that is something goldman is still committed to?ar: that is one part of the business that has been profitable. it makes sense. goldman wants to lower the cost of funding. this is one way to do it. as long as they continue to grow that, that will have a very definite and defined benefit for the firm. it can stick with that until that makes sense. kriti: something we are keeping an eye on you broke this story first. thank you very much. goldman sachs shares peering a little bit of earlier gains, still up about 0.3%, but certainly off their session highs. looking at the broader market, the s&p 500 is still warming up about 0.6%. does it keep that momentum going into cpi tomorrow and fed day on wednesday? something we will keep an eye on. stick with us. this is bloomberg. ♪ it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings with the best price for two lines of unlimited. only $30 a line per month. that means you could save hundreds a year over t-mobile, at&t and verizon. the fastest mob

stay with goldman for a moment.aking news of course from this morning is that we see some big job cuts at goldman. the bank may eliminate up to 4000 employees. managers have asked to identify potential cost reduction targets. sonali basak spoke with goldman sachs chairman and ceo david solomon last week about job cuts. here is what he had to say. >> if the environment gets tougher, we will make decisions to size the firm appropriately. that can come from slowing down hiring, which we have already done considerably, and also from pruning in certain areas. guy: should -- alix: sonali joins us. >> morgan is at 2%. we saw similar cuts in 2019 to prepare for tough times. to the extent there is a recession next year and how deep it gets, the question is does 8% become more than that? if you thing about the 4000 people being discussed, that takes away a lot of the gains made this year. goldman's headcount has grown dramatically the last couple years. you do see them grow not only from hiring in strategic areas but also fro

goldman sachs ceo talking about a cautious outlook. now we are seeing reports from morgan stanley about them carrying out job cuts. clearly the theme and the beat across wall street seems to be one of caution and that is filtering through into the markets. matt: we heard brian moynihan talking about shaping, headcount . should ali bassett was talking to dave -- sonali basak was talking to david solomon. we are talking about taking of the underperforming 10%. sridhar: when you have any sort of job cuts, that does play a role into the psyche of how people think about operations and performance but this is not big layoffs. but seeing what is happening the last several years, through 2021, you have had phenomenal growth at these firms. look at goldman sachs and you will see a lot of growth. looking at morgan stanley, look at the headcount, or 80,000 people. when you have had that kind of growth, it is responsible, at least that is how management sees it, to carry out his school discipline measures and that means some job cuts. matt: thank

at goldman sachs. what you said? sonali: on the record, on television with us, david solomon said firmwide performances what they are going to pay off. tom: he is under the delusion that he is going to pay traders which after an aggregate performance at goldman sachs. sonali: the flip is he said the wars are sticky. tom: is mr. gorman -- i am not saying he has slowness in advanced finances but is he doing the same thing in applying an aggregate performance or slow down to high-performing bonuses? sonali: you have cft reporting that bonuses could fall by 40% at goldman sachs. tom: did their business fall by 40%? sonali: goldman sachs today is leading in mergers and acquisitions by almost 10 percentage points. 10. for them to cut bonuses by 40%, it is leverage. where are these bankers going to go? tom: i have never heard this. i have never heard that you can take derivatives traders in the sweat and humble -- sonali: this is pencil sharpening. the numbers are not set in stone. if you say 40, everybody el

sonali: you are leaning into so much of the core goldman sachs. couple of months ago you announced this general realignment in consumer strategy. do you expect more big changes to be announced ahead as you have your next big investor day coming up? do you think you will have a target here? do you have any sense of when it can become profitable? david: we made a very purposeful decision in this reorganization to organize the business into three units. our asset/wealth management business, our banking and markets business -- i was highlighting our banking franchise, a leading franchise -- and we took our platform business. we narrowed our focus, purposefully, on our consumer business, and try to align it with things that play to our strength, there it is the technology development of platforms, our relationship to businesses, and also our alignment with our wealth business. with that narrowed focus we are going to be very attentive to making sure we scale those platforms and they are as quickly as possible. sonali: your five, you look around corpora

the goldman sachs ceo david solomon says job cuts may be on the table. plus, georgia on my mind. senator rafael warnick defeats republican herschel walker in their hotly contested runoff, giving democrats an outline majority in the upper chamber. francine: if you look at the futures, they are trading sideways. certainly, ftse 100 futures are pretty much unchanged and dax futures down .5%. yet many question marks about china and worries by the global economy. tom: we will see if that changes today. u.s. stocks off four state -- four straight days. after all the speculation and incremental changes, today we have finally got confirmation from the top but there is a pivot on covid zero. that is consequential. the trade data was very weak, particularly exports, such an important pillar of growth for china the last few years. and surprising as you lead up to that holiday season. currently across european markets, opening lower, the ftse 100 off by .2%. in spain, losses of .2% as well. a bloomberg survey including the likes of goldman sachs and bank of america suggesting you will get ga

