The financial services industry is often seen as a leading indicator of the health of the economy.

With inflation, high interest rates, and greater regulatory pressure weighing on the sector,

what are the implications for the industry and beyond?

Most banks have significant... What are the implications for the industry and beyond?

Most banks have significantly reduced their view

around the probability of a recession for next year.

If you ask them what their base cases for the economy will tell you that they expect

to soft landing. And I also think that some of these tail scenarios around where interest rates

could end up have been fundamentally reduced.

I'm Al down with my colleagues

in Goldman Sachs research, Richard Ramston, the business unit leader of the financials group,

and Alex Blosteen who covers the asset management industry.

Richard and Alex have just finished hosting their financial services conference

here in New York where more than 100 firms across the industry spoke about the

outlook for their businesses. Richard Alex welcome back to the program.

Thank you. It's great to be here. I had the pleasure of being there yesterday

buzzing, it's buzzing, absolutely buzzing. Lots to talk about. There's definitely being there's

definitely a lot of talk about there's definitely a lot of focus on financials heading into next year so

Richard I just refer to the financial services industry as a bellwether

for the economy.

So what did you hear from the industry over the last couple of days at the conference in terms

of what they're seeing in the economy?

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