According to David Solomon, CEO of Goldman Sachs, the corporate world is already beginning to feel the effects of Donald Trump’s election in November and the return of Republican leadership in Washington.
Despite the fact that Trump has not yet taken office, the bank executive stated on a conference call on Wednesday that other CEOs are feeling more optimistic about the state of the economy and their companies since the presidential election.
Solomon stated in a FactSet transcript that there has been a significant change in CEO confidence, especially in the wake of the U.S. election outcomes.
Furthermore, he added, there is a sizable backlog from sponsors and a general heightened desire for dealmaking bolstered by a better regulatory environment.
Some survey data indicates that business executives have regained confidence, which is consistent with the statements. The forecast for the upcoming 12 months improved, according to the most recent Chicago Fed Survey of Economic Conditions. In December, the NFIB Small Business Optimism Index reached its highest point since October 2018.
Indeed, according to a FactSet transcript, officials on JPMorgan Chase’s earnings call stated that the optimism among business leaders has not yet translated into an increase in loans.
In the immediate wake of Trump’s victory, stocks surged as investors embraced the idea of less restrictions and cheaper taxes. But a lot of those gains have now vanished, partly because interest rates have recently increased.
In general, Trump is viewed as more business-friendly than outgoing President Joe Biden. Trump is scheduled to return to the White House on Monday. Trump proposed cutting taxes and regulations, notably those pertaining to energy, during his campaign. His proposed tariffs, however, have alarmed some corporate executives and investors who fear a disruptive trade war and increased prices.
Solomon made these remarks during a conference call about Goldman’s fourth-quarter earnings. The bank’s profit nearly doubled year over year, and it outperformed forecasts on both the top and bottom lines for the time frame.
More from CNBC:
-
TikTok s U.S. operations could be worth as much as $50 billion if ByteDance decides to sell
-
FTC sues Deere, alleging equipment repair monopoly raises costs for farmers
-
Quantum computing stocks rip higher on Microsoft s quantum-ready directive