27 September 2024 | 8:34AM HKT initial phase and more time is needed for it to become a mainstream device. Valuation looks fair, and we could consider a more positive stance if we see stronger-than-expected MR market demand or faster-than-expected market share expansion. GC Tech: Meta MR new launch; read across to supply chain and stock ideas | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Summary of Key Points from Goldman Sachs Global Sustainability Forum Industry Overview - The forum focused on Sustainable Investing, emphasizing the need for a pragmatic approach to sustainability metrics and financial fundamentals [8][9][63]. Core Themes and Insights 1. **Back to Basics in Sustainable Investing** - Investors are shifting towards a focus on materiality and pragmatism, emphasizing risk mitigation, efficiency, and resilience without sacrificing performance [9][63]. - There has been a noted annual outperformance of 270 basis points for top quintile Environmental & Social performers compared to bottom quintile performers since 2017 [9]. 2. **Regulatory Concerns** - Corporates expressed concerns over the costs and effectiveness of sustainability disclosures, particularly regarding the EU CSRD rules [10]. - Investors prefer a concise set of metrics that link sustainability performance to business value drivers [10]. 3. **Partnerships for Impact** - Collaborations with local communities and technology partners are essential for understanding capital allocation needs and enhancing supply chain strategies [11][13]. 4. **Data Center Power Demand** - A projected 165% increase in global data center power demand by 2030, driven by AI and electrification trends [14][43]. - The International Energy Agency (IEA) forecasts a doubling of global electricity demand by 2040 [14]. 5. **Decarbonization and Big Tech** - Big Tech companies are committed to minimizing their environmental footprint and are willing to pay green premiums for renewable energy solutions [15][16]. 6. **Investment Opportunities in Reliability and Efficiency** - Significant investments are anticipated in energy reliability and efficiency solutions, supported by the overlap between decarbonization and adaptation strategies [16]. 7. **Nuclear Power Recognition** - Nuclear energy is gaining traction as a clean energy source, with small modular reactors (SMRs) being recognized for their potential in on-site power supply [17]. 8. **Human Capital as an Investment Opportunity** - Emphasis on training, re-skilling, and retaining talent is seen as crucial for companies to maintain a competitive edge [18]. Additional Insights - **Green Capex Needs** - An incremental $2.8 trillion in Green Capex is required annually in the 2020s to support Net Zero, Infrastructure, and Clean Water pathways [36]. - Sempra Energy highlighted a need for $500 billion in incremental investment to enhance grid resiliency [29]. - **Water Resource Management** - Innovations in water management are necessary to address supply-demand imbalances, particularly in tech-heavy regions [30]. - **Efficiency in Telecommunications** - Telefónica is modernizing its network to improve energy efficiency, aiming to retire its copper network in favor of fiber optics [31]. - **Government and Corporate Roles** - Governments and large corporations are expected to play a pivotal role in reducing green premiums through incentives and funding [32]. Conclusion - The forum underscored the resilience of Green Capex amidst uncertainties related to interest rates and inflation, with a focus on sectors that enhance reliability, efficiency, and product equivalency [33][68]. - Sustainable investing is evolving, with a growing emphasis on materiality and the integration of sustainability metrics into financial performance assessments [63][75].

_ 30 September 2024 | 9:51AM CST | --- | --- | |---------------------------------------------------------------------|-------| | | | | China Industrial Tech | | | Considering further potential upside; quick thoughts on | | | policy easing scenarios | | Our China Industrial Tech coverage's share prices rallied by 16% on average over the past week. On Sep 24, PBoC, CSRC and NFRA unveiled a set of easing policies at a joint press conference. On Sep 26, President Xi chaired the September Politburo meeting and p ...

