustainability of current economic growth and the potential for further market volatility in the coming months.

A global swarm of hedge funds continued to add bearish equity bets to portfolios for the third week running after fresh figures indicated that the economy of the United States was slowing at a faster pace than had been estimated.

A global swarm of hedge funds continued to add bearish equity bets to portfolios for the third week running after fresh figures indicated that the economy of the United States was slowing at a faster pace than had been estimated. That's according to a note from Goldman Sachs, which addressed the changes in hedge fund strategies toward more guarded positioning. Hedge funds have added short positions at about three times the rate of long positions—adding one new long for every 3.3 short bets. The shift in sentiment follows a pair of troubling economic data releases back-to-back days that showed job creation slowing and manufacturing activity decreasing. Reflecting these concerns, the Nasdaq Composite slid into correction territory Tuesday, closing down 2.43 per cent. Hedge funds have been reducing exposure to seven of the eleven global sectors, including financials, industrials, real estate, and energy. In addition, healthcare stocks have sold out at a rate not seen for almost a year. A broad reduction in sector exposure would underline growing unease among hedge fund managers over the health of the global economy. Another Goldman Sachs report indicated that fundamental long/short hedge funds had their worst performance day since June 2022, with Friday's average losses amounting to 1.8 per cent. This marks weeks of unwinding risk bets that many hedge funds have done to cut probable losses amid rising economic uncertainty. The overall summary is that hedge funds continued to bet bearishly on an economic slowdown. Weaker-than-expected economic indicators give hedge funds the reason to position for the turbulent market ahead, which is not very positive—it reflects deeper, broader concerns about the sustainability of current economic growth and the potential for further market volatility in the coming months.

Hedge funds amplify bearish stance amid economic slowdown concerns, Goldman reports

In the latest earnings roundup, Goldman Sachs is in the spotlight. The banking giant reported a surge in earnings in the June quarter, with its shares hitting fresh all-time highs.

Goldman's stock price hits a new all-time high

Goldman Sachs reported great profit growth in the second quarter, helped by robust underwriting of debt and fixed-income trading.

Earnings at the Wall Street giant more than doubled from a year earlier but came in well below a record level from the first quarter.

Such results attest to how strongly the US economy is recovering. The job empowered chief executives to make purchases, sell debt, and offer shares.

Excluding one-off charges, CEO comments on performance

CEO David Solomon was happy with the results. He noted "We are pleased with our solid second-quarter results.

Our overall performance in the first half of the year reflects strong year-on-year growth in both Global Banking &amp; Markets and Asset &amp; Wealth Management.

The earnings came out at $3.04 billion, or $8.62 a share, for the quarter ended June 30. In sharp comparison, last year it had earnings of $1.22 billion, or $3.08 a share.

Investment banking and trading fees soar

Goldman Sachs registered a 21 per cent increase in its investment banking fees. The same was $1.73 billion for the quarter.

The fees arising from mergers and acquisitions advisory became 7 per cent more. Its debt and stock underwriting fees soared by 39 per cent and 25 per cent respectively.

The whole FICC trading increased by 17 per cent while the whole FICC financing boosted the FICC financing. Its equities trading revenue also became 7 per cent higher.

Improved profitability in the entire sector

Some of the other major investment banks that showed outstanding results for their investment banking business are JPMorgan Chase and Jefferies Financial.

Based on data compiled by Dealogic, investment banking revenues surged by 17 per cent globally. It increased to $41.6 billion between January and June.

Shift back to core businesses

After its foray into consumer banking didn't pay off, Goldman has hunkered down and focused on the things it historically does best.

Most of that is investment banking and trading, a strategy shift that investors seem to be getting behind.

The firm's stock surged 24.4 per cent this year through Thursday, outpacing Morgan Stanley's 11.6 per cent gain and JPMorgan Chase's 20.5 per cent rise. Goldman shares fell slightly in choppy premarket trading, however.

Growth in asset and wealth management

The asset and wealth management division services to high net worth and institutional clients. It has seen its revenue rise by 27 per cent in Q2.

