FirstFT: Goldman Sachs plans further job cuts

Goldman Sachs is preparing to impose a new round of job cuts on employees considered to be worst performers, people familiar with the matter told the Financial Times.

The planned move, which could begin next month, is part of an annual exercise that typically results in between 1 percent and 5 percent of the company’s employees losing their jobs.

Goldman is aiming for a figure at the lower end of that range, the sources said, in parts of its core investment banking and trading businesses. A 1% reduction in Goldman’s total workforce, which includes asset and wealth management as well as operational functions, would equate to about 440 jobs.

Goldman executives drew up lists of employees likely to be laid off. This is what we know so far about the planned cuts.

Here’s what I’m keeping an eye on today and this weekend:

• G20 Summit: Indian Prime Minister Narendra Modi to hold bilateral meeting with US President Joe Biden before the start of the G20 summit in New Delhi tomorrow.

• Mexico-Colombia relations: Mexican President Andrés Manuel López Obrador is traveling to Colombia to meet his Colombian counterpart Gustavo Petro.

• Tennis: The women’s and men’s finals of the US Open will be held on Saturday and Sunday respectively in New York.

How closely have you followed the news this week? Take our quiz.

Five other headline news

1. State employees across China, from nuclear power plants to remote hospitals, have been asked in recent weeks to stop using Apple iPhones. as part of a response led by Beijing against the American technology group. Investor concerns about the restrictions, which have not been confirmed by the Beijing government, caused Apple’s market valuation to fall by $200 billion in the last two days.

2. Janet Yellen said she does not expect China’s slowdown to have a “very significant direct impact on the United States.” The US Treasury Secretary, speaking in New Delhi today ahead of the start of the G20 summit, added that China had “great room for political maneuver” to cope with the economic slowdown. The renminbi, meanwhile, continued its decline against the dollar on Friday.

3. Former FTX executive Ryan Salame pleaded guilty to criminal charges related to the collapse of the cryptocurrency exchange. He is the fourth former FTX executive to reach a deal with prosecutors, further isolating founder Sam Bankman-Fried less than a month before his trial begins. Here is our report from the court hearing.

4. A former climate scientist and self-made businesswoman will run in Mexico’s presidential election next year after the ruling Morena Party chose former Mexico City Mayor Claudia Sheinbaum as its candidate. Sheinbaum’s selection pits her against Xóchitl Gálvez, leader of the free-market National Action party, and means Mexico will likely have its first female leader in its 200-year history after the June 2024 vote. Learn more about the candidates.

5. Germany pushes EU to postpone tariffs on electric vehicle sales with UK, back calls from Rishi Sunak’s government for a three-year delay in office. The bloc is expected to impose 10% taxes on electric vehicles shipped across the Channel from January if their batteries are made outside Europe. This is why Berlin changed its position.

• Go further: After months of unsuccessful lobbying to deter Chinese imports of electric vehicles, European automakers are preparing to against competition of their new rivals.

The big read of the day

Renewed efforts by Saudi Arabia and Russia this week to push oil prices toward $100 a barrel threaten to become another headache for Joe Biden as he weighs in on the U.S. economy – and the fight against inflation – at the center of his re-election. offer. What role could Riyadh play in a close US election?

We also read. . .

Chart of the day

The euro is on track for an eighth straight week of losses against the dollar, as concerns grow that the euro zone economy is heading for a slowdown. On the other hand, the United States is proving more resilient than investors expected, with the latest labor market data released yesterday showing an unexpected drop in jobless claims. What future for the euro?

Take a break from the news

New York’s private clubs are thriving. Josh Chaffin visits some of the new arrivals to a scene reminiscent of 19th century London and a desire to display wealth and exclusivity.

Additional contributions from Tee Zhuo and Benjamin Guillaume