Industry/Company Involved * **Goldman Sachs Global Investment Research** - The document is a report from Goldman Sachs' Global Investment Research division, focusing on inflation trends across various economies. Core Points and Arguments 1. **Core Inflation Trends**: * Core goods inflation slowed in Japan and Canada, but increased in the US, the Euro area, and the UK. * Core services inflation slowed in most economies, with the largest decline in the Euro area and acceleration in Canada. * Traditional core inflation measures preferred by major central banks differ in terms of included categories and measurement approaches. * Goldman Sachs' trimmed core inflation measure systematically trims a weighted one-third of month-to-month changes across all core inflation categories and then takes the weighted average of the remaining two-thirds. * The trimmed core inflation rate stands at +3.7% in the UK, +2.9% in Canada, +2.5% in the US, and +2.4% in the Euro area. * Core goods inflation slowed in Canada and Japan but increased elsewhere. * Core services inflation generally declined in most economies. * Rent inflation declined in Canada and the US but increased in the UK. * Energy inflation increased in Japan and the UK, remained in negative territory elsewhere. * Food inflation increased in the UK and US but slowed elsewhere. * The breadth of inflationary pressures continues to moderate. * The share of the headline basket running above 4% on a six-month annualized basis declined across DMs. * The share of the basket with year-over-year inflation increasing ticked up outside of the US. * The distribution of three-month inflation rates across items continued to shift back towards pre-pandemic norms in most economies, but remains more dispersed in Canada. 2. **Inflation Forecasts**: * Goldman Sachs revised up its end-2024 forecasts for core inflation in Canada and the Euro area, and its end-2025 forecast for core inflation in the UK. * Goldman Sachs revised its end-2024 headline inflation forecasts by +0.1pp in the UK and -0.1pp in Canada. * Goldman Sachs expects further disinflation in most economies in 2025, with year-over-year core inflation slowing to +2.1% in Japan, +2.4% in the US, +2.0% in the Euro area, +2.8% in the UK, and +2.0% in Canada. * The GS harmonized core excludes a consistent set of items from CPI in all economies. Other Important Points * The document includes various charts and tables illustrating inflation trends and forecasts. * The document provides a detailed explanation of the methodology used to calculate trimmed core inflation. * The document includes disclosures regarding the authorship and distribution of the report.

Key Points **Industry Overview** 1. **Market Dynamics**: The real estate market is experiencing a recovery phase, with sales volume and prices showing positive trends. [doc id='51'] 2. **Sales Growth**: Weekly primary and secondary market sales have shown significant year-over-year growth, with primary market sales increasing by 13.0% YoY and secondary market sales increasing by 55% YoY. [doc id='51'] 3. **Price Trends**: Property prices in Tier 1 cities have shown stable growth, with the Centaline six-city secondary asking price tracking index remaining relatively flat. [doc id='53'] 4. **Developers' Sales**: Developers' monthly sales have shown mixed trends, with some companies reporting strong growth while others experienced declines. [doc id='35'] **Market Segmentation** 1. **Tier 1 Cities**: Sales in Tier 1 cities have shown strong growth, with primary market sales increasing by 16.9% YoY and secondary market sales increasing by 36% YoY. [doc id='51'] 2. **Tier 2 Cities**: Sales in Tier 2 cities have also shown significant growth, with primary market sales increasing by 13.4% YoY and secondary market sales increasing by 66% YoY. [doc id='51'] 3. **Tier 3 Cities**: Sales in Tier 3 cities have shown moderate growth, with primary market sales increasing by 7.1% YoY and secondary market sales increasing by 20% YoY. [doc id='51'] **Company-Specific Information** 1. **C&D International**: The company reported attributable sales of 124 million HKD in November 2024, with a YoY decline of 16% and a MoM decline of 33%. [doc id='46'] 2. **China SCE**: The company reported attributable sales of 10 million HKD in November 2024, with a YoY decline of 9% and a MoM decline of 9%. [doc