‘Strife’ afflicts Goldman Sachs, Powell holds the line amid inflation specter, and hedge funds train teenagers in Singapore: This Week in Finance

Welcome to This Week in Finance, your weekly roundup of the conversations trending among financial professionals on LinkedIn. Click Subscribe to be notified of each edition. This week:

Young Goldman bankers burning out

An informal survey by a self-selected group of Goldman Sachs analysts has provoked a rethink of the infamous workload of junior investment bankers, who want their hours capped at 80 per week. The group's demands, which were first reported by Bloomberg, include a reduction in working hours, which they say often top 95 hours a week, more sleep, and less "workplace abuse." The bank responded to the survey by essentially saying that times are tough, people are "quite stretched," and it's "taking multiple steps" to address concerns. Soon after, Jefferies told its junior bankers they can choose a token of appreciation ranging from a Peloton bike to Apple products. ?? Here's what people are saying.

• Goldman encounters 'internal strain': CEO David Solomon's leadership style has sparked angst among staff even as the bank's profit and stock price soar. Turnover among senior management has become a growing concern, and staff have bristled at being pressed to work in the office while Solomon commandeers Goldman's Gulfstream for frequent getaways.

Fed: Inflation to rise, but not rates

The Federal Reserve expects economic growth to rise sharply this year — along with inflation — but Chair Jay Powell said interest rates are still unlikely to rise through 2023. Economists have recently fretted that inflation could spike with improving economic prospects brought on by the economy's reopening, the ramping up of vaccinations, and the Biden administration's massive stimulus package. But Powell said he believes any bump in inflation this year would be "short-lived." ?? Here's what people are saying.

• Why is joblessness still so high?: After a week when jobless claims were expected to fall but didn't, some are asking: Why are initial filings for unemployment still so high a year into the pandemic, when other evidence points to faster hiring? One answer is that many Americans have faced multiple layoffs.
• Retail sales hiccup in February: U.S. retail sales shrank 3% in February as consumers awaited another round of stimulus checks amid harsh weather. The plunge followed a 7.6% spike in January.
• Asian Americans' jobless woes worsen: Almost half (46%) of Asian-American workers were deemed long-term unemployed, according to Pew Research Center, compared with figures of about 35% for Black, white, and Hispanic workers.

DOJ opens Visa antitrust probe

The U.S. Justice Department opened an antitrust probe into credit-card giant Visa. The Wall Street Journal, citing unnamed sources, reported that the investigation involves network fees charged to merchants that are usually passed to customers in the form of higher prices. According to The Journal, investigators are looking into whether Visa limited merchants' ability to place debit transactions over less-expensive card networks and whether its practices have helped it to unlawfully maintain market dominance. ?? Here's what people are saying.

Stripe soars in private market

Stripe became the most valuable startup in the U.S. after surging to a $95 billion valuation with a $600 million funding round. Thanks to a pandemic-inspired boom in digital tools and services, the payments company finds itself "in a hyper-growth industry and within that [...] experiencing hyper-growth," CFO Dhivya Suryadevara said. The PayPal rival is now looking to expand its European operations as speculation grows surrounding its plans to go public. Amid a recent spate of tech IPOs, Airbnb is valued at about $120 billion and gaming startup Roblox at about $40 billion. ?? Here's what people are saying.

The 16-year-old hedge fund manager

Singapore hedge funds are turning to interns as young as 16 years old to plug a talent shortage in its booming asset-management industry. More hedge funds such as Bridgewater and family firms are choosing Singapore as their Asia base but finding a lack of qualified local professionals, reported Bloomberg. Besides internships, the government is also rolling out training schemes to retrain executives, private bankers, and lawyers to join the industry. ?? Here's what people are saying.

Australian brokers failing ethics test

Prominent stock brokerages in Australia are predicting an exodus of veteran advisers this year following mass failures of a mandatory ethics test. Firms including Bell Potter, Morgans, and Shaws have recorded excessive failure rates of the exam, which they claim discriminates against experienced brokers as it is geared toward financial advisers. They suggest longtime brokers are struggling and may leave the industry in "humiliation." The exam was introduced after Australia's banking royal commission revealed advisers were incentivized by big banks and investment firms to promote in-house products at clients' expense. ?? Here's what people are saying.

Is 'degrowth' the best way forward?

Some economists and environmentalists say 'degrowth' allows us to get a handle on climate change, crediting the forced global degrowth during the pandemic for helping cut carbon dioxide emissions by 6% in 2020. The International Energy Agency says that's the biggest single-year plunge since World War II. But degrowth critics say the pandemic's economic fallout was too severe, increasing the world's poor by 131 million people. An Oxford-based researcher suggests that forgoing some growth and tackling the global wealth gap is key to reducing humanity's environmental impact. ?? Here's what people are saying.

• Virus squeezes world's middle class: The pandemic made the global middle class contract for the first time in decades, according to Pew Research Center estimates. The number of people falling out of the middle class, as well as those falling into it from higher income levels, surpassed 150 million last year — more than the combined populations of France and Germany.

Unlocked: face-recognition ATMs

Forgot your bank card? No sweat. OCBC, one of Southeast Asia's largest banks, is rolling out facial-recognition ATMs across Singapore. Users will be able to check account balances or withdraw cash by scanning their face at machines, which will be verified using the nation's digital identity system. OCBC says facial verification can be more secure while reducing the number of cards users need to carry in their wallets. The move comes as banking goes more digital in Asia — online-only banks are on the rise, and even people in cash-loving Japan are turning to e-payments. ?? Here's what people are saying.

Lessons of Bezos's leadership

Jeff Bezos is arguably one of the most important entrepreneurs in history, and Inc. magazine compiled 11 lessons that Bezos has taught the business world. Among them: Make a move to minimize future regrets; be obsessed with customers and fear them more than competitors; focus on the long term; give employees a big mission; and carefully protect your organization's culture. ?? Here's what people are saying.

With Alexander Besant, Andrew Murfett, Cate Chapman, Jake Perez, Capucine Yeomans, Yunita Ong, and Cathy Anderson.

What's your take on the week's news and other developments impacting you or your business? Join the conversation in the comments below.