GS - The Goldman Sachs Group, Inc.

NYSE - NYSE Delayed Price. Currency in USD
196.06
+16.13 (+8.96%)
At close: 4:00PM EDT

196.30 +0.24 (0.12%)
After hours: 7:58PM EDT

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Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close179.93
Open185.63
Bid196.12 x 1200
Ask196.25 x 2200
Day's Range185.22 - 197.10
52 Week Range130.85 - 250.46
Volume5,853,943
Avg. Volume4,541,208
Market Cap67.422B
Beta (5Y Monthly)1.45
PE Ratio (TTM)10.61
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield5.00 (2.78%)
Ex-Dividend DateMay 29, 2020
1y Target EstN/A
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
Fair Value
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Undervalued
17% Est. Return
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  • Hedge Funds Souring On Goldman Sachs (GS) and Buying Morgan Stanley
    Insider Monkey

    Hedge Funds Souring On Goldman Sachs (GS) and Buying Morgan Stanley

    Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]

  • MarketWatch

    Dow surges 661 points on gains in shares of Raytheon Technologies Corp., Goldman Sachs

    DOW UPDATE The Dow Jones Industrial Average is soaring Tuesday afternoon with shares of Raytheon Technologies Corp. and Goldman Sachs seeing positive growth for the blue-chip average. Shares of Raytheon Technologies Corp.

  • NYSE president: 'While we are reopening, it is not back to business as usual'
    Yahoo Finance

    NYSE president: 'While we are reopening, it is not back to business as usual'

    The iconic New York Stock Exchange floor is back open for business. Here is what New York Stock Exchange President Stacey Cunningham told Yahoo Finance.

  • MarketWatch

    Raytheon Technologies Corp., Goldman Sachs share gains lead Dow's nearly 600-point surge

    DOW UPDATE Behind strong returns for shares of Raytheon Technologies Corp. and Goldman Sachs, the Dow Jones Industrial Average is soaring Tuesday afternoon. Shares of Raytheon Technologies Corp. (RTX) and Goldman Sachs (GS) are contributing to the blue-chip gauge's intraday rally, as the Dow (DJIA) was most recently trading 592 points, or 2.

  • MarketWatch

    Dow surges 665 points on gains for Raytheon Technologies Corp., Goldman Sachs shares

    DOW UPDATE Led by positive momentum for shares of Raytheon Technologies Corp. and Goldman Sachs, the Dow Jones Industrial Average is soaring Tuesday morning. The Dow (DJIA) was most recently trading 665 points higher (2.

  • Goldman Seeks to Speedup Launch of Cash Management Business
    Zacks

    Goldman Seeks to Speedup Launch of Cash Management Business

    Despite the coronavirus-related woes, Goldman (GS) is planning to launch its new cash management platform globally by the end of this year.

  • MarketWatch

    Dow's 600-point surge highlighted by gains for Dow Inc., Raytheon Technologies Corp. shares

    DOW UPDATE Powered by strong returns for shares of Dow Inc. and Raytheon Technologies Corp., the Dow Jones Industrial Average is soaring Tuesday morning. Shares of Dow Inc. (DOW) and Raytheon Technologies Corp.

  • Goldman Sachs Plans To Expand Cash Management To Europe Despite Coronavirus Impact
    Benzinga

    Goldman Sachs Plans To Expand Cash Management To Europe Despite Coronavirus Impact