technicals to find out which two tech stocks are about to bounce >> plus, storied wall street bank goldman sachs reportedly has plans to shed 8%, up to 8% of its work force. are there more layoffs to come those stories and more in the hour ahead first, to kelly with a check on the market >> thank you, jon. welcome. hi, everybody. stocks getting slammed once again. the dow's three-day losses totaling more than 1300 points we're down 548 at the lows, about a 1.5% drop across the board here 3833 is your level for the s&p 500. big options day as well meta is the best performing stock on the s&p after an upgrade at jpmorgan to overweight they're talking about easing cost pressures the stock eking out a gain for december meantime, the energy department will begin repurchasing crude for the spr, the first purchase since that record 180 million barrel release from the stockpile, with crude prices around $74 and change, now seems an opportunistic time to replenish it >> on wall street, the soft landing crowd is on the defensive, as calls for a recession, a hard landing recession grow our next guest

companies are responding, like goldman. they're putting it there comes a little bit to make sure they are prepared for more weakness. that's a good thing. i don't think the weakness is quite priced in yet, and that could lead to new market lows if we see some recessionary cuts being priced in. caroline: go global for us. perhaps more weakness in u.s. stocks. have we seen enough of the pain trade there already in the likes of europe and asia, or no? callie: globally, i think there are a lot of opportunities in the u.s. and europe if they are willing to think outside of their borders. some bright spots, china reopening being the brighter one going into the new year, but the fact that the global economy is out of step with the u.s. economy could allow for some interesting diversification opportunities going into 2023. also, the fact that european and asian markets have priced in a lot more pain does make them right for more of a rebound, especially if we see ourselves come out of this weakness. paul: really since the great fin

>> how unique goldman sachs is.the row issue for me is how much is this representing a lack of inability to reach profitability targets. a lot of people have raised questions investors versus something that is more wholesale having to do with the environment especially after how much they beefed up. you have to imagine it's going to slow a lot and that's going to create a lot of pressure. is it going to increase that much? this all goes back to the rates picture. if they stay where they are how many companies are going to want to refinance? >> goldman sachs set to cut as many as 4000 workers, the stock is down by about 1%. coming up, sam stovall of cfra. from new york, this is bloomberg. from one company committed to building a world that works, to three that will focus on a future that does too. this is ge healthcare, creating a world where healthcare has no limits. this is ge vernova, helping generate and move the energy that our world needs. this is ge aerospace, advancing flight for future generations. this is t

we are told to expect cuts to bonuses from goldman sachs. let's start with that goldman sachs story. the bonus cut is expected to hit the firm's traders. context for how surprising this is, traders are bringing in profit for goldman sachs, one of the best performing divisions. the compensation pool for them will be slashed by a low double-digit percentage. this is for a trading division on track to see their biggest revenue hall in more than a decade. profitability concerns across entire business, considering how much they spent on the consumer division. it is being pulled back. other areas are also expecting a bonus cut. they told staffers that bonus season will be difficult. this is after we saw this huge bid for bonds. 10 year yield at one point yesterday hitting its lowest level since september. we do have a speech from chair powell yesterday, we had pc coming out. that is the fed's preferred measure of inflation. plus, jobs later today. not only has it set -- sent investors into bonds, pre-equity is lower today. why would you want to ta

, the whole of goldman sachs.an sachs, expects 3, 25 basis point rate hikes into thousand 23. if you are right, if goldman sachs, the mighty investment banker, with 25 basis points. >> we thought we would be between 4000, 4150. 5 or 6 weeks ago it seemed like a stretch. the forecast is relatively accurate. next year around 4350 to 4450. it doesn't mean a straight line. into recession, the last two years, the market, you should see more volatility. 16% on the us and b, much more on the nasdaq, dow is doing very well. we took value stocks which the dow predominantly is. that was a good strategy and we think that continues. you want to be in the us and even though we have a nice run in november, it is up 11. we priced in a lot of recovery. probably a recession coming. stuart: this into president biden speaking about favorable inflation number that came out yesterday morning. >> president biden: inflation coming down in america. just getting started. the goal is simple. get price increases under control, not choking o

we will get more on that with the ceo of goldman sachs, who sounded shery: goldman sachs seeing bumpyes ahead, warning of potential u.s. recession next year. david solomon spoke with bloomberg on the sidelines of the goldman sachs u.s. financial services conference in new york. >> we operate a business where every single year, we have to pay our most important asset, our people. it should not be surprising to people, watching the performance of the business, that's 2021 was exceptional. a record year. highest red dachshund -- highest net revenue ever. we are still early in the process of making those decisions. like every year, we pay for performance and we will pay people based on the overall performance of the firm. especially for our senior people. we consider the overall performance of the firm as we go through our process. >> this year you reintroduced the natural culligan of headcount. the bonus discussion is not just here, it is everywhere. how do you balance that with the story we saw a year ago, this talent war? and what is happening this year into tougher times? how do you b

