Goldman Sachs CEO discussed the potential resilience and improved trade prospects of the US economy in a wide-ranging interview, and also expressed concerns about the escalating conflicts in the Middle East.

David Solomon, who attended the Saudi Future Investment Initiative conference in Riyadh, stated in an interview on Tuesday: "The US economy is performing well and very resilient. The fundamental situation in the US is a soft landing."

Earlier this month, $Goldman Sachs (GS.US)$ The financial report released showed a 45% increase in third-quarter profits, attributed to unexpectedly growing stock trading revenue and a rebound in investment banking. Solomon stated on Tuesday that despite the potential changes from the US elections, there is "no doubt, the trading environment is improving."

At the same time, the Goldman Sachs CEO emphasized concerns about other global regions, including the Middle East, where tensions between Israel and Iran have reached the highest levels in decades.

Solomon expressed some concerns regarding the situation in the Middle East, stating: "I am a bit worried about the situation. This is not conducive to security, safety, and growth."

However, he pointed out that this war "has not yet had a significant impact on activities in the region".

Solomon also warned of regulatory risks as the US will hold elections on November 5th. Public opinion polls show Vice President Harris and former President Trump are evenly matched.

Solomon said, "The election is imminent, and policy decisions will also be made. These will impact the development trajectory of 2025 and 2026." He added that the bank is fully capable of supporting any government and its clients in any outcome.

Solomon stated that he is more concerned about growth and economic conditions in Europe and other regions, but overall, the engine of the USA is quite strong.

In the interview, Solomon also discussed the financial situation of Goldman Sachs:

"Our equity franchise is performing very well. I cannot tell you quarter by quarter what the market environment will bring to this franchise, but we are prepared to serve clients and are leading in this business;

Goldman Sachs performed better in September than expected, with the equity franchise performing very well; the profit margin of the fixed income business decreased year-on-year;

The bank has reduced its focus on consumer activities, paying more attention to global banks, assets, and wealth management business.

Earlier on Tuesday, Goldman Sachs opened a new office in the financial district of Riyadh, deepening its operations in the largest economy in the Middle East. Solomon stated that with the escalating competition between Riyadh and Dubai, Goldman Sachs has not encountered difficulties in attracting talent to Saudi Arabia or the Middle East.

He pointed out, "I do agree that there is more competition here, but this is actually a positive factor. Activity levels are picking up." Solomon added that as client interest expands, Goldman Sachs is "well-positioned" to play the roles of an investment bank, trader, asset, and wealth management company in Saudi Arabia.

"We have been able to attract talent," he said, "we are Goldman Sachs."

Editor/Rocky