    Goldman Sachs Group Inc. (NYSE: GS) is looking to expand its corporate cash management services across Europe starting September, the Financial Times reported Tuesday.What Happened While the investment bank's cash management platform is set to launch in the United States next month, it is also aiming to extend operating in the United Kingdom in September, and in other European countries by the end of the year, people familiar with the matter told the Financial Times.Goldman Sachs is looking to implement a similar strategy as with its consumer-facing arm Marcus, when it comes to winning over clients from competitors, according to the Financial Times.One person familiar with the matter told the Financial Times that the bank has been offering to pay as much as 200 basis points over rivals on some of the deposits to U.S. corporates.Another person told the publication that the bank is offering pricing better than 70% of the market and not aiming to be the "most aggressive."Why It Matters Goldman Sachs reported a 46% drop in earnings in the first quarter and Chief Executive Officer David Solomon said the bank was "inevitably affected by the economic dislocation" caused by the novel coronavirus (COVID-19) pandemic.The bank has been long planning to enter the corporate cash management market dominated by rivals HSBC Holdings PLC (NYSE: HSBC), JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C), and Deutsche Bank AG (NYSE: DB) for more than a year, as reported by Reuters in January last year.GS Price Action Goldman Sachs stock closed slightly lower at $179.93 per share on Friday.See more from Benzinga * Carvana Rival Online Car Seller Vroom Files To Go Public * SoftBank Plans B Offering Of Its T-Mobile Shares In Addition To Sale To Deutsche Telekom * Disney Plans Another Bonds Offering With A Six-Part Deal(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Financial Times

    Goldman Sachs ramps up cash management plans despite coronavirus

    Goldman Sachs is planning to launch its fledgling cash management operations in the UK by September and across Europe by the end of the year, as the bank presses ahead with investment in the division in spite of the coronavirus crisis. The timetable is detailed in a presentation shown to prospective clients in recent weeks. Goldman has also offered to pay significantly more than rivals for some deposits, people familiar with the pitch said, mirroring its strategy for winning deposits at its Marcus consumer arm.

  • GuruFocus.com

    Stocks Close Higher Tuesday After the Long Weekend

    Dow Jones gains 2.17% Continue reading...

  • MarketWatch

    Goldman Sachs, JPMorgan Chase share gains lead Dow's 588-point surge

    The Dow Jones Industrial Average is soaring Tuesday afternoon with shares of Goldman Sachs and JPMorgan Chase leading the way for the price-weighted average. Shares of Goldman Sachs (GS) and JPMorgan Chase (JPM) have contributed about two thirds of the blue-chip gauge's intraday rally, as the Dow (DJIA) was most recently trading 588 points, or 2.4%, higher. Goldman Sachs's shares are up $16.86, or 9.4%, while those of JPMorgan Chase have risen $7.53, or 8.4%, combining for a roughly 167-point boost for the Dow.