Goldman oversees $2.93 trillion in its funds. The bank received, earlier in July, the mandate to manage UPS's $43.4 billion retirement client peg.

Platform Solutions hosts a handful of consumer units. It has increased revenues by a low 2 per cent.

Challenges in card sector

Goldman Sachs took a $58 million charge in the second quarter for its credit card business with General Motors.

The company is expected to leave the partnership, as their talks are ongoing for GM to replace Goldman with Barclays.

Negotiations are also said not to achieve a positive solution in the future for Goldman's credit card partnership with Apple.

The Fed's annual stress test pointed to potential problems and noted that Goldman's potential losses are among the worst in a hypothetical scenario.

Dividend increase

Amid the turmoils, Goldman Sachs declared a quarterly dividend hike to $3 a share. That is from $2.75 previously.

The bank's provisions for credit losses have more than halved. They turned out to be $282 million in the second quarter. That is from $615 million a year prior.

(With inputs from Reuters)

Goldman Sachs reported great profit growth in the second quarter, helped by robust underwriting of debt and fixed-income trading. Earnings at the Wall Street giant more than doubled from a year earlier but came in well below a record level from the first quarter.

Goldman Sachs reported great profit growth in the second quarter, helped by robust underwriting of debt and fixed-income trading. Earnings at the Wall Street giant more than doubled from a year earlier but came in well below a record level from the first quarter. Such results attest to how strongly the US economy is recovering. The job empowered chief executives to make purchases, sell debt, and offer shares. Excluding one-off charges, CEO comments on performance CEO David Solomon was happy with the results. He noted "We are pleased with our solid second-quarter results. Our overall performance in the first half of the year reflects strong year-on-year growth in both Global Banking & Markets and Asset & Wealth Management. The earnings came out at $3.04 billion, or $8.62 a share, for the quarter ended June 30. In sharp comparison, last year it had earnings of $1.22 billion, or $3.08 a share. Investment banking and trading fees soar Goldman Sachs registered a 21 per cent increase in its investment banking fees. The same was $1.73 billion for the quarter. The fees arising from mergers and acquisitions advisory became 7 per cent more. Its debt and stock underwriting fees soared by 39 per cent and 25 per cent respectively. The whole FICC trading increased by 17 per cent while the whole FICC financing boosted the FICC financing. Its equities trading revenue also became 7 per cent higher. Improved profitability in the entire sector Some of the other major investment banks that showed outstanding results for their investment banking business are JPMorgan Chase and Jefferies Financial. Based on data compiled by Dealogic, investment banking revenues surged by 17 per cent globally. It increased to $41.6 billion between January and June. Shift back to core businesses After its foray into consumer banking didn't pay off, Goldman has hunkered down and focused on the things it historically does best. Most of that is investment banking and trading, a strategy shift that investors seem to be getting behind. The firm's stock surged 24.4 per cent this year through Thursday, outpacing Morgan Stanley's 11.6 per cent gain and JPMorgan Chase's 20.5 per cent rise. Goldman shares fell slightly in choppy premarket trading, however. Growth in asset and wealth management The asset and wealth management division services to high net worth and institutional clients. It has seen its revenue rise by 27 per cent in Q2. Goldman oversees $2.93 trillion in its funds. The bank received, earlier in July, the mandate to manage UPS's $43.4 billion retirement client peg. Platform Solutions hosts a handful of consumer units. It has increased revenues by a low 2 per cent. Challenges in card sector Goldman Sachs took a $58 million charge in the second quarter for its credit card business with General Motors. The company is expected to leave the partnership, as their talks are ongoing for GM to replace Goldman with Barclays. Negotiations are also said not to achieve a positive solution in the future for Goldman's credit card partnership with Apple. The Fed's annual stress test pointed to potential problems and noted that Goldman's potential losses are among the worst in a hypothetical scenario. Dividend increase Amid the turmoils, Goldman Sachs declared a quarterly dividend hike to $3 a share. That is from $2.75 previously. The bank's provisions for credit losses have more than halved. They turned out to be $282 million in the second quarter. That is from $615 million a year prior. (With inputs from Reuters)

