Goldman Sachs' results were fine, but they could've been better | Rolls-Royce is slicing a chunk of staff, and investors are on board | [Finimize]( â TOGETHER WITH â Hi {NAME}, here's what you need to know for October 18th in 3:14 minutes. â ð· The swirl-and-spit method might work for a half-decent wine, but you'll need more than that when you're investing in the stuff. Come along to [Acquiring A Taste For Rare Wine Investments]( on October 30th, and discover how to tell the difference between a corker of an alternative investment and the makings of a bad hangover. [Grab your free ticket]( Today's big stories - Goldman Sachs reported better-than-expected third-quarter results, but JPMorgan was the real star
- Retail investors are pretty optimistic this quarter, so hereâs what youâre planning to do about it â [Read Now](
- UK stock market darling Rolls-Royce announced that it'll cut up to 2,500 jobs, and investors approved Not-Quite-Goldman [Not-Quite-Goldman] Whatâs going on here? Goldman Sachs reported better-than-expected results on [Tuesday](, but the big bankâs still far off the top spot. What does this mean? Goldman makes most of its money by taking commissions on its clientsâ trades and charging hefty fees from investment banking deals. But that only works if clients are trading and deals are being made, and right now, there isnât much to keep the big bank busy. Thatâs partly why Goldmanâs stock price has underperformed JPMorgan and Morgan Stanley this year. Although in fairness, while Goldmanâs third-quarter profit still landed a third lower than the same time last year, revenue in the big bankâs stock trading department was up 8%. Thatâs a small sign of energy after two years of lackluster stock performance â and the CEO thinks thatâs just the start, expecting a âcontinued recovery if conditions remain conduciveâ. Thatâs a big âifâ, mind you. Why should I care? Zooming out: Time to count on your laurels. Goldmanâs forecast to wrangle around $46 billion in revenue this year, which will have barely budged from the bankâs best pre-financial crisis results a whole 16 years ago. Thatâs not a result of laziness, though: the institutionâs been hunting for money-making opportunities for a while, but itâs slim pickings out there. So for now, investors will be watching to see if Goldmanâs expertise in trading and investment banking will be enough to pay dividends, metaphorically and literally speaking. The bigger picture: Jack of all trades, master of some. JPMorgan, on the other hand, is spinning plates, and the extra coordination is really coming in handy. The big bankâs cacophony of money-making routes means that if, say, corporate dealmaking drops off, another department â think trading, consumer lending, or wealth management â can pick up the slack. No wonder, then, that JPMorganâs earnings have almost tripled over the last 16 years while Goldmanâs have stood still. You might also like: [Even at these rates, bonds are no substitute for stocks](. Copy to share story: [=/not-quite-goldman]( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Not-Quite-Goldman&utm_campaign=daily-global-18-10-2023&utm_source=email) Analyst Take
Not âDumb Moneyâ After All: What Retail Investors Are Doing Now [Not âDumb Moneyâ After All: What Retail Investors Are Doing Now]( [Photo of Carl Hazeley] Carl Hazeley, Analyst We recently caught up with over 4,000 modern retail investors to find out how youâre feeling about markets and what your portfolio plans are now. You shared that [two-thirds of you are optimistic]( about global stock markets, despite higher interest rates and geopolitical uncertainty. Plus, half of you have between [$10,000 and $100,000]( that youâre looking to invest right now. And you told us about the opportunities that are [grabbing your attention]( across stocks, exchange-traded funds, money markets, and more. So thatâs todayâs Insight: [how your optimismâs feeding into your investing plans, which assets retail investors are betting on, and the major one everyoneâs avoiding](. [Read or listen to the Insight here]( SPONSORED BY IG Knowledge is investing power Youâll have heard of the [Consumer Price Index]( (CPI), a key inflation indicator. And if youâre an investor, hopefully youâve started [consulting those readings]( while you decide where to put your money. Remember, though, there are [a ton of different drivers and factors behind CPI](, and not all of them are discussed often. That can make reacting to financial updates especially tricky. But [IGâs pulled together a comprehensive list of these factors](, explaining how and why they influence inflation â and [how, in turn, your portfolio could be affected](. So if you want to accurately adjust your portfolio during inflation, youâll want to [check out IGâs list](. DisclaimerYour capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Business Class [Business