Bloomberg Talks: Goldman Sachs CEO David Solomon Talks Iran, Markets, Private Credit

Date: March 5, 2026
Host: Bloomberg (Heidi Scragworth)
Guest: David Solomon, Chairman & CEO, Goldman Sachs
Event: Australia Week Alternatives and Macro Summit, Sydney

Overview

This episode features an in-depth conversation with Goldman Sachs CEO David Solomon at the Australia Week Alternatives and Macro Summit in Sydney. The discussion centers on global market uncertainties amid Middle East conflict, the status of Goldman’s operations in the region, the impact of AI and technology investing, US-China dynamics, trade policy uncertainty, and the current state of private credit markets. The episode provides Solomon’s candid take on risks, optimism, and the economic outlook for 2026.

Key Discussion Points & Insights

1. Geopolitics & Market Reactions

[00:32-02:40]

• Heidi Scragworth opens by highlighting the market’s reaction to the ongoing Middle East conflict.
• Solomon observes that markets have been relatively benign in their reactions despite significant uncertainty.
  • "I think it's fair to say when you look at markets, market reactions have been relatively benign. And I certainly could have seen over the last couple of days a little bit more volatility." – David Solomon [01:26]
• He attributes this stability to investors watching for potential economic impacts, particularly to energy supply chains, and the global community’s efforts to prevent escalation.
• Portfolio Allocations Remain Steady:
  • "There's nobody that's saying you should change your fundamental portfolio allocation because of what's going on." – David Solomon [02:21]

2. Risk Management Amid Uncertainty

[02:40-04:27]

• Solomon underscores the need for adaptability in large global institutions:
  • "One of the things you have to do when you run a big, large financial institution is that when facts change or risks come up, you've always got to be prepared to pivot, to shift, to de-risk." – David Solomon [03:23]
• He emphasizes that significant events are part of running a global bank and that his team is practiced at operating through them.
• Middle East Operations:
  • Offices prioritize employee safety, with many staff working from home.
  • "I would not say, you know, it's business as usual in those markets." – David Solomon [03:54]
  • Focus is on supporting staff and their families, not just business continuity.

3. Dubai as a Financial Center

[04:27-04:56]

• Asked about any existential threat to Dubai, Solomon does not see it as imminent but notes the atmosphere is “quite scary and unsettling” for those on the ground.
  • "I think it's a little bit premature to talk about existential clouds." – David Solomon [04:33]
• Main concern remains staff safety and security.

4. AI Investment and Market “Froth”

[05:17-06:09]

• On whether the “dumb money” in AI and sustainability narratives has further to go, Solomon is optimistic about AI’s transformative potential while acknowledging risks:
  • "AI is a fabulous, incredible technology that is going to drive massive productivity gains through society...Some of that capital is going to get reasonable returns. Some of that capital is not." – David Solomon [05:26]
• He expects both winners and losers, similar to prior technology cycles.

5. US Trade Policy & Business Sentiment

[06:09-07:21]

• Scragworth raises the Supreme Court ruling and the unpredictability of US trade policy.
• Solomon believes that while uncertainty impacts sentiment, US trade policy is currently fairly well articulated:
  • "I don't think that at the moment US Trade policy is that uncertain...While this administration is in place, that is going to be a construct that we have to operate in." – David Solomon [06:36]
• Suggests businesses have adapted to a baseline of policy uncertainty.

6. Australia’s Market in a Global Context

[07:21-08:13]

• Australia remains a key market for Goldman Sachs regardless of global uncertainty.
  • "Any market, any economy that's important is important for Goldman Sachs. Given our global footprint." – David Solomon [07:45]

7. China & US-China Relations

[08:13-09:33]

• Solomon reiterates the enduring importance of China as a global economic power and highlights the fragility of the current US-China relationship.
  • "At the moment, I'm very focused on the bilateral relationship between the US and China." – David Solomon [08:30]
• He anticipates the prospective Trump-Xi meeting for its potential impact on markets and policy but finds clarity is still lacking.
  • "I'd like to see more certainty and clarity around how the bilateral relationship will work going forward." – David Solomon [09:17]

8. Private Credit & Systemic Risk

[09:33-11:41]

• Solomon doesn’t see private credit as a systemic risk at present:
  • "We've gone a long time without a recession. When you have these long dated cycles...people have more capital to deploy, they get aggressive, lending standards deteriorate a little bit." – David Solomon [09:52]
• Credit portfolios, so far, are performing well due to economic strength, but a downturn could expose weaknesses:
  • "When we do have a slowdown in the economy, you will see it. I think because of the length of the cycle, you probably will find places where the losses are higher than people expect." – David Solomon [10:52]
• Distinction drawn between credit risk for institutions and issues for retail investors seeking liquidity in illiquid products.

Notable Quotes & Memorable Moments

• On risk management in a global context:
  "When facts change or risks come up, you've always got to be prepared to pivot, to shift, to de-risk." – David Solomon [03:23]

• On AI investment climate:
  "There's a lot of capital being deployed to grow AI capabilities around the world. Some of that capital is going to get reasonable returns. Some of that capital is not." – David Solomon [05:27]

• On the US-China relationship:
  "At the moment that's fragile. And so I'm very curious to see how that progresses." – David Solomon [08:42]

• On potential for credit market troubles:
  "When we do have a slowdown in the economy, you will see it...you probably will find places where the losses are higher than people expect." – David Solomon [10:52]

Timestamps for Key Segments

• Market response to Middle East conflict: 00:32 – 02:40
• Goldman Sachs’ risk management approach: 02:40 – 04:27
• Safety and operations in the Middle East: 03:52 – 04:56
• AI, tech investment, and capital deployment: 05:17 – 06:09
• US trade policy & business sentiment: 06:09 – 07:21
• Australia as an investment destination: 07:21 – 08:13
• US-China economic/political ties: 08:13 – 09:33
• Private credit cycle and risks: 09:33 – 11:41

Recap

This episode offers a candid, pragmatic look at how Goldman Sachs manages through global uncertainty, from conflict zones to transformative technologies and long credit cycles. David Solomon’s perspective stresses resilience and adaptability, with measured optimism on technology and ongoing vigilance regarding shifting risks across regions and sectors. The conversation provides valuable insights for investors, financial professionals, and anyone interested in the intersection of geopolitics and global finance.