Goldman Sachs

Goldman Sachs has reported a 58% drop in net income for the fourth quarter of 2011 but its shares opened higher today as the figures beat analyst expectations.

With volatility set to dominate again this year, experts predict which sector or geographical region will surprise on the upside.

NEW YEAR PREDICTIONS

Barclays was among six global banking groups to be downgraded by Fitch last night, with the ratings agency pointing to challenging financial markets.

Goldman Sachs Asset Management chairman Jim O'Neill said BRIC investors are on tenterhooks waiting for this week's EU summit, as progress on solving the debt crisis will boost appetite for eurozone debt.

THE BRIC NATIONS

Goldman Sachs' global markets team has revealed six key trading recommendations for 2012, based on forecasts of a deeper recession in Europe, a slowdown in the US and below trend growth in China.

The Federal Reserve plans to stress test six major US banks against market shocks, as part of an annual review of bank health.

Jim O'Neill, the head of Goldman Sachs Asset Management, has predicted China could overtake the US as the world's largest economy by 2027 and urged a rethink of the G7 away from domination by the West.

Jim O'Neill, chairman of Goldman Sachs Asset Management, has warned the need for German-led fiscal integration in the eurozone would make it increasingly difficult for all countries to stay in the single currency.