Core Viewpoint - The investment banking landscape is evolving, with Evercore Inc. and The Goldman Sachs Group Inc. gaining investor attention due to their distinct service offerings in mergers and acquisitions, capital markets, and wealth management [1]. Investment Banking Sector Overview - The long-term outlook for the investment banking sector remains favorable, but near-term momentum has moderated due to market volatility and concerns over economic slowdown and inflation [2]. - The anticipated recovery in M&A activity is expected to occur in the latter half of 2025 [2]. Goldman Sachs Analysis - Goldman Sachs maintains a leadership position in global banking and markets, with a 24% year-over-year increase in IB revenues in 2024, driven by corporate debt and equity issuances [3]. - However, IB revenues declined by 8% year-over-year in Q1 2025 due to market uncertainty and a slowdown in M&A activities [3][4]. - Goldman is strategically exiting its non-core consumer banking business to focus on higher-margin areas like investment banking and trading, including ending its partnership with Apple [5][6]. - The company has divested several consumer finance businesses to enhance its focus on scalable core businesses [6]. Evercore Analysis - Evercore, while smaller, generates 95.9% of its revenues from Investment Banking and Equities, with a CAGR of 8.6% from 2017 to 2024 [7]. - The company is actively increasing its staff in the IB sector, employing 197 senior managing directors as of March 31, 2025, to support revenue growth [8]. Price Performance and Valuation - Over the past six months, Goldman shares fell by 0.1%, while Evercore shares dropped by 28.7%, against an industry growth of 0.8% [9]. - Goldman is trading at a 12-month forward P/E of 12.72X, higher than its five-year median of 10.17X, while Evercore trades at 18.06X, above its five-year median of 12.40X [11]. - Evercore's valuation is at a premium compared to the industry average of 13.73X, while Goldman is trading at a discount, making it a better choice for value investors [14]. Dividend Yield - Evercore has a dividend yield of 1.43%, while Goldman has a higher yield of 2.02%, both exceeding the industry average of 1.12% [14]. Earnings Estimates - The Zacks Consensus Estimate for Goldman suggests year-over-year revenue increases of 7.7% and 6% for Q2 and Q3 2025, respectively, with earnings growth of 13.9% and 20.9% [18]. - Conversely, Evercore's estimates indicate a revenue decline of 7.1% and 1.2% for the same quarters, with earnings declines of 22.7% and 3.4% [20]. Strategic Positioning - Despite near-term challenges, Goldman is well-positioned with an increased backlog and diversified revenue base, providing resilience that Evercore lacks during volatility [21]. - Goldman’s focus on high-return segments and divestitures is improving operational focus and profitability [22].

21 May 2025 | 10:11PM IST Goldman Sachs Asia in Focus India: Towards a better growth-inflation balance Santanu Sengupta +91(22)6616-9042 | santanu.sengupta@gs.com Goldman Sachs India SPL Arjun Varma +91(22)6616-9043 | arjun.varma@gs.com Goldman Sachs India SPL Andrew Tilton +852-2978-1802 | andrew.tilton@gs.com Goldman Sachs (Asia) L.L.C. 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 Disclo ...

Investment Rating - The report maintains a neutral rating on equities for both 3-month and 12-month asset allocations [2]. Core Insights - The US fiscal concerns are expected to increase the deficit by approximately $275 billion, or 0.8% of GDP, next year, primarily due to more generous individual tax cuts [1]. - Revenue from tariff increases is projected to offset the net increase in the deficit, with expectations of around $400 billion, or 1.25% of GDP, in revenue next year [1]. - Federal debt as a share of GDP is anticipated to rise to about 120% by 2035 from roughly 100% today, indicating a need for close monitoring of the US fiscal outlook [1]. - The report highlights a potential sharp decline in the US trade deficit with China, driven by a decrease in imports following frontloading ahead of tariffs [8]. - Global population aging is viewed as less concerning than previously thought, with healthier aging populations expected to work longer and mitigate economic drawbacks [9]. Summary by Sections US Fiscal Concerns - The House Republican reconciliation package is expected to increase the US deficit by around $275 billion next year [1]. - Tariff revenue is projected to be around $400 billion, which will likely offset the deficit increase [1]. - Federal debt is expected to reach approximately 120% of GDP by 2035 [1]. Trade Dynamics - The report anticipates a decline in the US trade deficit with China, with real goods imports increasing by 3% in April but declining by 4% in May [8]. - The annualized goods trade deficit was around $1.6 trillion in April, decreasing to $1.5 trillion in May [8]. Population Aging - Concerns about global population aging are considered overblown, as healthier aging populations are expected to work longer [9]. - The fertility rate required for long-term population stability is believed to be lower than the current global rate of 2.1, supporting continued population growth [9]. Hedge Fund and Mutual Fund Trends - The average US long/short equity hedge fund has maintained a return of 1% year-to-date, despite a challenging environment [11]. - Mutual funds have shown strong performance, with 50% of large-cap funds outperforming their benchmarks [11].

