Exclusive: Goldman Sachs to cut asset management investments that weighed on earnings

NEW YORK, Jan 23 (Reuters) – Goldman Sachs Group Inc’s (GS.N) asset management arm will significantly reduce the $59 billion of alternative investments that weighed on the bank’s earnings, an executive told Reuters.

The Wall Street giant plans to divest its positions over the next few years and replace some of those funds on its balance sheet with outside capital, Julian Salisbury, chief investment officer of asset and wealth management at Goldman Sachs, told Reuters in an interview.

“I would expect to see a meaningful decline from the current levels,” Salisbury said. “It’s not going to zero because we will continue to invest in and alongside funds, as opposed to individual deals on the balance sheet.”
The move is an extension of a strategy laid out in 2020, as the bank aims to reduce its on-balance sheet investments and boost earnings from fees.

Goldman had a dismal fourth quarter, missing Wall Street profit targets by a wide margin. Like other banks struggling as company dealmaking stalls, Goldman is letting go of more than 3,000 employees in its biggest round of job cuts since the 2008 financial crisis.

The bank will provide further details on its asset plan during Goldman Sachs’ investor day on Feb. 28, he said. Alternative assets can include private equity or real estate as opposed to traditional investments such as stocks and bonds.

Goldman oversaw a record $2.55 trillion in assets at the end of last year.

“As we raise more third-party capital, that (balance sheet investment) becomes a smaller percentage of a growing pie,” Salisbury said.

EARNINGS VOLATILITY

Slimming down the investments on a bank’s balance sheet can reduce volatility in its earnings, said Mark Narron, senior director of North American banks at credit rating agency Fitch Ratings. Shedding investments also cuts the amount of so-called

Microsoft confirms it’s investing billions in ChatGPT creator OpenAI



CNN
 — 

Microsoft on Monday confirmed it is making a “multibillion dollar” investment in OpenAI, the company behind the viral new AI chatbot tool called ChatGPT.

Microsoft, an early investor in OpenAI, said it plans to expand its existing partnership with the company as part of a greater effort to add more artificial intelligence to its suite of products. In a separate blog post, OpenAI said the multi-year investment will be used to “develop AI that is increasingly safe, useful, and powerful.”

“We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform,” Satya Nadella, Microsoft’s CEO, said in a statement.

The deepening partnership between the two companies has the potential to supercharge OpenAI’s ambitious projects, including ChatGPT, which has captured the attention of – and sometimes sparked concerns from – academics, business leaders and tech enthusiasts with its ability to create provide lengthy and thorough responses to user prompts and questions.

The investment could also catapult Microsoft as an AI leader and ultimately pave the way for the company to incorporate ChatGPT into some of its hallmark applications, such as Word, PowerPoint and Outlook.

As a result of its existing exclusive deal with OpenAI, Microsoft recently said it would soon add ChatGPT features to to its cloud computing service, Azure. If ChatGPT becomes available on that service, businesses could use the tools directly within its apps and services, too.

The investment comes days after Microsoft announced plans to lay off 10,000 employees as part of broader cost-cutting measures. Nadella said at the time that the company will continue to invest in “strategic areas for our future” and pointed to advances in AI as “the next major wave” of computing.

Since OpenAI opened up access to ChatGPT

New Saskatoon-based investment company claims to be first Indigenous-owned firm in Canada

A new investment firm has been created in Saskatoon that claims to be the first Indigenous-owned investment firm in the country.

The Nekaneet First Nation and Meckelborg Financial Group have collaborated to start the Wiyotisiwin Investment Management Firm.

“This new company is a true step towards reconciliation as we look towards building intergenerational wealth and investment management for First Nations all across Canada,” said Nekaneet First Nation Chief Alvin Francis.

The idea is for First Nation communities to have better access to their investors and capital funds.

“Why do I need to go across the country to find someone to invest my money when we can do it locally,” asked Francis.

Read more:

Indigenous-owned businesses booming, Statistics Canada reports

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Will prices eventually fall in Canada? Why experts say deflation is unlikely

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Nekaneet First Nation was the first to come on board with the project, but the company is hoping to expand and offer their services to other nations.