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **Energy, Utilities & Mining** sector, focusing on various companies including **Cameco (CCJ)**, **Quanta Services (PWR)**, **Sempra (SRE)**, **Kinder Morgan (KMI)**, and **EQT** among others [1][2][3][4][5][6][8][9][10]. Core Insights and Arguments Cameco (CCJ) - Investors view Cameco as a beneficiary of increasing power demand driven by AI and data centers, but there are concerns about the timing of deliveries for Q3 [3][4]. - The company is well-positioned in the nuclear fuel value chain, with operations in lower geopolitical risk regions, and has the capability to ramp production over time [3][4]. - The Westinghouse business is considered underappreciated, providing stable earnings through reactor service and maintenance [3]. Quanta Services (PWR) - PWR is seen positively due to solid growth expectations and long-term macro tailwinds, benefiting from increased T&D spending [9]. - The company self-performs approximately 80% of its work, enhancing project execution visibility [9]. - Risks include supply chain challenges and potential policy changes, though recent acquisitions may mitigate these risks [9]. Sempra (SRE) - Mixed sentiment exists around SRE, with challenges in Q2 2024 and uncertainty regarding LNG projects and California rate cases [6]. - SRE's Texas utility, Oncor, aims to double its rate base in 5-6 years, supported by favorable regulatory conditions [6]. - The current valuation is seen as an appealing entry point for investors, despite concerns about the growth of other business segments [6]. Kinder Morgan (KMI) - KMI faces cautious investor sentiment due to potential EBITDA softness, attributed to lower commodity prices and slower ramp-up of RNG assets [5]. - The company is at an inflection point in its natural gas business, with expectations of improved demand and execution [5]. - Risks include high leverage compared to peers and the need for disciplined capital allocation [5]. EQT - Investors are cautious about gas equities due to macro uncertainty, but EQT is receiving increased interest due to its low-cost structure and deep inventory in the Appalachian Basin [10][12]. - Concerns about increased leverage post-ETRN transaction and the balance between natural gas and renewables for power generation are noted [12]. First Solar (FSLR) - Mixed positioning ahead of Q3 results due to uncertainty around tariffs and muted earnings expectations [8]. - The company’s vertically integrated manufacturing is seen as a significant competitive advantage [8]. - Potential tariff increases could enhance FSLR's pricing power and revenue [8]. Other Important Insights - The conference highlighted the growing interest in data centers and AI-driven power demand, with discussions on potential nuclear unit reactivations and the implications of recent PPA agreements [27][28]. - Investor conversations also focused on the implications of pipeline projects in the Permian Basin and the potential for increased gas demand [29][30]. - The overall sentiment in the refining sector remains cautious, with concerns about crack spreads and near-term profitability [24]. Conclusion The conference call provided a comprehensive overview of the current state and outlook of the Energy, Utilities & Mining sector, highlighting both opportunities and risks across various companies. Investors are particularly focused on the implications of macroeconomic factors, regulatory environments, and technological advancements in shaping future performance.

For the exclusive use of ACCOUNTS@KARUNADUCABS.COM Lower rates and sluggish deal recovery leaves downside risks across most Capital Markets stocks into 3Q 30 September 2024 | 4:11AM EDT Americas Capital Markets Prospects of faster rate cuts and stronger equity markets have propelled the risk-on behavior across many Capital Markets stocks in 3Q. That said, deal activity rates (M&A, ECM) remain sluggish - a continued headwind for many Alt Managers amid very stretched valuation multiples, organic growth for mo ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **China Consumer** sector, particularly in light of recent policy measures aimed at boosting consumption and stabilizing the economy [1][2][3]. Core Insights and Arguments - **Consumer Stock Rebound**: China consumer stocks have rebounded approximately **32%** on average following easing measures from the September Politburo meeting [1]. - **Policy Measures**: The People's Bank of China (PBOC) has implemented direct stimulus measures, including consumption vouchers and trade-in programs, which have shown initial positive effects [1][2]. - **Employment and Consumption**: Policymakers emphasized the need to boost consumption and improve livelihoods, particularly for low and middle-income groups, and to enhance employment opportunities for key demographics [2][5]. - **Property Market Support**: New requirements have been introduced to stabilize the property market, which is expected to indirectly support consumer confidence and spending [1][2]. - **Sales Growth Forecast**: A year-over-year improvement in sales of **12%** is anticipated for 4Q24, compared to **5%** and **9%** in 2Q and 3Q respectively, with an average sales growth of **9%** projected for 2025 [5][6]. Additional Important Content - **Valuation Context**: Despite the recent rebound, most sectors are trading at the lower end of their **5-year** or **10-year** averages, indicating potential undervaluation [6]. - **Employment Strategy**: The State Council has introduced a **24-point guideline** aimed at ensuring stable urban employment and expanding the middle-income group, which includes measures for new graduates and migrant workers [5]. - **Liquidity Measures**: The PBOC has announced liquidity provisions and relending programs to support the equity market and listed companies, which could enhance consumer wealth and spending [3][4]. Conclusion - The overall sentiment is cautiously optimistic, with expectations that policy changes could reverse the downward trend in earnings revisions observed year-to-date. Investors are likely to start adjusting their valuation bases to reflect improved earnings visibility for 2025 [5].