Goldman Sachs' Q2 profit soars amid strong trading and underwriting performance

Startup founder, Chris Kirchner was sentenced to 20 years in federal prison on Thursday (Jul 11) after being convicted of money laundering, defrauding investors, and wire fraud. He allegedly used his funders' money amounting to $25 million for personal use.&nbsp;

The former CEO and founder of Slync, a supply chain tech startup, Kirchner, raised over $50 million from leading investors including Goldman Sachs from 2018 to 2021. He will be serving his prison time in Dallas, Fort Worth and has been ordered to pay about $65 million in restitution by the court.&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/is-td-banks-compliance-overhaul-enough-to-dodge-money-laundering-probes-738432">Is TD Bank's compliance overhaul enough to dodge money laundering probes?</a>

Kirchner was terminated from his position as CEO by the board of directors in 2022. He was initially charged with misappropriating more than $20 million of the company funds in February 2023 and was raided by the FBI at his residence in West Lake, Texas.&nbsp;

Over two years, Kirchner also raised over $71 million fraudulently from various investors through false representations of his business finances and revenue. The evidence suggests he also misappropriated over $25 million of funds from investors.

According to the US Attorney's office in the Northern District of Texas, he wired $20 million directly&nbsp;to his personal account and used the company's funds for himself through multiple accounts in 100 different transactions.

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/man-takes-200-flights-in-110-days-to-steal-jewellery-worth-from-passengers-721280">Man takes 200 flights in 110 days to steal jewellery worth millions from passengers</a>

“Even as his company was circling the drain, Chris Kirchner was spending millions of his investors’ money on himself. Apparently, projecting personal prosperity was more important to him than making payroll,” said US Attorney Leigha Simonton. “His duplicity earned him 20 years in prison. We are proud to hold him accountable for his crimes and are committed to pursuing all businesspeople engaged in criminal conduct.”

Slync initially attracted attention in 2022 by indulging in pricey sports sponsorships which is unusual for a startup. According to Business Insider, a staff revealed they hadn't received their paycheck for weeks, the same year in June.

(With inputs from agencies)

Startup founder, Chris Kirchner was sentenced to 20 years in federal prison on Thursday (Jul 11) after being convicted of money laundering, defrauding investors, and wire fraud.

Startup founder, Chris Kirchner was sentenced to 20 years in federal prison on Thursday (Jul 11) after being convicted of money laundering, defrauding investors, and wire fraud. He allegedly used his funders' money amounting to $25 million for personal use. The former CEO and founder of Slync, a supply chain tech startup, Kirchner, raised over $50 million from leading investors including Goldman Sachs from 2018 to 2021. He will be serving his prison time in Dallas, Fort Worth and has been ordered to pay about $65 million in restitution by the court. Also Read | Is TD Bank's compliance overhaul enough to dodge money laundering probes? Kirchner was terminated from his position as CEO by the board of directors in 2022. He was initially charged with misappropriating more than $20 million of the company funds in February 2023 and was raided by the FBI at his residence in West Lake, Texas. Over two years, Kirchner also raised over $71 million fraudulently from various investors through false representations of his business finances and revenue. The evidence suggests he also misappropriated over $25 million of funds from investors. According to the US Attorney's office in the Northern District of Texas, he wired $20 million directly to his personal account and used the company's funds for himself through multiple accounts in 100 different transactions. Also Read | Man takes 200 flights in 110 days to steal jewellery worth millions from passengers “Even as his company was circling the drain, Chris Kirchner was spending millions of his investors’ money on himself. Apparently, projecting personal prosperity was more important to him than making payroll,” said US Attorney Leigha Simonton. “His duplicity earned him 20 years in prison. We are proud to hold him accountable for his crimes and are committed to pursuing all businesspeople engaged in criminal conduct.” Slync initially attracted attention in 2022 by indulging in pricey sports sponsorships which is unusual for a startup. According to Business Insider, a staff revealed they hadn't received their paycheck for weeks, the same year in June. (With inputs from agencies)

Startup founder Chris Kirchner sentenced to 20 years in prison for misappropriation of funds

