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HONG KONG, March 3 (Reuters) - Bank of America (BAC.N) and Citigroup (C.N) have cut some investment banking jobs in Asia, people familiar with the matter told Reuters, joining global peers in paring headcount as China dealmaking slows. Citi on Thursday trimmed four jobs from its China investment banking team, said one of the two people and a separate person. BofA and Citi both declined to comment on layoffs involving investment bankers in Asia. JPMorgan (JPM.N) has also cut around 20 investment banking jobs, mostly mid-level bankers focused on China deals, according to two separate sources. Nomura Holdings Inc (8604.T) has cut 18 Asian banking jobs, most of them China-focused investment banking roles, sources have said.

☆ Goldman warns of possible pre-election currency market turmoil in Turkey
▼ + stars: | 2023-03-02 | by ( Marc Jones | ) www.reuters.com time to read: +2 min

LONDON, March 1 (Reuters) - Goldman Sachs has warned of the potential for foreign exchange market instability in the run up to Turkey's elections following years of currency reserve depletion and other costly measures. While not its base case, the Wall Street bank said problems could be triggered if savers and firms became worried that a shift to more orthodox economic policies under a new government would fuel short-term FX market turbulence. "The current market uncertainty poses significant risks, in our view," Goldman said in a research note published on Wednesday. If problems do take hold the lira would fall, especially given the sharp depletion of Turkey's currency reserves in recent years. That compares to a combined short FX position - or exposure - of the central bank and treasury of $260 billion.

☆ Goldman says these are the favorite stocks of both mutual funds and hedge funds
▼ + stars: | 2023-03-01 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Mutual funds and hedge funds tend to have different risk tolerance and exposure, but Goldman Sachs found a list of stocks loved by both cohorts. It then compiled the "Hedge Fund VIP basket," consisting of 50 stocks that most frequently appear among the largest 10 holdings of hedge funds, and the "Mutual Fund Overweight basket," consisting of 50 stocks in which mutual funds are the most overweight. Goldman found that there are 10 "shared favorites" among hedge funds and mutual funds last quarter. "We expect 2023 to be a more fertile environment for hedge funds and mutual funds given an increasingly micro-driven market." Meanwhile, a duo of insurers — UnitedHealth, Humana — were also loved by both mutual funds and hedge funds.

☆ The Fed's own economists are warning of a 19.5% housing correction and more rate hikes could set off a 'domino effect'
▼ + stars: | 2023-03-01 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

For more on that, I recommended reading my colleague Dan DeFrancesco's excellent 10 Things on Wall Street newsletter. And for today, let's see why the Fed's own economists are warning of a nearly 20% housing correction. They argued US home prices would have to tumble nearly 20% to bring the housing market back to fundamentals — and additional Fed rate hikes could lead to an even worse housing correction. Have you entered or exited the housing market in the last year? These four charts explain the troubling state of the housing market right now.

☆ Bank of America says A.I. 'is the new electricity’, names its top picks to play the breakout trend
▼ + stars: | 2023-02-28 | by ( Samantha Subin | ) www.cnbc.com time to read: +4 min

Just like the internet and the smartphone, artificial intelligence could dramatically alter the world we live in. And, Bank of America has some pointers for investors looking to play this burgeoning trend revolutionizing the tech industry. Given this backdrop, Bank of America highlighted 15 stocks poised to benefit from AI tailwinds in a seperate note to clients Tuesday. Along with AI frontrunners Alphabet and Microsoft , Bank of America sees Nvidia as one of the biggest AI beneficiaries. Adobe and Baidu , which plans to launch its own artificial intelligence chatbot, were also included in Bank of America's list.

☆ Ticketing service provider Eventbrite to lay off 8% workforce
▼ + stars: | 2023-02-28 | by ( ) www.reuters.com time to read: +1 min

Feb 28 (Reuters) - Eventbrite Inc (EB.N)said on Tuesday it will eliminate about 8% of the company's workforce, as the ticketing service provider looks to cut costs amid worries of an economic downturn. The company expects the entire process to be completed by the end of the year. The ticketing service provider expects to incur total costs associated with the restructuring plan of about $12 million to $20 million, pre-tax. Separately, Eventbrite reported a 20% rise in fourth-quarter revenue on Tuesday, benefiting from improvement in paid ticket volumes. The company expects full-year 2023 revenue to be between $312 million and $330 million, compared with $260.9 million in 2022.

