Goldman Sachs has been getting beneath the skin of its youngest and most putative employees in an effort to establish what they really, really, want from life. The answer can be summarized in one word: money.
Goldman's intern-investigation is offered for public consumption here. Among other things, the firm asked two thirds of its 2016 summer analyst class about their current life priorities and spending habits. What emerges is a portrait of a temperate, health-conscious group of young people, keen to spend their 20s laying the foundations for their future.
Accordingly, the interns told Goldman their big priority now is saving for later. 46% said owning a house is important; just 3% wanted to own "luxury items." 43% said they prioritized exercise above all else (when not working). Holidays were wisely seen as an opportunity to recuperate rather than push the cultural envelope - 42% said their dream vacation was lying on a beach, compared to 16% who aspired to City sightseeing.
Goldman Sachs has no problem attracting young people. There are indications, however, that it may have problems retaining them: the banks is one of many to have imposed restrictions on junior bankers' working hours. It's also introduced accelerated promotions for its analysts (the most junior staff) to help dissuade them from moving to private equity funds. If Goldman's intern-research is right though, there might be a quicker way to junior staff's hearts: pay them more money and help them save for a deposit for a house.
Separately, the British government has blinked. Following claims that it wouldn't be making concessions for EU nationals in Britain until EU countries made concessions for British nationals in the EU, the Financial Times reports that the government will now be allowing "top bankers" to stay in the country after all. Hammond is also repeating the arguments made by British banks during their meeting with him yesterday: "London's financial services market supports the real economy across Europe, not just in the UK," said Hammond. The message is clear: if the City is harmed during Britain's EU exit, European economies will suffer. Whether Europe will buy this remains to be seen.
Tom Cornacchia, co-head of global FICC sales has, "decided to retire," prompting a shakeup in the leadership of Goldman's securities business. (Financial News)
Eris Futures has hired Barclays former head of agency derivatives Tim Stack as head of Europe. Stack will open a new London office. (The Trade News)
Nomura's former equity analysts keep moving into investor relations and corporate development at the companies they used to cover. (Financial News)
JPMorgan's private bank laid off 100 people in the past 18 months. (WSJ)
Existing IT systems for operating in capital markets cost between $100 billion and $150 billion a year, but no Blockchain start-up has raised funding of more than $50m. That's a problem. (Gadfly)
Portugal and Italy are a headache for the EU. If Portugal is downgraded to “junk” status by DBRS, then it will have no investment grade ratings left. Fitch, Moodys and S&P have already pulled the trigger. And if Portugal has no investment grade ratings then it loses its place in the European Central Bank’s bond-buying backstop programme. (MarketsNews)
The E.U. Commission’s vice president for the euro and financial markets, Valdis Dombrovskis, says the EU will not allow the UK to“cherry pick” in Brexit talks by abandoning the free movement of labor while keeping free access to E.U. financial and capital markets. (Handelsblatt)
How to work with your team of Indian analysts: "We have discussed at some length what it must be like for UK managers, arriving on a cold wet morning in to the office, possibly spilling hot coffee and the first thing that happens is a bright and breezy voice at full pelt." (FrontlineAnalysts)
You're wearing the wrong watch. (Business Insider)
Odey calls Trump. (Handelsblatt)