Core Insights - The "China-Brazil Economic and Finance Conference" was successfully held in São Paulo, highlighting the growing economic ties between China and Brazil [1][2] - CICC emphasized the potential for cooperation in various sectors, including trade, investment, and technological innovation, aligning with Brazil's economic transformation needs [2][5] Company Overview - CICC has demonstrated its commitment to internationalization and has made significant progress in Brazil, including facilitating major transactions such as the divestiture of Oi's broadband business and the acquisition of GE's wind equipment manufacturing plant by Goldwind [3][5] - The company aims to leverage its integrated strengths in investment, investment banking, and research to promote cross-border capital flows between China and Brazil [5][6] Industry Trends - The conference featured discussions on macroeconomic trends, cross-border investment, and sustainable energy cooperation, indicating a strong interest in clean energy and industrial complementarity between the two countries [4][5] - Future investment plans by CICC include sectors such as clean energy, mining, agriculture, advanced manufacturing, e-commerce, and infrastructure, reflecting a strategic focus on high-growth industries [5]

新华财经北京5月21日电（记者闫鹏）20日， 宁德时代 正式在香港联交所主板挂牌上市，绿鞋前发行规 模46.0亿美元，绿鞋后发行规模52.9亿美元（假设绿鞋全额行使）。这是为2023年以来全球规模最大的 IPO，也是迄今为止规模最大的A股上市公司H股IPO。 本次项目募集资金的90%将用于推进宁德时代匈牙利项目建设，以更好地满足欧洲等海外市场不断增长 的 动力 电池 和 储能电池 需求，对宁德时代国际业务布局和发展具有重要意义。 业内人士表示，对香港 资本市场 而言，作为2022年以来香港市场规模最大的IPO，宁德时代H股IPO将 提升市场活跃度，增强香港资本市场的国际影响力，并具有较强示范效应，或将带动A股其他企业赴港 上市。 上市首日，宁德时代H股上涨16.43%，报306.2港元／股。 中金公司 投资 银行 部执行负责人许佳表 示，本次港股IPO的踊跃认购和良好上市日表现，体现出全球资本市场对中国优质企业长期价值的坚定 信心，高质量发展的中国企业依然具备强大吸引力和全球配置价值。 中金公司担任本次项目的联席保荐人及联席牵头经办人，并担任本次项目的独家后市稳定商及独家结算 代理。本次宁德时代H股发行过程中 ...

Investment Rating - The report indicates a baseline forecast of global growth slowing from 3.5% in 2024 to 2.5% in 2025, with specific growth rates for major economies outlined [7][8][70]. Core Insights - The broad imposition of tariffs by the US is identified as a structural shock to global trade, significantly impacting growth across various economies [5][6]. - The report highlights that the trade shock affects economies simultaneously, pushing them below potential growth levels, with the US experiencing a notable decline in real GDP growth from 2.5% in 2024 to 1.0% in both 2025 and 2026 [7][74]. - China is projected to see a slowdown in real growth by approximately 0.5 percentage points in 2025 compared to 2024, with persistent deflation expected [7][17]. - India is noted as the fastest-growing economy in the coverage, with real GDP growth forecasted at 5.9% in 2025 and 6.4% in 2026 [7][68]. Summary by Sections Growth – A Widespread Deceleration - Global growth is forecasted to decelerate significantly, with the US, Euro area, and China all experiencing reduced growth rates due to trade shocks and other economic factors [7][70]. - The report anticipates that the US will face a step down in real GDP growth, while the Euro area will not exceed 1% growth throughout the forecast period [7][8]. Inflation Divergence - The report discusses a divergence in inflation trends, with the US experiencing a temporary boost in inflation due to tariffs, while other regions like the Euro area and Japan see inflation moderating [16][17]. - Core PCE inflation in the US is expected to peak at 4.5% before declining, remaining above the Federal Reserve's target throughout 2026 [16][17]. Monetary Policy – The Fed in a Bind - Central banks are expected to react to slower growth and softer inflation, with the Federal Reserve likely to maintain its policy stance until inflation peaks [18][19]. - The report forecasts that the Fed will restart its easing cycle in March 2026, while the ECB is expected to continue its easing cycle, bringing the policy rate below neutral [18][19]. Global Trade – A New Paradigm - The report emphasizes that the trade shock is a significant factor affecting global economic performance, with uncertainty in trade policy leading to reduced capital expenditure decisions globally [6][74]. - The impact of tariffs is expected to create a level shift in prices, affecting consumption patterns and overall economic growth [61][62].

