Goldman Sachs Group, Inc. (NYSE:GS) on Monday reported its first-quarter global banking and markets division revenue rose 10% to $10.71 billion, driven higher by blockbuster equity trading revenue. However, CEO David Solomon warned of uncertainty and potential turbulence ahead on the company's earnings call.
What To Know: The Goldman Sachs CEO warned that the prospect of a recession has increased with global signals indicating a slow down in economic activity. He said that these indicators combined with the potential of an escalating trade war have left the bank's clients with an uncomfortable degree of uncertainty.
Read Next: JPMorgan CEO Jamie Dimon Expects S&P 500 Growth Forecast To Be Cut
"This uncertainty around the path forward and fears over the potentially escalating effects of a trade war have created material risks to the U.S. and global economy," Solomon told analysts on the call.
Solomon noted that he hears an even "greater sense of short-term concern" from CEOs located outside of the United States.
He added, however, that he is "encouraged" with the Trump administration's most recent developments including time for negotiations on future trade policies.
JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon made similar comments last Friday on his company's earnings call that negotiations "would be good for everybody."
Solomon added that clarity on policy should come with time and advised investors and CEOs to "go slow and take a pause here until we have more clarity around a lot of these issues."
GS Price Action: Goldman Sachs shares ended Monday's session 2.09% higher at $504.78, according to data from Benzinga Pro.
Read Next:
- Energy Secretary Chris Wright Is ‘Bullish’ As Oil Prices Crater
Image: Shutterstock