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Goldman Sachs seen unveiling medium-term goals at investor day

Goldman Sachs seen unveiling medium-term goals at investor day

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Goldman Sachs seen unveiling medium-term goals at investor day

Goldman Sachs Group Inc (GS.N) Chief Executive David Solomon and his top executives are expected to unveil the company’s medium-term financial goals on Tuesday, according to analysts.

As it gears up for the second investor day in its 154-year history, the Wall Street powerhouse is expected to provide an update on its medium-term target for return on tangible equity (ROTE) from a current range of 15% to 17%. Its ROTE was 11% last year, missing analyst estimates, as rising interest rates prompted a sharp slowdown in dealmaking. 

Investors are awaiting a roadmap to profits for the bank’s fintech unit, called Platform Solutions, formed after Goldman lost billions on its foray into consumer banking and reined in its ambitions. The pullback on costs could help the bank to meet its efficiency targets.

Solomon’s performance, and his plans for growth, will be scrutinized by investors and analysts. Observers will also focus on the CEO’s plans to decrease Goldman’s reliance on trading and investment banking, which can be whipsawed by market volatility.

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The bank has said it plans to slim down some alternative investments that weighed on profits last year.

“Earnings could continue to be subdued for the next year or more, as the economic environment remains uncertain, which should pressure investment banking and asset management revenue,” said Michael Wong, an analyst at Morningstar Inc.

After a solid performance in recent years, Goldman’s markets division could weaken in the short to medium term because “trading is a wild card,” he said.

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  1. mrs-irene.com

    March 1, 2023 at 9:44 am

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PSX turns bullish, gains 484 points

PSX turns bullish, gains 484 points

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PSX turns bullish, gains 484 points

The 100-index of the Pakistan Stock Exchange (PSX) turned around to bullish trend on Wednesday, gaining 484.35 points, a positive change of 0.77 percent, closing at 63,703.45 points against 63,219.10 points the previous trading day.

A total of 461,390,885 shares valuing Rs 16.000 billion were traded during the day as compared to 409,962,895 shares valuing Rs14.675 billion the last day.

Some 355 companies transacted their shares in the stock market; 180 of them recorded gains and 149 sustained losses, whereas the share prices of 26 remained unchanged.

The three top trading companies were Cnergyico PK with 62,181,107 shares at Rs4.39 per share, K-Electric Limited with 45,494,078 shares at Rs 4.79 per share, and Hascol Petrol with 30,485,000 shares at Rs 7.98 per share.

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Unilever Pakistan Foods Limited witnessed a maximum increase of Rs 655.00 per share price, closing at Rs 21,800.00, whereas the runner-up was Premier Sugar Mills with a Rs 33.75 rise in its per share price to Rs 483.75. Pakistan Services Limited witnessed a maximum decrease of Rs 50.00 per share closing at Rs 740.00, followed by Bata Pakistan Limited with Rs 25.00 decline to close at Rs1,700.00.

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UK job vacancies fall 15pc year-on-year in January

UK job vacancies fall 15pc year-on-year in January

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UK job vacancies fall 15pc year-on-year in January

British employers advertised the fewest jobs in nearly three years last month, with numbers down 15 per cent from a year ago, figures from recruitment data company Adzuna showed on Monday, adding to signs that the labour market is cooling.

Last week Bank of England Governor Andrew Bailey welcomed what he described as “full employment” – with the official UK jobless rate at 3.8 per cent – despite the economy entering a shallow recession in the second half of last year.

However, the central bank wants to see wage growth slow from rates of more than 6pc in order to put downward pressure on inflation, which remains double its target.

Falling job vacancies offer a potential sign that employers are finding it easier to recruit than in the immediate aftermath of the COVID-19 pandemic, when the number of vacancies peaked at more than 1.3 million.

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Adzuna said 867,436 jobs were advertised in Britain in January, based on its analysis of more than 1,000 online sources. This was the lowest number since April 2021 and down from more than 1 million a year earlier.

“January 2024 has proven to be one of the most difficult starts to the year for job hunters in recent years with companies continuing to put hiring plans on ice,” Adzuna co-founder Andrew Hunter said.

The number of job seekers per advertised vacancy rose to 1.81 from 1.48 a year earlier.

However, Hunter said, preliminary data for February suggested the number of vacancies was stabilising.

