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].

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 | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------- ...

_ 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 ...

_ 28 September 2024 | 1:01AM HKT Global Economics Wrap-Up: September 27, 2024 | --- | --- | --- | --- | |-------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------| | | | | | | | Global | Economics | Andrew Tilton +852-2978-1802 \| andrew.tilton@gs.com | | n | Central o | bank pivots to sequential cuts: We rev ...

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].

1 October 2024 | 11:52AM EDT _ USA: Job Openings Above Expectations; ISM Manufacturing Index and Construction Spending Slightly Below Consensus Expectations | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------- ...

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.

29 September 2024 | 6:12PM HKT _ Greater China Semis: August: IC production +18% YoY; IC import volume +15% YoY | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------| | | Allen Chang +852-2978-2930 \| allen.k.chang@gs.com Goldman Sachs (Asia) L.L.C. | | | Verena Je ...

30 September 2024 | 9:01PM EDT _ US Autos & Industrial Tech Platforms & Power: driving more sustainable profitability; Upgrade F to Buy We believe that the key to success in the automotive industry will increasingly come from mastering both the platform and power aspects of vehicles, including for electric and hybrid vehicles. And this platform and power theme extends beyond autos to broadly incorporate industrial and technology infrastructure. What do we mean by platforms & power? n Platforms: By platforms ...

28 September 2024 | 12:58AM HKT _ | --- | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|--------------------------------------------------------------------------------------------------|-------------------------|-------------------------------------------------------------------------------------------------------------------------| | | | | | | | 1 ...