The world this week--Business
Goldman Sachs held an investors’ day, its first in three years, amid grumbling from shareholders about the direction of the bank after a slump in profit last year.
David Solomon, its chief executive, raised the possibility of selling parts of its lossmaking consumer services after it has finished scaling back the division.
It has become clear “that we lacked certain competitive advantages” in the business, he said.
Markets were left unimpressed by the presentation.
Goldman’s share price fell after the event.
Tesla held its first ever investor day, at which Elon Musk outlined part three of his “Master Plan” for the company.
Senior executives also took part and said an electric car for the mass market was in the works, which is essential for Tesla’s sales ambitions.
But the lack of detail about the new model disappointed investors.
Tesla also confirmed that it is building its first factory in Mexico, in Monterrey.
It is the latest carmaker to invest in making electric vehicles in Mexico; in February BMW said it would expand production and build a factory to assemble batteries.
Mexico is benefiting from the huge green subsidies in America’s Inflation Reduction Act, $34bn of which is earmarked for smoothing the supply chain for EVs.
The euro zone’s annual inflation rate remained virtually unchanged in February at 8.5%, though the reading was higher than the 8.2% that economists had expected.
Core inflation, which strips out volatile food and energy prices, increased to 5.6%.
Inflation also rose in the currency bloc’s two biggest economies, Germany and France, adding to pressure on the European Central Bank to continue raising interest rates.
America’s three main stockmarkets declined in February. The S&P 500 was down by 2.6% and the NASDAQ composite by 1.1%.
The Dow Jones Industrial Average fell by 4.2% in February; it has dropped by over 1% so far this year.
The European Commission announced that an agreement had been reached on its proposed standard for EU green bonds.
Companies that want to promote their bonds as climate-friendly will have to ensure that the investments meet strict sustainability requirements.
It is not yet clear what the penalties will be if companies’ bonds don’t meet the new standards.
Sweden’s economy shrank by 0.9% in the last three months of 2022 compared with the previous quarter.
The country is expected to fall into recession this year as soaring prices and higher interest rates knock consumer spending.
House prices are falling sharply.
Finland’s economy did fall into recession in the fourth quarter, contracting by 0.6% after a 0.1% decline in the third quarter.