David Solomon stated, "The U.S. economy is performing well, showing strong resilience, and the fundamental situation in the U.S. is a soft landing." Solomon also expressed his concerns about other regions in the world, especially the Middle East, however, this war "has not yet had a significant impact on activities in that region."
Goldman Sachs CEO's latest forecast predicts a soft landing for the US economy, with positive trading prospects, but concerns arise from the Middle East conflict, although it has not yet impacted business.
On Tuesday, October 29th, Goldman Sachs CEO David Solomon attended the annual Future Investment Initiative (FII) in Riyadh, the capital of Saudi Arabia. During an interview with Bloomberg TV, Solomon stated that the US economy remains resilient with improved trading prospects:
"The US economy is performing well, showing resilience, and the fundamental situation in the US is a soft landing."
Solomon also emphasized his concerns about other parts of the world, particularly the Middle East—where tensions between Israel and Iran have reached their highest levels in decades. According to CCTV News, on the afternoon of October 28th local time, the Israeli military carried out a series of airstrikes on Hezbollah positions in the coastal city of Tyre in southern Lebanon, but did not target Iranian oil facilities. Solomon remarked:
"I have some concerns about the situation in the Middle East, which is not good for security or economic growth. I hope leaders and governments around the world can find a way to resolve the issues."
However, Solomon added that this war "has not had a significant impact on activities in the region."
Goldman Sachs establishes a new office in Saudi Arabia, strengthening its presence in the Middle East
The annual Future Investment Initiative held in Riyadh, Saudi Arabia, has been dubbed by some as the "Davos in the Desert," attracting many financial heavyweights including Solomon. In recent years, Saudi Arabia has been undergoing "reform and opening up," developing its economy, and since 2006, has been constructing the King Abdullah Financial District (KAFD) to encourage overseas companies to establish their Middle East headquarters in the country.
Since 2008, Goldman Sachs has been operating in Saudi Arabia, and earlier this year, it became the first major international bank to obtain a license for a regional headquarters in Saudi Arabia. Next year, Goldman Sachs will establish a new office in the King Abdullah Financial District.
Solomon expressed optimism about the business prospects of investment banking, highlighting technology investments as a bright spot—stating that observing the technology and investments needed to drive AI reveals the driving force behind M&A transactions.
However, Solomon also noted some regulatory resistance, stating, "Clearly, elections may bring about changes in this regard."
Earlier this month, Goldman Sachs reported a 45% year-on-year increase in third-quarter profits, mainly due to unexpectedly higher equity trading income and a rebound in investment banking. Despite potential changes from the US election, Solomon stated:
"There is no doubt that the trading environment is improving."