id='46'] 3. **CIFI**: The company reported attributable sales of 31 million HKD in November 2024, with a YoY decline of 41% and a MoM decline of 21%. [doc id='46'] 4. **CMSK**: The company reported attributable sales of 189 million RMB in November 2024, with a YoY decline of 9% and a MoM decline of 3%. [doc id='46'] 5. **COLI**: The company reported attributable sales of 270 million HKD in November 2024, with a YoY increase of 31% and a MoM increase of 287 million HKD. [doc id='46'] 6. **Country Garden**: The company reported attributable sales of 44 million HKD in November 2024, with a YoY decline of 51% and a MoM decline of 30%. [doc id='46'] 7. **CR Land**: The company reported attributable sales of 229 million HKD in November 2024, with a YoY increase of 7% and a MoM increase of 286 million HKD. [doc id='46'] 8. **Gemdale**: The company reported attributable sales of 63 million RMB in November 2024, with a YoY decline of 53% and a MoM decline of 14%. [doc id='46'] 9. **Greentown**: The company reported attributable sales of 149 million HKD in November 2024, with a YoY decline of 10% and a MoM decline of 24%. [doc id='46'] 10. **Jinmao**: The company reported attributable sales of 83 million HKD in November 2024, with a YoY decline of 31% and a MoM decline of 132 million HKD. [doc id='46'] 11. **KWG**: The company reported attributable sales of 9 million HKD in November 2024, with a YoY decline of 48% and a MoM decline of 24 million HKD. [doc id='46'] 12. **Logan**: The company reported attributable sales of 8 million HKD in November 2024, with a YoY decline of 7% and a MoM decline of 23 million HKD. [doc id='46'] 13. **Longfor**: The company reported attributable sales of 93 million HKD in November 2024, with a YoY decline of 19% and a MoM decline of 162 million HKD. [doc id='46'] 14. **Midea RE**: The company reported attributable sales of 37 million HKD in November 2024, with a YoY decline of 21% and a MoM decline of 38 million HKD. [doc id='46'] 15. **Poly**: The company reported attributable sales of 308 million HKD in November 2024, with a YoY decline of 23% and a MoM decline of 400 million HKD. [doc id='46'] 16. **Powerlong**: The company reported attributable sales of 12 million HKD in November 2024, with a YoY decline of 13% and a MoM decline of 26 million HKD. [doc id='46'] 17. **Ronshine**: The company reported attributable sales of 7 million HKD in November 2024, with a YoY increase of 1% and a MoM increase of 20 million HKD. [doc id='46'] 18. **Seazen**: The company reported attributable sales of 37 million HKD in November 2024, with a YoY decline of 50% and a MoM decline of 71 million HKD. [doc id='46'] 19. **Shimao**: The company reported attributable sales of 31 million HKD in November 2024, with a YoY increase of 12% and a MoM increase of 40 million HKD. [doc id='46'] 20. **Sino-Ocean**: The company reported attributable sales of 48 million HKD in November 2024, with a YoY increase of 37% and a MoM increase of 31 million HKD. [doc id='46'] 21. **Sunac**: The company reported attributable sales of 45 million HKD in November 2024, with a YoY decline of 54% and a MoM decline of 79 million HKD. [doc id='46'] 22. **Vanke**: The company reported attributable sales of 223 million HKD in November 2024, with a YoY decline of 34% and a MoM decline of 343 million HKD. [doc id='46'] 23. **Yuzhou**: The company reported attributable sales of 7 million HKD in November 2024, with a YoY decline of 58% and a MoM decline of 17 million HKD. [doc id='46'] 24. **Zhenro**: The company reported attributable sales of 6 million HKD in November 2024, with a YoY decline of 24% and a MoM decline of 14 million HKD. [doc id='46'] 25. **Zhongliang**: The company reported attributable sales of 16 million HKD in November 2024, with a YoY decline of 33% and a MoM decline of 32 million HKD. [doc id='46'] 26. **Zhongnan**: The company reported attributable sales of 16 million RMB in November 2024, with a YoY decline of 50% and a MoM decline of 38 million RMB. [doc id='46'] **Conclusion** The real estate market is currently in a recovery phase, with sales volume and prices showing positive trends. However, the market remains volatile, with mixed trends observed across different cities and companies. Developers' sales have shown mixed results, with some companies experiencing strong growth while others have faced challenges.