goldman sachs is reportedly looking to cut head count as soon as january. we will ask bank analyst gerard cassidy if he thinks more will slash jobs when "closing bell" returns. >>> some 4,000 jobs may be on the line next month at goldman sachs, according to a new report and the year-end message to staff, ceo david solomon reportedly told employees that are several factors affecting the business landscape, including tightening monetary conditions that are slowing down economic activity. joining us is gerard cassidy gerard, it's good to have you here it's been a tough year, probably no surprise there will be some trimming of staff. is there anything else going on at goldman in terms of a restructuring, a reorientation away from some businesses that this reflects, these potential layoffs? >> thank you for having me you did put your finger on it. i think, obviously, 2022 has been a very difficult year for the investment banking business. in particular for the ecm business that being said, though, goldman has the added challenge of restructuring their consumer b

he spoke exclusively to sonali basak at the goldman sachs u.s.al services conference taking place in new york city. >> it said it be surprising to people watching the performance of the business that 2021 was an exceptional year, the highest for the firm, highest revenue ever for the firm. 2022 is different so naturally compensation will be lower. we are early in the process, but like every year we pay for performance and we will pay people based on the overall performance of the firm. especially for senior people. you consider the overall performance of the firm as we go through the compensation process. sonali: this year you real introduced the natural calling of headcount. the bonus is everywhere on wall street was not how do you balance that with the talent war that we saw, the booming market for people and what is happening this year going into next year into tougher times. how do you balance those more difficult conversations? david: we take a long-term view with everything and you have to adjust to the environment. you make changes around

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andrew weizmann and daniel goldman are with us. they were scheduled to be our first guest tonight, they have had a few minutes with the report. andrew, let me get your first reactions to anything that has leapt out at you, if anything. recognizing that you've only had a few minutes, i'm gonna give you more time to read, this but this is just your first headline reaction to it. >> yeah no i see dan and i are doing the same thing. we are trying to do two things at the same time. this is a monumental, or as you said, it is over 800 pages and there are four appendices that look fascinating, addressing such minor issues as the preparation of law enforcement to meet the challenges of january 6th and whether there was foreign interference in the 2020 election there were these appendices, and they're trying to take the entire report. and then the table of contents is really, to me, attracts what i think is the genius of the january six committee. which is really focusing on all of the different ways that the former president tried to stay

plus goldman cuts deeper. the wall street titan is said to be planning hundreds of addition job losses at its consumer business as a struggles. dani, good morning. they had a sloppy 10 year auction. the tail was rich. it was 80 four basis points p have not seen a tail like that since the 1990's. they don't want those bombs ahead of the cpi. dani: it is also one of blackrock's top calls. do not buy bonds since inflation is here to stay. we will be grappling with that menace. is inflation here to stay? today's cpi print will give us a hint either direction? manus: want to dig a little bit deeper into that. here's the greatest debate of the morning which is what should we be looking at? this is one year at expectations or this is breakevens one year forward from the michigan consumer sentiment and the new york fed peered what you are looking at here is a deep road of what came first, the cart before the horse? do u.k. bonds because these are rolling down or are these an indication of a catastrophic inflation impl

fracine: sharon bell at goldman sachs. coming up, chinese stocks climb as beijing eases covid testing rules. we discuss that next. this is bloomberg. ♪ francine: 13 minutes until the european trading day. pressure on european stocks that follows a pressure on u.s. stocks yesterday. unexpectedly strong u.s. services figures data. we are seeing a bit of changes and for example a lot of commodities under pressure in today's trading session. tom: from one central bank to another. australian commodities because there is a linkage there as well and china reopening. the set australian central bank has raised the highest level since november 2012. bloomberg has more. we have seen the aussie dollar jump 4/10 of a percent. what is the significance of today's decision from the rba? >> the rba has always been an early mover for central banks around the world. they have tightened aggressively and indicated some sort of slowdown. this will be significant as we talk about the federal reserve stepped down the we are expecting to your next

a similar question for goldman sachs.oes spending on technology to revive these businesses or positioning to take on competitors, where is that now? how vulnerable are they on that front? russell: on the consumer front, goldman sachs is trying to downscale this before they enter online banking. it was a costly exercise and there has not really been born fruit out of this. they want to compete with online apps and banks and their own in-house start up in their area, but there has been a better reality check on that front. that is scaling it more appropriately going forward. francine: thank you so much. russell ward with the latest on job cuts on wall street. ftx co-founder sam bankman-fried as been arrested in the bahamas at the request of the u.s. government. bloomberg's joanna ossinger joins us with the details. do we know why he was indicted? joanna: francine, we still have a lot that is to come out and we know that there are some issues people are looking into regarding the funds, possible other things, but we will see