“It’s something that has never been done before, but it’s been talked about,” said Rob Woods, founding partner with Wiyotisiwin.

Woods claimed that access to capital is one of the most pressing questions for First Nations people.

First Nations investment industries are often deemed as high risk, which makes it difficult for First Nations to leverage their land and assets.

“We are fully reliant on commercial paper and debt to get into business,” said Woods.

Read more:

Saskatchewan Indigenous-owned business aims towards reconciliation

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Banff, Jasper, Kootenay and Yoho national parks getting $71M in upgrades

The company said the partnership will offer more say in

Alpha Motor Corporation Launches Reg CF Equity Offering on

Irvine, California, United States, Jan. 23, 2023 (GLOBE NEWSWIRE) — Alpha Motor Corporation (Alpha) announced its Reg CF Equity Offering, Electric Vehicles That Move Humanity™, on StartEngine a private investment platform regulated by the SEC. With over US$500,000 raised in less than 5 days, Alpha’s community of supporters is rapidly growing to accelerate the company’s vision and business plan to commercialize its EVs.

Leveraging patented technology, breathtaking design, and an executive leadership team with decades of automotive OEM experience, the innovative American automotive and mobility tech manufacturer is prepared to lead the EV revolution. 

“We believe the world has been waiting for our electric vehicles and Alpha will continue to strive towards market entry of our EVs,” said Alpha Motor Corporation.

Alpha Advantages

Patented Technology – Alpha has secured multiple patents, which protects proprietary design, patented technology, and development process to streamline expansion. Alpha believes that this unique advantage enables speed-to-market efficiency of its award-winning EV designs.

Strong Market Demand – Alpha has received over 52,500 vehicle preorder indications to date in addition to distribution agreements in Europe, the Middle East, and Asia. The EV market is expected to surpass US$1.5 trillion by 2030.

Experience and Ability to Execute – Alpha’s automotive business proficiency comes from decades of experience at major corporations. Alpha has formed OEM-level strategic partnerships in the U.S. to efficiently develop and manufacture highly competitive EVs.

Sales Leadership Experience

The company’s Advisory Board is appointed with exceptional industry leaders, including ex-Tesla executive Peter Bardenfleth-Hansen, who led the expansion of Tesla across Europe, the Middle East, and Japan, for ten years. Alpha currently has distribution agreements in Europe, the Middle East, and Asia, equating to an initial projected volume of 3,150 vehicles annually.

Confirmation of Market Feasibility

Alpha marked the successful completion of its proof-of-concept stage after

These Are The 10 Best Cars To Come Out Of Motor City

Motor City is a city of icons – bringing us innovation, industrial prowess, and of course, great music. But here at HotCars, we’re going to focus on one of our favorite things about Motor City: cars.


In Motor City, you can see the ghosts of cars past, and hear their stories in the streets. It’s a city where every car has a history, whether it’s good or bad. Motor City is more than just the place where they built the first American cars like the Ford Mustang, it’s also a place where history happened. That’s what this list is about, the great icons and best cars to come out of Motor City.

Related link: 10 Most Reliable US Cars Ever Made

10 Oldsmobile Tornado

1968 Oldsmobile Toronado--Mecum
Via Mecum

When it comes to the best muscle cars from Motor City, there are many great contenders, such as the Oldsmobile Toronado. It was a car that was ahead of its time, and it still looks great today. The Tornado was a sporty-looking car that had a unique front-end design, with a waterfall grille and wrap-around taillights.

The Tornado may not be as popular today as some other classic muscle cars from Motor City such as the Pontiac GTO or Ford Mustang, but it remains an icon for many enthusiasts who remember its heyday in the 1960s and 1970s when it was one of the unique cars around.

9 Chrysler Imperial Crown

1961 Chrysler Imperial Crown Convertible
 Via Mecum

This car represents everything Detroit stands for, and it brings us power, luxury, and American ingenuity at its best!

This vehicle was one of the most luxurious sedans Chrysler ever made, and it was a favorite among celebrities and high-ranking government officials.