Investment Rating - The report maintains an Overweight (OW) rating on US equities and core fixed income, while being Neutral on global stocks and Underweight (UW) on commodities [6][40]. Core Insights - The global economy is expanding but at a slower pace, with the US expected to achieve approximately 1% growth year-over-year. Despite policy uncertainties, US assets are projected to outperform those in the rest of the world (RoW) [40][42]. - A weaker US dollar is anticipated due to converging US rates and growth with peers, alongside increased currency hedging flows benefiting safe-haven currencies like EUR, JPY, and CHF [9][42][91]. - The report emphasizes a preference for US equities over RoW, with a constructive outlook on core fixed income [40][42][91]. Cross-Asset Strategy - The report suggests a strong regional preference for US assets across various classes, recommending an Overweight in US equities and core fixed income while being Neutral on global equities [6][40]. - US Treasury yields are expected to remain range-bound until late 2025, with a forecasted 10-year yield of 3.45% by 2Q26 [8][40]. Global Equities - US stocks are projected to benefit from earnings revisions and a weaker dollar, with the S&P 500 target set at 6,500 by 2Q26 [7][38]. - The report anticipates that trade tensions will de-escalate, reducing recession risks and supporting equity valuations [50][91]. G10 Rates - The report forecasts a steeper yield curve in the US, UK, and euro area, while Japan's curve is expected to flatten. The anticipated 10-year UST yield is 3.45% by 2Q26 [8][40]. FX Outlook - The USD is expected to weaken by approximately 10% by the end of 2026, with EUR/USD projected at 1.25 and USD/JPY at 130 by 2Q26 [9][52][91]. EM Fixed Income - Emerging Market (EM) fixed income is expected to yield benign and positive returns, driven by mild inflation and lower UST yields. Specific countries like Brazil, Turkey, and India are highlighted for local rates, while Colombia and Morocco are noted for credit [10][40]. Corporate Credit - High-quality credit is viewed as attractive, particularly in the US, with spreads for US Investment Grade (IG) expected at 90 basis points and High Yield (HY) at 335 basis points by 2Q26 [11][40]. Commodities - The report indicates risks in the commodities market, particularly for Brent prices, while gold is expected to remain elevated. Brent is forecasted at $55 per barrel and gold at $3,250 per ounce by 2Q26 [13][40].

Investment Rating - The report suggests a cautious approach towards US equities, indicating a narrower path for further gains while highlighting opportunities in emerging markets (EM) assets and carry strategies [2][11][30]. Core Insights - The report emphasizes that while trade tensions have eased, the US still faces significant growth-inflation challenges, leading to a weaker dollar and a steeper UST curve [2][19][26]. - It notes that the expected tariff shifts have reduced some tail risks, allowing equity investors to overlook certain weaknesses in economic data [7][11]. - The outlook for growth is described as "soggy," which may favor carry strategies over cyclical risks, particularly in the context of lower volatility and a more stable inflation environment [11][39]. Summary by Sections Economic Outlook - The US economy is expected to experience sluggish but non-recessionary growth, with inflation remaining sticky [11][19]. - The report anticipates that the Federal Reserve may maintain its current stance unless significant weakness in the job market is observed [22][39]. Market Dynamics - The report highlights a shift in market sentiment towards a more balanced return outlook globally, with a focus on diversified risky asset portfolios [26][30]. - Emerging market equities are noted for their potential upside, given their current undervaluation compared to US equities [30][32]. Risks and Opportunities - The report identifies a potential rise in unemployment as a key risk that could reignite recession fears, impacting risky assets negatively [16][39]. - It suggests that the path for a weaker dollar remains wide, driven by easing trade tensions and a favorable outlook for EM currencies [26][28]. Investment Strategies - The report recommends combining diversified equity positions with hedges, particularly in anticipation of key economic data releases [2][11]. - It emphasizes the importance of diversification in both equity and bond allocations to mitigate risks associated with potential economic downturns [39].

