Goldman Sachs plans to cut more than 1,300 employees from its global workforce as part of an annual review process to cull the low performers, according to people familiar with the matter. The bank will likely cut between 3% and 4% of its workforce, the people said. That would affect between 1,300 and 1,800 people, roughly, given that Goldman employed about 45,300 people as of late last year. The cuts are expected across the bank’s various divisions, with some teams impacted more than others. Typically, Goldman aims to trim between 2% and 7% of its workforce annually based on various performance factors. That range has fluctuated over the years based on market conditions and Goldman’s financial outlook. Layoffs have already started and will continue through the fall, one of the people said. They are part of an annual review process known at Goldman as a “strategic resource assessment,” or SRA. “Our annual talent reviews are normal, standard, and customary, but otherwise unremarkable,” said Tony Fratto, a Goldman spokesman. Overall head count at Goldman is expected to be higher at the end of 2024 compared to 2023, he noted.

The Swiss market ended higher on Friday, extending gains to a third straight session, as encouraging European and U.S. economic data and optimism about interest rate cuts helped underpin sentiment. The benchmark SMI ended with a gain of 18.87 points or 0.15% at 12,436.59. The index moved in a tight range between 12,417.72 and 12,483.57. SIG Group climbed nearly 2.5%. Lindt & Spruengli ended nearly 2% up. Geberit, Roche Holdings, Roche GS, Richemont, Swisscom, Sandoz Group, Swiss Life Holding, Sika, ABB and Holcim gained 0.4 to 0.9%. VAT Group dropped about 1.4%. Logitech International ended down 0.75%. Swiss Re, Givaudan, UBS Group and Julius Baer ended lower by 0.3 to 0.4%. EMS-Chemie Holdings ended lower by 0.6%, weighed down by drop in first-half net sales. However, the company reported a surge in net income in the first-half of the financial year. On the economic front, the Swiss Economic Institute said in its report that the KOF Economic Barometer in Switzerland rose to 101.6 in August 2024, up from a revised 100.6 in July.

Europe
European stocks closed on a mixed note on Friday with several markets holding near multi-month and multi-week, or even record all-time highs, with investors largely reacting positively to regional and U.S. economic data. The pan European Stoxx 600 ended up 0.09%. The U.K.'s FTSE 100, Germany's DAX and France's CAC 40 edged up 0.04%, 0.03% and 0.13%, respectively. Switzerland's SMI gained 0.15%. Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Norway, Poland, Portugal, Spain, Sweden and Turkiye closed higher. Iceland, Netherlands and Russia ended weak. In the UK market, Londonmetric Property, Entain and Land Securities gained 2 to 2.6%. Severn Trent, Unite Group, Segro, Antofagasta, Ashtead Group, Vistry Group, Barclays, Haleon, HSBC Holdings, Coca-Cola HBC and Hargreaves Lansdown climbed 0.8 to 1.5%. Fresnillo drifted down 2.34%. Whitbread, ICG, Anglo American Plc, BP, Burberry Group, Shell, Relx and Smith (DS) lost 1 to 1.75%. In the German market, Siemens Energy, Vonovia and Puma gained 1.5 to 1.8%. Commerzbank, E.ON, Deutsche Post and Deutsche Bank posted moderate gains. Zalando ended down nearly 2.5%. SAP, Rheinmetall, Beiersdorf and MTU Aero Engines also closed weak, though with much less pronounced losses. In the French market, Credit Agricole climbed more than 2.5%. Unibail Rodamco gained about 1.6%, while Saint Gobain, Engie, Capgemini, Societe Generale, BNP Paribas, Edenred and Danone also closed higher. Pernod Ricard, Airbus Group, Orange, TotalEnergies, Essilor, Renault, L'Oreal and LVMH lost 0.4 to 1.7%.

United States
Stocks fluctuated over the course of the trading session on Friday before eventually ending day sharply higher. The Dow closed higher for the fifth time in the past six sessions, reaching a new record closing high. The major averages reached new highs for the session going into the close of trading. The Nasdaq surged 197.19 points or 1.1 percent to 17,713.62, the S&P 500 jumped 56.44 points or 1.0 percent to 5,648.40 and the Dow climbed 228.03 points or 0.6 percent to 41,563.08. Meanwhile, the major averages turned in a mixed performance for the week. The Nasdaq slid by 0.9 percent, but the S&P 500 edged up by 0.2 percent and Dow advanced by 0.9 percent. The higher close on Wall Street came after the Commerce Department released readings on U.S. consumer price inflation that are said to be preferred by the Federal Reserve. The Commerce Department report showed consumer prices increased in line with economist estimates in the month of July, while the annual rate of price growth was unexpectedly flat. The report said the personal consumption expenditures (PCE) price index rose by 0.2 percent in July after inching up by 0.1 percent in June. The modest increase matched expectations. The core PCE price index, which excludes food and energy prices, also crept up by 0.2 percent in July. The uptick matched the increase seen in June as well as economist estimates. Semiconductor stocks showed a substantial move to the upside on the day, resulting in a 2.6 percent surge by the Philadelphia Semiconductor Index. Intel (INTC) helped lead the sector higher, spiking by 9.5 percent after a report from Bloomberg said the chipmaker is working with investment bankers to consider various options, including a split of its product-design and manufacturing businesses. Chipmaker Marvell Technology (MRVL) also soared by 9.2 percent after reporting better than expected fiscal second quarter results.

Asia
The stock markets in East Asia and Australia are starting the new week with losses for the most part.

Bonds
In the U.S. bond market, treasuries came under pressure over the course of the session after showing a lack of direction early in the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.4 basis points to 3.911 percent.

Analysis
Barclays lowers H&M target to SEK 175 (190) – Overweight/Trader
Deutsche Bank lowers Pernod Ricard target to EUR 120 (127) – Hold
Deutsche Bank raises Delivery Hero target to EUR 25 (23) – Hold


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