8 Buick Riviera

Buick Riviera
Via Bring a Trailer

If you’re looking for some of the best muscle cars

Hyundai Lands Five Vehicles on 2023 Best Value New Cars by Cars.com

CHICAGO, Jan. 23, 2023 /PRNewswire/ — Hyundai has earned five spots on the 2023 Best Value New Cars report by Cars.com. The Hyundai products awarded include

More than 70 vehicles were evaluated for the Cars.com’s 2023 Best Value New Cars report which identifies the most affordable new-car models in four categories — small SUVs, EVs and PHEVs, small pickup trucks, and cars — that offer the best value for the price based on features and each category’s median price using Cars.com’s inventory.

“As consumers seek out their dream vehicle, quality, safety, connectivity and attainability, continue to top their vehicle purchasing criteria,” said Ricky Lao, director, product planning, Hyundai Motor North America. “Hyundai is proud to have five vehicles recognized in the 2023 Best Value New Cars report.”

“Consumers are likely to watch their spending in 2023. Budget-conscious shoppers who want the most bang for their buck will find a range of options from Hyundai on Cars.com’s 2023 Best Value New Cars report. With styles ranging from a small SUV like the 2023 Hyundai Kona SE to a pickup truck like the 2023 Hyundai Santa Cruz SE, there are affordable options to meet various needs and lifestyles,” says Jane Ulitskaya, Cars.com Editor.

ABOUT CARS.COM
CARS is the leading automotive marketplace platform that provides a robust set of digital solutions that connect car shoppers with sellers. Launched in 1998 with the flagship marketplace Cars.com and headquartered in Chicago, the Company empowers shoppers with the data, resources and digital tools needed to make informed buying decisions and seamlessly connect with automotive retailers. In a rapidly changing market, CARS enables dealerships and OEMs with innovative technical solutions and data-driven intelligence to better reach and influence ready-to-buy

Why are auto insurance rates increasing in Canada?

To answer the question of why auto insurance rates are increasing this year, RATESDOTCA pointed to the ongoing issue of Canada’s prolonged period of inflation, which has forced insurance providers to adjust their rates accordingly to maintain the value of certain accident benefits. The inflation also affected deductible amounts, which would force policyholders to pay more out of pocket. These two factors, along with the need for insurers to raise their rates after two years of offering rebates during the height of the COVID-19 pandemic, are more than enough reasons for rate changes.

For its outlook, RATESDOTCA took a closer look at two notable provinces, Ontario and Alberta. The rate comparison website stated that Ontario drivers should expect their rates to increase, but when the increases apply depends on when a customer’s policy is set to renew.

“For current policyholders, rate increases take effect at the time of renewal, so some customers may have already seen their premiums rise, while others may see it in the coming months,” said RATESDOTCA auto insurance expert Tanisha Kishan, who added that Ontario’s FSRA is still approving rate increases and that RATESDOTCA is expecting an average premium increase “in the high single digits.”

RATESDOTA foresees auto insurance rates in Ontario to rise 5% in the first quarter of 2023, and up to 7% in Q2 2023. Q3 and Q4 remain unclear, but RATESDOTCA hinted that the increases during those periods may look similar to Q2’s.

Alberta’s auto insurance market tells a different story, noted RATESDOTCA. The province’s rate approvals were significantly lower (between 2% and 3%) last year, and RATESDOTCA suspects that those would impact rates this year. Several insurers have even been pressured to reverse their approved rate changes.

Paying some of the highest auto insurance premiums in Canada – if not the

Halifax auto dealer celebrates love for the Rolling Stones at Steele Wheels Motor Museum

Halifax-based auto dealer Rob Steele has been a lifelong fan of the Rolling Stones and he’s found a way to incorporate the band’s travelling memorabilia exhibit, UNZIPPED, into an event space he built called Steele Wheels Motor Museum located in Halifax, Nova Scotia.

And as any Stones’ fan knows, Steel Wheels is the name of one the Stones’ albums and a subsequent tour, so Steele Wheels is somewhat of a double entendre.

“It really is,” Steele said. “It’s funny you say that. Sally Woods (wife of Stones’ bassist Ron Woods) said the same thing. It’s totally a coincidence. We were trying to think of a name for what this place would be called and the marketing department came up with it. I’d been a Stones fan for a long time, so it’s sort of a play on words.”