Industry Overview * **Software Industry Performance**: The software industry has largely underperformed in 2024, with a year-to-date return of 12% compared to the S&P 500's 25% and the NASDAQ's 31%. * **Valuation**: The software industry is currently trading at a significant discount to its historical averages. The EV/NTM FCF multiple for the software industry is 36.0x, which is 52% off the peak and 24% below the trailing average. The P/E multiple is 25.8x, which is 12% off the peak and in line with the trailing 5-year average. * **Growth**: Software trading is 4% above the trailing 5-year average on a growth-adjusted basis. * **High Growth Companies**: High-growth software companies are trading at an average of 80% of their 52-week high, with an average 2-year sales CAGR of 28% and an average EV/CY25 Sales multiple of 11.3x. * **Medium Growth Companies**: Medium-growth software companies are trading at an average of 79% of their 52-week high, with an average 2-year sales CAGR of 20% and an average EV/CY25 Sales multiple of 11.5x. * **Low Growth Companies**: Low-growth software companies are trading at an average of 74% below their 52-week high, with an average 2-year sales CAGR of 8% and an average EV/CY25 Sales multiple of 4.8x. Company Ratings and Updates * **Blackline Inc (BL.O)**: Rated Equal-weight as of September 29, 2024. * **E2open Parent Holdings Inc (ETWO.N)**: Rated Equal-weight as of January 17, 2024. * **OneStream Inc (OS.O)**: Rated Equal-weight as of August 19, 2024. * **Vertex Inc. (VERX.O)**: Rated Overweight as of January 17, 2024. * **Amplitude Inc. (AMPL.O)**: Rated Underweight as of February 1, 2024. * **Autodesk (ADSK.O)**: Rated Overweight as of August 23, 2024. * **Freshworks Inc (FRSH.O)**: Rated Equal-weight as of October 18, 2021. * **GoDaddy Inc (GDDY.N)**: Rated Equal-weight as of July 19, 2021. * **HubSpot, Inc. (HUBS.N)**: Rated Overweight as of March 21, 2023. * **Klaviyo, Inc (KVYO.N)**: Rated Equal-weight as of October 16, 2023. * **LegalZoom.com Inc (LZ.O)**: Rated Underweight as of July 28, 2022. * **Liveramp Holdings Inc (RAMP.N)**: Rated Overweight as of July 15, 2019. * **Matterport Inc (MTTR.O)**: Rated Equal-weight as of April 19, 2022. * **Semrush Holdings Inc -A (SEMR.N)**: Rated Equal-weight as of June 6, 2022. * **Sprinklr Inc (CXM.N)**: Rated Equal-weight as of July 19, 2021. * **Sprout Social Inc (SPT.O)**: Rated Equal-weight as of November 17, 2020. * **Wix.Com Ltd (WIX.O)**: Rated Equal-weight as of May 19, 2022. * **Zeta Global Holdings Corp (ZETA.N)**: Rated Equal-weight as of August 1, 2024. * **ZoomInfo Technologies Inc (ZI.O)**: Rated Equal-weight as of February 1, 2024. * **Check Point Software Technologies Ltd. (CHKP.O)**: Rated Equal-weight as of October 16, 2023. * **Cloudflare Inc (NET.N)**: Rated Overweight as of December 2, 2024. * **CrowdStrike Holdings Inc (CRWD.O)**: Rated Overweight as of January 9, 2024. * **CyberArk Software Ltd (CYBR.O)**: Rated Equal-weight as of January 9, 2024. * **Fortinet Inc. (FTNT.O)**: Rated Overweight as of October 7, 2022. * **Gen Digital Inc. (GEN.O)**: Rated Equal-weight as of June 7, 2024. * **Jamf Holding Corp (JAMF.O)**: Rated Equal-weight as of October 13, 2024. * **Okta, Inc. (OKTA.O)**: Rated Overweight as of December 2, 2024. * **Palo Alto Networks Inc (PANW.O)**: Rated Overweight as of October 10, 2017. * **Qualys Inc (QLYS.O)**: Rated Underweight as of February 9, 2021. * **Rapid7 Inc (RPD.O)**: Rated Equal-weight as of August 11, 2015. * **Secureworks Corp (SCWX.O)**: Rated Underweight as of December 2, 2024. * **SentinelOne, Inc. (S.N)**: Rated Equal-weight as of December 2, 2024. * **Tenable Holdings Inc (TENB.O)**: Rated Equal-weight as of December 2, 2024. * **Varonis Systems, Inc. (VRNS.O)**: Rated Overweight as of October 16, 2023. * **Zscaler Inc (ZS.O)**: Rated Equal-weight as of January 12, 2023. Other Key Points * **Morgan Stanley is acting as financial advisor to Secureworks in relation to the definitive agreement for Sophos to acquire Secureworks**. * **Stock ratings are subject to change**. * **Historical prices are not split adjusted**. * **Morgan Stanley uses a relative rating system using terms such as Overweight, Equal-weight, Not-Rated, or Underweight**. * **Investors should carefully read the definitions of all ratings used in Morgan Stanley Research**. * **Ratings (or research) should not be used or relied upon as investment advice**.

