Core Insights - U.S. stock indices rose over 1.5% on August 22, 2025, following Federal Reserve Chair Jerome Powell's indication of a potential interest rate cut next month, leading to increased trader optimism and a notable rise in Wall Street [1][10] Investment Strategy - Investors are encouraged to consider low-leverage stocks such as NatWest Group, Sterling Infrastructure, Luxfer Holdings, Evercore, and Hillman Solutions Corp. as safer investment options due to their lower risk profile [2][10] - The focus on low-leverage stocks is based on the understanding that companies with excessive debt financing may face significant losses during economic downturns [5][6] Low-Leverage Stocks - Leverage refers to the practice of borrowing capital for operations and expansion, typically through debt financing, which can pose risks if returns do not exceed interest costs [4][5] - A lower debt-to-equity ratio indicates improved solvency and reduced financial risk for a company, making it a crucial metric for investors [7][9] Company Highlights - **NatWest Group (NWG)**: Announced a £140 million lending for essential upgrades to the UK's Haweswater Aqueduct, with a projected 20.1% sales improvement for 2025 and a long-term earnings growth rate of 10.9% [15][16] - **Sterling Infrastructure (STRL)**: Reported a 21% year-over-year revenue increase and a 40.8% surge in earnings per share for Q2 2025, with a projected 45.9% earnings improvement for 2025 [17][18] - **Luxfer Holdings (LXFR)**: Achieved a 5.8% increase in adjusted net sales and a 25% rise in adjusted earnings per share for Q2 2025, with a long-term earnings growth rate of 8% [19][20] - **Evercore (EVR)**: Reported a 20.7% increase in adjusted revenues and a 30.4% rise in earnings for Q2 2025, with a projected 15.9% sales improvement for 2025 [20][21] - **Hillman Solutions (HLMN)**: Experienced a 6.2% sales increase and a 6.3% growth in adjusted earnings per share for Q2 2025, with a projected 6.6% sales improvement for 2025 [22][23]

Economic Outlook - Fed Chairman Jerome Powell indicated a tepid possibility of interest rate cuts in 2025 during his speech at the Jackson Hole Symposium [1] - The CME FedWatch shows a 75% probability of a 25 basis-point cut in September and a 71% chance of two cuts this year, with the current Fed Fund rate at 4.25-4.5% [2] Market Reaction - Following Powell's speech, major stock indexes rallied: Dow increased by 1.9%, S&P 500 by 1.5%, and Nasdaq Composite by 1.9%, with the Russell 2000 jumping 3.9% [3] - The Dow closed at a record high of 45,631.74, reaching an intraday high of 45,757.84 [3] Investment Recommendations - Investment in blue-chip stocks with favorable Zacks Rank is advised, including JPMorgan Chase & Co. (JPM), The Goldman Sachs Group Inc. (GS), Johnson & Johnson (JNJ), The Walt Disney Co. (DIS), and Microsoft Corp. (MSFT) [4] Sector Trends - Anticipation of a Fed rate cut and high valuations in the technology sector have led to a shift towards rate-sensitive cyclical sectors such as utilities, industrials, financials, energy, materials, and health care [5] Dow Performance Analysis - The Dow is currently above its 50-day and 200-day moving averages, indicating a potential long-term uptrend [6][7] Company Insights: JPMorgan Chase & Co. - JPMorgan Chase is expected to see net interest income (NII) growth with a projected CAGR of 2.9% by 2027, driven by business expansion and loan demand [10] - The company has a technology budget of $18 billion for the year, emphasizing AI to boost efficiency [11] - Expected revenue and earnings growth rates for the current year are -0.2% and -1.3%, respectively, with a 0.9% improvement in earnings estimates over the last 30 days [12] Company Insights: The Goldman Sachs Group Inc. - Goldman Sachs is benefiting from growth in its Global Banking & Markets division and has maintained a leading position in M&A activity [13][14] - The company has an expected revenue growth rate of 6.3% and earnings growth rate of 12.6% for the current year, with a 3.3% improvement in earnings estimates over the last 60 days [16] Company Insights: Johnson & Johnson - Johnson & Johnson's MedTech division is focused on AI technologies for surgical robotics and has developed an AI-enabled ecosystem called Ottava [17][18] - Expected revenue and earnings growth rates for the current year are 5.2% and 8.8%, respectively, with a 0.1% improvement in earnings estimates over the last 30 days [19] Company Insights: The Walt Disney Co. - Disney is experiencing growth in Domestic Parks & Experiences revenues, with a slight decline in international locations [20] - As of June 28, 2025, Disney+ had 127.8 million paid subscribers, with a projected increase of over 10 million subscriptions by the fourth quarter of fiscal 2025 [21][23] - Expected revenue and earnings growth rates for the current year are 3.9% and 17.7%, respectively, with a 0.1% improvement in earnings estimates over the last 30 days [25] Company Insights: Microsoft Corp. - Microsoft is capitalizing on AI momentum and strong demand for its cloud services, with Azure holding approximately 20-24% of the global cloud market share [26][27] - The company has an expected revenue growth rate of 13.9% and earnings growth rate of 12.5% for the current year, with a 0.1% improvement in earnings estimates over the last 30 days [30]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Japan's Export Sector - **Context**: The analysis focuses on the performance of Japan's real exports and imports, particularly