16/04/2025

BIZ & FINANCE WEDNESDAY | APR 16, 2025

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Goldman Sachs profit rises on strong equity trading results

Stocks rise as stability returns, auto firms surge

NEW YORK: Goldman Sachs reported on Monday higher first-quarter profit on strength in equity trading, offsetting a hit from losses in investments on public stock markets. The investment giant reported US$4.6 billion (RM20 billion) in profit to common shareholders, 16.6% above the year-ago level in results that topped analyst expectations. Revenue was US$15.1 billion, up 6%. Chief executive David Solomon said the Wall Street heavyweight was sticking close to its powerful client base as the Trump administration’s constantly changing trade policy reverberates through markets and weakens the near-term US growth outlook. “I know there is a higher level of uncertainty, but at the same point, clients are active,“ Solomon said on a conference call with analysts. “People are shifting positions, and we still see significant activity levels.” The forecasts from Goldman Sachs economists for US growth have “fallen meaningfully”, said Solomon, who said the chance of a recession “has increased”. “How policies will evolve is still unknown,“ Solomon said. “We’re hopeful that feedback from companies, large and small, institutional investors and ultimately, consumers, support an approach that will lead to greater economic certainty and long term growth.” Revenue tied to equity trading soared 27% from the year-ago level, with Goldman benefiting from strong demand for its services to facilitate trading and providing financing to clients trading stocks. The bank said its advisory revenue was significantly lower than in the year-ago period. – AFP SAN FRANCISCO: Nvidia on Monday announced plans to build top-end artificial intelligence supercomputer chips entirely in the US for the first time. Supercomputer plants are being built in Texas in partnerships with Foxconn and Wistron, with manufacturing expected to ramp up over the course of the next 12 to 15 months, according to the company. TSMC plants in Arizona have already started production of Nvidia’s most advanced graphics processing unit (GPU), called Blackwell, Nvidia added. “The engines of the world’s AI infrastructure are being built in the US for the first time,” Nvidia chief executive Jensen Huang said in the blog post. “Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency.” Nvidia plans to produce as much as half a trillion dollars worth of AI infrastructure in the US by the end of this decade through partnerships with TSMC, Foxconn, Wistron, Amkor and SPIL. “Onshoring these industries is good for the American worker, good for the American economy, and good for American national security,” the White House said in a statement. – AFP Nvidia to build supercomputer chips entirely in US for first time

HONG KONG: Equities mostly rose yesterday as some stability returned to markets after last week’s rollercoaster ride, with auto firms boosted by Donald Trump’s possible compromise over steep tariffs on the sector. However, the American president’s unorthodox approach to trade diplomacy continues to fuel uncertainty among investors, with speculation over new levies on high-end technology and pharmaceuticals dampening sentiment. The announcement last week of exemptions for smartphones, laptops, semiconductors and other electronics – all key Chinese-made products – provided a little comfort, though Trump’s suggestion they would be temporary tempered the optimism. Traders gave a muted reaction to Treasury Secretary Scott Bessent’s remarks Monday that a China-US

Hyundai jumped more than 4%, while in Europe Stellantis – maker of Peugeot, Jeep and Fiat – surged 5% in Milan and Volkswagen piled on close to 3%. Federal Reserve governor Christopher Waller provided some support to markets after suggesting he would back the central bank to cut interest rates to help the economy, instead of focusing on higher inflation. However, OANDA senior market analyst Kelvin Wong warned central bankers would face some tough choices. “Combination of slowing growth and persistent inflation, hallmarks of a stagflation environment, poses a significant challenge for the US Federal Reserve, which may find it increasingly difficult to implement counter-cyclical monetary policies to support the economy,” he said in a commentary. – AFP

o American Treasury chief holds out hope for ‘big deal’ with China

there’s very, very good, amazing offers made to us”, but did not specify from which countries they came. After a broadly positive day on Wall Street, Asian markets pushed higher. Tokyo, Seoul, Hong Kong, Shanghai, Sydney, Singapore, Taipei, Mumbai, Manila and Jakarta all rallied, with London and Frankfurt also climbing but Paris edged down. The gains were boosted by a rally in autos after Trump said he was “very flexible” and “looking at something to help some of the car companies” hit by his 25% tariff on all imports. In Asia, Toyota jumped 3.7% and

deal could be done in an apparent olive branch as the two economic powerhouses trade tariff threats. His comments came as Trump has hammered China with duties of up to 145%, while Beijing has imposed retaliatory measures of 125%. “There’s a big deal to be done at some point”, Bessent said when asked by Bloomberg TV about the possibility that the world’s largest economies would decouple. “There doesn’t have to be” decoupling, he said, “but there could be”. Meanwhile, US National Economic Council director Kevin Hassett said the White House had received “more than 10 deals where

A man looking at an electronic board showing the numbers of morning trading on the Tokyo Stock Exchange along a street in Tokyo yesterday. – AFPPIC

US may need bigger rate cut if tariffs persist: Fed official WASHINGTON: The US Federal Reserve may need to make a bigger-than-expected interest rate cut if President Donald Trump keeps large tariffs in place for an extended period, a top Fed official warned on Monday. the effective average US tariff rate to 25%. Even with the pause, the overall average still remains around 25% due to the high tariff rates imposed on Chinese goods. and said the effects “on output and employment could be longer lasting.” held interest rates steady at 4.25% to 4.5% since the start of this year. On Friday, the Trump

“If the slowdown is significant and even threatens a recession, then I would expect to favour cutting the FOMC’s policy rate sooner, and to a greater extent than I had previously thought,” the governor said, referring to the Fed’s rate-setting committee. He added that with a rapidly slowing economy in this scenario, the risk of recession would likely outweigh the risk of escalating inflation. The American central bank has

administration temporarily excluded products such as smartphones, laptops and chip-making equipment from the“reciprocal tariffs,“ providing a reprieve from the 10% global rate and the 125% levy on goods from China. But many others remain, including an earlier 20% tariff on imports from China over its alleged role in the fentanyl supply chain, and levies on steel and aluminum imports. – AFP

If this level is maintained for some time, “economic growth is likely to slow to a crawl and significantly raise the unemployment rate”, Federal Reserve governor Christopher Waller told an event in Missouri, according to a copy of his prepared remarks. Waller expects elevated inflation “would be temporary”, but noted that it could go as high as five percent in the near-term,

Trump unveiled sweeping tariffs in early April against most US trading partners in a bid to address practices that Washington deems unfair, including a 10% global levy and higher country-specific rates, especially on China. The higher rates on countries other than China have been paused for 90 days but would have bumped