Key events
Goldan boss ‘aware’of Anthropic’s Mythos AI’s powers
Kalyeena Makortoff
Goldman boss David Solomon has played down concerns over Anthropic’s Mythos AI model, despite being part of a group of banking chiefs summoned to the US Treasury in Washington last week to discuss potential cyber risks and threats to financial stability.
He told analysts on an earnings call that the bank was “hyperaware of the enhanced capabilities of these models” and was working with both the US government and tech firms to assess them.
However, the CEO said it was “part of our ongoing capabilities that we have been investing in and are accelerating our investment in,” adding:
“We’re aware of Mythos and its capabilities. We have the model, we’re working closely with Anthropic, and all of our security vendors, to kind of harness frontier capabilities wherever it’s possible.
And this will continue to be an important focus. But it’s not new…technology evolves, we have to continue to upgrade for cyber risk and make sure we’re at the forefront of that.”
Kalyeena Makortoff
Goldman Sachs’ CEO David Solomon also defended the bank’s involvement in the private credit market, saying that the bank saw an rise in investment at a time when rivals have suffered a surge in withdrawal requests from jittery clients.
He suggested part of the surge in withdrawal requests at some rivals – which have forced some private credit lenders like Blue Owl to cap redemptions – was primarily driven by retail investors (we’re talking high net worth clients here) rather than institutional investors who were holding their ground.
Solomon told analysts that institutional investors – banks, insurance companies, and pension funds – made up around 40% of the new investment in Goldman’s private credit funds during the first quarter (which led to a 7% net increase in overall investment during the three months to March).
“I know the media headlines have driven an enormous amount of negative sentiment around private credit. You know, my own view is it’s important to really distinguish between different markets and really try to put it all in perspective.”
“There obviously are high redemptions in certain pure managed funds. These peer managed funds have been concentrated in retail outflows as opposed to institutional outflows. And one of the things that we’re seeing that’s just interesting, that’s quite constructive for our business, is that spreads are becoming more lender friendly”
He added:
“Our 30 year track record of performance and private credit is characterised by rigorous underwriting, selective deployment, and disciplined portfolio construction”
Goldman’s Solomon: 2026 began with optimism, before Iran war
Kalyeena Makortoff
Goldman Sachs’ CEO David Solomon has cheered the bank’s Q1 earnings, saying “elevated uncertainty” caused by the Iran war, AI jitters and private credit fears led to a surge in trading and demand for its investment banking services.
Solomon told analysts that the environment had changed significantly since the turn of the new year:
“2026 began with a degree of optimism. Markets hit record highs and confidence continued to build, with most clients focused on growth, strategic activity, and capital deployment. As we’ve said, things were only moving a straight line, and as the quarter progressed, the macro environment started to weigh on sentiment.
“Volatility increased meaningfully amid concerns around AI driven disruption in sectors like software. Heightened uncertainty in parts of private credit, and the conflict in the Middle East.”
With Wall Street opening in the red, Tom Stevenson, investment director at Fidelity International says:
“A weariness is setting in as investors increasingly choose to wait and see while tensions in the Gulf ebb and flow. With sentiment having swung back and forth since the beginning of March, but markets remaining at or slightly above where they started the year, no-one is willing to take big bets until it is clearer where the US-Israel-Iran conflict is heading.
“Meanwhile, companies and households are getting on with their lives, acclimatising to what looks like a persistently higher oil price, rising inflation and higher for longer interest rates. This week, the US reporting round gets underway once more, with first quarter results shining a light on how geo-politics is showing up at the coalface of business and the broader economy.
Wall Street opens in the red
The New York stock market has begun the new week with losses.
Wall Street’s main indexes have opened lower, after last weekend’s talks between the US and Iran failed to deliver a deal to end the war.
With optimism of an early end to the conflict fading, the Dow Jones Industrial Average has dropped by 368 points, or 0.77%, to 47,548 in early trading.
The broader S&P 500 index is down 0.3%, while the tech-focused Nasdaq has lost 0.35%
Opec lowers second-quarter global oil demand forecast
Opec, the oil cartel, has predicted that demand for crude will drop in the second quarter of this year, but then rebound.
Opec has lowered its forecast for world oil demand in the second quarter by 500,000 barrels per day.
However, for 2026 as a whole, global oil demand is still forecast to grow by a healthy 1.4 million barrels per day – unchanged on last month’s forecast – driven almost entirely by demand from non-OECD regions, mainly China, India and Other Asia.
Opec says:
The slight transitory weakness in oil demand growth in 2Q26, given the ongoing developments in the Middle East, is expected to be compensated for in 3Q26 and 4Q26.
Oil is still bobbing above $100 a barrel, as the 3pm BST deadline for the US’s blockade of the strait of Hormuz approaches.
Brent crude is 7.5% higher today at $102.31 a barrel.
While there is disappointment that the US-Iran talks broke up last weekend, there is also some optimism that the ceasefire announced last week is holding.
Paul Diggle, chief economist, at Aberdeen, says:
For all that it is in risk-off mode this morning, the market is arguably still taking a “glass half full” interpretation of the outlook.
Perhaps a single round of talks should never have been expected to yield immediate results. The progress was the in-person talks happening at all.
The US blockade may bring not just economic pressure on Iran, but also diplomatic pressure from China (the destination of a large share of Gulf energy exports, including what had still been flowing from Iran). China apparently played an important part in pressuring Iran to the negotiations last week.