in light of recent tariff impacts and economic conditions. Core Insights and Arguments 1. **Weak Start for Real Exports in 3Q**: - In July, Japan's real exports fell by **4.3% MoM**, marking the first decline in three months. If August and September remain flat, real exports for 3Q would decrease by **2.3% QoQ**, the first decline in three quarters [2][7] 2. **Real Imports Decline**: - Real imports also fell by **4.6% MoM**, with a potential **1.9% QoQ** decline in 3Q, indicating a reactionary decline from a sharp increase in June. This decline in imports reflects domestic demand momentum [2][7] 3. **Impact of Front-Loaded Exports**: - The Bank of Japan (BoJ) noted that July's export performance was influenced by front-loaded exports to Asia, driven by preemptive production in anticipation of potential US semiconductor tariffs. This resulted in "rush exports" that are expected to weaken further [3][7] 4. **Cautious Outlook Despite Tariff Cuts**: - Even with anticipated auto tariff cuts from **27.5% to 15%**, the outlook for real exports remains cautious. Japanese automakers are expected to gradually normalize export prices, which may negatively impact real export volumes [4][8] 5. **Governor Ueda's Cautious Stance**: - The sharp drop in real exports supports Governor Ueda's cautious stance regarding potential rate hikes. The expectation of a rate hike in October is viewed as premature given the current economic indicators [9][12] Additional Important Insights 1. **Tariff Policy Monitoring**: - The BoJ emphasizes the need to observe how tariff policies affect hard data such as exports, production, and employment in the US, indicating a broader concern about the global economic slowdown [12][7] 2. **Sector-Specific Export Performance**: - Notable declines in specific export categories include: - Passenger Cars: **-27.1% YoY** - Semiconductor Machinery: **-31.3% YoY** - Medical Products: **-33.1% YoY** [15][16] 3. **Overall Export Value Decline**: - The total export values in July showed a **10.1% YoY** decline, indicating significant challenges in the export sector [15][16] 4. **Future Monitoring**: - Continuous monitoring of the export and import trends is crucial, especially in light of the potential impacts of tariff changes and global economic conditions [2][12] This summary encapsulates the critical points discussed in the conference call regarding Japan's export sector, highlighting the challenges and cautious outlook amidst changing tariff policies and economic conditions.

Exhibit 1: 30-city daily property transaction volume in the primary market was below last year's level China Economic Activity and Policy Tracker: August 22 (Song) In this note, we update four sets of high-frequency indicators that we track: 1) consumption and mobility; 2) production and investment; 3) other macro activity; and 4) markets and policy. We publish our tracker on a bi-weekly basis. 1) Consumption and mobility Source: Wind, Goldman Sachs Global Investment Research 22 August 2025 | 3:58PM HKT And ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on global fund flows, particularly highlighting trends in equity and fixed income markets as of the week ending August 20, 2023 [2][4]. Core Insights - **Equity Fund Flows**: - Global equity funds experienced net inflows of $3 billion, a significant decrease from $26 billion in the previous week [4]. - Demand for global benchmark funds remained strong, while G10 equity funds saw negative flows, particularly in the US and Western Europe [4]. - Emerging Markets (EM) funds, especially those focused on mainland China, reported positive net inflows [4]. - **Fixed Income Fund Flows**: - Fixed income funds continued to attract strong inflows, with aggregate-type funds seeing net inflows of $23 billion, down from $27 billion the previous week [4]. - Investors showed a preference for inflation-protected securities, contributing to the overall strength in fixed income flows [4]. - **Money Market Funds**: - Money market fund assets increased by $1 billion, indicating a shift in investor sentiment towards safer assets [4]. - **Cross-Border FX Flows**: - Cross-border foreign exchange flows were robust, with the US dollar experiencing the strongest net inflows among G10 currencies [4]. - Notably, cumulative foreign inflows to mainland China turned net positive year-to-date, marking a significant recovery since April 2 [4]. Additional Important Insights - **Sector-Level Flows**: - Sector-level flows were subdued, with notable outflows from consumer goods and energy sectors, while industrials and technology sectors saw positive inflows [10]. - **Emerging Markets Performance**: - Emerging Markets overall faced outflows of $3.5 billion, but specific countries like Korea reported positive inflows [10]. - **Cumulative Foreign Flows**: - Cumulative foreign flows into the US and Euro area were nearly equal, despite a historically faster pace of inflows into the US in previous years [4]. - **Investment Trends**: - The report suggests that investors should consider these trends as part of a broader investment strategy, emphasizing the importance of diversification and sector allocation [3][4]. Conclusion - The data indicates a cautious but positive shift in fund flows towards emerging markets, particularly mainland China, while traditional equity markets in developed regions face challenges. The strong performance in fixed income and money market funds reflects a broader trend of risk aversion among investors [4][10].

