Investment Rating - The report maintains a bearish outlook on the USD, indicating a potential for further depreciation [1] Core Insights - The report identifies three main factors contributing to the bearish outlook on the USD: US policymaking uncertainty, stronger-than-expected foreign policy responses, and the impact of tariffs on US businesses and consumers [1] - The CNY is expected to strengthen against the USD due to the competitiveness of China's export sector and the undervaluation of the currency [7] - The CHF is viewed as a safe haven, likely to appreciate during geopolitical turmoil, despite potential domestic monetary policy easing [8] - The ILS faces a risk premium due to geopolitical tensions, impacting its performance against the USD [9] - The EUR/USD forecast has been revised higher, with expectations for the cross to rise to 1.25 over the next 12 months, driven by changes in global investor allocations [15] - The GBP faces structural challenges, with expectations for a gradual upward drift in EUR/GBP due to narrowing UK-EU rate differentials [15] - The BRL is favored among emerging market currencies, supported by high real rates and macro stability [16] - The CLP is seen as an attractive funding currency for relative value trades, despite being undervalued [19] Summary by Sections USD - The report outlines a bearish outlook for the USD, driven by US policymaking uncertainty and tariff impacts on domestic profits and incomes [1] - Recent inflation data showed a smaller impact from tariffs than expected, suggesting a need for ongoing monitoring [1] CNY - The CNY is expected to appreciate against the USD, supported by positive trade developments and the currency's undervaluation [7] CHF - The CHF is anticipated to remain strong amid geopolitical risks, with a preference for it over JPY as a safe haven [8] ILS - The ILS is under pressure due to geopolitical tensions, with its performance influenced by the duration and scope of conflicts in the region [9] EUR - The EUR/USD forecast has been raised, with expectations for the cross to reach 1.25 in the next 12 months, reflecting a shift in capital flows back into the Euro area [15] GBP - The GBP faces challenges from weaker labor market data and disappointing GDP figures, with expectations for a gradual upward drift in EUR/GBP [15] BRL - The BRL is highlighted as a strong performer among emerging market currencies, benefiting from high real rates and macroeconomic stability [16] CLP - The CLP is viewed as an attractive funding currency for trades, despite its undervaluation against the USD [19] Section 899 - The report discusses the implications of pending Section 899 legislation, emphasizing its role in international tax negotiations rather than revenue generation [21]

12 June 2025 | 11:01PM HKT Sunny Optical (2382.HK): May shipment: Handset lens -5% MoM, Vehicle lens -7% MoM; Camera modules -4% MoM; Neutral Verena Jeng +852-2978-1681 | verena.jeng@gs.com Goldman Sachs (Asia) L.L.C. Ting Song +852-2978-6466 | ting.song@gs.com Goldman Sachs (Asia) L.L.C. Exhibit 1: Sunny Optical monthly shipment YoY by product -100% -50% 0% 50% 100% 150% 200% Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Feb-22 Aug-22 Feb-23 Aug-23 Feb-24 Aug-24 Feb-25 ...

GS Equity Radar What the market is missing on S899 and buying against the grain Something others are missing on S899. The merchandising team hosted a highly attended (1,000+ clients live) webcast with Chief US Political Economist, Alec Phillips, and our strategists (Sharon Bell and Guillaume Jaisson). What surprised us most was the volume of questions on the 50%+ US ownership being exempt in the current form of the bill and the feedback that other commentators were scanning for high US revenues without an o ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The US fiscal concerns have intensified due to the "One Big Beautiful Bill Act," which is projected to increase the deficit by $2.4 trillion over the next decade, coinciding with already high levels of debt and deficit as a share of GDP [26][29] - Experts like Ray Dalio, Kenneth Rogoff, and Niall Ferguson express heightened concern about the US fiscal trajectory, indicating that the current situation is different from past fiscal worries due to higher real interest rates and unsustainable debt levels [27][28][31] - The report suggests that while tariff revenues may offset some deficit impacts, the overall fiscal position remains unsustainable in the long term [29][71] Summary by Sections US Fiscal Concerns - The US deficit and debt are at their highest levels outside of crisis periods, with interest expenses also reaching record highs [46][49] - The "One Big Beautiful Bill Act" is expected to worsen the fiscal outlook, increasing the primary deficit by approximately $2.4 trillion through 2034 [72][73] Expert Opinions - Ray Dalio warns of an impending crisis due to a "big debt cycle" where the cost of servicing debt becomes unsustainable [27] - Kenneth Rogoff highlights the rise in real interest rates as a critical factor that exacerbates the fiscal burden, predicting a potential crisis within four to five years [55][57] - Niall Ferguson notes that the US is violating "Ferguson's Law," where debt service costs now exceed defense spending, marking a significant shift in fiscal dynamics [28] Market Implications - The report anticipates that US long-end rates will likely remain high, and the Dollar is expected to weaken further as US exceptionalism diminishes [34][36] - Experts recommend diversifying investments across asset classes and countries with strong fiscal positions while underweighting debt assets [34][44]