. >> andrew weissmann and daniel goldman are with us. they are scheduled to be our first guest tonight. they have a few minutes worth of reports. andrew, let me get your first reactions to anything that has let that you. anything you recognize. you only had a few minutes, we want to give you more time to read this. but this is just your first headline reaction to it. >> i see dannon are doing the same thing, which tried to do two things at the same time. this is a monumental effort. the first thing, as you said. it's over 800 pages. and there are four upended sees that were fascinating addressing such minor issues. as the preparation of law enforcement to meet the challenges of january 6th. and -- to the 2020 election. there were these appendices, and they're trying to take the entire report. and then the table of contents is really, to me, attracts what i think is the genius of the january six committee. which is really focusing on all of the different ways that the former president tried to stay in office. as opposed to just thinking a

francine: goldman sachs traders are in for a rude awakening.berg has learned that the lender have warned that its compensation pool will be slashed. this follows a similar warning from jeffries to others across wall street. we are joined by tom metcalf. how big of a surprise is the goldman news? tom me.: it is a surprise to the markets division. people were expecting cuts in the investment bankers union, but these are people that have done well and supported the bank, and goldman is if you perform well, you get the bonuses, but now we are hearing about cuts to the bonus pool, which are not reflective of how the markets trade. tom: this is a surprise for traders at goldman sachs, but they are not the only ones. tom me.: this is a big issue for a lot of bankers out there on the deals side. pretty much every bank this week were warning their staff it will be a tough bonus season. barclays, we are hearing that some banks might get zero bonuses, so across-the-board particularly across investment banking, it will be a much tougher bonus season. franc

goldman sachs to layoff up to 4,000 people goldman sachs did over hire, we know that. >> they over hiredance? >> no, there's a lot of overhiring for example, morgan stanley is letting people go right now. don't know the numbers, but they're letting people go. >> goldman made acquisitions rationalizing things they are trying to decide who has done great and it's not district 13, but there is a sense that goldman has -- >> that's a big number though. if that number were true, that's 8, 9% of the company's workforce. that's a high number. >> that number is not true that number is not true. it's probably -- that would be if they decided, you know what, we've really got to hunker down. that's not their target by any means. now how did it get to that number they're certainly not willing to say, yeah, it's probably going to be around 4,000 they think it's less than that. >> okay. >> but the fact is, layoffs? yes. if you remember back, david solomon, i interviewed him he said, listen, if things don't pick up, you know we have to change compensation. managers, by the way, they just get calling us

. >>> andrew weissmann and daniel goldman are with us scheduled to be our first guests tonight. they have had a few minutes with the report. andrew, let me get your first reactions to anything that has leapt out at you, if anything, recognizing that you've only had a few minutes, we'll give you more time to read this, but this is just your first headline reaction to it. >> yeah, no, i see dan and i are doing the same thing. we're just trying to do two thicks at the same time. so this is a monumental report. so the first thing is as you said it's, you know, over 800 pages. and four append disease address such minor issues as the preparation of law enforcement to meet the challenges of january 6th and whether there was foreign interference to the 2020 election, those are just appendices and then the table of contents tracks the genius of the january 6th committee which is really focusing on all of the different ways that the former president tried to stay in office as opposed to thinking about january 6th as a singular event and whether the president helped incite people to go to

that's a very specific goldman story. >> so, there's a very specific goldman story.here are the job cuts then there's also the reports that you're going to have big banks kind of across the sector slashing bonuses as we've seen the dearth of deals this year as well i guess, just walk me through, in general, what the beginning of next year is going to look like for financial services employees. >> well, i'll walk you through the bull case, which is if you're goldman sachs and head of debt capital markets, right now you're in the process of saying, look, david, i understand, you know, we've had a terrible year. do you think '23 is going to be as bad as '22? their pitch is, once we get certainty on the glide path of interest rates, there's going to be more activity there's going to be some more ipos than there were in '22. there will be more deals than there were in '22. that's the bull case you talk in your book if you're goldman sachs and say, don't cut as many as 8%, cut a smaller amount the bear case is, you know, we're headed into an economic downturn you know, if

goldman today 2023 u.s. equity outlook, they title it, jenny, the flatland why? zero eps growth, zero index price gain they're looking for zero growth in earnings. unchanged pe multiple of 17 times. what happens if there'sry session? eps falls by 11% the index troughs by 3150. that's a 21% decline >> so i look at this as a portfolio manager and i'm like that's fine, that's my landscape. can i live with that, can i make money with that? then we look at how much is priced into the stocks you know when i bungled the word asynchronous this goes into the recessions. not everything is happening at once that is a big broad picture that incapsulates the entire market we as portfolio managers here, we can sort through that, and we can say, you know, the industrials you were talking about when you were saying the infrastructure bill i'm thinking, okay, in our portfolio we have united rentals united rentals benefits from the infrastructure bill and i think trades at ten times earnings and has unbelievable earnings growth i can take that backdrop and i can say i can remain f

