Goldman's Solomon states that there has been a significant change in CEO confidence since Trump's election.
- According to a transcript from FactSet, Goldman Sachs CEO David Solomon stated that there has been a significant change in CEO confidence, particularly after the U.S. election results.
- Outgoing President Joe Biden is seen as less business-friendly than incoming President Donald Trump, who will return to the White House on Monday.
- Some survey data indicates that business leaders are experiencing renewed confidence, as reflected in Solomon's comments.
According to CEO David Solomon, the election of Donald Trump and the subsequent return of Republicans to power in Washington are already having an effect on the business world.
Despite Trump not being in office yet, other CEOs are optimistic about the economy and their businesses, as stated by the bank executive during a conference call on Wednesday.
According to FactSet, Solomon stated that there has been a significant change in CEO confidence, mainly due to the outcome of the U.S. election.
He added that there is a substantial backlog from sponsors and a growing interest in dealmaking due to a favorable regulatory environment.
The latest Chicago Fed Survey of Economic Conditions and NFIB Small Business Optimism Index indicate a renewed confidence among business leaders for the next 12 months.
According to a FactSet transcript, executives on 's earnings call stated that despite the optimism among business leaders, loan growth has not yet been realized.
In the wake of Trump's victory, stocks experienced a significant increase, fueled by optimism about reduced taxes and fewer regulations. Nevertheless, some of those gains have been erased, in part because of a recent increase in interest rates.
On Monday, Trump will return to the White House and is viewed as more business-friendly than Biden. While campaigning, Trump suggested lowering taxes and reducing regulations, particularly in the energy sector. However, his proposed tariffs have caused concern among investors and business leaders regarding the possibility of higher prices and a disruptive trade war.
Goldman's fourth-quarter results were discussed on a conference call, and Solomon made comments. The bank exceeded expectations on both the top and bottom lines, with its profit increasing by approximately 100% year over year.
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