  • Bloomberg

    China’s Trillions Toward Tech Won’t Buy Dominance

    (Bloomberg Opinion) -- Big spending numbers are being thrown around in China, once again. This time, it’s trillions of yuan of fiscal stimulus on all things tech. The plans are bold and vague: China wants to bring technology into its mainstream infrastructure buildout and, in the process, heave the economy out of a gloom due only partly to the coronavirus.But will this move the needle for China to achieve some kind of technological dominance? Or increase jobs, or boost favored companies? Not as much as the numbers would suggest, and possibly very little. A country covered in 5G networks makes for a tech-savvy society; it's less clear that this money will boost industrial innovation or even productivity.Over the next few years, national-level plans include injecting more than 2.5 trillion yuan ($352 billion) into over 550,000 base stations, a key building block of 5G infrastructure, and 500 billion yuan into ultra-high-voltage power. Local governments have ideas, too. They want data centers and cloud computing projects, among other things. Jiangsu is looking for faster connectivity for smart medical care, smart transportation and, well, all things smart.  Shanghai’s City Action Plan alone is supposed to total 270 billon yuan.By 2025, China will have invested an estimated $1.4 trillion. According to a work report released Friday in conjunction with the start of the National People’s Congress, the government plans to prioritize “new infrastructure and new urbanization initiatives” to boost consumption and growth. Goldman Sachs Group Inc. analysts have said that new infrastructure sectors could total 2 trillion yuan ($281 billion) this year, and twice that in 2021. Funding is being secured through special bonds and big banks. The Shanghai provincial administration, for instance, plans to get more than 40% of its needs from capital markets, and the rest from central government funds and special loans. Thousands of funds have been set up in various industries since 2018, and some goals were set forth in previous plans.Policymakers are aggressively driving the fiscal stimulus narrative through this new infrastructure lens. Building big things is a tried and true fallback in China, from the nation’s own road-and-rail networks to its most important soft-power foreign policy, the belt-and-road initiative to connect the globe in a physical network for trade. It’s less obvious that this will work for technology. The reality is that the central-government approved projects add up to only around 10% of infrastructure spending and 3% of total fixed asset investment. The plans lack the focus or evidence of expertise to show quite how China would achieve technological dominance. Thousands more charging stations for electric cars won’t change the fact that the country has been unable to produce a top-of-the-line electric vehicle, and demand for what’s on offer has tanked without subsidies. With their revenues barely growing, China’s telecom giants seem reluctant to allocate capital expenditures toward the bold 5G vision. China Mobile Ltd. Chairman Yang Jie said on a March earnings call that capex won’t be expanding much despite the company being at the outset of a three-year peak period for 5G investments. Analysts had expected it to grow by more than 20%, compared to the actual 8.4%.Laying this new foundation for the economy, which includes incorporating artificial intelligence into rail transit and utilities, requires time, not just pledged capital. It’s hard to see the returns any time soon, compared to investments on old infrastructure. These projects are less labor intensive, so there’s no corresponding whack at the post-virus jobless rate that would help demand. State-led firms that could boast big profits from sales of cement and machinery on the back of building projects, for instance, can’t reap money as visibly from being more connected.Spending the old way isn’t paying off like it used to, either. Sectors such as automobiles and materials, big beneficiaries of subsidies and state funding, have seen returns on invested capital fall. The massive push over the years gave China the Shanghai maglev and a vast network of trains and roads. But much debt remains and several of those projects still don’t make money. Add in balance-sheet pressures and spending constraints, and every yuan of credit becomes less effective. There’s also expertise to consider. Technological dominance may require research more than 5G poles. China’s problem with wide-scale innovation remains the same as it has been for years: It always comes from the top down. Beijing has determined and shaped who the players will be. Good examples are the 2006 innovative society plan and Made in China 2025, published in 2015, that intended to transform industries and manufacturing, and have had mixed results.China is unlikely to get the boost from tech spending that it needs to solve present-day problems, especially in the flux of the post-Covid-19 era. Ultimately, the country will just fall back on what it knows best: property, cars, roads and industrial parks. The economy is still run by construction, real estate and manufacturing. Investors should think again before bringing in anything but caution.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • China's Crypto Is All About Tracing — and Power
    Bloomberg

