Finimize - 👇 Goldman Sachs is slimming down

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Today's big stories

Goldman’s taking an ax to costs in its biggest round of cuts since the financial crisis
Here’s how to prepare your crypto stack for “The Halvening” – Read Now
An outage halted all US flight departures on Wednesday, dealing another blow to the down-on-its-luck airline industry

Goldman’s Ax

What’s Going On Here?

Investment banking giant Goldman Sachs is set to make the biggest set of cost cuts since the financial crisis, according to news out on Wednesday.

What Does This Mean?

Goldman Sachs isn't your average Joe when it comes to banking: the firm focuses on bonanza corporate deal-making and securities trading, and doesn’t bother lending peanuts to typical punters like the rest of us. Problem is, even Goldman’s pro trading clients are now sitting on trembling hands, and fearful firms have no desire to pour piles of cash into big deals in this environment. Goldman, then, has resorted to some extremely unglamorous tactics: the firm’s slashing 3,000 jobs (tweet this), cutting back on hoity-toity office supplies, and selling off private jets – grab the world’s smallest violin, stat.

Why Should I Care?

For markets: Business as usual.
Wall Street is known for slicing costs faster than you can say "recession" whenever the economy starts to slide. After all, the investment banking industry tends to feel the economic pain before other sectors. And believe it or not, Goldman has a reputation for being tight with a dollar, shedding underperforming staff each and every year. So, after a hiring frenzy in recent years, this news isn’t exactly from left of field.

The bigger picture: Tech's watching its figures.
Profit matters a lot in banking, because high margins have to compensate for the fact the industry’s a slow grower. But that hasn’t been the case for the fast-moving tech industry: there, investors are usually happy to overlook profit, so long as sales are motoring along. So it’s interesting that even tech firms are now slashing costs and keeping an eye on their profit margins. Investors may think it's a smart move to trim some fat, but if the slimming session is really a sign of slower growth in the future, they’re likely to demand a full-blown hack, not just a trim.

You might also like: Goldman’s got three really big questions for investors.

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Analyst Take

“The Halvening” Is Coming For Bitcoin, And Now’s The Time To Position For It

By Jonathan Hobbs, Analyst

A major bitcoin event, “The Halvening” is just over a year away.

And if the OG crypto’s previous “halvings” are anything to go by, it’s not too soon to start stacking up some Satoshis.

See, there have been three of these events in bitcoin’s 14-year history, and each one has set off a major bull market rally.

That’s today’s Insight: how to prepare your crypto stack before “The Halvening”.

Read or listen to the Insight here

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A Wing And A Prayer

What’s Going On Here?

The Federal Aviation Authority grounded all flights on Wednesday after a key IT system crashed.

What Does This Mean?

Airlines have had it tough lately, and Wednesday’s flight-canceling technological mishap is yet another example of the roadblocks – or, uh, flight blockers – they’re up against. The whole debacle just about sums up investing in the industry: see, while plenty of sectors are negatively affected by world events, airlines have a reputation for being especially vulnerable. The pandemic, for one, literally grounded the sector for an achingly long time. Then almost as soon as vacationers started lining up at the check-in desks again, sky-high fuel prices – a result of the ongoing war in Europe – sent airlines’ costs heavenward. So while irrationally fearful fliers can find comfort in their pilot’s extensive training and impeccable safety record, nervous investors may be right to have their guards up.

Why Should I Care?

For markets: Ryanair’s in the mile-high club.
There's one airline that's, ahem, flying high right now: Ryanair upped its profit forecast last week. The budget Irish carrier may not have the luxury trimmings that attract comfort-seeking business executives, but in a post-pandemic world, it's the budget-savvy traveler that's the real prize. So while other airlines face a long taxi back to their old highs, Ryanair's stock already has lift-off – it’s climbed 17% so far this year.

The bigger picture: Down in the debt dumps.
Mind you, this could be a well-needed lesson for airlines like Delta and American Airlines. Back in the pre-pandemic boom years, the over-confident carriers borrowed heaps of cash to fund sleek, new airplane fleets, betting that a never-ending stream of travelers would help them repay the loans. But Covid caught them unawares, and forced airlines to borrow even more just to stay afloat – sorry, airborne. And because savvy would-be investors know those piling debts will get in the way of any lofty returns, they’re likely to take their time before climbing aboard.

You might also like: It might be time to buy quality stocks.

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💬 Quote of the day

“If you don’t know where you are going, any road will take you there.”

– Lewis Carroll (an English writer of children's fiction)

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🌍 Finimize Live

🥳 Coming Up This Week…

All events in UK time.

🎙 Live Q&A With Finimize CEO Max Rofagha: 1pm, January 12th
👩‍💻 2023 Investing Opportunities For The Self-Employed: 10am, January 13th

👀 And After That…

🌍 Investing 101: Where To Invest In 2023: 1pm, January 16th
💥 How To Spot The Best Long-Term Investments: 1pm, January 17th
📈 How To Hedge Against Volatility With Crypto: 5pm, January 19th
📑 The Risks And Regulations When Investing In Crypto: 10am, January 27th

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Finimize - 👇 Goldman Sachs is slimming down

Today's big stories

Goldman’s Ax

What’s Going On Here?

What Does This Mean?

Why Should I Care?

“The Halvening” Is Coming For Bitcoin, And Now’s The Time To Position For It

Our community wants to know your name

A Wing And A Prayer

What’s Going On Here?

What Does This Mean?

Why Should I Care?

🥳 Coming Up This Week…

👀 And After That…

Older messages

👩‍💻 How ChatGPT will change investing

⚽️ Sports could save the UK economy

🧸 The IMF said to start behaving

⭐️ Goldman lost its luster

🔍 Microsoft just got smaller

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