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☆ Recession is likely to bump inflation out of the driver's seat for the economy — so investors should brace for uncertainty, Mohamed El-Erian says
▼ + stars: | 2023-01-10 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

Recession is likely to replace inflation as the driver of the economy in 2023, Mohamed El-Erian said. The global economy and investment portfolios would face a bigger range of potential outcomes, he said. The top economist warned US inflation will stay stubborn at around 4% because the Fed acted too late. "In this new year, recession, actual and feared, has joined inflation in the driver seat of the global economy and is likely to displace it," El-Erian said in a Financial Times opinion column Monday. "They should keep an open mind, if only to avoid repeating the mistake of prematurely dismissing inflation as transitory," he added.

☆ Goldman Sachs reveals the stocks set to benefit from an EV boom, giving one over 100% upside
▼ + stars: | 2023-01-09 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Shares of legacy automakers and parts manufacturers will attract new investors as they transition toward electric vehicles and green technologies, according to Goldman Sachs. As a result, the bank expects the company's stock to rise by 116% to $19 over the next 12 months. The Wall Street bank believes such stocks will begin attracting ESG investors as an increasing proportion of their parts are used in electric vehicles. Shares of Visteon rose by 17% last year, and Goldman expects the stock to rise a further 15% to $160 in the next 12 months. Goldman Sachs expects GM's stock to rise by 20% over the next 12 months and reverse some of last's year 44% decline.

☆ Goldman Sachs reveals 7 under-the-radar global stocks to buy this year
▼ + stars: | 2023-01-06 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Many under-the-radar stocks are key to a green energy transition, according to Goldman Sachs — and it expects them to take off in 2023. The Wall Street bank said investor focus on large renewable energy and energy efficiency stocks in previous years means that companies further down the supply chain have been overlooked. Despite much talk of a transition away from burning highly polluting energy sources, the world's fossil fuel dependency continues . However, Goldman said there was a "growing urgency to accomplish key Sustainable Development goals," given the pressure on energy supplies following Russia's invasion of Ukraine. Shares of ASML are expected to rise the most by 29.3% to 700 euros ($742), the data shows.

☆ Wall Street internship checklist: How to land a competitive 2024 summer job in investment banking, trading, or asset management
▼ + stars: | 2023-01-04 | by ( Reed Alexander | Emmalyse Brownstein | ) www.businessinsider.com time to read: +2 min

Summer internships at Wall Street banks are among the most sought-after undergrad opportunities. If you're a college sophomore who's even remotely interested in working on Wall Street one day, then listen up. The 2024 summer internship season is starting now — from JPMorgan to RBC. Check out our robust Wall Street internship coverage here — and, if you're in the running for an internship for next summer, get in touch with this reporter to share your story. Insider's Wall Street reporter Emmalyse Brownstein can be reached via email at ebrownstein@insider.com, or SMS/the encrypted app Signal at (305) 857-5516.

☆ Crypto had a catastrophic 2022. Here are 3 reasons it will bounce back again, according to analysts.
▼ + stars: | 2023-01-04 | by ( Emilia David | ) www.businessinsider.com time to read: +5 min

Analysts from Bernstein laid out why they're still bullish on the crypto space. But Bernstein analysts Gautam Chhugani and Manas Agarwal offer crypto true believers a few reasons to keep the faith. In a note published on January 3, they wrote that despite a catastrophic 2022, the larger crypto ecosystem still has potential. Much of the crypto space remains decentralized. Chhugani and Agarwal said FTX's collapse had hastened DeFi adoption, which makes DeFi a bright spot in crypto investing, according to crypto VCs.

☆ Bernstein analysts offer a cautious bull case for crypto recovery after a year from hell
▼ + stars: | 2023-01-04 | by ( Emilia David | ) www.businessinsider.com time to read: +5 min

Analysts from Bernstein laid out why they're still bullish on the crypto space. But Bernstein analysts Gautam Chhugani and Manas Agarwal offer crypto true believers a few reasons to keep the faith. Crypto keeps bouncing backThe past year was not the first "crypto winter," and crypto always bounced back fairly easily. Much of the crypto space remains decentralized. Chhugani and Agarwal said FTX's collapse had hastened DeFi adoption, which makes DeFi a bright spot in crypto investing, according to crypto VCs.