. >>> coming up, goldman sachs almost perfectly flat on the year, but reportedly trying to cut costs. that could start with the year-end bonus pool. look at the names hitting 52-week highs today, including las vegas sands, ulta, and campbell soup. ulta is at an all-time high. >> there was no person in charge i understand what the scale of the market crash could look like there were absolutely huge management failures. >> what are your employers telling you right now? are they suggesting >>> despite a stronger-than-expected jobs report, more layoffs and bonus cuts are hitting wall street as deal making stalls this week morgan stanley became the latest to announce job cuts. goldman sachs and jeffreys are warning about a challenging bonus season we bring in banking reporter for cnbc.com, this is the real coal in the stocking for those who work in finance this year, right? >> it is, contessa how's it going it is particularly if you've been on the trading side at a place like goldman sachs say you've been a fixed-income trader and, you know, you just had a bonkers year you really killed it

. >>> call it peak inflation a new note from goldman sachs says the worst is behind us, but that does not mean the fed is about to slow down any time soon. >>> breaking this morning. breaking news from the largest chip maker in the world on the multibillion dollar investment in america news one ceo says is a game changer for the industry. >>> plus, amid the collapse of ftx, one investment bank is on the hunt for deals in crypto >>> later on, beijing easing covid zero rules overnight to mixed reception from investors it is tuesday, december 6th, 2022 you are watching "worldwide exchange" here on cnbc >>> good morning i'm dominic chu at cnbc global headquarters brian sullivan is live in rotter d rotterdam, netherlands as part of the week long energy crisis >> dom, it is not about europe, but the u.s. and world as well you led the show with goldman sachs showing the worst of inflation may be behind us that may be true in the united states i'm not sure it is true for europe or other parts of the world. europe, this is the third biggest combined economy u.s., china and eu third biggest in

he ultimately wins it takes years in the interim tony goldman gets a. at his home one morning from someone who identifies himself as vinnie and is very upset that mr. trump is not getting his tax abatement. and there's a there's a threat in this goldman reports this to officials he is given a security detail it was i think the next day i don't have the book in front of you the next day trump himself claims he too got a threatening which was so. and and that call known many years later when the fbi files were undone. there's no hard proof of who called trump, but there is widespread for people around tony goldman that that it was trump himself. the way this story ends is that trump gets the tax abatement. eventually he wins in court. and it's the details are little dense, but ultimately, who has two children and a bad weight problem gets a call trump inviting him to lunch and trump ultimately offers him a job and goldman takes it. and ed koch almost fell over when he found out that goldman going to go work for trump and i would argue that that was one of

kriti: thank you david merkel in goldman sachs and andrew patterson at vanguard group.nk you for joining us. stick with us. the fed decides is next. this is bloomberg. ♪ when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels. we tackle the cause of weight gain, not just the symptom.

you will see others do similar there's a little bit goldman centric aspect here.rgets they're focused on and operating margins they're trying to live up to. think about 2021, which is strong, and if they take out 8,000, the rumored number, up to that, that would get them to where they were starting 2021. you know, it's a little bit more than they normally do every year, but i wouldn't look at it as a drastic shift in strategy or something that means that there's a much bigger shoe dropping here. we're comfortable with it and i think they've alluded to it and look beyond middle of next year. >> i think what you said about the growth is really important the perspective coming off a period of strong growth where, i don't know, they didn't do layoffs last year like this did they, in the last two years, and grown the bank and grown the assets and so have others. >> yeah. so exactly i think when times are good and you need people to help execute the business you don't take as close of a look at your head count. i think that you look again, they've grown their head count

goldman sachs sees the stock market declining we see a lot of negative tanks on 2023. how do you read the macro environment right now? >> i was definitely wrong. i saw less than double digit gains. i was in the range on the s&p 500. from what i see, a lot of us got that wrong we can take the contrary review. i think the first two quarters will be rough. i think everyone is showing bea bearish. i like to go the other way in that respect i think we potentially will see a better year than 2022. i do think after the first half of the year, we get to a place where we see rates moderate and pause and go down. you see where that is stronger and earnings start to go up for companies. then potentially have a positive year for 2023. >> yeah, that's it it feels like it is decidedly bearish take for the first half of the year. we will see what strategists can do in 2023 delano, thank you. have a great day we will see you soon >> you, too. >>> we have a lot to do on this monday coming up, a story in energy that could be one of, if not the, greatest energy breakthroughs of the moder

goldman stocks to your point are under a lot of pressure.nk it's a capacity concern. >> the second worst performen subsector of the s&p right now, today. such a fine metal and glass containers, very bottom of the list helaine, sounds like you think the sell-off is overdone which should you be buying >> i do. i think they are united, ual our best idea for 2020 and repeated repeated it for 2023. we think a mix taking place in the industry shifting away from domestic to more international and some business resumption not 100% of the way back, but ual is probably our best and delta as a buy southwest a buy. alaska air, all buys, and those our top four choices in here each for specific reasons, but all across the board just continues sound demand u think we're going to see okay cost control pilot costs are the ones going up a lot, but it's only a 2023 increase, and then the increases for '24, '25 and '26 will be smaller than those 30%, that 30% increase we saw delta give their em -- think pilots earlier this week. >> helaine, thank you very much