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the Chinese economy and its current state, particularly in August 2025, highlighting a slowdown in economic growth while liquidity and consumption policies support market sentiment [1][2][3]. Core Insights and Arguments - **GDP Growth Forecast**: The GDP growth rate for Q3 is expected to decline to approximately 4.5% year-on-year, influenced by a high base effect and a slowdown from 7.2% in July to a range of 5-6% in August [1][2]. - **Container Ship Decline**: High-frequency data indicates a continued decline in the number of container ships from China to the U.S., reflecting ongoing economic contraction [1][2]. - **Consumer Spending**: Despite the government allocating 69 billion RMB for consumption incentives, sales of automobiles and online home appliances have significantly dropped, indicating potential issues with the implementation of these funds [1][2]. - **Real Estate Impact**: The ongoing downturn in the real estate market is contributing to negative wealth effects, which may further dampen consumer confidence [1][2]. - **Liquidity Improvement**: The Morgan Stanley liquidity index has turned positive since June, indicating an improvement in liquidity available for financial investments [2][8]. - **A-Share Market Inflows**: An estimated 1.5 to 1.7 trillion RMB has flowed into the A-share market in the first half of the year, with two-thirds coming from insurance companies due to regulatory changes [2][25]. - **Household Deposits**: There has been a significant drop in new household deposits, suggesting a shift of funds towards the stock market [2][25]. Policy and Regulatory Insights - **Government Consumption Policies**: Recent government measures to stimulate consumption reflect a strategic response to structural economic challenges, with a focus on the sustainability of these policies [3][8]. - **Energy Sector Regulation**: The government plans to implement comprehensive reforms in the domestic oil refining industry, potentially phasing out outdated production capacities [3][8]. - **Central Bank Liquidity Management**: The central bank's liquidity management is shifting towards a neutral stance, emphasizing credit quality over market liquidity support [8][23]. Additional Important Points - **Market Leverage**: The current leverage in the stock market remains within reasonable limits, reducing the likelihood of immediate policy intervention [8][32]. - **Monitoring Indicators**: Continuous monitoring of market leverage and liquidity indicators is essential to assess potential risks in the financial system [8][32]. - **Consumer Confidence**: The combination of weak weather conditions and fiscal pulse reduction may affect the sustainability of any recovery in consumer spending [1][16]. This summary encapsulates the critical insights from the conference call, providing a comprehensive overview of the current economic landscape in China and the implications for investment strategies.

Group 1 - Dominari Holdings Inc. has authorized a special cash dividend of approximately $5 million, equating to $0.22 per share, expected to be payable around September 26, 2025 [1] - The record date for shareholders and certain warrant holders is set for the close of business on September 3, 2025 [1] Group 2 - Dominari Holdings Inc. operates as a holding company engaged in wealth management, investment banking, sales and trading, and asset management through its subsidiaries [2] - The company aims to enhance shareholder value not only through organic growth but also by exploring opportunities in sectors such as AI and Data Centers [2] Group 3 - Dominari Securities LLC, a principal subsidiary of Dominari Holdings, focuses on creating wealth for stakeholders by capitalizing on emerging trends in the financial services sector [3]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Chinese Economy and Financial Markets - **Current Sentiment**: Market sentiment remains buoyant despite cooling growth, supported by ample liquidity and favorable policy direction [1][3] Core Insights - **Growth Projections**: Growth is expected to moderate to approximately 4.5% year-on-year in Q3 2025, with August export growth likely slowing to 5-6% year-on-year from 7.2% in July due to a high base effect and payback from previous export front-loading [2][3] - **Consumer Sentiment**: Domestic sales of autos and online home appliances have declined year-on-year in early August, reflecting stricter subsidy management and a continued downturn in the property market, which negatively impacts consumer wealth [2][3] - **Infrastructure Investment**: Year-on-year infrastructure capital expenditure may see a mild increase due to reduced weather disruptions and earlier government bond proceeds, but this rebound is expected to be temporary due to diminishing fiscal support [2][3] Liquidity and Market Dynamics - **Liquidity Indicators**: The MS Free Liquidity Indicator has turned positive since June 2025, indicating increased liquidity for financial investments. Inflows to the onshore equity market in the first half of 2025 are estimated at Rmb1.5-1.7 trillion, with insurers contributing over two-thirds of this amount [3][28] - **Retail Investor Activity**: Retail investors have allocated an additional Rmb400-500 billion into A shares, reflecting a shift towards