BlackRock is boosting its exposure to US equities across its $185 billion model-portfolio platform at a time when investors are questioning the staying power of this year’s AI-fueled rally https://t.co/Nc0q1XGHec ...

Joining us this morning is New Ber Burman's managing director, portfolio manager of Japanese equities, Kokamura. K, welcome. Good to see you.>> Hi, how's it going. >> Uh, well, not as well as it's going in Japan. I mean, what an amazing uh period we're in with even with the political transition and certainly equity performance.Can you explain to viewers who might not ordinarily play why things have worked so well. >> Yeah, absolutely. So, this year has been a really stellar year for Japanese equities.Um and ...

Financial Data and Key Metrics Changes - The company reported net revenues of $15.2 billion for Q3 2025, with earnings per share of $12.25 and a return on equity (ROE) of 14.2% [2][13] - Year-to-date ROE improved to 14.6% and 15.6% [2] - The company returned $3.3 billion to shareholders, including $1.3 billion in dividends and $2 billion in stock repurchases [19] Business Line Data and Key Metrics Changes - Global Banking & Markets generated revenues of $10.1 billion, with an ROE of 17% year-to-date [13] - Advisory revenues reached $1.4 billion, up 60% year-over-year, reflecting increased M&A activity [13] - Equity underwriting revenues increased by 21% year-over-year to $465 million, driven by a rise in IPO activity [14] - Debt underwriting revenues rose 30% to $788 million, primarily due to higher leveraged finance activity [14] - FICC net revenues were $3.5 billion, up 17% year-over-year, with strong performance in rates, mortgages, and commodities [15] - Asset and wealth management revenues totaled $4.4 billion, with management and other fees up 12% year-over-year to a record $2.9 billion [16] Market Data and Key Metrics Changes - The company advised on over $1 trillion in announced M&A volumes for 2025 year-to-date, significantly ahead of competitors [2] - Sponsor activity is tracking 40% higher compared to the previous year, with over $1 trillion in dry powder available [4] - Assets under supervision reached a record $3.5 trillion, with $80 billion in net market appreciation and $56 billion in long-term net inflows [17] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance operational efficiency and drive growth through the "One Goldman Sachs 3.0" initiative [10][11] - The acquisition of Industry Ventures aims to enhance the company's venture capital capabilities and strengthen its asset management platform [8][9] - The company is optimistic about the investment banking outlook, expecting an upswing in activity over the next 12 to 24 months [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's ability to navigate the current economic environment, emphasizing disciplined risk management [6][19] - The regulatory environment is improving, which is expected to enhance the company's competitive positioning [44] - The company anticipates continued growth in asset and wealth management, with expectations of raising approximately $100 billion in alternatives this year [7][16] Other Important Information - The company is committed to maintaining a strong risk management culture, particularly in light of recent market volatility [38] - The effective tax rate for the year-to-date was 21.5%, with an expected full-year rate of approximately 22% [18] Q&A Session Summary Question: Follow-up on risk management and synthetic risk transfer - Management clarified that their approach to synthetic risk transfer (SRT) remains unchanged, focusing on dynamic risk management of credit exposures [25][26] Question: Clarification on One Goldman Sachs 3.0 initiative - Management explained that the initiative is driven by advancements in technology, aiming to enhance efficiency and scalability, not due to revenue issues [30][32] Question: Concerns about private credit risks - Management reassured that their lending practices are robust, with a diversified portfolio and strong risk management processes in place [36][38] Question: Expectations around regulatory changes - Management indicated that regulatory improvements are expected to enhance competitive positioning, with significant progress anticipated in the coming months [42][44] Question: Opportunities for growth in wealth and asset management - Management emphasized a focus on enhancing returns in asset and wealth management, with strategic acquisitions to strengthen the platform [50][68] Question: Insights on equities business performance - Management acknowledged softer performance in cash equities but highlighted strong overall performance in the equities platform [55][56] Question: Risk management around collateral integrity - Management reiterated the importance of stringent underwriting standards and ongoing monitoring to ensure collateral integrity [58][59]

Core Viewpoint - The discussion highlights the current investment landscape, focusing on fixed income and equities, with an emphasis on the potential for longer duration investments and opportunities in the equity market despite economic slowdowns. Fixed Income - The securitized sector is trading cheaply, and there is an expectation for duration extension as the market enters a cycle of easing [2][6] - Investors are likely to seek longer duration elements such as mortgage-backed securities and asset-backed securities [4][6] - The JAA ETF, which provides AAA collateralized loan obligation (CLO) exposure, is highlighted as a safe investment with a good spread, currently crossing $25 billion in assets [6] - CLOs are considered safer than corporate bonds if appropriately rated, with improvements in rating accuracy since the 2008 financial crisis [8] - Yield expectations range from mid-single to high-single digit yields, with specific mention of 7% yields for triple B rated investments [10][12] Equities - There are significant opportunities in the equity market, particularly in companies that have been undervalued or pushed to high valuations [13][15] - The recent performance of Oracle, which saw a 40% increase in a week, exemplifies the potential for substantial gains in large-cap stocks [14] - Investors are focusing on innovative sectors that can navigate geopolitical tensions, with strong interest in healthcare and technology [15][16] - Small and mid-cap stocks are viewed as undervalued and have the potential to deliver significant returns despite a slowing economy [17]

U.S. equities turned lower at midday after initially rising as the latest jobs report showed hiring slowed more than expected in August. https://t.co/7of233iYnb ...