Goldman Sachs has raised its S&amp;P 500 Index (.SPX) year-end goal to 5,600 from 5,200. This upgrade is due to strong profit growth from five mega-cap US technology corporations, as well as an improvement in the fair value price-to-earnings (P/E) ratio multiple.<o:p></o:p>

<h2 class="MsoNormal">Tech giants fuel market rally<o:p></o:p></h2>

The significant rise of tech giants such as Microsoft, Nvidia, Google, Amazon.com, and Meta Platforms has fuelled this adjustment. Collectively, these companies have increased by 45 per cent, accounting for 25 per cent of the S&amp;P 500's equity value, according to a note released after the market closed on Friday.<o:p></o:p>

"The drivers of the rally include upward revisions to consensus 2024 earnings estimates for these same tech companies, and valuation expansion stemming from increased investor enthusiasm about artificial intelligence (AI)," said the analysts.<o:p></o:p>

<h2 class="MsoNormal">Upside potential and market dynamics<o:p></o:p></h2>

The new objective of 5,600 represents a 3.1 per cent increase from the index's previous level of 5,431.60. Goldman Sachs expects stable real rates by year-end, supported by solid profit growth and a 15x P/E ratio for the equal-weight S&amp;P 500 Index.<o:p></o:p>

<h2 class="MsoNormal">Election year volatility<o:p></o:p></h2>

Goldman Sachs analysts have identified the approaching US presidential election as a significant risk factor for the S&amp;P 500. The election is scheduled for November, and the brokerage observes that index volatility often surges before the election but then subsides, frequently culminating in a market rebound to higher levels.<o:p></o:p>

(With inputs from Agencies)<o:p></o:p>

Goldman Sachs has raised its S&P 500 Index (.SPX) year-end goal to 5,600 from 5,200. This upgrade is due to strong profit growth from five mega-cap US technology corporations, as well as an improvement in the fair value price-to-earnings (P/E) ratio multiple.

Goldman Sachs has raised its S&P 500 Index (.SPX) year-end goal to 5,600 from 5,200. This upgrade is due to strong profit growth from five mega-cap US technology corporations, as well as an improvement in the fair value price-to-earnings (P/E) ratio multiple. Tech giants fuel market rally The significant rise of tech giants such as Microsoft, Nvidia, Google, Amazon.com, and Meta Platforms has fuelled this adjustment. Collectively, these companies have increased by 45 per cent, accounting for 25 per cent of the S&P 500's equity value, according to a note released after the market closed on Friday. "The drivers of the rally include upward revisions to consensus 2024 earnings estimates for these same tech companies, and valuation expansion stemming from increased investor enthusiasm about artificial intelligence (AI)," said the analysts. Upside potential and market dynamics The new objective of 5,600 represents a 3.1 per cent increase from the index's previous level of 5,431.60. Goldman Sachs expects stable real rates by year-end, supported by solid profit growth and a 15x P/E ratio for the equal-weight S&P 500 Index. Election year volatility Goldman Sachs analysts have identified the approaching US presidential election as a significant risk factor for the S&P 500. The election is scheduled for November, and the brokerage observes that index volatility often surges before the election but then subsides, frequently culminating in a market rebound to higher levels. (With inputs from Agencies)

Goldman Sachs raises S&P 500 target on strong tech earnings

We're turning now to China's troubled property market. A new report by Goldman Sachs paints a concerning picture, with the crisis potentially deeper than previously thought. According to Goldman Sachs, there's a massive glut of unsold homes in China.

Goldman Sachs report highlights dire Chinese property market conditions

According to a person acquainted with the situation, Wall Street powerhouse Goldman Sachs has secured a license to locate its regional headquarters in Saudi Arabia's capital, Riyadh.

The strategic move by Goldman Sachs follows the Saudi cabinet's recent ratification of new legislation aimed at increasing foreign investment in the kingdom. Under the new regulations, organizations that do not establish a regional headquarters in Saudi Arabia risk losing access to lucrative government contracts. Firms that set up shop in the kingdom, on the other hand, qualify for tax breaks.

The decision is consistent with Crown Prince Mohammed bin Salman's ambitious Vision 2030 strategy, which aims to diversify the Saudi economy away from its reliance on oil. Attracting big financial firms such as Goldman Sachs is an important part of this approach.