Summary of Key Points from the Conference Call Industry or Company Involved - The discussion revolves around the impact of President Trump's tariff policy on the global economy and financial markets, particularly focusing on the trade relations between the US, China, and the UK. Core Points and Arguments 1. **Market Reactions to Tariff Announcements** - Global stock markets experienced a significant decline following the announcement of reciprocal tariff rates on April 2, leading to a "triple decline" in stocks, Treasury bonds, and the US dollar [1][26][49] 2. **Ceasefire and Market Stabilization** - A ceasefire was declared on April 9, pausing tariff implementations for 90 days, which helped stabilize markets as provisional agreements were reached with the UK and China [1][34][49] 3. **Investment Delays Due to Uncertainty** - Businesses are likely to delay or scale back investments due to ongoing concerns about tariffs, potentially triggering a global economic slowdown or recession [2][53] 4. **Historical Context of GATT** - The free trade system under GATT allowed certain unfair trade practices, which Trump aimed to address through reciprocal tariffs, shocking many in the business community [4][5][15] 5. **Negotiation Dynamics with China** - The US and China agreed to reduce mutual tariff rates by 115%, but the US still plans to impose a 30% tax on Chinese imports, reflecting ongoing tensions [39][40] 6. **Inflation Concerns** - The University of Michigan's Consumer Sentiment Index indicated rising inflation expectations, complicating the Federal Reserve's monetary policy [51][52] 7. **Impact of Tariff Uncertainty on Corporate Investment** - The unpredictability of tariff rates is likely to lead companies to adopt a more cautious approach to capital investment, affecting long-term business decisions [53][55] 8. **Political Influence on Economic Policy** - Major contributors to the Republican Party have the power to influence Trump's policies, as seen when the tariff pause was announced following market declines [34][35][36] 9. **Future of US Trade Policy** - The uncertainty surrounding Trump's future actions remains a significant risk for the US economy, as his impulsive decisions could lead to further market instability [58][61] 10. **Geopolitical Implications** - The US's need for strong trade relations with allies is emphasized, especially in the context of competing with China's economic power [79][80] Other Important but Possibly Overlooked Content 1. **Historical Trade Deficits** - The US trade deficits have persisted for 40 years, and Trump's focus on reducing these deficits is a long-standing goal that resonates with his core supporters [14][82][83] 2. **Market Sensitivity to Tariff Announcements** - The announcement of high tariffs can have irreversible impacts on risk calculations for businesses, as seen in past trade frictions [56][55] 3. **Potential for Currency Adjustments** - There is a risk that the Trump administration may consider adjusting exchange rates as a means to address trade imbalances, which could lead to further dollar weakness [86][88] 4. **Negotiation Challenges with China** - The complexity of US-China negotiations is highlighted, with the potential for impulsive decisions by Trump complicating the process [42][46][47] 5. **Long-term Economic Outlook** - The overall outlook for financial markets and the US economy remains unpredictable, with inflation concerns and trade uncertainties posing significant challenges [49][50][61]

May 20, 2025 06:44 PM GMT China Economics Mid-Year Outlook Lingering Deflation Despite Tariff Detente We revise our 2025 GDP forecast upward by 30 bps to 4.5% due to reduced tariff headwinds. But deflation persists, as structural issues (housing, consumption) continue to exert downward pressure on prices. We expect lighter, delayed stimulus focused on infrastructure. Milder growth slowdown amid lower tariffs: 2025/26 GDP growth raised to 4.5%/4.2% YoY (vs. 4.2%/4.0%Y previously). We now see GDP YoY stabiliz ...