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Goldman CEO Weighs In on China, Donald Trump, the Fed
Lloyd Blankfein criticizes China’s handling of its stock market and gives his views on Donald Trump and the Fed’s rate decision
Lloyd Blankfein, chairman and CEO of the Goldman Sachs group, says recent data hasn’t given the Federal Reserve a reason to raise interest rates. Excerpted from Wednesday's "Viewpoints" conversation with WSJ Editor in Chief Gerard Baker.
By JUSTIN BAER
Sept. 16, 2015 8:23 p.m. ET
Goldman Sachs Group Inc. Chairman and Chief Executive Lloyd Blankfein criticized China’s handling of its stock-market swoon in an interview that also included the Wall Street veteran’s views on Donald Trump and the Federal Reserve’s interest-rate decision.
Mr. Blankfein reserved some of his toughest remarks on Wednesday for China’s handling of its recent market difficulties. “They don’t have a lot of experience in this market stuff,” Mr. Blankfein said. Some of the decisions, he noted, have been “sloppy” and “ham-handed.”
In recent months, Chinese stocks have declined, despite government attempts to foster confidence and potentially boost its economy through devaluing its tightly controlled currency.
In a "Viewpoints" discussion on Wednesday, Goldman Sachs CEO Lloyd Blankfein explained why he would not invest in China right now, following the country's "ham-handed" handling of the recent market crisis.
Mr. Blankfein said China’s economy faces some of toughest “execution issues” ever. The country’s government officials “know what the problems are,” he said, and are “smart about it.” The nation needs to modernize its capital markets and create its own institutional investors. “But,” he added, “it’s really hard.”
Turning to U.S. politics, Mr. Blankfein sought to explain Mr. Trump’s surprising appeal as a presidential candidate, noting the real-estate developer and reality-television star may have tapped into voters’ longing for more pragmatism in Washington.
“We’ve put together a country that lets everyone into Washington with an absolute pledge not to compromise on anything,” Mr. Blankfein said. “And then Trump comes along and talks the language of dealing.”
Mr. Blankfein, a Democrat, stopped well short of endorsing Mr. Trump’s run. Some of Mr. Trump’s statements, the Wall Street executive said, are “wacky.” And the image of Mr. Trump “with his finger on the button blows my mind,” he said at The Wall Street Journal’s “Viewpoints” breakfast in Manhattan, drawing some laughter from the audience.
Lloyd Blankfein, Goldman Sachs Group Inc.’s chairman and chief executive, remarked on Donald Trump’s surprising appeal as a presidential candidate. Excerpted from a "Viewpoints" conversation with WSJ Editor in Chief Gerard Baker.
An avid reader of history, Mr. Blankfein drew parallels to an earlier election cycle when, in the early 1800s, an unconventional populist, Andrew Jackson, won the presidency.
“We’re being kind of dismissive of things. But people must’ve dismissed that.” When asked if he could live with Mr. Trump in the White House, Mr. Blankfein demurred: “I didn’t say that.”
In explaining recent polls showing that support for Democratic candidate Hillary Clinton has dipped, Mr. Blankfein traced it to Mrs. Clinton’s role as the leading “establishment” candidate at a moment when the nation’s mood has turned against institutions.
“We’ll see what happens” next year as voters weigh more seriously the consequences of their decisions, Mr. Blankfein said.
A former trading executive and lawyer who steered Goldman through the financial crisis, Mr. Blankfein acknowledged the widening gap between the nation’s wealthiest and everyone else. “That’s all true,” he said. “At the same time,” he added, “it’s never been easier for people to start a business.”
Lloyd Blankfein, CEO of Goldman Sachs, reserved some of his toughest remarks on Wednesday for China’s handling of its recent market difficulties. ENLARGE
Lloyd Blankfein, CEO of Goldman Sachs, reserved some of his toughest remarks on Wednesday for China’s handling of its recent market difficulties.
It also has rarely been more popular to merge businesses together, something Mr. Blankfein said would likely continue. The Goldman executive said many of the recent deals have been between two companies, rather than buyouts by private-equity firms.
“The deals getting done are in turn driving other deals,” Mr. Blankfein said. “Companies are getting bigger,” he said, compelling rivals to respond with acquisitions of their own.
As for the Fed, he supported the view of most investors and traders this week projecting that the Fed will hold off on raising interest rates for the first time since 2006.
“If the decision gets made [to raise interest rates this week], it’s not because there’s a tsunami of evidence of a hardening and quickening economy, tightening of labor, acceleration of inflation,” Mr. Blankfein said. “I wouldn’t do it.”
Among his current worries, Mr. Blankfein said, are the risks posed by “another crisis” in Europe, and how that Continent deals with the influx of migrants from war-torn Syria.