The move taken by Goldman Sachs highlights Riyadh's growing importance as a financial hub in the Middle East. Goldman Sachs is preparing to capitalise on the kingdom's economic changes and increasing investment prospects by establishing a regional headquarters in Saudi Arabia.

(With inputs from Reuters)

According to a person acquainted with the situation, Wall Street powerhouse Goldman Sachs has secured a license to locate its regional headquarters in Saudi Arabia's capital, Riyadh.

According to a person acquainted with the situation, Wall Street powerhouse Goldman Sachs has secured a license to locate its regional headquarters in Saudi Arabia's capital, Riyadh. The strategic move by Goldman Sachs follows the Saudi cabinet's recent ratification of new legislation aimed at increasing foreign investment in the kingdom. Under the new regulations, organizations that do not establish a regional headquarters in Saudi Arabia risk losing access to lucrative government contracts. Firms that set up shop in the kingdom, on the other hand, qualify for tax breaks. The decision is consistent with Crown Prince Mohammed bin Salman's ambitious Vision 2030 strategy, which aims to diversify the Saudi economy away from its reliance on oil. Attracting big financial firms such as Goldman Sachs is an important part of this approach. The move taken by Goldman Sachs highlights Riyadh's growing importance as a financial hub in the Middle East. Goldman Sachs is preparing to capitalise on the kingdom's economic changes and increasing investment prospects by establishing a regional headquarters in Saudi Arabia. (With inputs from Reuters)

Goldman Sachs receives license to establish regional headquarters in Riyadh

While India is doubling down on its manufacturing ambitions, it is already facing the services world. Investment banking giant Goldman Sachs says services sector exports will comprise at least 11 per cent of India's GDP by 2030. That's up from less than 10% of the economy right now.

Gravitas | Goldman Sachs: Services sector exports at 11% of GDP by 2030

Goldman Sachs reported a strong first quarter, exceeding analyst expectations. Profits jumped 28% to $4.13 billion, driven by a surge in investment banking activity. This marks their highest earnings per share since late 2021, at $11.58 per share, exceeding analyst predictions by a significant 36%.

Goldman Sachs beats wall street estimates with strong quarter profit

Goldman Sachs Group has warned that the implementation of steep tariffs on Chinese imports proposed by former President Donald Trump, could hamper the growth of the US economy and lead to a surge in inflation. <o:p></o:p>

According to a Bloomberg report, the investment bank's analysts outlined that every percentage point increase in the effective tariff rate could possibly reduce US growth by up to 0.15 per cent, particularly if China responds with retaliatory measures. <o:p></o:p>

Even if the resulting revenue from tariffs is utilised to finance tax cuts, leading to increased spending and investment, the impact on gross domestic product (GDP) would still be huge, with a projected minimum decline of 0.05 per cent.<o:p></o:p>

Goldman Sachs’s analysis suggests that a major escalation in tariffs could elevate core consumer prices by just over 0.1 per cent. <o:p></o:p>

This increase arises from the likelihood of firms passing on the higher costs of imports to consumers, alongside opportunistic price adjustments by domestic producers. <o:p></o:p>

As a result, heightened tariffs could lead to a temporary surge in inflation lasting for approximately a year, posing additional challenges for policymakers tasked with maintaining price stability and economic growth.<o:p></o:p>

Former President Trump's tenure was marked by an aggressive stance towards trade with China, with the imposition of tariffs on over $300 billion worth of Chinese imports. <o:p></o:p>

This move triggered retaliatory measures from Beijing, contributing to growing trade tensions between the two economic powerhouses. <o:p></o:p>

While President Joe Biden has largely maintained these tariffs, Trump has indicated intentions to further escalate trade measures if re-elected in November's presidential vote, proposing an increase in China tariffs to at least 60 per cent. <o:p></o:p>

Goldman Sachs’s analysis indicates the magnitude of the impact of Trump's proposed tariff hikes. <o:p></o:p>

