Episode summary
Goldman Sachs Posts Best Stock-Trading Quarter in History | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Lisa Mateo · Guests: Alison Williams, Woo Jin Ho, Duncan Fox, Herman Chan
Summary
Wall Street banks were the main focus, with an analyst arguing that Goldman Sachs posted an extraordinary quarter in equities trading, including a record haul and a 36% jump in equity-trading revenue. Morgan Stanley also delivered a strong results set, but the analyst said Goldman is now pulling ahead in market share, while investor reactions were also shaped by buyback expectations and capital return differences. Bank of America was cited as evidence of consumer resilience, with credit trends and reserve building suggesting caution but not deterioration.
The discussion also turned to Hewlett Packard Enterprise, where a technology analyst said Elliott Investment Management’s involvement and a new strategy committee could push operational streamlining, especially after execution issues and weaker AI progress versus Dell and Super Micro. He said HPE’s Cray and Juniper assets remain important, but the company has lagged in converting high-performance computing into AI sales.
On consumer staples, an analyst said Diageo’s CEO departure reflected pressure from weak performance, tariff uncertainty and a difficult spirits backdrop. The episode closed with regional banks, where another analyst said credit quality has stayed stable, lending demand is improving, and commercial real estate losses remain manageable even as private credit continues to encroach over time.
Key takeaways
- The analyst said Goldman Sachs posted a historic equity-trading quarter and is now pulling ahead of Morgan Stanley in the business.
- Morgan Stanley’s results were strong, but investors appeared more focused on weaker buyback signals than on the earnings beat.
- Bank of America’s quarter suggested consumer credit remains resilient, with charge-offs and reserve building still under control.
- The HPE analyst said Elliott-backed operational changes could help, but the company has lagged Dell and Super Micro in AI sales.
- The Diageo analyst said management turnover reflects years of underperformance and tariff uncertainty in the spirits market.
- The regional-banks analyst said credit quality is stable and commercial real estate exposure is manageable, though private credit is a longer-term competitor.
Notable quotes
“you've never seen a quarter like you saw at Goldman Sachs, equity trading, record”
“the really standout for Goldman is they're the biggest in equity trading. They are the biggest in M&A, and they had the biggest jump”
“Goldman had really that leading dividend increase that we saw after the stress tests”
“they've lagged on the AI front, even though they have some of the leading technologies and high high performance compute”
“I suppose the the performance of the uh shares and the organic growth and sales etc haven't been very good for the last couple of years”
How the episode opens
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Matteo Paul Sweeney live here in our Bloomberg Interactive Broker Studio. We are streaming live on YouTube as well. Also, go check us out there.
I've been doing the stock market thing, Lisa, for like 40 years almost. Still have no idea how this whole thing works. I mean, look at it.
Goldman Sachs, Morgan Stanley, BFA. They had what I thought were really pretty darn good quarters in a world where we're not really sure what's going on. So, of course, all the stocks are trading down today.
So, I can't figure it out. But our next guest is an expert. She knows what's going on.
Allison Williams, senior analyst. She covers all the bank, big banks, and all that kind of good stuff for Bloomberg Intelligence. Uh, she joins us here in our studio here.
So, as you looked at, you know, again, we've had two days of the biggest banks, Allison, and then you've been covering these guys for a very long time. You've seen it all come and go. How are the big banks, investment banks doing this this this quarter?
Well, you mentioned you've been doing this 40 years, and you've never seen a quarter like you saw at Goldman Sachs, equity trading, record. Yep. — Trading. — Um, I mean, the really standout for Goldman is they're the biggest in equity trading. They are the biggest in M&A, and they had the biggest jump. So really solidifying that leadership. I mean the equity trading up 36%.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- us bank earnings
- equity trading revenue
- volatile markets and net interest income
- hedge fund activism strategy committees
- consumer staples executive transition
Companies and tickers mentioned
- GS
- MS
- BAC
- HPE
- DEO
- FHN
- PNC
- MTB
- Goldman Sachs Group Inc.
- Morgan Stanley
- Bank of America Corp.
- Hewlett Packard Enterprise
- Elliott Investment Management
- Diageo
- First Horizon
- PNC Financial
- M&T Bank
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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