The ceasefire itself is still holding for now, although it’s obviously extremely fragile.
Union: Make UK public transport free to help with cost of living squeeze
UK transport and travel union TSSA is calling on the government to take immediate action to help the public with the jump in the cost of living due to the Iran war.
This includes making public transport free at the point of use for the next year.
TSSA general secretary Maryam Eslamdoust explains:
“Yet again Donald Trump’s recklessness over Iran is having an effect of world oil prices which will in turn hit our communities here at home really hard.
“We are facing into a major economic crisis of Washington’s making at a time in which many people are already really struggling with the cost of living.
“Not only should our government be carrying out the work of diplomacy to help find a solution to the conflict but it’s vital that Ministers act without delay to take serious measures to help people here at home.
“Making public transport free at the point of use for the next twelve months would provide people with the assistance they need and also act as a huge economic stimulus.
“Not only that, but the Prime Minister should also convene regular COBRA meetings examining the full range of measures which can help people with their bills and consider setting up a national Cost of Living Taskforce.”
Although Goldman Sachs has beaten profit forecasts, its share are down 4.5% in pre-market trading.
Traders could be concerned that Goldman’s revenues from Fixed Income, Currency and Commodities (FICC) fell by 10% in the first quarter.
Axel Rudolph, chief technical analyst at investing and trading platform IG, says today’s results have failed to “pique investors’ attention”
“Goldman Sachs has delivered a solid set of numbers, but in this environment ‘solid’ isn’t quite enough to keep investors interested. The strength in equities trading and dealmaking shows that the machine is still firing on all cylinders, yet the drop in FICC revenues is a reminder that this is not a one-way street, especially with markets being buffeted by the Iran war.
After such a strong run in the share price, investors were clearly looking for something exceptional, not just good. The bigger issue is that Goldman’s results feel like a snapshot of a world that may already be fading. With oil prices surging, inflation fears building and recession risks creeping back in, the outlook for dealmaking and capital markets activity becomes far less certain.
In that context, today’s numbers risk being seen as close to peak earnings, and it’s little surprise that investors have opted to take some money off the table.”
Reuters: US military to enforce blockade in Gulf of Oman, Arabian Sea, note to seafarers
The US Central Command have told seafarers that the US military will enforce a blockade in the Gulf of Oman and Arabian Sea east of the Strait of Hormuz, applied to all vessel traffic regardless of flag.
A note seen by Reuters also confirms that the blockade would come into effect at 1400 GMT today, or 3pm UK time.
The note says:
“Any vessel entering or departing the blockaded area without authorization is subject to interception, diversion, and capture.
“The blockade will not impede neutral transit passage through the Strait of Hormuz to or from non-Iranian destinations.”
The blockade “encompasses the entirety of the Iranian coastline to include but not limited to ports and oil terminals”, the note said, adding that humanitarian shipments including food, medical supplies, and other essential goods would be permitted, subject to inspection.
Goldman Sachs warns of ‘very complex’ geopolitical landscape, as profits rise
Goldman Sachs has grown its profits in the first quarter of this year, a period which included the first month of the US-Iran war.
The Wall Street titan has reported earnings per common share of $17.55 for the first quarter of 2026, up from $14.12 in the first quarter of 2025 and $14.01 in the fourth quarter of 2025.
Goldman’s net earnings rose to $5.63bn for the first quarter to 31 March 31, up from $4.74bn a year ago, while net revenues came in at $17.23bn.
Reuters says:
The heightened volatility across asset classes has pushed up the need for clients to reassess portfolios and hedge downside risks, a practice that typically buoys trading desks at large banks.
The jump in profits was partly due to a 48% jump in investment banking fees, which Goldman says reflected “a significant increase in completed mergers and acquisitions volumes” in the quarter.
Asset & wealth management revenues rose by 10% year-on-year, as an increase in assets under management led to higher fees.
David Solomon, chairman and Ceo of Goldman Sachs, says:
“Goldman Sachs delivered very strong performance for our shareholders this quarter, even as market conditions became more volatile. Our clients continue to depend on us for high quality execution and insights amid the broader uncertainty, and we remain confident in how we’ve positioned our businesses. The geopolitical landscape remains very complex – so disciplined risk management must remain core to how we operate.”
Lauren Almeida
The accommodation reservation website Booking.com has suffered a data breach with “unauthorised parties” gaining access to customers’ details.
The platform said it “noticed some suspicious activity involving unauthorised third parties being able to access some of our guests’ booking information”.
“Upon discovering the activity, we took action to contain the issue,” it said. “We have updated the pin number for these reservations and informed our guests.”
The company, which is headquartered in Amsterdam, lists more than 30m accommodation venues around the world and says it connects “millions of travellers” with experiences, transport and places to stay.
UK petrol and diesel increases ‘have almost ground to a halt’
After rising since the Iran war began, UK petrol and diesel prices finally all-but-stopped increasing today.
The RAC reports that the average price of a litre of diesel is 191.50p today, up from 191.31p on Friday.
Petrol aso rose very slightly to 158.27p a litre, up from 158.16p on Friday.
RAC head of policy Simon Williams says that “while pump prices have technically risen for a record 43 straight days, the increases have almost ground to a halt” after oil fell traded below $100 a barrel last week.
Williams added, though:
If the oil price was to go back up again this week, any hopes of slight forecourt reductions will inevitably disappear.”