The effective tariff rate on Chinese imports increased by 1.5 percentage points between 2017 and 2019, and Trump's proposals could worsen this trend, resulting in far-reaching economic consequences. <o:p></o:p>

Although higher tariffs would boost government revenues by approximately $30 billion per year, or 0.1 per cent, Goldman Sachs’s senior economist Ronnie Walker warned that the overall effect on the economy would likely be negative. <o:p></o:p>

Walker noted that the adverse effects of higher tariffs on GDP are expected to outweigh the benefits, with the decline in real income and consumer spending outweighing any reductions in the trade deficit.<o:p></o:p>

Likewise, the indirect repercussions, such as diminished business sentiment and disruptions in global supply chains, could make the negative economic impact far worse.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Goldman Sachs Group has warned that the implementation of steep tariffs on Chinese imports proposed by former President Donald Trump, could hamper the growth of the US economy and lead to a surge in inflation.

Goldman Sachs Group has warned that the implementation of steep tariffs on Chinese imports proposed by former President Donald Trump, could hamper the growth of the US economy and lead to a surge in inflation. According to a Bloomberg report, the investment bank's analysts outlined that every percentage point increase in the effective tariff rate could possibly reduce US growth by up to 0.15 per cent, particularly if China responds with retaliatory measures. Even if the resulting revenue from tariffs is utilised to finance tax cuts, leading to increased spending and investment, the impact on gross domestic product (GDP) would still be huge, with a projected minimum decline of 0.05 per cent. Goldman Sachs’s analysis suggests that a major escalation in tariffs could elevate core consumer prices by just over 0.1 per cent. This increase arises from the likelihood of firms passing on the higher costs of imports to consumers, alongside opportunistic price adjustments by domestic producers. As a result, heightened tariffs could lead to a temporary surge in inflation lasting for approximately a year, posing additional challenges for policymakers tasked with maintaining price stability and economic growth. Former President Trump's tenure was marked by an aggressive stance towards trade with China, with the imposition of tariffs on over $300 billion worth of Chinese imports. This move triggered retaliatory measures from Beijing, contributing to growing trade tensions between the two economic powerhouses. While President Joe Biden has largely maintained these tariffs, Trump has indicated intentions to further escalate trade measures if re-elected in November's presidential vote, proposing an increase in China tariffs to at least 60 per cent. Goldman Sachs’s analysis indicates the magnitude of the impact of Trump's proposed tariff hikes. The effective tariff rate on Chinese imports increased by 1.5 percentage points between 2017 and 2019, and Trump's proposals could worsen this trend, resulting in far-reaching economic consequences. Although higher tariffs would boost government revenues by approximately $30 billion per year, or 0.1 per cent, Goldman Sachs’s senior economist Ronnie Walker warned that the overall effect on the economy would likely be negative. Walker noted that the adverse effects of higher tariffs on GDP are expected to outweigh the benefits, with the decline in real income and consumer spending outweighing any reductions in the trade deficit. Likewise, the indirect repercussions, such as diminished business sentiment and disruptions in global supply chains, could make the negative economic impact far worse. (With inputs from Bloomberg)

Goldman Sachs warns of economic consequences of Trump's proposed tariffs on China

The Chief Investment Officer of Goldman Sachs Group Inc.'s wealth-management business, Sharmin Mossavar-Rahmani, has issued a stark warning against investing in China, despite recent significant declines in the country's stock market. <o:p></o:p>

In a Bloomberg Television interview, Mossavar-Rahmani acknowledged the common perception of China's apparent cheapness but emphasised, "Our view is that one should not invest in China."<o:p></o:p>

Citing multiple reasons for this stance, Mossavar-Rahmani expressed concerns about China's economic trajectory over the next decade. <o:p></o:p>

She highlighted anticipated challenges in the three pillars of China's growth - the property market, infrastructure, and exports. <o:p></o:p>

Additionally, a lack of clarity in China's policymaking, coupled with inconsistent economic data, further raises apprehensions about investing in the country.<o:p></o:p>

The Goldman Sachs executive pointed out uncertainties in China's policy direction, particularly regarding information security measures and restrictions on data removal from the nation. <o:p></o:p>

