The Banking and Strategy Initiative

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Europe's troubles create a global ripple, GS wants 0 bonuses

ISTANBUL, TURKEY - OCTOBER 3:  In this handout...

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How can the Economy grow at even 3.5% when Asia itself is just 4%

Goldman Sachs predicted a much slower growth in UK and a recession a least till Q1 2012 for Europe taking its downward revision for Global Growhth fat 4.5% to nearly 20% lower at 3.5%. However as Asia itself is growing only 4-5% , it is likely that the IMF aand Goldman WSachs are underestimating the slowdown globally much as they are underestimating growth in the US likely to be nearer 2-2.5% by Q1 2012. UK growth has been revised downward to 1 and 1.3% for 2011 and 2012, thwe 2011 overhang a carryover from H1’s lousy six months

The slowdown is likely to be centereed arounf the French recession and its payment problemsds even as the GIPSI contractions in GReece, Spain, Portugal and Ireland question any remaining potential for growth and in the xas e of Greec ekeep ballooning up the proportion of payments to the GDP. New property taxes and 30,000 public sector job cuts underlined Greece’s l;lst minute efforts as unemployment trumped 16% and is more than 1 in 3 amongst youth. Greece would probably have had a complete Brady oeverhaul of its Drachmas if it had stepped out of the Euro zone but is now likely to be kept on just as a reminder of what’s wrong with the European economics as the ECB trudges towrds its own goalpost withcloser monetary union and Eurobond freedom for France and the GIPSIs

Pay cuts and lower overheads at Goldman Sachs, BarCap

At the investment banks, GS is not yet satisfied with a low comp ratio of 44%. Though not worried by new say for pay rules, the street’s bellwether bank is unlikely to dole ou any 2011 bonuses according to the latest rumors at Hereisthecity.com Also Dealbreaker.com carries a popular memo in BarCap detailing cuts on air travel for its employees and it seems GS has been cutting down the size of coffee cups at office vends in preparation for administrative cuts to rationalise its costs in 2011

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