30 September 2024 | 7:45AM EDT _ n Oil prices have fallen $15 per barrel since July and $20 since April. Our oil strategists expect prices to rebound modestly over the next couple of quarters as prices converge to their estimate of fair value but see risks to the medium-term path as skewed to the downside. In this Analyst, we take a fresh look at what lower oil prices mean for growth and inflation. Jan Hatzius +1(212)902-0394 | jan.hatzius@gs.com Goldman Sachs & Co. LLC Alec Phillips +1(202)637-3746 | alec. ...

_ 25 September 2024 | 11:43PM EDT Natural Gas Front-loaded production to back-load $4 Henry Hub n US gas markets continue to approach the turning point where gas prices will, in our view, switch from incentivizing producer discipline below $3/mmBtu, as seen all this year, into incentivizing higher drilling, at $3.75-$4.00/mmBtu. However, we now think that such a Henry Hub rally will be delayed into late 2025, vs our previous expectation of early Sum25, driven by a combination of (1) front-loaded Haynesville ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the performance of the S&P 500 index and its contributing sectors as of September 30, 2024, highlighting significant trends in the market and projections for 2025 sales and earnings growth. Core Insights - **S&P 500 Performance**: The S&P 500 achieved a total return of 22% year-to-date (YTD) and 6% in the third quarter (3Q), reaching an all-time high of 5762. Major contributors to this performance included large-cap stocks such as Microsoft (MSFT), NVIDIA (NVDA), Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), and Meta (META), which collectively accounted for 44% of the index's return [2][3][4]. - **Earnings Expectations**: The YTD return was driven by rising earnings expectations (+959 basis points), an 11% expansion in the forward price-to-earnings (P/E) multiple to 22x (+1,122 basis points), and dividends contributing +127 basis points [2]. - **Sector Performance**: The Utilities sector led with a +31% return, while the Energy sector lagged with only +8% [2][4]. - **AI Infrastructure Trade**: The performance of AI infrastructure stocks slowed in 3Q, with a basket of AI stocks rising only 4% compared to 15% in the first half of the year [2]. Sales and Earnings Growth Projections for 2025 - **Fastest Sales Growth**: Companies projected to have the fastest sales growth in 2025 include NVIDIA (97%), Micron Technology (82%), and Advanced Micro Devices (AMD) [3][17]. - **Fastest EPS Growth**: The companies expected to show the highest earnings per share (EPS) growth include Micron Technology, Uber, Gilead, AMD, and NVIDIA [3][18]. - **Largest S&P 500 Stocks**: The largest stocks by equity capitalization in the S&P 500 are Apple, Microsoft, NVIDIA, Amazon, and Alphabet [3]. Notable Performers - **Best YTD Performers**: Notable stocks with the best YTD performance include Vistra Corp (+210%), NVIDIA (+145%), and Constellation Energy (+124%) [15]. - **Worst YTD Performers**: Companies with the worst performance include Walgreens Boots Alliance (-64%), Intel (-53%), and Dollar Tree (-50%) [15]. Valuation Insights - **Lowest Valuation Stocks**: The stocks with the lowest valuation based on P/E and EV/EBITDA metrics include Warner Bros. Discovery, APA, and Devon Energy [3]. - **Market Capitalization**: The report provides insights into the market capitalization of various sectors, indicating a significant shift over time [4]. Additional Considerations - **Investment Decisions**: Investors are advised to consider this report as one of several factors in their investment decisions, emphasizing the importance of comprehensive analysis [4]. This summary encapsulates the key points from the conference call, providing a detailed overview of the S&P 500's performance, sector contributions, and projections for future growth.

_ 27 September 2024 | 10:22AM EDT Weekly Fund Flows A Shifting Mix Global fund flows, week ending September 25 n Flows into mutual funds and related investment products showed firm demand for both equity and bond funds. n Net flows into global equity funds were strong in the week ending September 25, driven by flows into US and mainland China equities (+$25bn vs +$39bn in the previous week). Flows into US equities have strongly outpaced those into the Euro area and mainland China this year, but recent news ...