    China's Crypto Is All About Tracing — and Power

    (Bloomberg Opinion) -- The coronavirus has disrupted the world in very large ways. While that battle has been waged, however, another event has almost been missed: the birth of a new kind of fiat currency, which could forever reshape the relationship between money, economic power and geopolitical clout. An official Chinese digital yuan, more than five years in the making, is now in pilot runs to slowly start replacing the physical legal tender. If the experiment succeeds, this new cash, valued the same as the familiar banknotes bearing Mao Zedong’s image, will become the world’s first sovereign token to reside exclusively in the ether.The trials are taking place just as the blame game around the coronavirus deepens mistrust between the U.S. and China. With President Donald Trump warning that Washington would respond if Beijing intervenes against protests and democratic movements in Hong Kong, chances of a detente from last year’s trade war are fading.Outside the People’s Republic, the big question is if the digital yuan is a challenger to the dollar. Within China, though, there’s a more mundane explanation for why Beijing wants to turn banknotes in circulation into virtual tokens. Chinese consumers have bypassed both computers and credit cards to embrace mobile payment apps, which have gone on to spawn large money-market funds investing in high-yielding wealth-management products. This has led to the accumulation of risks in opaque shadow banking. Bringing them out in the open requires a leg up for traditional lenders in payments, an area where financial technology has left them far behind. The digital yuan, which will be pushed out to consumers via banks, seeks to restore this missing balance; it will allow authorities to “regulate an overstretched debt market more effectively,” says DBS Group Holdings Ltd. economist Nathan Chow.Still, there’s also a power play. It isn’t a coincidence that China’s project picked up speed last year as Facebook Inc. announced Libra. The proposed stablecoin promised to hold its value against a basket of major official currencies rather than gyrating wildly like Bitcoin. When it looked like regulators in the U.S. and elsewhere would nix this synthetic global cryptocurrency, the Libra Association curbed the scope of its undertaking. But the idea of “a regulated global network for cost-effective retail payments,” as described by Singapore state investor Temasek Holdings Pte, a new member of Libra’s Geneva-based governing body, remains alive. For Beijing to shake the dollar’s hegemony, it has to pre-empt Silicon Valley from taking the pole position. Hence the hurry for China’s test runs. According to media reports, half the May transport subsidy for Suzhou municipal employees will be in the form of digital currency electronic payment, or DCEP, as it’s being called in the absence of a catchier moniker. The pilot plan in Xiong’an, a satellite city of Beijing, includes coffee shops, fast food, retailers, theaters and bookstores, Goldman Sachs Group Inc. has noted. The other trials are reserved for Chengdu and Shenzhen. Thanks to Alipay and WeChat Pay, 80% of Chinese smartphone users whip out their mobiles to make payments, more than anywhere in the world. To them, the DCEP wallets being provided by the big four state banks should seem much the same. But there are differences. In this new system, a low-value transaction can go through even if both parties are offline. Also, this is sovereign liability, safe if an intermediary goes bankrupt. The big four lenders — and later fintech firms — will distribute the tokens, but the funds won’t reside in bank accounts. This will be unlike existing payment apps that only move one institution’s IOUs to another. Beijing was going to launch the digital money even before the pandemic. However, adoption could be faster now because of people’s fear of catching an infection from handling cash. Also, it’s possible to trace in real time whether an anti-virus subsidy, given out in tokenized form, is reaching the target. Once it has, the tracking would be “turned off” to ensure corporate and household spending stays anonymous, Goldman says. Strictly speaking, though, the anonymity of cash will no longer exist. Authorities can look under the hood of pseudonymous transactions for unwanted activity, an outcome far removed from the vision that drove libertarians (and money launderers) to cryptocurrencies in the first place. With the outbreak giving legitimacy to intrusive physical contact tracing, the case for financial tracing gets even stronger. Exchange of digital yuan between customers and merchants will pop up on a centralized ledger, and go through far more swiftly than in Bitcoin-style setups that rely on widely distributed ledgers of asset ownership. Every nation projects power when others desire its money — something that costs the home country nothing to produce. But as with any digital network, the sovereign tokens that take off first could end up winning disproportionately. The digital yuan could find customers overseas, especially in places where China is making belt-and-road investments. For one thing, they wouldn’t have to pay banks fat fees for running the $124 trillion-a-year business-to-business international transfers market.By distributing digital currency through banks, China has given its big institutions a chance to match the payment technology of fintech rivals. But it’s possible that a central bank in another country would bypass intermediaries altogether, potentially making the state the monopoly supplier of money to retail customers. That, as I wrote in December, could upend banking. The digital yuan may have started modestly, but it might pave the way for changes that are both ambitious and long outlast the coronavirus. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Argentina to Rework Debt Offer After Missed Interest Payment
    Bloomberg