The Dow Jones Industrial Average is on pace to close at an all-time high on Friday, as investors pile into US equities on the back of strong corporate earnings and ebbing trade and geopolitical fears https://t.co/yeG8w0DfP8 ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Chinese equity market**, particularly the A-share market, with insights into investor sentiment and trading activity as of August 2025 [1][2][3]. Core Insights and Arguments - **Investor Sentiment Improvement**: A-share investor sentiment has significantly improved, with the weighted Morgan Stanley A-share Sentiment Indicator (MSASI) rising by 21 percentage points to 116% and the simple MSASI increasing by 25 percentage points to 110% as of August 6, 2025 [2]. - **Increased Trading Volume**: Average daily turnover (ADT) for various segments, including ChiNext and A-shares, has seen increases of 13% (to RMB 556 billion), 12% (to RMB 1,880 billion), and 6% (to RMB 278 billion) respectively compared to the previous cycle [2]. - **Net Inflows**: Southbound trading recorded net inflows of USD 1.0 billion from August 7-13, with year-to-date and month-to-date net inflows reaching USD 114.9 billion and USD 4.5 billion respectively [3]. - **Credit Growth Trends**: Broad credit growth year-on-year edged up by 10 basis points to 9.2%, while new CNY loans turned negative for the first time in 20 years, indicating a potential slowdown in consumption and property sales [4]. - **Market Conditions**: The summer of 2025 has been quieter for China due to US/China trade uncertainties, selling pressure from IPO stock unlocking, and disappointment from the July politburo meeting [5]. Future Expectations - **Improvement in Investment Setup**: The overall setup for investing in Chinese equities is expected to improve as clarity on US/China trade negotiations, easing IPO stock selling pressure, and potential economic reforms emerge in September/October [13]. - **Earnings and Valuation Outlook**: Solid earnings delivery and less stretched valuations are anticipated to support market performance, with MSCI China trading at less than 12x forward P/E, which is significantly cheaper compared to other major equity markets [14]. - **Sector Performance**: There is a focus on the Chinese internet sector's potential to deliver better-than-expected Q2 earnings results, which could lead to upward revisions in guidance for the second half of the year [14]. Additional Important Points - **MSASI Methodology**: The MSASI is based on nine metrics that gauge onshore sentiment, including margin transactions, new investor registrations, and A-share turnover [15][16][17][18][19][20][21][22]. - **Economic Policy Support**: Incremental policy support, such as interest subsidies for consumer loans and a modest supplementary budget, may cushion the expected moderation in credit growth [4]. This summary encapsulates the key insights and expectations regarding the Chinese equity market, highlighting the improved sentiment, trading activity, and future outlook for investors.

Summary of Key Points from the Conference Call Industry Overview - The report covers the global financial markets, focusing on equity and fixed income performance, particularly in the US and developed markets [2][3][10]. Core Insights and Arguments 1. **Equity Performance**: - US equities demonstrated strength with the S&P 500 increasing by 2.3% in July 2025. Technology sector led with a 5.1% rise, while consumer staples and healthcare sectors lagged, declining by 3.5% and 3.7% respectively [2][10]. 2. **Fixed Income Trends**: - Developed Market (DM) high yield (HY) and investment grade (IG) gross issuance fell by 9% and 5% year-over-year, respectively. This indicates a tightening in credit spreads across US and European indices [3][10]. - Record foreign demand for US long-term securities was noted, totaling approximately $319 billion in May 2025 [3]. 3. **Market Sentiment**: - The Market Sentiment Indicator (MSI) reached its highest level since November 2024 but has since declined, indicating a shift to a risk-off environment [4][5][10]. 4. **Currency Movements**: - The US dollar outperformed G10 currencies, with the DXY index rising by 3.3%. Brent crude oil prices increased by 8.1% [2][10]. 5. **Sector Performance**: - In July 2025, the technology sector outperformed, while consumer staples and healthcare sectors faced declines. The overall sentiment in the market shifted towards risk aversion [10][24]. Additional Important Insights 1. **Technical Analysis**: - The report highlights a significant drop in DM HY and IG gross issuance compared to previous years, suggesting a cautious approach from investors [3][10]. 2. **Equity Market Valuations**: - The report provides insights into equity market valuations, with the S&P 500 showing a price-to-earnings (P/E) ratio of 25.0, indicating a relatively high valuation compared to historical averages [22][26]. 3. **Commodities and Precious Metals**: - The report notes fluctuations in commodity prices, with WTI crude oil at $69, reflecting a 7.3% increase, while gold prices decreased by 1.7% [21][29]. 4. **Global Economic Indicators**: - The report discusses the implications of macroeconomic data on market trends, emphasizing the importance of monitoring global economic indicators for future investment strategies [10][20]. 5. **Investment Strategy Recommendations**: - The report suggests a cautious investment approach in light of the current market conditions, particularly in sectors that are underperforming [10][11]. This summary encapsulates the key points from the conference call, providing a comprehensive overview of the current state of the financial markets and investment outlook.