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Goldman Sachs CEO, David Solomon, said on Tuesday that he thought that the financial markets will overcome the dominant uncertainty to settle for a planned increase in mergers with companies going through the public quotation process.
“If the level of uncertainty increases from here, yes, you will not see the same amount of capital activity, but things will settle down,” said Salomon in an interview with Bloomberg Television Francine Lacqua. “People need to transform, must raise capital, need liquidity for their investments. Part of this is only a reset of expectations.”
Solomon warned that the labor market could see an increase in layoffs while companies are preparing for potential slowdowns and seek to control costs. He added that the current level of political uncertainty, a large part of which is centered on the prices of President Donald Trump, has a frightening effect on economic growth and investment.
“Political actions to date have increased the level of uncertainty to a certain extent that I do not think I am healthy for investment and growth. As I speak to CEOs, speaking to our customers, they retain investments, and they certainly tighten their belts,” he added.
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Goldman Sachs CEO David Solomon said he was thinking that there was too much political uncertainty for the moment, which tightens the financial markets. (Michael Nagle / Bloomberg via Getty Images / Getty Images)
After the election of Trump to a second term in the White House, the markets anticipated an increase in mergers and acquisitions as well as Initial public offers (IPOs) In response to the change of administration.
This belief followed the skepticism of the Biden administration of proposed mergers and acquisitions, And a certain number of high -level agreements have been faced with legal challenges which arose from their concerns concerning their effect on competition.
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Solomon said more offers could be concluded once the markets had more certainty. (Thiago Prudencio / Soup Images / Lightrocket via Getty Images / Getty Images)
Solomon noted in Bloomberg’s interview that the first quarter of 2025 had seen a higher level of activity in the capital markets than in the same quarter last year, there is therefore potential for more competitors later this year as long as uncertainty does not remain high enough to maintain potential competitors on the sidelines.
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“If the level of uncertainty increases from here, yes, you will not see the same quantity of Capital market activity. But my own belief is that things will settle. We will have a clearer political perspective and a certain normalization of the capital markets, “said Solomon to The Outlet.