Class] Whatâs going on here? British jet engine maker Rolls-Royce announced that it will cut up to 2,500 jobs, an effort to make the journey to profit a little smoother. What does this mean? Rolls-Royce got a new CEO back in January, one that swiftly labeled the company a âburning platformâ and revamped the top management roles before the fresh nameplate had even hit the desk. And now, 2,000 to 2,500 jobs â around 6% of the firmâs workers â are on the chopping block, a bid to cut costs and turn hard-earned revenue into profit. That type of management wonât win you any friends, but it might pay off elsewhere: Rolls-Royceâs stock has revved up 200% over the past year, claiming the title of the FTSEâs best performer. Plus, after news of the job cuts made the rounds, investors sent the stock up another 2%. Why should I care? For markets: Rolls-Royce is flying. Rolls-Royce has also been gassed up by some factors outside of its control. Countries are bumping up their defense budgets in the face of bubbling geopolitical tensions and long-haul flights are getting booked up fast, both of which have drummed up demand for Rolls-Royce airplane engines and maintenance. That said, strict decision-making has clearly paid off for the firm. After all, shares in businesses with their act together â robust cost management, operational efficiency, and long-term strategies â tend to fetch a premium when the wider environment is uncertain. The bigger picture: Cross your fingers. Job cuts are a blow for individuals, but in this case, they also suggest that the burning hot job market â a contributor to inflation â could be cooling down. And this trend is spreading across the UK: wages are still rising in the country, but at a slower pace. The differences are small, but any momentum in the right direction could give the Bank of England enough reassurance to avoid hiking interest rates any higher when it meets next month. You might also like: [Why jet engine maker Rolls-Royce is destined for the skies](. Copy to share story: [=/business-class]( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Business Class&utm_campaign=daily-global-18-10-2023&utm_source=email) ð¤ Partner with us Finimize is much more than just this newsletter: weâre a full-blown [one-stop shop]( for engaging with [modern investors](. So whether youâre a fintech, founder, or just a fed-up exec, rest assured â weâve got [the solutions]( you need. [Book A Demo]( ð¬ Quote of the day "When we ask for advice, we are usually looking for an accomplice." â Saul Bellow (a CanadianâAmerican writer) [Tweet this]( SPONSORED BY AJ BELL MONEY MATTERS Let's level the playing field Women face a lot of obstacles in life, and their finances are no exception. [AJ Bellâs latest report]( details the various bumps that can hold women back, all of which can really affect pensions, bank accounts, and â most importantly â confidence. Case in point: 60% of the women surveyed have never asked for a pay rise, and only a third of single women believe they can live comfortably off their pensions versus over half of married folk. But [AJ Bellâs Money Matters]( campaign is dedicated to breaking down those barriers, with [both practical and confidence-focused advice, tools, and insights](. [Sign up to the newsletter and find out how we can bridge the gender investment gap](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. ð¯ On Our Radar 1. Earth is so quirky. Our planet's [different than the rest](.
2. AI-enhanced investing is here. Unlock the [control of a brokerage, smarts of AI, and guidance of an advisor]( with Magnifi.* 3. Watch your hours. Work through the night and you might [see the effect on your scales](. 4. Proof of work versus proof of stake. Here's [how to check whether your crypto transactions are safe](.* 5. Flannel's back. [Menswear]( just became cool again. When you support our sponsors, you support us. Thanks for that. ð Finimize Live 𥳠Coming Up In The Next Week... All events in UK time. ð° [Money Matters: Her Wealth Roadmap](: 5pm, October 25th ð [Accessible Strategies For Effective Trading](: 5pm, October 26th ð· [Acquiring A Taste For Rare Wine Investments](: 5pm, October 30th ð¤ [Peer-to-Peer Lending: The Next Opportunity:]( 5pm, October 31st ð§° [Mastering Tools for The Modern Trader](: 5pm, November 2nd ð [Modern Investor Summit 2023](: 12pm, December 5th and 6th â¤ï¸ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} ð Weâd love to hear your thoughts. [Give feedback]( Want to advertise with us too? [Get in touch]( Image Credits: Image credits: Shutterstock â Maurice NORBERT | Shutterstock â NUTTANART KHAMLAK Preferences: [Update your email]( or [change preferences]( [View in browser]( [Unsubscribe]( from all Finimize Emails ð´ Crafted by Finimize Ltd. | 280 Bishopsgate, London, EC2M 4AG All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021 [View Online](