Goldman Sachs chief executive David Solomon underscored the importance of cryptocurrencies as the US’ fifth largest bank posted record first quarter net profit and revenue on the strong performance of its investment banking and trading businesses.
The lender's net income rose an annual 464 per cent to $6.8 billion in the three months to March 31. Its revenue more than doubled to $17.7bn on an annualised basis, topping analysts' expectations of $12.6bn.
As activities in the areas of "cryptocurrency, blockchain and the digitisation of money" accelerate, there will be "significant disruption and change in the way money moves around the world", Mr Solomon said during the bank's earnings call.
“Many central banks are looking at digital currencies … working to apply this technology to their local markets and determine the longer term impact on global payment systems.”
“There is also significant focus on cryptocurrencies like Bitcoin, where the trajectory is less clear as market participants evaluate their possibility as a store of value,” he added.
As a bank, Goldman Sachs is looking for ways to expand its capabilities to support its clients’ crypto needs while operating “within the regulatory guidelines”, Mr Solomon said. Digital currencies are “important to the future of global financial systems,” he added.
His comments came the same day Coinbase, a trading platform for cryptocurrencies, went public on the Nasdaq. Its shares opened at $381 and rallied as high as $429.54, before dropping to close at $328.28, giving the crypto exchange a market cap of about $86bn.
In a virtual interview on Wednesday, the US Federal Reserve Chairman Jerome Powell compared cryptocurrencies to gold and said they are “vehicles for speculation”.
“They are really vehicles for speculation … they are not really being actively used as payments. For thousands of years, human beings have given gold a special value that it doesn’t have,” he said.
Goldman Sachs is reportedly working to offer its first investment vehicles for Bitcoin, the world’s biggest cryptocurrency, and other digital currencies to its private wealth management clients.
The bank restarted its cryptocurrency trading desk in February.
Last month, the world's biggest electric vehicle company Tesla started accepting Bitcoin as payment for its cars.
FinTech company PayPal is also offering its US customers an option to use digital currencies in their wallets to pay for purchases at online merchants.
During the January-March period, Goldman Sachs gained across all four of its major business units. Its investment banking arm generated record quarterly net revenues of $3.8bn, 73 per cent higher than the first quarter of last year. The global markets business added $7.6bn, almost 47 per cent more than the same period a year ago.
Asset management earned $4.6bn in three months, compared with only $96 million last year. Whereas, revenue in consumer and wealth management surged 16 per cent annually to $1.7bn.
“Our first quarter results underscore the ongoing strength … evidenced our successful execution towards the strategic priorities. We delivered the best performance in global markets in a decade,” Mr Solomon said.
“We maintained our leading global positions across M&A [mergers and acquisitions] and equity underwriting.”
Mr Solomon said the global economic recovery will depend on the progress around Covid-19.
He said while the roll out of vaccines is well underway in the US and the UK, the distribution has been challenged in a number of other countries.
“We remain vigilant to risks across markets. We are mindful of elevated valuation levels across certain asset classes, increased volatility in certain single name stocks and are aware of the inflationary risks.”
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The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Read more about the coronavirus
It's up to you to go green
Nils El Accad, chief executive and owner of Organic Foods and Café, says going green is about “lifestyle and attitude” rather than a “money change”; people need to plan ahead to fill water bottles in advance and take their own bags to the supermarket, he says.
“People always want someone else to do the work; it doesn’t work like that,” he adds. “The first step: you have to consciously make that decision and change.”
When he gets a takeaway, says Mr El Accad, he takes his own glass jars instead of accepting disposable aluminium containers, paper napkins and plastic tubs, cutlery and bags from restaurants.
He also plants his own crops and herbs at home and at the Sheikh Zayed store, from basil and rosemary to beans, squashes and papayas. “If you’re going to water anything, better it be tomatoes and cucumbers, something edible, than grass,” he says.
“All this throwaway plastic - cups, bottles, forks - has to go first,” says Mr El Accad, who has banned all disposable straws, whether plastic or even paper, from the café chain.
One of the latest changes he has implemented at his stores is to offer refills of liquid laundry detergent, to save plastic. The two brands Organic Foods stocks, Organic Larder and Sonnett, are both “triple-certified - you could eat the product”.
The Organic Larder detergent will soon be delivered in 200-litre metal oil drums before being decanted into 20-litre containers in-store.
Customers can refill their bottles at least 30 times before they start to degrade, he says. Organic Larder costs Dh35.75 for one litre and Dh62 for 2.75 litres and refills will cost 15 to 20 per cent less, Mr El Accad says.
But while there are savings to be had, going green tends to come with upfront costs and extra work and planning. Are we ready to refill bottles rather than throw them away? “You have to change,” says Mr El Accad. “I can only make it available.”
Honeymoonish
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
ICC Awards for 2021
MEN
Cricketer of the Year – Shaheen Afridi (Pakistan)
T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)
ODI Cricketer of the Year – Babar Azam (Pakistan)
Test Cricketer of the Year – Joe Root (England)
WOMEN
Cricketer of the Year – Smriti Mandhana (India)
ODI Cricketer of the Year – Lizelle Lee (South Africa)
T20 Cricketer of the Year – Tammy Beaumont (England)
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
List of alleged parties
May 12, 2020: PM and his wife Carrie attend 'work meeting' with at least 17 staff
May 20, 2020: They attend 'bring your own booze party'
Nov 27, 2020: PM gives speech at leaving party for his staff
Dec 10, 2020: Staff party held by then-education secretary Gavin Williamson
Dec 13, 2020: PM and his wife throw a party
Dec 14, 2020: London mayoral candidate Shaun Bailey holds staff event at Conservative Party headquarters
Dec 15, 2020: PM takes part in a staff quiz
Dec 18, 2020: Downing Street Christmas party
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Dubai Women's Tour teams
Agolico BMC
Andy Schleck Cycles-Immo Losch
Aromitalia Basso Bikes Vaiano
Cogeas Mettler Look
Doltcini-Van Eyck Sport
Hitec Products – Birk Sport
Kazakhstan National Team
Kuwait Cycling Team
Macogep Tornatech Girondins de Bordeaux
Minsk Cycling Club
Pannonia Regional Team (Fehérvár)
Team Auvergne-Rhône-Alpes
Team Ciclotel
UAE Women’s Team
Under 23 Kazakhstan Team
Wheel Divas Cycling Team
RESULT
West Brom 2 Liverpool 2
West Brom: Livermore (79'), Rondón (88' )
Liverpool: Ings (4'), Salah (72')
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