    Argentina to Rework Debt Offer After Missed Interest Payment

    (Bloomberg) -- Argentina will improve the terms of its offer to restructure $65 billion of overseas bonds after sinking into default when it failed to make an interest payment.Economy Minister Martin Guzman didn’t give any details on his plans in an interview at his office on Friday evening, but he said discussions with creditor groups continue. The latest proposals from bondholders have shrunk the gap between the parties’ positions, he added.The South American nation, burdened by inflation near 50% and a shrinking economy even before the pandemic hit, missed the final deadline for $500 million of interest payments on Friday. The government has said Argentina needs $40 billion in debt relief to set it back on the path to sustainable growth, and officials have been in talks with bondholders for two months.“Our intention is to amend the offer based on the negotiations so that it has a structure compatible with the restrictions we face, as well as bondholders’ preferences and objectives,” Guzman said. “The message we’ve received from bondholders is that they’re interested to continue talks.”Argentina extended the deadline for creditors to consider its debt restructuring offer until June 2. Key bondholders have committed not to sue for immediate repayment on the defaulted debt, allowing talks to continue on friendlier terms, Guzman added.Read More: Argentina’s Stumble to Default Caps Brutal Four-Year DeclineArgentina’s Exchange Bondholder Group said the government invited some of its members as well as representatives from other creditor committees to sign a non-disclosure agreement for further talks.‘Good News’Jorge Arguello, the nation’s ambassador to the U.S., said in a statement late Saturday that formal negotiations are ongoing.“I understand there is still an important distance to cover but they clearly are on a positive course,” he wrote. “The good news is that all sides are at the table trying to find a solution.”Argentina has demanded a three-year moratorium on payments, sharp cuts to interest rates and a reduction in the principal owed. People familiar with the matter said earlier this week that there was a gap of about 20 cents on the dollar between what the government was offering and what creditors want.The government remains flexible on the specifics of the deal and could use sweeteners to make it more appealing to creditors, according to Guzman.“There’s flexibility on the combination of parameters,” he said. “While the counteroffers we received last week are closer than the first ones we received, they’re still far from what Argentina can sustain.”Bonds were little changed Friday, with most securities trading between 30 and 40 cents on the dollar, as investors had largely anticipated that Argentina wouldn’t make the overdue interest payments. The notes had rallied from record lows in recent weeks amid some optimism an accord can be reached in coming days and weeks.Investors are resigned to a certain amount of losses, and the government has tried to keep things friendly by avoiding rhetoric that demonized creditors, a hallmark of the country’s battles with hedge funds after its 2001 default.Argentina’s default at the turn of the century led to 15 years of costly court battles with creditors. It’s unlikely we’ll see a repeat of that, according to Alberto Ramos, the head of Latin American economics at Goldman Sachs Research.“Given all these signals that all these things seem to be progressing, I don’t think anyone will litigate immediately,” Ramos said. “There will be an understanding with bondholders and life goes on.”(Updates with statement from Argentina’s ambassador beginning in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Is JPMorgan Stock A Buy Right Now, As The Coronavirus Hits Bank Stocks? Here's What Earnings, Charts Show
    Investor's Business Daily

    Is JPMorgan Stock A Buy Right Now, As The Coronavirus Hits Bank Stocks? Here's What Earnings, Charts Show

    JPMorgan Chase has the reputation of being the best-run banking giant. But is the stock a good buy right now? Here’s a look at the JPM stock chart and fundamentals.

  • Bloomberg

    Voodoo Backers Kick Off Sale of Mobile Game Developer

    (Bloomberg) -- Voodoo SAS’s backers have kicked off the sale of a stake in the French mobile game developer, people with knowledge of the matter said.Marketing materials with an overview of the business have been sent to potential buyers, the people said, asking not to be identified as the information is private. The sellers are seeking indicative bids by early June, according to the people. A deal could value Voodoo at more than 1.5 billion euros ($1.6 billion), one of the people said.The decision to push ahead with the sale comes at a time when the coronavirus pandemic is keeping more people indoors and on their phones. That is helping to shield the mobile gaming industry from the virus’s broader economic impact, which is slowing dealmaking in other sectors.Voodoo is majority owned by its co-founders Alexandre Yazdi and Laurent Ritter. In 2018, they sold a stake in the business to a Goldman Sachs Group Inc. private equity fund called West Street Capital Partners VII.The company’s shareholders have been gauging interest from potential investors including rival game developers Ubisoft Entertainment SA and Zynga Inc., Bloomberg News reported in April. The process is at an early stage, and there’s no certainty the deliberations will lead to a transaction, the people said.A representative for Goldman Sachs declined to comment. An official at Voodoo didn’t immediately respond to a request for comment.Voodoo, which was started in 2013, makes easy-to-play games including “Helix Jump,” “Roller Splat” and “Snake VS Block.” Many are free to download with optional in-game purchases. The company’s games have more than 300 million monthly active users and have generated in excess of 2 billion downloads, according to its website.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Jack Ma’s Ant Made About $2 Billion Profit in December Quarter