☆ Goldman Sachs, JPMorgan junior bankers reveal the best — and worst — parts of their jobs
▼ + stars: | 2023-01-03 | by ( Emmalyse Brownstein | ) www.businessinsider.com time to read: +3 min

The 2022 poll captured the thinking of more than 2,500 junior bankers across 50-plus firms. For years, recruiting firm Odyssey Search Partners has been polling first-year junior bankers on their current work experience and future goals. The annual survey has revealed an interesting trend, which is that junior bankers who work at top tier boutique banks tend to be happier. This slideshow contains the specific remarks junior bankers offered to explain why they rated their experience good or bad. Odyssey Search Partners2 Top boutique investment banks based on Mergers & Inquisitions classification of banks as way to categorize the investment banks; this is not to be viewed as a ranking.

☆ Virgin Islands attorney general sues JPMorgan Chase over banking services for Jeffrey Epstein
▼ + stars: | 2022-12-29 | by ( Andy Rose | ) edition.cnn.com time to read: +2 min

New York CNN —The U.S. Virgin Islands government filed a lawsuit Tuesday against JPMorgan Chase, alleging that the Wall Street bank benefited financially from Jeffrey Epstein’s sex trafficking operation and failed in its duty to report suspicious financial activity. “Human trafficking was the principal business of the accounts Epstein maintained at JPMorgan,” the lawsuit states. The lawsuit claims that JPMorgan Chase failed to make proper regulatory filings that could have tipped off the government to Epstein’s alleged sex-trafficking ring of underage girls through private islands he owned in the U.S. Virgin Islands. A JPMorgan Chase spokesperson told CNN the company had no comment on the lawsuit Wednesday evening. The new lawsuit also comes less than a month after Attorney General George settled the U.S. Virgin Islands’ lawsuit against Epstein’s estate for more than $105 million dollars, along with an agreement that the estate will sell Epstein’s islands in the territory and end business operations there.

☆ Congressman-elect George Santos admits to lying about key details of his background, including work history to college education
▼ + stars: | 2022-12-27 | by ( Ellen Thomas | ) www.businessinsider.com time to read: +2 min

Rep.-elect George Santos told The New York Post he fabricated key details about his credentials. Santos lied about working for Goldman Sachs and Citigroup and graduating from Baruch College. The New York Times investigation revealed that Baruch College had no record of Santos as a student. "I never claimed to be Jewish," Santos told The Post, saying that his grandmother, "told stories about being Jewish" before converting to Catholicism. Because I learned my maternal family had a Jewish background I said I was 'Jew-ish.'"

☆ Black homeowners pushed out of one Baltimore block show how Wall Street banks failed to lend money they had promised, a Bloomberg investigation shows
▼ + stars: | 2022-12-26 | by ( Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Banks promised to invest in Black communities after they were hit by the 2008-2009 financial crisis. The block stands as a glaring reminder of the broken promises made by some of Wall Street's biggest banks to support America's Black homeowners, a recent Bloomberg investigation shows. As of October 2021, according to the US Census Bureau, 45% of Black Americans owned homes, which is nearly 30 points below the rate of white Americans: 74.6%. On Walbrook Avenue, the absence of large lenders has left many locals without a lifeline. After the 2008-2009 financial crisis, several financial institutions made pledges to invest billions of dollars to support Black homeownership.

☆ Goldman Sachs' year-end bonuses are going to be brutal, and everyone's pointing fingers on who's to blame
▼ + stars: | 2022-12-23 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

When things were going good, Goldman Sachs' CEO David Solomon could seemingly do no wrong. Last year, thanks to a booming M&A market and a favorable trading environment, life was good at the elite Wall Street bank. Top tech executives from 10 Wall Street firms, including Goldman Sachs, Citadel, and KKR, share their predictions for the top public-cloud trends next year. Bad news: You're not the only one waiting for rates to drop to buy a home; so is Wall Street. Here's what a home-buying spree from Wall Street could mean for the entire industry.