capital markets as household deposits decline [3][23] - **Margin Financing**: Margin financing balances in the A-share market have exceeded Rmb2 trillion (approximately $290 billion), accounting for 4.8% of free float market capitalization, which is slightly below the 10-year average [9][35] Policy Developments - **Government Measures**: The Chinese government is implementing consumption-supporting measures and addressing overcapacity in the refining and petrochemical sectors, which may lead to the exit or upgrade of older capacities [4][3] - **Monetary Policy Stance**: The People's Bank of China (PBoC) has shifted towards a more neutral stance on liquidity management, emphasizing credit quality and reducing net liquidity injections since June [8][26] Risks and Considerations - **Potential Risks**: The risk of government intervention due to over-leverage appears low currently, but could increase if margin financing and daily turnover metrics rise significantly [9][35] - **Fiscal Impulse**: The sustainability of any recovery in infrastructure investment is in question due to a fading fiscal impulse expected in the coming months [2][18] Additional Insights - **Export Trends**: A slowdown in container ship departures from China to the US indicates a payback from previous export front-loading, which may affect future trade dynamics [10][12] - **Consumer Behavior**: The decline in household deposits and the shift towards capital markets suggest changing consumer behavior in response to economic conditions [23][24] This summary encapsulates the key points discussed in the conference call, providing insights into the current state of the Chinese economy, market sentiment, and potential risks moving forward.

Group 1 - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] - The Momentum Score assists investors in capitalizing on price trends by assessing factors like one-week price changes and monthly earnings estimate changes [5] Group 3 - The VGM Score combines all three Style Scores, providing a comprehensive indicator that helps investors identify stocks with the best value, growth forecasts, and momentum [6] - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to guide investors in building successful portfolios [7][10] Group 4 - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10][11] Group 5 - Evercore Inc. (EVR) is highlighted as a premier global independent investment banking advisory firm with a Zacks Rank of 1 (Strong Buy) and a VGM Score of B [12] - Evercore is projected to achieve year-over-year earnings growth of 31.7% for the current fiscal year, with recent earnings estimates revised upward [13]

Summary of Key Points from the Conference Call Industry Overview - The macroeconomic indicators in July were disappointing, with most showing weakness except for trade data, influenced by adverse weather conditions [2][4] - The Chinese economy is experiencing a bifurcation, characterized by strong exports and high-tech developments alongside a weak property market and private demand [2][6] Core Insights - **GDP Growth**: Despite softening data, July GDP tracking remains close to 5% year-over-year [2] - **Anti-involution Efforts**: The government's "anti-involution" initiatives aim to reduce competition and price-cutting but are unlikely to lead to significant production cuts due to a weak labor market and banking sector challenges [2][11] - **Interest Subsidies**: Recent temporary interest subsidies for consumer loans have marginally improved market sentiment, but historical trends suggest limited impact on household credit growth during housing downturns [2][20] - **Current Account Surplus**: Forecasts indicate that China's current account surplus will average around 3.5% of GDP for 2025 and 2026, nearly double consensus expectations, driven by continued emphasis on technological advancement and manufacturing competitiveness [2][43] Economic Indicators - **July Activity Data**: Major indicators showed declines: industrial production fell 0.3%, retail sales decreased 0.9%, and fixed asset investment dropped 6.6% month-over-month [4] - **High-tech Sector Performance**: High-tech industrial production increased by 9.3% year-over-year, with significant growth in sectors like semiconductors and smart transportation equipment [5] - **Property Market Weakness**: The property market remains weak, with new starts, completions, and fixed asset investment in property falling by over 15% year-over-year [6] Additional Insights - **Consumer Behavior**: Auto sales volume increased by 6.9% year-over-year, but the value declined by 1.5%, indicating price deflation in the auto industry [10] - **Employment Sentiment**: Employment sentiment among urban households has fallen to levels seen during the Global Financial Crisis, impacting consumer borrowing [25][32] - **Fiscal Challenges**: The Chinese government faces rising fiscal burdens due to demographic changes, with a significant increase in retirees compared to new job entrants projected for 2045 [36] Conclusion - The Chinese economy is navigating a complex landscape with structural challenges in the property market and labor sector, while high-tech industries show resilience. Policymakers are likely to maintain a cautious approach to stimulus, focusing on targeted measures rather than broad fiscal interventions [3][34][36]