    (Bloomberg) -- Billionaire Jack Ma’s Ant Group generated about $2 billion of profit in the December quarter, underpinned by its push to help Chinese lenders dole out money to the country’s under-banked consumers.The finance giant generated about $721 million in profit for Alibaba Group Holding Ltd. during the period, according to the e-commerce giant’s earnings filing. Based on Alibaba’s 33% equity share, that would roughly translate to $2 billion in profit for Ant. A representative for Ant declined to comment.Ant is now valued at about $150 billion, more than Goldman Sachs Group Inc. and Morgan Stanley combined. The company entered the banking arena as a disruptor, raising alarm bells for many of the nation’s 4,500 lenders. But about two years ago, it flipped the idea on its head, and began turning China’s lenders into clients by helping them provide loans and selling them cloud computing power.Ant’s sprawling network of more than 900 million active users means it can help China’s state-back lenders reach consumers in smaller cities that want credit. Outstanding consumer loans issued through Ant may swell to nearly 2 trillion yuan by 2021 according to Goldman Sachs analysts, more than triple the level two years ago, Bloomberg has reported.Ant has aspirations to go public, though it hasn’t decided on a timeline or listing destination.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Barrons.com

    Goldman Borrows U.K. Slogan Against Virus to Apply to British Stocks — ‘Stay Alert, Keep Distance’

    Goldman Sachs is borrowing the slogan from the British government’s third public service campaign trying to limit the spread of coronavirus — “stay alert, keep distance.”

  • 6 Banks PNC Might Want to Buy
    Motley Fool

    6 Banks PNC Might Want to Buy

    PNC recently came into a large amount of cash after selling its entire stake in BlackRock, making it clear that it is looking to make a big deal.