Last year, the industry handed out the biggest awards since 2006 as the economy roared back from the pandemic. It's a head-spinning reversal for dealmakers who racked up record profits for their firms last year and clinched eye-watering payouts for themselves. Compensation for FICC traders will probably rise slightly or stay flat, said Bell at Sheffield Haworth, while stock traders could see a small drop. Worsening economic conditions have already prompted firms including Morgan Stanley (MS.N) and Citigroup Inc (C.N), to trim their workforces. In the United Kingdom, most big firms are discussing and allocating bonuses now, with decisions not usually announced until early next year.

☆ The Fed's inflation projections 'make no sense' and central bankers could have been misled by a cyberattack, Fundstrat says
▼ + stars: | 2022-12-19 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Inflation needs to "explode" this month to meet the Fed's expectations, which is why their estimates "make no sense," Fundstrat said. The research firm estimated that December inflation projections were likely 60-basis-points too high. Fed officials projected core PCE inflation, which strips out volatile food and energy prices, to average 4.8% in 2022. To meet the Fed's projection, core PCE inflation would need to "explode" by 75-basis-points over the next month, Lee said. That suggests the bond market thinks the Fed's inflation forecasts are too high, and a pause or cut in rates could be in the cards next year.

☆ Risks of a recession in 2023 are growing as the Federal Reserve continues to tighten policy. 4 Wall Street banks share how far stocks will fall if that happens — and when the market will bottom.
▼ + stars: | 2022-12-17 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

The Consumer Price Index was 7.1% in November, and the Fed brought the fed funds rate ceiling up to 4.5% this week. Below we've compiled what four major Wall Street banks believe stocks will do if a recession plays out. UBSUBS economists are predicting a recession starting in Q2 2023, and the bank's Chief US Equity Strategist Keith Parker therefore sees a hit to earnings ahead. Goldman SachsGoldman Sachs economists, meanwhile, see a soft landing as the most likely scenario for the US economy in 2023. Goldman SachsBank of AmericaBank of America's economists see a recession in the first half of 2023.

☆ Goldman Sachs to lay off up to 4,000 people -Semafor
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: +1 min

[1/2] The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly/File PhotoDec 16 (Reuters) - Goldman Sachs Group Inc (GS.N) will lay off up to 4,000 people as the Wall Street bank struggles to meet profitability targets, news platform Semafor reported on Friday, citing people familiar with the matter. Goldman Sachs did not immediately respond to a Reuters request for comment. read moreGoldman's headcount swelled to over 49,000 at the end of September, up 14% from a year earlier. Reporting by Mehnaz Yasmin in Bengaluru; Editing by Anil D'Silva and Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.

☆ Who will be Wall Street’s un-American idol?
▼ + stars: | 2022-12-16 | by ( John Foley | ) www.reuters.com time to read: +8 min

Europeans have been losing the battle against Wall Street’s cozy club for a decade. Deutsche Bank has done the former. BNP has made smaller steps, buying Bank of America’s prime broking business in 2008, then Deutsche Bank’s in 2019. Even with the best intentions, European banks must contend with their own regulators, which affects their ability to take risk elsewhere. JPMorgan, Bank of America, Citigroup, Morgan Stanley and Goldman Sachs together took the top five slots for debt capital markets and merger advisory, as they also did in 2021.

☆ Goldman Sachs to cut thousands of employees
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: 1 min

NEW YORK, Dec 16 (Reuters) - Goldman Sachs Group Inc (GS.N) is planning to cut a couple of thousand employees to navigate a difficult economic environment, a source familiar with the move said. The Wall Street bank had 49,100 employees at the end of the third quarter this year, after adding significant numbers of staff during the pandemic. Headcount will remain above pre-pandemic levels, which stood at 38,300 at the end of 2019, the source said. News platform Semafor earlier reported on Friday that Goldman Sachs Group will lay off up to 4,000 people as the Wall Street bank struggles to meet profitability targets, citing people familiar with the matter. Goldman Sachs declined to comment.

The layoffs are the latest sign that cuts are accelerating across Wall Street as dealmaking dries up. Goldman Sachs had 49,100 employees at the end of the third quarter after adding significant numbers of staff during the pandemic. The bank is weighing a sharp cut to the annual bonus pool this year, a separate source familiar with the matter said. Goldman Sachs declined to comment. The investment bank had first warned in July that it might slow hiring and cut expenses.

