tyb
Goldman Trading Revenues Disappoint In Quarter Salvaged By Surge In M&A Deals
(and the foil to this is that munchkins continues to put out PR after PR about 'getting close' with the trade deal- no coincidence here)
Following JPMorgan's across the board beat, and Wells Fargo's latest disappointing results, moments ago Goldman reported a mixed set of numbers, with the company solidly beating on earnings, as EPS came in at $5.71, above the $4.89 expected, even as revenues disappointed, printing at $8.81BN, below the $8.99BN consensus exp., and down 13% from a year ago.
As a result of declining revenues, total profit of $2.25BN declined some 21% drop from a year ago, if printing above the $1.97BN estimate.
Of note, Goldman reported an effective income tax rate for Q1 of 17.2%, up from the full year rate of 16.2% for 2018, as the tax cut tailwind is now officially over.
(paying moar tax's…what a concept!)
Looking at the big picture, in the positive column, was Goldman's announcement that the company was boosting its dividend from $0.80 to $0.85, allaying fears that the 1MBD scandal is now well in the rearview mirror. The flipside, however, was that revenue has continued to shrink at the bank as the new management appears unable to find the sweet spot for the bank's potential.
as trading revenue fell 18% to $3.61 billion compared with a year-ago quarter, mirroring a 17% drop at JPMorgan which reported quarterly earnings last week.
In the company's core trading verticals, FICC and equities, both underwhelmed, with the latter missing expectations, as Goldman's equity traders brought in $1.77 billion, 24% lower than last year, and below the $1.83 billion expected. As Bloomberg notes, that's basically inline with the $1.74 billion JPMorgan brought in. Discussing the disappointing results, Goldman said that Q1 net revenues significantly decreased YoY as the "market backdrop was more favorable in 1Q18", to wit:
*Equities client execution net revenues decreased significantly, particularly in derivatives, versus a strong 1Q18
(can't make the dosh on decreasing trading volumes)
*Commissions and fees decreased, reflecting lower market volumes-(where have we seen that before….)
*Securities services net revenues decreased, primarily reflecting lower average customer balances.
The equity weakness was offset by stronger than expected FICC numbers, as revenue in the highest margin segment printed at $1.84BN, above the $1.78BN expected, but well below the $2.084BN from a year ago. Commenting on the 11% drop Y/Y in FICC, Goldman said that this reflected "lower net revenues in interest rate products, currencies and credit products, partially offset by higher net revenues in mortgages and commodities."
In other words as trading has continued to shrink, it was all up to the bank's M&A bankers to salvage the quarter.
(as long as they get the fee's associated with pushing out IPO's, or brokering M&A's they continue-eventually that pipeline will dry up too)
Reflecting the disappointing Q1 revenue, Goldman's Q1 compensation expenses shrank to $3.26 billion from $4.1 billion a year ago, below the estimated $3.61 billion, and with Goldman's headcount declining once more and shrinking to 35,900 from 36,600, this meant that average compensation per Goldman employee was fractionally lower, to $325,153 down from $342,322* a quarter ago, and has been stuck in a narrow range in the low $300,000s for the past two years.
(* How will they ever manage…kek)
The market reaction to Goldman's earnings however was rather more muted, and reflected disappointment, as the stock initially spiked on the EPS beat(when you constantly shift these around throughout the quarter and low-ball them it's not hard to do this) and dividend boost, however it has since shrunk and was modestly in the red as traders digested the continuing weakness in the company's trading group.
https://www.zerohedge.com/news/2019-04-15/goldman-trading-revenues-disappoint-quarter-salvaged-surge-ma-deals
GS
204.25 -3.59 (-1.73%)
Pre-Market: 9:01AM EDT
Ready when you are, EU tells U.S. on trade talks
BRUSSELS (Reuters) - The European Union is ready to starts talks on a trade agreement with the United States and could conclude a deal before the end of the year, European Trade Commissioner Cecilia Malmstrom said on Monday.
Malmstrom spoke after EU countries approved two negotiating mandates proposed by the European Commission. Of the 28 EU countries, only France voted against, while Belgium abstained.
The Commission will start two sets of negotiations — one to cut tariffs on industrial goods, the other to make it easier for companies to show products meet EU or U.S. standards. It needed backing from the EU member states to do so.
Malmstrom said she would now reach out to U.S. Trade Representative Robert Lighthizer to see when talks could begin.
“We are ready as soon as they are,” Malmstrom told a news conference.
She added Brussels would strive to agree what amounted to a limited deal before the Commission’s term ends on Oct. 31. “If we agree to start, I think it can go quite quickly.”
Malmstrom stressed that the potential tariffs deal was far less ambitious than the previous “TTIP” negotiations, which stalled after three years and have now been rendered obsolete.
The two sides are each other’s largest trading partners. Flows between the two represent 30 percent of global trade.
A Commission survey estimates an agreement on industrial tariffs would increase EU exports to the United States by 8 percent and U.S. products bound for Europe by 9 percent.
The European Union and the United States reached a detente last July when U.S. President Donald Trump agreed to hold off imposing punitive tariffs on EU cars as the two sides sought to improve economic ties.
That included removing tariffs on “non-auto industrial goods”.
The Commission has said it is willing to discuss cars, but will not include farm products, a key demand of the United States, which wants comprehensive agricultural market access.
“Agriculture will certainly not be part of these negotiations. This is a red line for Europe,” Malmstrom said.
AIRCRAFT SUBSIDY DISPUTE
EU governments agreed the bloc would not conclude negotiations until Washington removed tariffs it has applied to EU steel and aluminum and would suspend negotiations if the Trump administration impose new tariffs, such as on cars.
Germany, whose exports of cars and parts to the United States are more than half the EU total, has been among those most keen to press ahead with talks.
France, with very few U.S. car exports, wants climate change provisions in any deal— a difficult demand given Trump’s withdrawal from the Paris climate agreement.
The United States and the European Union have meanwhile begun preparations for measures related to a long-running dispute over subsidies given to U.S. planemaker Boeing and its European rival Airbus.
https://www.reuters.com/article/us-usa-trade-eu/ready-when-you-are-eu-tells-u-s-on-trade-talks-idUSKCN1RR0OZ
any memefags available to add some pepe heads to a pic or two to help a nigga out? Not my thing and you do a better job then I could ever do
>>6184405 U.S. Export Prices Outpace Imports, Both Beat Forecasts
from last week but good news
notable
but of course you fail to mention how all got moar take home pay over the year.
If you are living on your tax return you are doing something wrong
KYS
> did not reconcile with previous returns
you need a better tax person and a plan that should have been flexible to cope with those changes. Not like everyone was surprised by it.
Was walked out slowly
just sayin'
same here anon-took about 3 week's. These people are just totally unprepared. It's not that hard, but maffs are hard
o7