The recent suspension of some unemployment figures by the statistics bureau and the discontinuation of annual press briefings by China's premier have contributed to the lack of clarity. <o:p></o:p>

Mossavar-Rahmani noted, "It is not clear what the overall general direction of policy will be long term," adding that such policy uncertainties can cap the equity market.<o:p></o:p>

China's benchmark CSI 300 Index experienced a significant dip last month, hitting a five-year low amid concerns about domestic demand and escalating geopolitical tensions. <o:p></o:p>

While it has rebounded after regulatory interventions, Mossavar-Rahmani remains sceptical. <o:p></o:p>

She anticipates potential short-term stimulus measures but suggests that China's real estate sector has not yet stabilised. <o:p></o:p>

Expressing doubt about China's official economic expansion figures, she highlighted the lack of clarity in economic data, resonating with concerns among several economists.<o:p></o:p>

Despite China's formal publication of a growth rate above 5 per cent for 2023, Mossavar-Rahmani stated, "most people think that is not the real growth number — it was actually a lot weaker." <o:p></o:p>

She concluded by reiterating Goldman Sachs' cautious stance, emphasising that they do not recommend clients move into China at this point.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

The Chief Investment Officer of Goldman Sachs Group Inc.'s wealth-management business, Sharmin Mossavar-Rahmani, has issued a stark warning against investing in China, despite recent significant declines in the country's stock market.

The Chief Investment Officer of Goldman Sachs Group Inc.'s wealth-management business, Sharmin Mossavar-Rahmani, has issued a stark warning against investing in China, despite recent significant declines in the country's stock market. In a Bloomberg Television interview, Mossavar-Rahmani acknowledged the common perception of China's apparent cheapness but emphasised, "Our view is that one should not invest in China." Citing multiple reasons for this stance, Mossavar-Rahmani expressed concerns about China's economic trajectory over the next decade. She highlighted anticipated challenges in the three pillars of China's growth - the property market, infrastructure, and exports. Additionally, a lack of clarity in China's policymaking, coupled with inconsistent economic data, further raises apprehensions about investing in the country. The Goldman Sachs executive pointed out uncertainties in China's policy direction, particularly regarding information security measures and restrictions on data removal from the nation. The recent suspension of some unemployment figures by the statistics bureau and the discontinuation of annual press briefings by China's premier have contributed to the lack of clarity. Mossavar-Rahmani noted, "It is not clear what the overall general direction of policy will be long term," adding that such policy uncertainties can cap the equity market. China's benchmark CSI 300 Index experienced a significant dip last month, hitting a five-year low amid concerns about domestic demand and escalating geopolitical tensions. While it has rebounded after regulatory interventions, Mossavar-Rahmani remains sceptical. She anticipates potential short-term stimulus measures but suggests that China's real estate sector has not yet stabilised. Expressing doubt about China's official economic expansion figures, she highlighted the lack of clarity in economic data, resonating with concerns among several economists. Despite China's formal publication of a growth rate above 5 per cent for 2023, Mossavar-Rahmani stated, "most people think that is not the real growth number — it was actually a lot weaker." She concluded by reiterating Goldman Sachs' cautious stance, emphasising that they do not recommend clients move into China at this point. (With inputs from Bloomberg)

Goldman Sachs Wealth Management cautions against investing in China. Here’s why

Nvidia reached a new pinnacle on Monday as Goldman Sachs increased its price target for the company's shares, anticipating earnings growth driven by the ongoing artificial intelligence (AI) boom. <o:p></o:p>

According to a Reuters report, the stock experienced a 4 per cent surge, reaching $689.21, poised to contribute approximately $70 billion to Nvidia's market capitalisation, which stood at $1.63 trillion at Friday's close.<o:p></o:p>

Recognised as a symbol of the AI frenzy, Nvidia witnessed a historic monthly increase in market value in January, reflecting its prominent position in the rapidly evolving tech landscape.<o:p></o:p>

Goldman Sachs analyst Toshiya Hari expressed confidence in Nvidia's continued success.<o:p></o:p>