☆ David Solomon says Goldman Sachs is exploring 'strategic alternatives' for its struggling consumer business
▼ + stars: | 2023-02-28 | by ( Carter Johnson | Hayley Cuccinello | ) www.businessinsider.com time to read: +4 min

Goldman Sachs is exploring "strategic alternatives" for its nascent consumer banking business. Goldman Sachs is exploring "strategic alternatives" for its nascent consumer banking business, CEO David Solomon and executives revealed on Tuesday at the Wall Street bank's second ever investor day. The phrase "strategic alternatives" is often used as company jargon for a sale or merger. Beyond a sale, strategic alternatives can also involve a spinoff, or other restructuring or alliance to drive value for shareholders. Screenshot of Stephanie Cohen speaking at Goldman Sachs' investor day ScreenshotSolomon held the bank's first ever investor day in 2020 just before the pandemic.

☆ Factbox: Fed rate watch: Wall Street banks see longer hike cycle, higher rates
▼ + stars: | 2023-02-28 | by ( ) www.reuters.com time to read: +1 min

Feb 28 (Reuters) - As the U.S. economy holds up better than expected in the face of aggressive interest rate hikes, markets have started pricing in a higher peak rate as the Federal Reserve battles sticky inflation in a tight labor market. Recent U.S. data, including an uptick in personal consumption expenditure - the Fed's preferred gauge of inflation, has prompted some major investment banks and brokerages to factor in the possibility of a 50-basis-point rate hike in March versus 25 bps earlier. Money market traders still see an about 80% chance of the Fed delivering a smaller 25-basis-point rate hike in March. Banks have flagged the possibility of the Fed's peak rate rising as high as 6%, above the 5.4% by September this year that markets are currently pricing in. Following are expectations from some major investment banks and brokerages:Compiled by the Broker Research team in Bengaluru; Editing by Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.

Companies Goldman Sachs Group Inc FollowFeb 25 (Reuters) - Roger Ng, the former Goldman Sachs Group Inc (GS.N) banker convicted for helping to embezzle Malaysia's 1MDB sovereign wealth fund, appealed to a New York court on Saturday not to force him to spend more time in prison. A federal jury in Brooklyn convicted Ng in April last year of conspiring to violate an anti-bribery law and commit money laundering. Reuters was not immediately able reach Malaysian prison officials to comment on the conditions. Prosecutors said that he helped his former boss Tim Leissner embezzle money from the fund, launder the proceeds and bribe officials to win business for Goldman. Reporting by Shivani Tanna and Chandni Shah in Bengaluru; Editing by Daniel WallisOur Standards: The Thomson Reuters Trust Principles.

☆ ChatGPT could turn out to be hero for humanity or just a 'horrible product'. Here's what Elon Musk, Bill Gates and 10 heavyweights have to say on the red-hot AI.
▼ + stars: | 2023-02-25 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +9 min

Elon Musk, Bill Gates and Paul Krugman have all weighed in on the hottest topic this year – ChatGPT. From prominent names such as Elon Musk and Bill Gates to Wall Street banks like Morgan Stanley, everyone's got something to say. "It's both positive or negative and has great, great promise, great capability," Musk further said of AI, adding that "with that comes great danger." But a few quarters from now, if ChatGPT really starts to bring in significant subscriber fees, then we'll see what happens," O'Leary told Insider's Phil Rosen. Andy Jassy, Amazon CEO"I think it's exciting, what's possible with generative AI," Jassy said about generative AI and ChatGPT.

☆ Goldman Sachs and Citi are reportedly restricting employees' use of ChatGPT as big banks crack down on the popular AI tool
▼ + stars: | 2023-02-24 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

Citigroup and Goldman Sachs are restricting use of ChatGPT by employees, according to reports on Friday. Citigroup blocked access to the chatbot as part of restrictions dealing with third-party software, Bloomberg reported. Traders at Goldman Sachs were similarly restricted, the report said, citing another unnamed source. Financial News based in London first reported on the ChatGPT restrictions at the Wall Street banks. Bloomberg reported representatives for Citi and Goldman Sachs declined to comment, and a spokesperson for OpenAI, the research firm that developed ChatGPT, didn't immediately respond to a request for comment.

☆ How Evercore is wooing its junior bankers to stay ‘long-term’ with early promotions and $70,000 in bonuses just for sticking around
▼ + stars: | 2023-02-24 | by ( Emmalyse Brownstein | ) www.businessinsider.com time to read: +6 min

Evercore — a small but powerful Wall Street investment bank— has rolled out a new promotion program for its junior staffers, Insider has learned. Evercore's analyst program previously required two years as an analyst and one year as a senior analyst. It's unclear how long junior bankers are expected to stay with the firm after being promoted to associate. If accepted, the participants would spend July through December as senior analysts, then become associates as of January 1, 2024. "We will continue to assess current Senior Analysts eligibility for promotion to Associate 1 this July."