  • China Abandons Hard Growth Target, Shifts Stimulus Focus to Jobs
    Bloomberg

    China Abandons Hard Growth Target, Shifts Stimulus Focus to Jobs

    (Bloomberg) -- The Chinese government abandoned its decades-long practice of setting an annual target for economic growth amid the storm of uncertainty unleashed by the coronavirus pandemic, and said it would continue to increase stimulus.Speaking Friday morning at the National People’s Congress in Beijing, Premier Li Keqiang delivered an annual policy address that laid out a renewed focus on maintaining employment and investment. Against a backdrop of escalating tensions with the U.S., Li said Beijing remains committed to implementing the terms of the ‘phase one’ trade deal.With more than $500 billion in infrastructure bonds to be issued this year and more monetary easing on the horizon, China is trying to cement a fragile domestic recovery without indulging in the kind of debt blowouts seen in the U.S. and Europe. The world’s largest exporter is therefore still reliant on other countries reining in the pandemic and on a reboot of global trade.“We have not set a specific target for economic growth this year,” Li said, speaking in the Great Hall of the People. “This is because our country will face some factors that are difficult to predict in its development due to the great uncertainty regarding the Covid-19 pandemic and the world economic and trade environment.”Shifting away from a hard target for output growth breaks with decades of Communist Party planning habits and is an admission of the deep rupture the pandemic has caused. Economists surveyed by Bloomberg expect China’s economy to expand just 1.8% this year, its worst performance since the 1970s.At the same time, Li gave a precise figure for the targeted budget deficit, widening it to more than 3.6% of gross domestic product. Including the issuance of special bonds, that brings a broader measure of the deficit to more than 8%, according to Bloomberg Economics.Analysts including Goldman Sachs Group Inc. economist Yu Song said the package was less aggressive than expected. Market sentiment was overshadowed by the announcement Friday that Beijing would impose national security legislation on Hong Kong, risking further confrontation with the U.S.The CSI 300 Index fell 2.3% on Friday, its worst reaction to the opening of the country’s annual National People’s Congress since the stock benchmark started in 2005.What Bloomberg’s Economists Say...“Setting a target in such an uncertain economic environment would have been risky. Abandoning the decades-long tradition relieves the government of the straitjacket the annual target placed on economic policy. The challenge now will be to effectively guide expectations in the absence of the GDP target.”Chang Shu and David Qu, Bloomberg EconomicsFor the full note click hereLi said the government is setting a target for urban job creation of more than 9 million jobs, lower than the 2019 target of around 11 million, and a target for the urban surveyed unemployment rate of around 6%, higher than 2019’s goal, according to the document.The government’s official measures don’t capture the full extent of unemployment caused by the pandemic, which has hit both manufacturing and services hard. With jobs and income growth vital for the unelected Communist Party’s political legitimacy, stabilizing employment has become Li’s first priority.“We will make every effort to stabilize and expand employment,” Li said. “We will strive to keep existing jobs secure, work actively to create new ones, and help unemployed people find work.”Reflecting recent controversy over the ‘phase one’ trade deal with the U.S. signed earlier this year, before the pandemic broke out, Li said China will work with the U.S. to implement the agreement.The wider budget deficit target implies a significantly larger shortfall than 2019’s target of 2.8%. Greater spending on efforts to restart the economy and control the spread of coronavirus will be funded by issuing 1 trillion yuan ($140 billion) in sovereign debt.To help finance infrastructure investment, local governments will issue 3.75 trillion yuan in local special bonds this year, up from 2019’s quota of 2.15 trillion. Economists had forecast issuance of as much as 4 trillion yuan.The government’s language on monetary policy was kept basically unchanged, with the stance remaining “prudent,” as well as “flexible” and “appropriate.” The English-language report said new monetary policy tools would be developed to “directly stimulate the real economy.”“It is crucial that we take steps to ensure enterprises can secure loans more easily and promote steady reduction of interest rates,” according to the report. Li added that money supply will be guided “significantly” higher this year and that reserve ratios and interest rates will continue to be cut.Key leaders sat in two rows behind Li’s podium, well spaced and without face masks. Officials behind were more closely packed and wearing masks, as were the hundreds listening in the hall. The Congress represents the centerpiece of China’s political calendar, though it has a rubber-stamp role. The meeting was delayed more than two months by the virus shutdowns.Li detailed measures including continued implementation of VAT cuts, and a further 500 billion yuan in tax and fee reductions. The target for consumer price inflation was set at 3.5%, higher than the usual ceiling and a reflection of continued high food-price gains.Analysts said that while more stimulus was announced, the government’s ambitions for growth remain limited given the dangers of another run up in debt. China borrowed heavily to stabilize the economy after the 2008 crisis, and is taking a markedly different tack this time. At the same time, rising unemployment may force the government’s hand.“I think the central government would like local governments to play a much more active role in relieving domestic unemployment and boosting domestic consumption,” Michael Pettis, a finance professor at Peking University, said Friday on Bloomberg Television. “The problem is, local governments are indebted up to their eyebrows. There’s really not much room for them significantly to increase debt.”(Updates markets in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    Banks pursue Luckin Coffee chairman's assets after loan default

    The banks that lent $518 million to Luckin Coffee Chairman Charles Zhengyao Lu have started court proceedings to liquidate his private company, a government gazette for the British Virgin Islands showed. The notice, published on Thursday and reproduced in Hong Kong media on Friday, names Credit Suisse as the security agent, which means it will act on behalf of the banks behind the loan. Credit Suisse has proposed Grant Thornton be appointed as liquidators of Haode Investments Co., Mr Lu's private company, which is registered in the Virgin Islands.