Previous vacancy data from the Office for National Statistics showed an 18pc annual fall in job vacancies for the three months to the end of January.

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Adzuna said the average starting salary – which employers only published for just under half of positions advertised – was 38,168 pounds ($48,450), 3.0pc more than a year earlier. 

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WTO ministers gather in UAE for talks amid geopolitical tensions

WTO ministers gather in UAE for talks amid geopolitical tensions

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WTO ministers gather in UAE for talks amid geopolitical tensions

 The world’s trade ministers gathered in the UAE on Monday for a high-level WTO meeting with no clear prospects for breakthroughs, amid geopolitical tensions and disagreements.

The World Trade Organisation’s 13th ministerial conference (MC13), scheduled to run until Thursday in Abu Dhabi, the capital of the United Arab Emirates, is the first in two years.

The WTO is hoping for progress, particularly on fishing, agriculture and electronic commerce.

But big deals are unlikely as the body’s rules require full consensus among all 164 member states — a tall order in the current climate.

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“I don’t have hopes that a very substantive agreement will be announced,” said Marcelo Olarreaga, Professor of Economics at the University of Geneva.

“My impression is that the negotiators are dealing with tactical positions – how to make it look like it is the other (side) who is blocking negotiations,” he told AFP.

Even WTO Director-General Ngozi Okonjo-Iweala has said she expects the meeting to be challenging due to the “economic and political headwinds” – from the war in Ukraine, attacks in the Red Sea, inflation, rising food prices and economic difficulties in Europe and China.

Her team is working around the clock to draft agreements for the talks, she told journalists this month, noting that “negotiating positions are still quite tough”, notably on agriculture.

‘Miracle’

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During the WTO’s last ministerial meeting, held at its Geneva headquarters in June 2022, trade ministers nailed down a historic deal banning fisheries subsidies harmful to marine life and agreed to a temporary patent waiver for Covid-19 vaccines.

They also committed themselves to re-establishing a dispute settlement system which Washington had brought to a grinding halt in 2019 after years of blocking the appointment of new judges to the WTO’s appeals court.

“Replicating the success, the miracle, of MC12 in 2022 will be extremely challenging,” European Trade Commissioner Valdis Dombrovskis said this month.

“Negotiations on the big-ticket items” – such as fisheries, agriculture and the e-commerce moratorium – will “remain open until the final phase of the conference”, he added.

“Negotiations on dispute settlement reform and potentially some parts of the outcome document will also be challenging.”

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However, the WTO faces pressure to eke out progress on reform in Abu Dhabi ahead of the possible re-election of Donald Trump as US president.

During his four years in office from 2017 to 2021, Trump threatened to pull the United States out of the trade body and disrupted its ability to settle disputes.

“There will be the US elections in November…so this is the last chance,” a diplomatic source in Geneva told AFP on condition of anonymity.

“Postponing anything until after MC13 is not a good strategy.”

Earlier this month, US Trade Representative Katherine Tai underlined Washington’s “commitment to reforming the WTO and creating a more durable multilateral trading system”.

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But Olarreaga of the University of Geneva said the other members of the WTO “cannot expect huge concessions” from the administration of US President Joe Biden in an election year.

‘Fragmentation’

While there is doubt over progress at the WTO on major issues such as agriculture, there is hope for small advances on other fronts, particularly aid for developing countries.

On Monday, two new countries, the Comoros and East Timor, are expected to be accepted as WTO members.

More than 120 countries and regions, including China and the European Union, but not the United States, issued a ministerial declaration early Monday, marking the finalisation of an agreement aimed at facilitating international investments in development.

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They also issued a submission requesting the official integration of the deal into the WTO, but some diplomats fear opposition from India, which rejects any agreement that does not include all member states.

But amid the difficulty of obtaining full consensus, more and more plurilateral agreements — deals with a narrower number of signatories — are being reached, applying only to the participating countries.

Adding to the challenges for those gathering in the UAE, is the ongoing war in Gaza and related attacks by Yemeni rebels on ships in the Red Sea, a campaign that has disrupted global maritime trade.

“The current situation is characterised by geopolitical tensions,” said a European diplomat who spoke to AFP on the condition of anonymity.

“High expectations from developing nations following the financial crisis and the Covid-19 pandemic, as well as economic tensions due to inflation… (add to the) risk of fragmentation of the global economy,” the diplomat said. 

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