"We believe Nvidia will remain as the industry gold standard for the foreseeable future, given its robust hardware and software offerings and, importantly, the pace at which it continues to innovate," Reuters quoted him as saying.<o:p></o:p>

Despite the significant growth in Nvidia's stock price, up 39 per cent this year, Hari sees further potential for expansion. <o:p></o:p>

The analyst raised the price target to $800, marking a 21 per cent upside from current levels and reflecting the continued optimism surrounding Nvidia's future performance.<o:p></o:p>

The AI-focused growth strategy extends beyond Nvidia, with signs of AI monetisation evident in various companies. <o:p></o:p>

Hari pointed to positive developments from tech giants such as Microsoft and Meta Platforms, as well as encouraging earnings outlooks from AI server maker Super Micro Computer. <o:p></o:p>

These indicators contribute to Goldman Sachs' decision to raise full-year 2025-2026 earnings estimates for Nvidia by an average of 22 per cent. <o:p></o:p>

The anticipated robust demand for AI servers and improving graphics processing unit (GPU) supply further underlines the positive trajectory projected for Nvidia in the coming years.<o:p></o:p>

While Nvidia thrives on the AI wave, other chipmakers not deeply involved in AI, like Intel, have experienced a relative lag in their stock performance. <o:p></o:p>

Nvidia's dominance in the AI market has unlocked substantial revenue, setting it apart in an industry where AI capabilities are becoming increasingly integral. <o:p></o:p>

The company is poised to report its results on February 21, with analysts forecasting fourth-quarter earnings per share of $4.51 and revenue of $20.19 billion, based on LSEG data.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Nvidia reached a new pinnacle on Monday as Goldman Sachs increased its price target for the company's shares, anticipating earnings growth driven by the ongoing artificial intelligence (AI) boom.

Nvidia reached a new pinnacle on Monday as Goldman Sachs increased its price target for the company's shares, anticipating earnings growth driven by the ongoing artificial intelligence (AI) boom. According to a Reuters report, the stock experienced a 4 per cent surge, reaching $689.21, poised to contribute approximately $70 billion to Nvidia's market capitalisation, which stood at $1.63 trillion at Friday's close. Recognised as a symbol of the AI frenzy, Nvidia witnessed a historic monthly increase in market value in January, reflecting its prominent position in the rapidly evolving tech landscape. Goldman Sachs analyst Toshiya Hari expressed confidence in Nvidia's continued success. "We believe Nvidia will remain as the industry gold standard for the foreseeable future, given its robust hardware and software offerings and, importantly, the pace at which it continues to innovate," Reuters quoted him as saying. Despite the significant growth in Nvidia's stock price, up 39 per cent this year, Hari sees further potential for expansion. The analyst raised the price target to $800, marking a 21 per cent upside from current levels and reflecting the continued optimism surrounding Nvidia's future performance. The AI-focused growth strategy extends beyond Nvidia, with signs of AI monetisation evident in various companies. Hari pointed to positive developments from tech giants such as Microsoft and Meta Platforms, as well as encouraging earnings outlooks from AI server maker Super Micro Computer. These indicators contribute to Goldman Sachs' decision to raise full-year 2025-2026 earnings estimates for Nvidia by an average of 22 per cent. The anticipated robust demand for AI servers and improving graphics processing unit (GPU) supply further underlines the positive trajectory projected for Nvidia in the coming years. While Nvidia thrives on the AI wave, other chipmakers not deeply involved in AI, like Intel, have experienced a relative lag in their stock performance. Nvidia's dominance in the AI market has unlocked substantial revenue, setting it apart in an industry where AI capabilities are becoming increasingly integral. The company is poised to report its results on February 21, with analysts forecasting fourth-quarter earnings per share of $4.51 and revenue of $20.19 billion, based on LSEG data. (With inputs from Reuters)

Nvidia surges to record high as Goldman Sachs boosts price target on AI growth

India's consumer market is sending mixed signals after Diwali. The demand for gold has lost momentum. Local gold prices hit a record high of $753 dollars per 10 grams this week, rising over 11% in two months. After a few good days of sales after Diwali, rising prices have brought the market to a standstill.

Gold hits a record high of $753 dollars per 10 grams

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