☆ Goldman expects $2.3 bln more in potential losses from legal disputes
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: 1 min

Feb 24 (Reuters) - Goldman Sachs Group Inc (GS.N) is expecting potential losses from legal proceedings to be up to $2.3 billion more than the reserves it had set aside for such matters as of last year, the investment bank said on Friday. In 2021, the bank was expecting the likely losses to be $2 billion higher than the reserves. Goldman has been targeted with lawsuits ranging from the bank's role in Malaysia's 1MDB sovereign wealth fund scandal to the collapse of Archegos Capital Management in 2021. A long-running gender bias lawsuit alleging widespread bias against women in pay and promotions at the Wall Street bank is also expected to head to trial later this year. Reporting by Niket Nishant in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Stocks making the biggest moves midday: Beyond Meat, Live Nation, Yeti, Boeing and more
▼ + stars: | 2023-02-24 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Live Nation — The ticker seller fell 9%, despite reporting fourth-quarter revenue of $4.29 billion, up about 60% year over year and topping StreetAccount's estimate of $3.6 billion. EOG Resources — The energy company dropped 5.1% after reporting fourth-quarter earnings, excluding items, that were short of analysts' expectations, according to StreetAccount. Etsy — Etsy slipped 4.8%, a day after gaining more than 2% on its fourth-quarter earnings beat. The company also offered cautious guidance for its first quarter, anticipating $2.95 billion to $3.15 billion in gross merchandise revenue. However, Autodesk beat fourth-quarter expectations on the top and bottom lines, according to Refinitiv.

☆ We 'definitely' won't see the Fed cutting interest rates this year but it will pull off a soft landing, Goldman Sachs strategist says
▼ + stars: | 2023-02-23 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +3 min

The Federal Reserve definitely won't cut interest rates this year, a top Goldman Sachs strategist said. "I would call it a soft landing as opposed to no landing," he added. But it will pull off a "soft landing" and bring inflation down without the US economy slipping into a recession, Lotfi Karoui told CNBC on Thursday. Demand for stocks typically falls as interest rates rise, as higher borrowing costs weigh on corporate finances and tend to have a negative impact on their future valuations. Goldman Sachs said Friday that it anticipates the Fed to hike interest rates three more times this year, after data released last week suggested persistent inflation pressures and continued resilience in the labor market.

☆ Citigroup lifts CEO Fraser's 2022 pay to $24.5 mln
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +1 min

Feb 21 (Reuters) - Citigroup (C.N) increased Chief Executive Officer Jane Fraser's compensation by nearly 9% to $24.5 million for 2022, the lender said in a filing on Tuesday. Fraser's total pay in 2021 was $22.5 million. She took over as the first female chief executive of a major Wall Street bank in February 2021. Her pay is still below the $34.5 million of JPMorgan & Chase Co's JPM.N CEO Jamie Dimon, and Morgan Stanley (MS.N) CEO James Gorman's $31.5 million. Citigroup reported a 21% fall in fourth-quarter profit last month, missing forecasts, as the bank increased provisions to prepare for a worsening economy and as investment banking revenue declined due to a sharp drop in dealmaking activity.

☆ European stocks head for lower open as markets await latest Fed minutes
▼ + stars: | 2023-02-22 | by ( Holly Ellyatt | ) www.cnbc.com time to read: 1 min

Investors are on edge after U.S. stocks fell for three consecutive weeks, signaling the possibility of higher interest rates for longer than expected. A rise in bond yields leads to increased borrowing costs for companies, which adds downward pressure on stocks. Despite this challenging environment, Goldman Sachs remains optimistic and expects a "soft-landing" for the U.S. economy. In this scenario, inflation is controlled with a mild recession at most. To capture the upside in a soft-landing scenario, the Wall Street bank said that investors should own stocks that can benefit from a decelerating inflation environment.

☆ Wall Street loves Alibaba right now. Here's what to expect from the tech giant's earnings
▼ + stars: | 2023-02-22 | by ( Zavier Ong | ) www.cnbc.com time to read: +4 min

Since the turn of the year, more and more Wall Street banks have turned bullish on the Chinese tech sector, with Alibaba emerging as a favorite stock. The Chinese tech giant, which spans e-commerce, technology and internet segments, is due to report its earnings for the December quarter on Thursday. The bank has named Alibaba its "top pick" in the Chinese tech sector for the first time in three years. Morgan Stanley has a base-case price target of $150 on Alibaba, and a bull-case price target of $200. "We believe the 2-year long earnings downward revision cycle has likely bottomed," Goldman said, giving Alibaba a price target of $138.

☆ Goldman Sachs says hedge funds’ favorite stocks are up 10% this year already after a brutal 2022
▼ + stars: | 2023-02-22 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

A group of hedge funds' favorite stocks staged a fierce comeback in the new year with a double-digit return, according to Goldman Sachs. It then compiled a basket of the most popular long positions, dubbed Goldman's "Hedge Fund VIP basket," consisting of 50 stocks that most frequently appear among the largest 10 holdings of hedge funds. These hedge fund darlings have rebounded more than 10% year to date as technology stocks rebounded from steep losses, the firm said. The strength in these VIPs lifted the average hedge fund to a 3% return in early 2023, Goldman said. Microsoft and Amazon remained the two most popular hedge fund long positions last quarter.