☆ Missed China's reopening rally? Bank of America names global stocks to ride the second leg
▼ + stars: | 2022-12-15 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Investors will have a second opportunity to take part in the stock market rally after China announced a relaxation of Covid-19 restrictions, according to Bank of America. The Wall Street bank said Chinese stocks had risen substantially after Beijing's "credible policy easing actions" triggered a risk-on move in markets. The bank said it was now seeing "nascent signs" of fundamental earnings data turning positive for stocks, which is likely to set off the second leg of a market rally. The bank named 30 global stocks exposed to China to leverage the "cyclicals and re-opening" theme. According to Bank of America, nearly a quarter of the company's revenue comes from sales to China.

☆ Here's our November rapid-fire update on all 33 stocks in Cramer's Charitable trust portfolio
▼ + stars: | 2022-12-15 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +9 min

Here's a rapid-fire update on every stock in the CNBC Investing Club portfolio. Estee Lauder (EL) — New Club members who want to start a position in the cosmetics giant could do so at these levels. We'd advise Club members do so the same, even if we still like the company's defensive nature. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ The Fed's inflation forecast was wrong and Powell shouldn't be trying to water down recession risks, according to RBC
▼ + stars: | 2022-12-15 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

The Fed was wrong again on its inflation forecast on Wednesday, according to RBC. Powell also shouldn't try to water down recession risks, since some Fed officials already see a recession in the cards. "Some of their economic projections are just head-scratchers," Porcelli said in a note on Wednesday, pointing to central bankers' inflation projections for next year. The unexpected revision in inflation projections could be because officials likely submitted their estimates before the release of the November Consumer Price Index report, which saw inflation cool to 7.7%. "He shouldn't try to water down the recession risks.

Banks still have to mark the loan to its market value on their books and set aside funds for losses that are reported in quarterly results. The deliberations of how some of these banks are thinking about accounting for these losses have not been previously reported. Three banking industry sources said the remaining $3 billion, which is unsecured, could lead to steeper losses for the seven Twitter banks. Some market participants expect the losses from the debt to be significant unless market conditions improve. Some $35 billion to $40 billion of such loans are stuck on banks' books, according to two fixed income bankers.

☆ Citigroup promotes most women ever to MD role- memo
▼ + stars: | 2022-12-14 | by ( ) www.reuters.com time to read: +1 min

Dec 14 (Reuters) - Citigroup Inc (C.N) promoted over 100 women to the role of managing director, the highest ever for the bank, according to a memo seen by Reuters. For the bank, which named a total of 331 employees in 26 countries to the role, it is "one of the largest and most diverse cohorts" in its history, the memo said. The news, first reported by Bloomberg on Tuesday, highlights the New York-based company's push to improve the representation of women at top levels and encourage diversity. Citigroup became the first major Wall Street bank to appoint a woman, Jane Fraser, as its chief executive last year. Citigroup said in September it aimed to boost global representation of women in assistant vice president to managing director levels to 43.5% in 2025 from the current 40.6%.

☆ What Junior Bankers Think of Goldman Sachs, JPMorgan, and More
▼ + stars: | 2022-12-14 | by ( Emmalyse Brownstein | ) www.businessinsider.com time to read: +3 min

The 2022 poll captured the thinking of more than 2,500 junior bankers across 50-plus firms. See what they think, in their own words, about their various Wall Street employers. For years, recruiting firm Odyssey Search Partners has been polling first-year junior bankers on their current work experience and future goals. This slideshow contains the specific remarks junior bankers offered to explain why they rated their experience good or bad. Odyssey Search Partners2 Top boutique investment banks based on Mergers & Inquisitions classification of banks as way to categorize the investment banks; this is not to be viewed as a ranking.

Bonus payout discussions are currently underway at Morgan Stanley globally, they said. Morgan Stanley, which does not disclose details of bonus payouts, declined to comment. Wall Street investment bankers can expect much smaller bonuses this year as the economy slows, according to projections published last month by Johnson Associates Inc, a compensation consultant in New York. This year's bonus discussions are taking place after Morgan Stanley CEO James Gorman said earlier this month that the bank was making "modest job cuts" worldwide. Morgan Stanley reported a 30% slump in third-quarter profit in October, missing analysts' estimate as a slowdown in global dealmaking hurt its investment banking business.

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