Write to Justin Baer at justin.baer@wsj.com
Goldman CEO Weighs In on China, Donald Trump, the Fed
Lloyd Blankfein criticizes China’s handling of its stock market and gives his views on Donald Trump and the Fed’s rate decision
Lloyd Blankfein, chairman and CEO of the Goldman Sachs group, says recent data hasn’t given the Federal Reserve a reason to raise interest rates. Excerpted from Wednesday's "Viewpoints" conversation with WSJ Editor in Chief Gerard Baker.
By JUSTIN BAER
Sept. 16, 2015 8:23 p.m. ET
Goldman Sachs Group Inc. Chairman and Chief Executive Lloyd Blankfein criticized China’s handling of its stock-market swoon in an interview that also included the Wall Street veteran’s views on Donald Trump and the Federal Reserve’s interest-rate decision.
Mr. Blankfein reserved some of his toughest remarks on Wednesday for China’s handling of its recent market difficulties. “They don’t have a lot of experience in this market stuff,” Mr. Blankfein said. Some of the decisions, he noted, have been “sloppy” and “ham-handed.”
In recent months, Chinese stocks have declined, despite government attempts to foster confidence and potentially boost its economy through devaluing its tightly controlled currency.
In a "Viewpoints" discussion on Wednesday, Goldman Sachs CEO Lloyd Blankfein explained why he would not invest in China right now, following the country's "ham-handed" handling of the recent market crisis.
Mr. Blankfein said China’s economy faces some of toughest “execution issues” ever. The country’s government officials “know what the problems are,” he said, and are “smart about it.” The nation needs to modernize its capital markets and create its own institutional investors. “But,” he added, “it’s really hard.”
Turning to U.S. politics, Mr. Blankfein sought to explain Mr. Trump’s surprising appeal as a presidential candidate, noting the real-estate developer and reality-television star may have tapped into voters’ longing for more pragmatism in Washington.
“We’ve put together a country that lets everyone into Washington with an absolute pledge not to compromise on anything,” Mr. Blankfein said. “And then Trump comes along and talks the language of dealing.”
Mr. Blankfein, a Democrat, stopped well short of endorsing Mr. Trump’s run. Some of Mr. Trump’s statements, the Wall Street executive said, are “wacky.” And the image of Mr. Trump “with his finger on the button blows my mind,” he said at The Wall Street Journal’s “Viewpoints” breakfast in Manhattan, drawing some laughter from the audience.
Lloyd Blankfein, Goldman Sachs Group Inc.’s chairman and chief executive, remarked on Donald Trump’s surprising appeal as a presidential candidate. Excerpted from a "Viewpoints" conversation with WSJ Editor in Chief Gerard Baker.
An avid reader of history, Mr. Blankfein drew parallels to an earlier election cycle when, in the early 1800s, an unconventional populist, Andrew Jackson, won the presidency.
“We’re being kind of dismissive of things. But people must’ve dismissed that.” When asked if he could live with Mr. Trump in the White House, Mr. Blankfein demurred: “I didn’t say that.”
In explaining recent polls showing that support for Democratic candidate Hillary Clinton has dipped, Mr. Blankfein traced it to Mrs. Clinton’s role as the leading “establishment” candidate at a moment when the nation’s mood has turned against institutions.
“We’ll see what happens” next year as voters weigh more seriously the consequences of their decisions, Mr. Blankfein said.
A former trading executive and lawyer who steered Goldman through the financial crisis, Mr. Blankfein acknowledged the widening gap between the nation’s wealthiest and everyone else. “That’s all true,” he said. “At the same time,” he added, “it’s never been easier for people to start a business.”
Lloyd Blankfein, CEO of Goldman Sachs, reserved some of his toughest remarks on Wednesday for China’s handling of its recent market difficulties. ENLARGE
Lloyd Blankfein, CEO of Goldman Sachs, reserved some of his toughest remarks on Wednesday for China’s handling of its recent market difficulties.
It also has rarely been more popular to merge businesses together, something Mr. Blankfein said would likely continue. The Goldman executive said many of the recent deals have been between two companies, rather than buyouts by private-equity firms.
“The deals getting done are in turn driving other deals,” Mr. Blankfein said. “Companies are getting bigger,” he said, compelling rivals to respond with acquisitions of their own.
As for the Fed, he supported the view of most investors and traders this week projecting that the Fed will hold off on raising interest rates for the first time since 2006.
“If the decision gets made [to raise interest rates this week], it’s not because there’s a tsunami of evidence of a hardening and quickening economy, tightening of labor, acceleration of inflation,” Mr. Blankfein said. “I wouldn’t do it.”
Among his current worries, Mr. Blankfein said, are the risks posed by “another crisis” in Europe, and how that Continent deals with the influx of migrants from war-torn Syria.
Write to Justin Baer at justin.baer@wsj.com
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