Connect with us

Investment

Goldman Traders Rescue Earnings From Investment-Banking Slump – BNN

Published

 on


(Bloomberg) — Goldman Sachs Group Inc.’s traders countered the industry’s dealmaking slump with revenue gains that raced past analysts’ estimates.

The trading operation posted a 32% surge in second-quarter revenue that included another banner period for fixed income, which jumped 55%, the New York-based firm said Monday in a statement.

The gains helped ward off the steep slowdown in investment banking as the volatility that spurred gains for its trading group weighed on the capital-markets and asset-management businesses.

Goldman was the last of the six biggest US banks to post results, with investors scouring the reports for clues on the health of the economy. Company executives last week said the US is well-positioned to withstand fallout from surging inflation, even if rising interest rates push the economy into a recession in coming quarters. Bank bosses warned that a potent mix of hurdles are still a threat, including inflation and the impact of Russia’s invasion of Ukraine.

Goldman shares have dropped about 23% this year, pushing its price-to-book value below 1 — an unwelcome development that tracks how investors value the firm’s net assets. The stock climbed 2.7% to $301.94 at 7:30 a.m. in early New York trading.

Investment-banking revenue fell 41%, reflecting a sharp drop in underwriting, a decline that had been well-telegraphed as clients steered clear of capital markets. Analysts were expecting it to fall 46%. 

One factor has been the implosion of the SPAC market as Goldman and other banks fled what had been a red-hot market for the blank-check vehicles they helped create. Goldman even pulled out of working with most SPACs it took public, spooked by new liability guidelines.

Asset-Management Drop

The firm’s asset-management business, which includes the alternatives-investing platform, turned in revenue of $1.08 billion, a 79% drop. The unit tends to post volatile results because its own balance-sheet investments drive performance. The bank has signaled its intent to turbocharge fundraising to get to a place where fees from managing outside capital outweigh investments.

The unit is facing a probe by the Securities and Exchange Commission focusing on the mutual-funds business in its asset-management arm. The inquiry is focused on whether some investments are in breach of metrics promised in marketing materials regarding environmental, social and governance criteria.

The consumer and wealth business posted revenue of $2.18 billion, a 25% increase from a year earlier.

At its debut investor day in 2020, Goldman said its consumer business would break even by this year. It has pushed out that target and budgeted losses exceeding $1.2 billion this year, according to people with knowledge of the matter. The addition of new business lines, pandemic effects and the need to set aside more reserves in line with new accounting rules have contributed to that miss.

Other key results:

  • Net income dropped 47% to $2.93 billion, or $7.81 a share.
  • Companywide revenue of $11.9 billion compared with an average estimate of $10.7 billion.
  • Equity-trading rose 11% to $2.86 billion.
  • Debt-underwriting revenue fell 52% to $457 million while the firm pulled in $131 million from equity underwriting, a tumble of 89%.

©2022 Bloomberg L.P.

Adblock test (Why?)



Source link

Continue Reading

Investment

Local startups benefit from $35000 investment – The Kingston Whig-Standard

Published

 on


Article content

Kingston Economic Development Corporation is investing $35,000 in 12 entrepreneurs in Kingston through their Starter Company Plus program.

Advertisement 2

Article content

These micro grants will aid in the growing of the local startups in getting their feet off of the ground alongside business training and personal coaching for business owners.

According to Rob Tamblyn, Business Development Manager of Small & Medium Enterprises – the pandemic as resulted in many Kingstonians pursuing their own businesses.

“We are proud to be able to offer support and guidance to them through the Kingston Economic Development,” said Tamblyn.

The wide array of businesses that will benefit from this grant span from tattoo and spa services to contracting and driving schools, he said.

“Since the pandemic, we have certainly seen an uptick in the number of inquiries from people who are wanting to go into business for themselves.” Tamblyn said, explaining the need for funding.

Advertisement 3

Article content

Kingston Economic Development Corporation was created with the mission of supporting the Kingston economy through providing mentorship and funds to a variety of business enterprises.

Little Friday is one of the twelve businesses in the spring cohort, Soren Gregersen and Ciara Roberts, co-founders of the new video production company, spoke to the Whig about the program.

Officially opening it’s doors in February of this year, Gregersen and Roberts heard of the Starter Company Plus Program from a business that participated last year.

“We’re going to spend the money on (Search Engine Optimization) to get some online presence and a bit of money on gear so that we can up our production value and capacity,” Gregersen said, referring to the vitality of a virtual presence in early stages.

Advertisement 4

Article content

“We’re fortunate in Kingston to be able to offer two separate cohorts, one in the spring and one in the fall.” Tamblyn said. “So we’re able to inject $70,000 into startups or existing businesses seeking to expand.”

Each year, the corporation provides $35,000 in micro grants for each cohort to local businesses with funding from the Government of Ontario. Business owners are able to receive up to $5,000 based on the strength of their business pitches, decided on by a panel of community judges.

Accepted participants not only receive funding, but also attend a week-long virtual boot camp covering market research, digital marketing, small business financing, and hiring practice to ensure that each entrepreneur is set up with the resources and information for success.

Advertisement 5

Article content

Roberts told the Whig that the boot camp and additional resources offered by the program has been invaluable. “It gave us a week to really sit down and put pen to paper on what we wanted little Friday to be about.”

“We focused on figuring out long term goals, marketing strategies, and marketing sales forecasts (in the boot camp)”

The pair has been receiving one on one coaching from business experts where time is allotted to get specific on obstacles that arise in the early days of business.