Steele has purchased a few paintings by Woods and through his musician’s representatives, he brought the memorabilia exhibit to Steele Wheels for its first inaugural event which will run from December 17-March 19. The exhibit features more than 300 original objects from the band’s personal collection. Steele said he saw the exhibit five years ago in London, England. The exhibit has touched down in several international cities, including Canadian stops in Kitchener and Winnipeg.

“It’s quite a fascinating exhibit, even if you are not a Stones fan, and that’s a frequent comment we’ve heard because the costumes are there, the instruments, song sheets, an iron stage design from various tours, it’s interesting to see,” Steele said.

UNZIPPED

The exhibit also includes rare auto fragments, video footage, personal diaries, costumes, posters and album covers. There are also works of art from the likes of Andy Warhol, Alexander McQueen, Prada, Dior and Martin Scorsese.

The museum is the product of a warehouse with a

Bigger Is Better in India’s Nascent Electric Car Market

(Bloomberg) — In India, where an increasing number of consumers aspire to own bigger cars to cope with the country’s notoriously potholed roads and bad traffic, automakers are betting on low-cost battery-powered SUVs to capture the budding electric vehicle market.

At the nation’s major auto show in New Delhi earlier this month, there was a new breed of EVs taking center stage, with predominately foreign companies looking to muscle in on the nascent electric scene. In a marked shift in rhetoric, local auto bosses were also excitedly talking up the sector’s prospects.

Homegrown manufacturers Tata Motors Ltd. and Mahindra & Mahindra Ltd. are now jostling with Chinese giants BYD Co. and SAIC Motor Corp. and South Korea’s Hyundai Motor Co. Even India’s biggest automaker Maruti Suzuki India Ltd., which had previously largely pooh-poohed EVs, showed a compact electric SUV it says will hit the market in 2025.

Demand for smaller SUVs has been surging in India. They’re suited for the country’s driving conditions, which can vary vastly from smooth multi-lane freeways to rutted streets crowded with rickshaws, dogs and cows. They also offer aspirational buyers an important, yet affordable, status symbol, perching drivers above the masses. And while larger electric SUVs tend to be inefficient (and expensive) because they require bigger and costlier battery packs, their compact equivalents are built on small-car platforms, making them more cost effective.

“The conundrum for electric vehicles is lighter is better, but customers want SUVs,” says Andy Palmer, the former CEO of Aston Martin who also helped spearhead Nissan Motor Co.’s creation of the Leaf, one of the first mass market EVs. “Using a small-car platform to build an electric SUV meets the sweet spot for both manufacturers and consumers,” he said, citing the example of Volkswagen AG using the ID.3 hatchback platform to

Making profit and expanding in crayfish business


Onyekachi Ona , a crayfish trader popular in the eastern part of the country says she started her small business with just N3,000, but has paid her off in so many ways as she smiles to the bank . ADEOLA AKINBOBOLA, writes. 

Starting a business and nurturing it to an enviable height is the greatest challenge of many entrepreneurs, with many businesses going under just after a few years of its establishment. 

Kachi popularly known by her customer is a trader at Utako market. She hails from Anambra state but came to Abuja in 2013 to seek greener pastures which she hasn’t regretted so far. 

According to her, starting the business was not a major challenge as she believes in hard work and plans to export smoked and well packaged fishes to all parts of the country.

While recounting to Business Starter, brimming with optimism, she said that laziness is not an option for her as she quickly established herself in Abuja.

Early beginning

According to Kachi, her early beginning will forever be fresh in her memory as she set out to add to humanity with her business at the earliest opportunity she got after her training in 2012.

The 36 year-old mother of 3 said in 2013, “I started my own business after being trained by my grandma. In fact, when the crayfish got to the table, I started thinking of the value I could add in order to stand out. 

“By way of doing something different from others, I decided to package the crayfish and after doing that, it was nice and appetizing. That was how the business started, with my being innovative and applying ideas different from others,” she said.

Expansion

She said she will never rest until her crayfishes make their ways to different parts