could be we're learning something from goldman sachs.mic, they used to lay off a couple thousand people a year. they could be getting back there. could be we're learning something about the financial services sector. the era of easy money is over. we'll see this happen across the sector. we learned the least about the economy. the broad indicators of the labor market are not showing a market slow down. we saw a little uptick in claims for unemployment insurance this morning. we're still at historic lows. unemployment rate is low. creating a couple hundred thousand jobs a month. this is not a disaster area. >> edward: but you're seeing the tech lay-offs. the federal reserves believes unemployment will be 4.6% by the end of next year. so somewhere in there, there's going to be lay-offs. >> absolutely. we have an inflation problem. the flip side is a hot labor market. so to get rid of the inflation, we have to see the labor market cool. the question is when. i don't think this is the real big indicator. i'm concerned about the middle of 202

car prices in all, tesla has lost $117 billion in market cap that is about the size of an entire goldman sachs, or a boeing or even a starbucks the mighty musk empire has seen more than $700 billion in market value go up in smoke that is mcdonald's and nike combined and just how bad things are. this is the front page of drudge this afternoon a picture of musk with flames engulfing him in the back ground mike khouw, the value on top of this 11% decline was extraordinary, it was triple the 30 day average volume. what did you make of the sell-off >> yeah, i mean, look, when you start seeing their cars piling up on lots, when you see the company offering incentives which they are right now, although i don't think they're calling it that but you could get a $7,500 discount on y's and even high priced for gas and california, that is only a $500 value. but the fact is that tesla for a long time were the used car, people would buy them and flip them the demand is not there. and of course that is going to cause people to wonder whether the growth projections are sustainable and they're going to w

sachs so when i meet with the ceo of goldman sachs he's selling goldman sachs. but they're a little bit better because we know they're cutting some conversation. this is one that's really important we have a thing called tan in our business. the total adjustable market. >> heard more about it with the run up. >> smile direct, one of your favorites. they said they had a $500 billion tam because everybody's teeth look bad. and then when the stock went to 53 cents the tam staid at 500 billion. >> it's the future concept. >> and one more. when the fed says things are too high don't say what do they know. say, they've gotten hawkish. this is november of last year. maybe we should temper enthusiasm these were mistakes. some i did better on than others but they're things i want people to know. >> but you did a lot right too. >> but the call itself is usually about things i screwed up on. i've seen money managers on your show they never made a mistake one day i'll be like that. i'll never make a mistake. i'll bat a thousand, chase will catch everything, all 100 yard dri

but goldman sachs is saying not so fast.down and they think consumers are going to keep spending and the economy is going to avoid a recession. there are real positives. inflation is cooling off, still high but cooling off. gas prices are at 16-month lows. gdp is positive. and unemployment is really low. for you kaitlan i looked up the unemployment rate in alabama, nationally it's 3.7%, which is low. alabama 2.7%. down from almost 14% in 2020. and poppy, in minnesota where you're from. >> thanks for not leaving me out. >> i would never. 2.3% unemployment, tied for the second lowest in the country. so these are strong numbers. >> when i was home for christmas, i heard family and friend complaining about the price of eggs and how expensive things still are. what are the other things that goldman is looking at predicting this? is it supply chain recovery? inflation they think is going to ease up more? what does that look like? >> they think the fed's interest rate hikes are cooling inflation and they talk about the supply chain

it's interesting to hear them down here today, because at the goldman sachs conference, a big goldman sachs financial conference that's going on today. and a number of companies have commented on the travel business here american express was talking this morning they said they're still seeing record travel bookings bank of america spoke, the ceo there. brian moynihan, he said travel was strong, consumer is still strong, although the rate of growth for the consumer is slowing a little bit and ally bank expect a soft landing or a mid-landing the banks are not doing well the banks have been terrible performers in the last few days. jpmorgan is up today, because morgan stanley -- oh, now it's down jpmorgan was up all throughout the morning. it got an upgrade at morgan stanley, but amex down, bank of america, zions had a terrible day yesterday. some of these banks are starting to appear to be anticipating somewhat weaker economic conditions in 2023 where are we, kelly? remember the powell press conference last wednesday? we went from 3950 to 4100 on the s&p. there you go, kelly, that is a

goldman sachs is reportedly doing this. who else is doing it? the managers at goldman were told to identify weak performers. when you hear this news leaked out right before christmas, you are worried. office happening as the fed commits to higher rates, the job market is finally beginning to feel the pinch. not just tech and media and crypto layoffs, it is more downsizing that is widening and i end with this. the market might be believing what jay powell and the fed are selling, committed hiking rates and they are not convinced that inflation is rolling enough. neil: i am so glad you mentioned the percentage, 8% of the workforce, and microsoft, it was a pittance, this is getting to the bone. thank you very much. dan gail trudy is with us, what do you make of this, when investment firms lay off workers, they present the best view of the world, it is bad enough for them to start jettisoning workers. what do you make of that? >> when you measure what is happening with the economy there's a couple places i look. what is going on in banking in retail