Interested start-up owners can apply to the Fall 2022 cohort from now until September 11 through the Invest Kingston website.

Advertisement 1

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Adblock test (Why?)



Source link

Continue Reading

Investment

Federal government touts London, Ont. region as possible site for investment by Boeing – CTV News London

Published

 on


A pair of initiatives aimed at attracting high-skilled jobs to the region have captured the attention of the federal government.

On Tuesday, Minister of Innovation, Science, and Industry François-Philippe Champagne sat down for an interview with CTV News London to discuss the growing electric vehicle (EV) sector and other high-tech industries in southwestern Ontario.

“I don’t know if you’ve been following me!” joked a surprised Champagne when asked about rumours that aerospace company Boeing is considering a significant investment in London and the surrounding region.

He says talks are ongoing with Boeing about further investment in Canada — and confirms this region is in the running.

“London has the key ingredients that you [need] to attract this type of investment in the industry,” the minister explains.

Boeing is one of the largest aerospace design and manufacturing companies in the world.

Champagne suggested he is targeting investments that reduce the environmental impact of the aerospace industry, in particular, greener propulsion.

“What we’ve done in the automotive sector I dream of doing in the aerospace sector, which is greening the industry,” he adds.

Earlier in the day Champagne was joined by London North Centre MP Peter Fragiskatos on a tour of Toyota in Woodstock, Ont. focussed on EV investments and technology.

Fragiskatos says the federal government’s ongoing push for electric vehicle and component production in Ontario brings high paying jobs to the region.

“We’re talking about close to $40/hr plus benefits, particularly in this economy its jobs like that that are going to get people through,” says Fragiskatos.

In June, the City of St. Thomas announced the purchase of a 325 hectare (800 acre) parcel of serviced land in the community’s northeast corner aimed at attracting an EV battery plant.

Champagne was aware of the shovel-ready property and enthusiastic about the opportunity.

He believes the EV industry wants to reduce the carbon footprint of battery production, making Ontario’s mostly renewable energy hydro grid very attractive.

“I would applaud what is being done in St. Thomas, and certainly that is the type of creativity that we need,” he says. 

Adblock test (Why?)



Source link

Continue Reading

Investment

Smart Money: The Top 10 investment mistakes – Alaska Highway News

Published

 on


I have been doing this work for a long time. Nearly 30 years. And over that span I continue to see people make the same, preventable mistakes, over and over.

Here’s my Top 10 list of unforced investment errors.

1. Getting your financial advice from social media. If you have a question about money, what makes you think your equally uniformed friends have the correct answer? People with accounting questions will consult an accountant. People with medical concerns will seek out a doctor. But people with investing questions turn to Facebook or TikTok. It’s nutty.

2. Believing in fairy tales. Yes, I understand the allure of instant riches. Especially if someone is promising outsized returns with no risk. But huge returns with no risk is a fairy tale. Or a scam.

3. Being a perpetual GIC investor. Guaranteed Investment Certificates have their role in financial planning, but if you find yourself continuously rolling over your GICs at maturity because you don’t know what else to do then what you end up with is a permanent string of low-paying investments. On an after-tax, after inflation basis you are almost certainly losing money. How safe is that?

4. Buying on greed. If the reason that you want to buy an investment is because it is showing impressive past performance and you want to get in on the action, chances are very good that you are not making a rational investment decision. And if the investment has already gone up by that much already chances are that its too late.

5. Selling on fear. If the reason that you want to sell a quality investment is because it is showing disheartening past performance and you want to get out to avoid the pain of loss, chances are very good that you are not making a rational investment decision. And if the investment has already gone down by that much already chances are that it’s too late.

6. Confusing investment costs with losses. Buying the lowest cost investment is not the same thing as buying the best investment. If you can replace the diversification and investment decision making process at a lower cost, you might be on to something. But buying an investment only because it is cheap is a good way to end up with junk.

7. Overthinking. You really don’t need to wait until you master the nuances of a covered call strategy or do up a 200-column spreadsheet with correlation analysis before you take action. People can get overwhelmed by the choices and end up paralyzed into inactivity. Simple is usually better than complicated. Just get started.

8. Overconfidence. This one is a biggie. Way too many people think they know what they are doing with their investments, but that’s only because they don’t know what they don’t know. The tricky part is few readers will recognize themselves as being overconfident, just like everyone thinks that they are an above average driver. But if the roads are filled with great drivers, why are intersections with four way stop signs so difficult for people to figure out?

9. Burying your head in the sand. Sometimes financial decisions cause great angst, and the way that some people deal with money decisions is by not dealing with money decisions. Ignoring the situation might be a coping strategy, but it’s not going to get you anywhere. Unpleasant jobs are a fact of life. Pretending that they don’t exist doesn’t make them go away, and procrastination can allow small problems to fester into big ones.

10. Confusing wants and needs. You may want a shiny new toy right now. But you still need to eat when you get to retirement. A high consumption lifestyle is fun, but draining your retirement funds to finance it is short-sighted.

These preventable mistakes are well-known. Even so, I can assure you that people all over the world will continue to make all of them.

But you don’t have to be one of those people.


Brad Brain, CFP, R.F.P., CIM, TEP is a Certified Financial Planner in Fort St John, BC. This material is prepared for general circulation and may not reflect your individual financial circumstances. Brad can be reached at www.bradbrainfinancial.com.

Adblock test (Why?)



Source link

Continue Reading

Trending