☆ BlackRock shares a 2-part stock-trading strategy for an expected downturn in stocks as the Fed forces the economy into a recession with higher rates
▼ + stars: | 2023-02-22 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

With inflation still elevated, a strong economy means the Fed will push on the gas pedal more. To avoid the resulting downturn, invest in short-term Treasurys and emerging market stocks, the firm says. Eventually, that will weigh on economic growth and hurt stocks, BlackRock said in a commentary on Tuesday. The Vanguard Short-Term Treasury ETF (VGSH) and the Schwab Short-Term U.S. Treasury ETF (SCHO) are two vehicles for gaining exposure to short-term government bonds. The iShares MSCI Emerging Markets ETF (EEM) and the SPDR Portfolio Emerging Markets ETF (SPEM) offer exposure to emerging-market stocks.

☆ 'Insure against the worst': Goldman picks stocks for a soft — and hard — economic landing
▼ + stars: | 2023-02-21 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Despite this challenging environment, Goldman Sachs remains optimistic and expects a "soft-landing" for the U.S. economy. 'Soft-landing' stock picks To capture the upside in a soft-landing scenario, the Wall Street bank said that investors should own stocks that can benefit from a decelerating inflation environment. What follows are the first four stocks named by Goldman Sachs in its "soft-landing portfolio." Goldman Sachs analysts expect an earnings-per-share growth of 5% for Tesla and 7% for Garmin over the next 12 months, compared to a 1% growth for the S & P 500. Goldman Sachs has previously predicted that the S & P 500 will finish the year at the same level it started —4,000 — representing a return of 0% for 2023.

☆ KPMG becomes first Big Four accounting firm to cut staff in U.S. - FT
▼ + stars: | 2023-02-15 | by ( ) www.reuters.com time to read: +1 min

Several financial firms have slashed jobs in recent months including major Wall Street banks, asset managers and fintechs amid a turbulent macroeconomic environment that has pressured consumers and soured demand in several mainstay business units. The cuts at KPMG will affect close to 700 people, the FT report added. However, we have experienced prolonged uncertainty affecting certain parts of our Advisory business that drove outsized growth in recent years," a spokesperson for KPMG said in an emailed statement to Reuters. The Big Four accounting firms comprise of EY, Deloitte, KPMG and PricewaterhouseCoopers. Reporting by Manya Saini in Bengaluru, additional reporting by Granth Vanaik; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ A Bank of America indicator just signaled the economy is tipping into a recession. Their stock chief shares 5 trades that are likely to outperform the rest of the market based on decades of history.
▼ + stars: | 2023-02-15 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

Bank of America shares where to invest in a recession: high quality; low risk; large caps; small caps; and stocks that generate high free cash flow. It can be difficult to pinpoint where in a market cycle stocks are — to be able to tell whether there's further downside in a sell-off, or whether stocks have already seen their lowest point. "We have found that factor behavior is relatively predictable during different phases of the US Regime Indicator," Subramanian added. Bank of AmericaFurther, Subramanian said stocks that generate high cash flow should also outperform in the current late cycle environment and into the downturn phase. "As the market cycle matures, companies that continue to generate healthy free cash become scarcer and sought after," she said.

☆ The Rainmakers: Meet the 20 powerhouse bankers who orchestrated the biggest deals of 2022 and defied a down market
▼ + stars: | 2023-02-15 | by ( Carter Johnson | Alex Morrell | ) www.businessinsider.com time to read: +3 min

Insider partnered with the financial-data platform MergerLinks to identify 2022's top 20 bankers. The ranking is based on bankers who led the advisory process for the largest M&A in North America. Insider partnered with MergerLinks, a financial data service that tracks deals, to present the fourth edition of "The Rainmakers," the 20 M&A bankers who orchestrated the largest deals in North America in 2022. Just two of the top 20 bankers work at a non-bulge bracket; in 2021 and 2020, that figure was seven apiece. The list below is in ascending order of the total value of deals led in 2022.

☆ Goldman Sachs drops plans for direct-to-consumer credit card - CNBC
▼ + stars: | 2023-02-15 | by ( ) www.reuters.com time to read: 1 min

Feb 15 (Reuters) - Goldman Sachs Group Inc (GS.N) has dropped plans to develop a branded credit card for retail customers, CNBC reported on Wednesday, citing people with knowledge of the matter. The credit card would have been a part of a range of products to enhance its margins and loyalty in the retail segment, the report said. The Wall Street bank did not immediately respond to a Reuters request for comment. Reporting by Anirban Chakroborti in Bengaluru; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

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