12 June 2025 | 11:29AM PDT Americas Technology: Software Key Takeaways from Databricks Data + AI Summit 2025 We attended the Databricks AI + Data Summit 2025 and Investor Briefing on June 10-11 in San Francisco. Reflecting on this alongside our recent participation in the Snowflake Summit, it's increasingly evident that these platforms are becoming central to enterprise AI transformation. Both Databricks and Snowflake are innovating rapidly, with a focus on lowering the barriers to extracting insights from ...

Hikvision (002415.SZ): 2Q gradual recovery on overseas and innovative business; Multi-modal AI models to enhance performance; Neutral 13 June 2025 | 9:16PM HKT c45a43530f604d12bcb9a82b5aa6b9f6 Goldman Sachs 2Q25 outlook: We expect Hikvision 2Q25 revenues to grow 5% YoY (vs. 1Q25 at 4% YoY), or 33% QoQ to Rmb24.7bn on better seasonality, and on overseas and innovative business expansion. We model 2Q25 GM at 43.9%, improving from 4Q24 GM at 41.6% as the company is focusing on business with higher margin. We e ...

13 June 2025 | 4:48PM EDT Fed Chatterbox: June Edition The Fed Chatterbox highlights notable comments on key topics from Fed officials since the last FOMC meeting. A few themes stand out: Jan Hatzius +1(212)902-0394 | jan.hatzius@gs.com Goldman Sachs & Co. LLC Alec Phillips +1(202)637-3746 | alec.phillips@gs.com Goldman Sachs & Co. LLC David Mericle +1(212)357-2619 | david.mericle@gs.com Goldman Sachs & Co. LLC Jessica Rindels +1(972)368-1516 | jessica.rindels@gs.com Goldman Sachs & Co. LLC Investors should ...

12 June 2025 | 9:22AM EDT US Daily: A Slightly Smaller Tariff Effect (Mericle) Jan Hatzius +1(212)902-0394 | jan.hatzius@gs.com Goldman Sachs & Co. LLC Alec Phillips +1(202)637-3746 | alec.phillips@gs.com Goldman Sachs & Co. LLC David Mericle +1(212)357-2619 | david.mericle@gs.com Goldman Sachs & Co. LLC Ronnie Walker +1(917)343-4543 | ronnie.walker@gs.com Goldman Sachs & Co. LLC Manuel Abecasis +1(212)902-8357 | manuel.abecasis@gs.com Goldman Sachs & Co. LLC Elsie Peng +1(212)357-3137 | elsie.peng@gs.com G ...

12 June 2025 | 5:31AM PDT Oracle Corp. (ORCL) OCI AI Training Momentum Drives Ambitious FY26 Growth and RPO Targets ORCL 12m Price Target: $195.00 Price: $176.38 Upside: 10.6% We reiterate our Neutral rating and raise our PT to $195 ($145 prior) after strong F4Q results, which came in above Consensus on Revenue (+2%), Gross Profit (+1%), OpM (+40bps), and -200% below on FCF (as CapEx came in +140% higher than expected). The stock is +8% AH – reflecting the quarterly beat, +100bps raise on FY26 revenue guida ...

12 June 2025 | 11:15AM EDT The Goldman Sachs Group, Inc. Where to Invest Now Tariff Truce (for now) June 2025 David Kostin Chief US Equity Strategist Goldman, Sachs & Co. 1-212-902-6781 david.kostin@gs.com Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/hedge.html. c45a43530f604d12bcb9a82b5aa6b9f6 US Equity Market 2 c45a43530f604d12bcb9a82b5aa ...