  • Grocery Startup Missfresh Closes In on $500 Million Fundraising
    Bloomberg

    Grocery Startup Missfresh Closes In on $500 Million Fundraising

    (Bloomberg) -- Tencent Holdings Ltd.-backed Missfresh is on the verge of closing $500 million of new financing to quicken expansion after the Covid-19 outbreak bolstered demand for fresh groceries, people familiar with the matter said.Beijing Missfresh Ecommerce Co., which counts Goldman Sachs Group Inc. and Tiger Global Management among its backers, recently wrapped up the second tranche of a funding round that will raise a total of about $300 million and another 1 billion to 1.5 billion yuan ($211 million) of Chinese currency funding, the people said, requesting not to be named because the matter is private. A third and final tranche will be completed soon but the financing has so far valued the grocery delivery startup at about $3 billion before investment, the people said.A company representative declined to comment.Missfresh -- one of a clutch of startups Tencent backed during China’s internet boom -- is competing in a cash-burning sector with deeper-pocketed corporations including Alibaba Group Holding Ltd. Consumers sheltering at home during the Covid-19 pandemic have reinvigorated the once-difficult online groceries arena, and Missfresh now needs ammunition to attack a Chinese online fresh foods sector that could reach $178 billion by 2025.The company, founded in 2014, has more than 1,500 mini-warehouses that promise deliveries as fast as within an hour, it said in a statement in July. Missfresh had nearly 25 million monthly active users as of May last year. It handled 10 billion yuan ($1.5 billion) of transactions in 2018 and had generated positive cash flow by the end of that year, the company said at the time.The funding will help tide Missfresh over during tough times in the venture capital market. VC funding plummeted at the start of 2020 with investors stranded at home and increasingly risk-averse. Excluding the latest effort, the Beijing-based startup has raised nearly $900 million via eight funding rounds from investors including Jeneration Group and Genesis Capital, the company has said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Oil Posts Longest Streak of Gains in More Than a Year
    Bloomberg

    Oil Posts Longest Streak of Gains in More Than a Year

    (Bloomberg) -- Oil posted its longest streak of gains in more than a year, buoyed by output cuts across the globe that have whittled away at a stubborn supply glut.Futures climbed 1.3% in New York. U.S. supply data showed crude inventories fell for a second week after climbing steadily since January and stockpiles at the storage hub at Cushing, Oklahoma declined by a record. OPEC and its allies are reducing output and IHS Markit Ltd. says U.S. oil producers are also curtailing about 1.75 million barrels a day of existing production by early June.“There is a lot of narrative out there that the rebalancing is going to come quicker and will be more aggressive than we thought,” said Bart Melek, head of commodity strategy at Toronto Dominion Bank.Oil’s rally this month into the $30-a-barrel range raises the possibility that shale producers may slowly start to turn on the taps again after futures plunged into negative territory in April, leading to layoffs across the energy industry, a slowdown in drilling and deep declines in the number of oil rigs in operation. Goldman Sachs Group Inc. said U.S. shale will emerge from the current slump as a lower growth and more cash generative industry, while consolidation will concentrate the number of players in the sector.While the large decline in stockpiles at Cushing, the delivery point for WTI futures, indicates the supply glut is starting to ease, a surprise increase in U.S. gasoline inventories last week reflects underlying demand weakness in the world’s largest economy. The economic outlook remains uncertain with another 2.44 million Americans filing for unemployment last week, Labor Department figures showed.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • COVID-19 is accelerating automation in the workforce: WorkMarket Founder
    Yahoo Finance Video

    COVID-19 is accelerating automation in the workforce: WorkMarket Founder

    As states reopen, more companies look to technology and AI to limit prevent the spread of coronavirus in the workplace. WorkMarket Founder Jeff Wald joins Yahoo Finance’s On The Move panel to address the future of jobs and changes in the workplace post-pandemic.