obviously, it's not a new call for goldman. traders again are agreeing with that.e had traders say, i hate to admit it, but he is right. jon: we have this conversation in canada all the time. even within the tsx, energy makes up about 18% of the index versus 5% for the s&p 500. materials are up to 30% of the index. you have had a lot of bullish folks on commodities. look at what has happened to oil given the recent downturn. you have, even within the s&p 500, a huge surge this year for energy stocks and oil has basically given up all its gains. stocks that are historically cheap, sure. still, the big winner sector, and oil, not really moving on the year over all will be an interesting dialogue to see if people really want to move into these stocks next year. julia: yes, but we have to realize that commodities are still up on the year, even though oil is still basically the same year-over-year. we have to see that energy stocks, they are futures. they are pricing in the china reopening. while january crude for wti is pricing in now. there is bigger room to grow for

dani: speaking on the sidelines of the goldman sachs u.s.cial services conference in new york. joining us now is rafael, chief -- chief economist. solomon says bumpy times ahead. dimon says it will be a mild to hard recession next year. is this done review right that american bankers are taking? do you agree with them? >> we also forecast a mild recession for the u.s.. we forecast about -07 for 2023. the recession depends on how high the fed really decides to go and for how long. definitely, i think it is a recession. that being said, with a couple of peculiarities, first of all, inflation isn't coming down very quickly. no matter what the fed is trying to do. second of all, the labor market is going to prove more resilient and what you would expect. more so in europe than in the u.s.. the labor market will surprise you again. dani: it hasn't yet. any sort of the cracks we have been warning about, they haven't appeared. the labor market has stayed strong, the ism data was strong in the u.s.. what are we missing? the economic data keeps surpr

goldman sachs has outperformed, their revenue is $25 billion just in revenue.you're being told this week that the -- is going to be down double digits, that is worse movement in the direction of the compensation pool relatively to your revenue movement. that is going to result in an allergic reaction. guy: what reasons would they want to do this? sridhar: there are some idiosyncratic reasons. let's talk about the broad reasons, there is austerity across wall street but at goldman sachs, the chief executive officer and -- are dealing with expense issues. consumer banking has settled them with losses. they have been spending a lot of money on that front. a lot of sins were masked in 2021 because you were on your way to a phenomenal year when the bank raked in $60 billion in revenue. when you lose that, you lose the protection and cover, suddenly even if your traders are doing well, you have to worry about the entire form. you can only be as happy as your unhappiest child. alix: [laughter] guy: that sounds like a familiar theme. thank you for joining us with the b

goldman sachs are positive on the mainland. comments did come from the president speaking video -- speaking via video link, but said business in china, particularly in the capital markets is doing well and they are looking for more opportunities ahead, particularly in china's mainland asset industry. one thing we are watching closely is any sort of opportunity is the company one, considering we have the worth conference taking place and that could give us more support for china's property sector. perhaps we could get officials signaling this crackdown on deleveraging could be over. add to that more support to prop up demand from the consumer side , so these are two areas we will be watching closely. we have seen investors are buying on the rumors here, that huge run up we had in property stocks above the bloomberg index, the 200 week average high. haidi: it is a bit like groundhog day because i feel every day i'm asking you, it seems like investors are turning more bullish on china. annabelle: i guess you could say another one

. >> leading off our discussion tonight, newark representative up elect daniel goldman, he is a former house counsel for the impeachment of donald trump and a former excessive -- from the new york -- also with us, and you, eisman former fbi general counsel any former chief of the criminal division of the eastern district of new york. he's professor in practice at nyu school of law. msnbc legal analyst. and andrew weissmann, let me begin with you to the question of what do these convictions for seditious conspiracy main for donald trump? >> well it's important i note, these are historic convictions. they are a whole series of cases that are coming up in washington d. c. for a similar nature that the department has brought. it is decades ago that there was a last case where someone was charged with seditious conspiracy, and if you think about the facts that were proves here found by a jury, you can't think of a more important case to charge something like seditious conspiracy or trying to rick row, or presidential elections. i think what it means is that having been in the departments, i

and the ceo of goldman sachs expect layoffs because the bank is facing challenges.it's been speculated goldman could cut up to 8% of the workforce or 4,000 jobs, but it could end up being lower. >> thank you. >>> 4:44 right now. 49ers trying to make it nine wins in a row against their rivals. the red and gold prepare to face the las vegas raiders. we'll be right b we'll be right b ac [narratotor] everyonone nees quality y health insnsuranc, even if f you'rere hehealthy and d active. [narratotor] everyonone nees quality y health insnsuranc, covered d californiaia is a f free servicice to helelp you get t covered. covered d californiaia is a f free servicice 90% of m members have r received fifinancial hp and evevery plan o offered is comomprehensiveve, covering p preventive e c, doctoror visits, and evevery plan o offered is comomprehensiveve, emerergency carere, and more. regardrdless of yoyour incom, check todaday to see h how coved califofornia can h help you. regardrdless of yoyour incom, and ifif you have e question, there's free assssistance everery step of f t

