Solomon of Goldman says the markets will be “set” after chaos

(Bloomberg) – David Solomon, Executive Director of Goldman Sachs Group Inc.

Most are read from Bloomberg

“If the level of uncertainty grows from here, yes, you will not see the same amount of capital activity, but things are solving,” Salomon said in an interview with Francine Lacqua by Francine Lacqua by Bloomberg Television. “People have to transact, they have to collect capital, need liquidity for their investments. Part of this is just a reestablishment of expectations.”

The bank executive warned that the current level of certainty in politics was not healthy for public and private markets, in which its company has growing bets. In the interview, conducted in Oslo before the Annual Investment Conference of the Sovereign Fund Sobirà de Norway, Salomon warned that layoffs will probably increase, as corporate executives make expense management a key priority for the year.

“The actions of politics have so far increased the level of uncertainty to a point that I do not think is healthy for investment and growth,” said Solomon. “As I talk to the CEOs, talking to our customers, they keep the investment and are certainly tightening the belts.”

Although the second quarter is in a softer start and many IPOs are paused, Solomon is not ready to call the industry time for a rebound in the melting activity somewhere later this year or next year. He said that private capital preparation and the number of mergers greater than $ 500 million really increased in the first quarter.

“The activity of capital markets increased year -on -year in the first quarter,” said Salomon. “If the level of uncertainty grows from here, yes, you will not see the same amount of activity in the capital markets. But my own belief is that things will be installed, we will have a clearer policy perspective and a little normalization of capital markets.”

Although the agreement activity has remained less than expected until the present year, banks’ commercial desks have benefited from uncertainty in public markets: Goldman’s actions merchants published a record quarter for the first three months of this year, reflecting a trend in Wall Street.

Solomon, who said he encouraged what was feeling in the United States treasure to relieve bank regulation, also weighed the regulation in Europe, where a large stimulus in Germany has improved growth hopes in the region as North -Americans remain behind.