Goldman Sachs lowers US growth forecast
Goldman Sachs $GS (+0.1%) has been thinking about the future of the US economy and has now issued a cautious assessment. In a recent research note, the economics team has reduced its forecast for GDP in 2025 from 2.4 % to 1.7 %. Jan Hatzius, the chief economist, explains that the assumptions regarding trade policy have deteriorated significantly. For the first time in over two years, the forecast is below the consensus estimates, which expect growth of over 2% this year. Inflation expectations have also been raised, with Goldman Sachs forecasting 3%. These adjustments reflect the uncertainties created by rising tariffs and the current political environment. An increase in average US tariffs of 10 percentage points could further weigh on the economic outlook.
Beacon Roofing Supply in takeover talks
The shares of Beacon Roofing Supply $BECN (+0%) have seen an upswing, rising by around 7% after news broke that the company is in talks with technology company QXO $QXO about a possible takeover. The deal could allow QXO to acquire Beacon for a whopping $11 billion, which equates to an offer of $124.35 per share. Although Beacon had previously rejected takeover attempts by QXO, the current rise in the share price shows the interest of investors. QXO shares, on the other hand, fell nearly 2% while due diligence is underway to review Beacon's business records. Interestingly, Beacon's share price has risen by almost 40% in the last 12 months.
CoreWeave secures $12 billion deal with OpenAI
CoreWeave, a start-up specializing in artificial intelligence, has secured an impressive $11.9 billion cloud computing deal with OpenAI $OPENAI ERC has signed. This five-year deal will not only give CoreWeave access to OpenAI, but will also secure a stake in the company by issuing $350 million worth of shares. However, despite the high value of the share issue, CoreWeave will not generate any direct revenue from this move. The timing and size of the potential IPO will depend heavily on market conditions. A successful IPO could pave the way for other AI start-ups considering similar moves. CoreWeave reports revenues of 1.92 billion dollars for 2024, a remarkable increase compared to 228.9 million dollars in the previous year.
Sources:
https://finance.yahoo.com/news/beacon-roofing-supply-stock-soars-191041521.html
https://finance.yahoo.com/news/exclusive-coreweave-strikes-12-billion-182359450.html