Bloomberg Talks: Goldman Sachs CEO David Solomon Talks Economy, Deals to Accelerate
Date: October 3, 2025
Host: Tom MacKenzie (Bloomberg)
Guest: David Solomon (Chairman & CEO, Goldman Sachs)
Location: Italian Tech Week, Turin
Episode Overview
This episode features a wide-ranging interview with David Solomon, CEO of Goldman Sachs, focusing on the U.S. and global economic outlook, the impact of AI on both markets and jobs, trends in dealmaking, and the challenges and opportunities facing Europe’s tech ecosystem. Solomon shares candid insights into macroeconomic forces, regulatory shifts, and the future direction for both Goldman Sachs and broader financial markets.
Key Discussion Points & Insights
1. US Economy: Navigating Headwinds and Tailwinds
[00:32]
- Solomon describes the US economy as “in pretty good shape,” but acknowledges both strong tailwinds and emerging headwinds:
- Aggressive fiscal stimulus in developed economies is a key factor driving current resilience.
- Major capital investment in AI infrastructure is “a big tailwind” supporting growth.
- Trade policy shifts and geopolitical fragility create “headwinds” and contribute to a slightly below-trend growth trajectory (less than 2% YoY from 2024 to 2025).
- Quote:
“The big structural issue that's kept the US economy going so well is ... governments are spending enormously into economies ... [and] all of the AI infrastructure build...”
(David Solomon, 00:48)
Solomon remains broadly optimistic, projecting acceleration in 2026 as trade policy effects are absorbed.
2. The US Labor Market
[03:18]
- Labor market described as “a little bit softer,” attributed partly to technological changes and enterprises pausing hiring to integrate automation and tech.
- The Federal Reserve is closely monitoring labor and inflation; uncertainty remains regarding how these dynamics will play out.
Quote:
“At the moment that slowed hiring and as a result, you know, the labor numbers are a little bit softer.”
(David Solomon, 03:18)
3. Monetary Policy & Rate Cuts
[03:40]
- Solomon sees possible further Fed rate cuts (totaling 1 percentage point over the next year) as within the “distribution of outcomes,” but urges caution and flexibility.
- He notes the unpredictability of macroeconomic shifts and competing pressures from labor and inflation.
Quote:
“I know there's a great parlor game of people kind of predicting what the world's going to look like six months, you know, 12 months out. ... I’d just be cautious.”
(David Solomon, 03:55)
4. Equity Markets & Technology Cycle
[04:30]
- Record highs in global stocks, especially US tech; Solomon is calm about the market rally, noting that booms tend to precede corrections.
- He draws historical parallels, referencing the dot-com era and predicts a likely “drawdown” in the next 12–24 months, but sees strong innovation and company-building as positives.
Quote:
“Markets run in cycles. And whenever we've historically had a significant acceleration in a new technology... you generally see the market run ahead of the potential because there are going to be winners and losers.”
(David Solomon, 04:53)
5. Dealmaking Surge & Regulatory Change
[06:02]
- US dealmaking is “meaningfully” accelerating, thanks to a more accommodating regulatory environment.
- Solomon highlights a record $1 trillion M&A quarter and notes that large-cap M&A is up 100% YoY.
- Expects dealmaking acceleration to continue into 2026.
Quote:
“There is real momentum in the dealmaking environment. I think you’re going to see an acceleration into 26 for sure.”
(David Solomon, 06:09)
6. Goldman Sachs’ Strategic Priorities
[07:44]
- The firm’s focus remains on client service.
- Continued execution on a multi-year strategy focused on growth in investment banking, trading, and asset & wealth management.
- Goldman Sachs is now among the largest active asset managers globally, overseeing $3.3–3.4 trillion.
- Targets further growth in ultra-high-net-worth wealth management, alternatives, and flexible solutions for institutional capital.
Quote:
“We have to grow. We have to grow our earnings. And to do that, you have to have a cogent plan where you're investing in different parts of the business.”
(David Solomon, 07:44)
7. Building European Tech Champions
[09:20]
- Europe lacks sufficient capital and risk appetite to consistently build world-leading tech companies.
- Solomon calls for greater deployment of local savings into risky tech startups, accelerated integration of EU capital markets, and a move away from fragmented national champions.
Quote:
“This really has to become a bigger center of capital deployment ... the more we can get the European Union to be operating as an economic union ... the better chance we have.”
(David Solomon, 09:31)
- He advocates for urgency in regulatory and capital market reforms to foster an innovation-friendly environment.
8. AI’s Transformative Impact on Goldman Sachs and Work
[11:24]
- Goldman Sachs employs 12,000 engineers and is integrating AI across businesses (AI assistant, AI developer tools).
- Solomon views AI as a force multiplying professional services efficiency, empowering employees, and automating coding and operations.
- $6B will be spent on technology this year, constrained by the need to deliver shareholder returns—but AI may unlock higher growth and reinvestment.
Quote:
“AI really allows smart, talented, driven, sophisticated people to be more productive... This technology allows you to code with greater productivity and efficiency.”
(David Solomon, 11:44)
Outlook on Jobs:
- Solomon rejects zero-sum thinking on AI and jobs:
“If the firm grows and you expand ... we'll wind up with more jobs 10 years from now than we have today.”
(David Solomon, 14:05)
9. AI Capex, Return on Investment, and the 'Bubble' Question
[14:57]
- Solomon acknowledges concerns about “hyperscale” AI capex outpacing revenues, but notes this is typical in major tech cycles:
“There'll be a bunch of winners and there’ll be a bunch of losers ... It's not different this time.”
(David Solomon, 15:13)
- He avoids branding the current moment as an “AI bubble,” instead predicting that risk appetite may eventually trigger a correction:
“When [people are] excited, they tend to think about the good things ... and they diminish the things you should be skeptical about that can go wrong. We're in one of those environments.”
(David Solomon, 16:22)
Notable Quotes & Memorable Moments
- “I sleep very well. I'm not ... worried about what will happen next. But markets run in cycles.” (David Solomon, 04:53)
- “This is a journey we've been on ... when I started 42 years ago and I wanted to look at five different companies... I had to go to the library ... obviously today you can do it in a fraction of a second.” (David Solomon, 12:30)
- “I'd love to have the capacity to go get more people to spend time with clients ... I'd love to have the capacity to invest in new businesses.” (David Solomon, 15:00)
Timestamps for Key Topics
- US Economy Overview & Headwinds – 00:32
- US Labor Market & Technology Effects – 03:18
- Monetary Policy Outlook – 03:40
- Stock Market & Tech Cycle – 04:30
- Dealmaking Acceleration – 06:02
- Goldman Sachs’ Business & Priorities – 07:44
- Europe’s Tech Ecosystem & Capital Challenge – 09:20
- AI & Transformation of Work at Goldman – 11:24
- AI, Jobs, and the Future Workforce – 14:05
- AI Capex, ROI & Bubble Concerns – 14:57
Summary Takeaways
David Solomon offers a clear-eyed, historically informed perspective: growth will persist, tech will drive radical change, but cycles and corrections are inevitable. For the near future, dealmaking activity, powered by regulatory shifts and capital formation, is set to accelerate, especially in the US, and Goldman Sachs is positioning itself for continued evolution through relentless investment in technology, people, and client service.
Europe’s ability to create tech leaders depends on reforming regulatory and capital structures, while in the US, AI is the engine of the next expansion—despite the risks and potential for eventual turbulence as excitement outpaces caution. For Goldman Sachs, AI isn’t a job killer, but a growth accelerator—provided the firm grows along with the opportunities new technology presents.