goldman saying only 40% of the china reopening story is currently in this equity market.ities have rallied quite significantly since those significant steps of less testing, more things opening in beijing. manus: yep, it depends the scale and the pace of that reopening, doesn't it? to another major story we are tracking this morning. bloomberg learning the united states and european union are considering using tariffs on polluting countries as part of a bid to fight carbon emissions. the move would hit the chinese metal producers and would be a novel approach to tackling climate issues. i only wait to see what the retaliation might be. our industrial commodities reported in shanghai joins us. we have heard a lot about aluminum and steel tariffs. that was the trade war under trump or indeed even earlier. what is tier really different here? this is for the good of the planet? is that the hospices? martin: yeah, you're right. this adds to a long history of measures targeting steel -- chinese steel and aluminum. we have seen measures in the past targeting unfair subsidies in

rishaad: david solomon from goldman sachs. breaking news.na is urgent coordinated covid control -- urging coordinated covid control. they will continue to coordinate that. monetary policy should be forceful, all of this from the news agency. david: these lines are coming out as a summary of the meeting that took place yesterday. on top of that, fine tuning of covid control measures. the operative word is the balance between the buyers and the economy. that is one of the takeaways. there does not seem to be anything to indicate that a flood of monetary stimulus is on the way. it should be targeted and forceful in some ways. so far, that is what we have. traders are looking for more things to latch onto. rishaad: monetary policy should be targeted and forceful. there we go. let's have a look at the developing story. the business flash headlines. country garden raised $620 million in a month. this is china's largest real estate company. carvana's largest creditors sinopec to prevent a brawl over carvana. the move is intended to prevent any infi

. >> you still have bank of america, blackrock, goldman, so i hear you, pnc., so you're negative and negative on the market, negative in general just in a broad sense. >> exactly like i don't like your suit either >> i totally hear you. it's all good. i'd expect nothing less from you. but the punch line of all that is you still own bank of america and goldman sachs. and yet you still like these stocks what's up? >> when i look at the companies i look at management it's why i no longer own boeing but why i do own b of a and goldman. both were pretty cautious if not somewhat negative this week talking about where we're at, their businesses, how they might look in the months ahead particularly goldman the stock because it had such a recovery, but i've got nice gains in there. i do like them longer term and why sell them and pay taxes unless i i think they're going to go down appreciably more. i sold about a week or so ago because i bought the exposure and i bought the xlf as a trade. >> the point you're making in reducing your exposure is prudent in your mind >>

goldman sachs cutting the price target to 235 from 305.56 and change right now, citing softer global supply and demand for the ev merrick. the brokerage also slashed its deliveries target for 2023 by about 100,000 units, interesting, goldman didn't mention elon musk, but tesla has been under serious pressure from a lot of investors as the ceo, elon musk, focuses way more, they believe, on managing twitter, his new, shiny toy. the stock of tesla down about 30.5% since he took over the social media company. its market cap has fallen $500 billion. does that still stand, folks? it was kind of toggling back and forth. let me just make sure, yep, that is very true. it is now at about 493 billion market cap. and musk's fortunes, so it gets personal, they're intertwined with tesla's stock, they have been dwindling. he has now lost his spot as the world's ridgest person -- richest person to the louis vuitton cofounder and ceo. [speaking french] charter communications losing its signal after the cable company told analysts it plans to ramp up capita

our resident gamer and gaming expert >> meantime, in crypto, goldman sachs and jpmorgan see the space differently this morning the former getting aggressive in acquisition, hunting for crypto firms, while jamie dimon reiterating his bear take on crypto earlier on squawk with us >> crypto is a complete side show, and you guys spend too much time on it. i made my views perfectly clear about crypto tokens are like pet rocks. people hyping the stuff up >> and all of this while binance's cz takes to twitter to correct the narrative on his role in the ftx fallout. kate rooney joins us to sort through all of this. first, i was looking at that cz thread, all the focus on ftx what about clearing up some narratives when it comes to binance? the whole industry moving towards proof of reserves. they don't exactly have that yet. they're still a lot of shortcomings, audited financials it feels like he's using the ftx episode like a lot of crypto companies to take attention away from what they're doing. >> it brought more skepticism and criticism on binance, so he's trying to defend some of the crit

he said he worked for goldman sachs. says, okay, that was a poor choice of words what i meant was i worked for a company called link bridge that did business with goldman sachs. now, that basically means that everybody who has ever worked at a starbucks can say that they worked for goldman sachs because, you know, every starbucks has had a goldman sachs banker walk through and buy a cup of coffee. where you get into this kind of trouble i can't help it, it takes you to places that are, you know -- i mean, the guy obviously has no moral core whatsoever but it puts you in a position where you have to tell lies like this that are in some ways better than the original lie because they're much more outlandish he should just be like, yeah, i made it all up and you suckers bought it. i have two years to prove my worth. come and get me. >> will he survive >> he absolutely will survive. look at how at the beginning -- do you remember the cautionary tale of a woman named marjorie taylor greene, cross fit lady from down in georgia