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Construction and Materials in China - **Key Focus**: Local Government Special Bond (LGSB) issuance and its impact on infrastructure and property sectors Core Insights and Arguments - **Construction Demand**: There is a seasonal slowdown in construction demand, with planned production of air conditioners, fridges, and washers expected to decline by 1.5%, 6.5%, and 8% respectively in January 2025 [3][3][3] - **Steel Production**: Daily crude steel output from major producers decreased to 1.977 million tons in mid-December, down 2.3% from early December [3][3][3] - **Vehicle Sales**: Passenger vehicle retail sales for December 1-22 reached 1,692,000 units, marking a 25% year-over-year increase and a 14% month-over-month increase [3][3][3] - **Shipbuilding Orders**: Global new shipbuilding orders rose by 23% year-over-year and 39% month-over-month to 4.04 million CGT in November, with Chinese shipbuilders capturing 63% of the market [3][3][3] - **LGSB Issuance**: Total LGSB issuance in December was RMB 21 billion, bringing the year-to-date total to RMB 4.0 trillion, which is 102.6% of the 2024 quota [3][3][3] Infrastructure and Property Sector Insights - **Policy Support**: The Ministry of Housing and Urban-Rural Development (MoHURD) reported that policy-supported housing delivery is expected to reach 3.38 million units in 2024, with 1,790 urban village redevelopment projects initiated [3][3][3] - **Local Government Projects**: Hunan Province commenced 259 major projects with a total investment of RMB 270 billion as of December 26 [3][3][3] - **Cement and Steel Consumption**: Cement shipments in eastern China showed slight weakness, while apparent consumption of long and flat steel products decreased by 5.7% week-over-week [3][3][3] Additional Important Information - **Market Dynamics**: Weekly primary unit sales in 50 cities increased by 5.0% year-over-year, while secondary unit sales in 10 cities surged by 58% year-over-year [3][3][3] - **Bond Usage**: The usage of local bonds is primarily directed towards infrastructure, land, and housing projects, with infrastructure accounting for 63% of total bond usage [27][27][27] - **Future Outlook**: Analysts maintain an attractive view on the construction materials sector, anticipating continued support from government policies aimed at stimulating infrastructure and property development [3][3][3] This summary encapsulates the critical insights from the conference call, focusing on the construction and materials industry in China, particularly regarding local government bond issuance and its implications for infrastructure and property sectors.

Industry/Company Involved * **Global Credit Market** Core Points and Arguments 1. **Outperformance of Equities Over Bonds**: Global equities outperformed global bonds by approximately 21%, with US Treasuries lagging behind T-Bills for the fourth consecutive year [2]. 2. **Credit's Performance**: The return of credit in 2024 was driven entirely by credit itself, with lower correlations defining the year [3]. 3. **US Outperformance**: The US economy and assets outperformed significantly, with US stocks beating non-US equities by approximately 21% [11]. 4. **Credit Outperformance**: Credit outperformed government bonds across global regions, with idiosyncratic risk being high and increasing M&A activity as a catalyst [12]. 5. **Yield-Driven Demand**: The demand for credit remained robust, driven by investors seeking high all-in yields rather than tight credit spreads [16]. 6. **Low Correlation and Volatility**: Credit returns exhibited low correlation and volatility, offering diversification from macroeconomic trends [34]. 7. **Attractive Yields**: Higher yields, particularly in the US and Europe, are expected to drive credit demand in 2025 [36]. Other Important Points * **Regional Trends**: Spreads in Europe and Asia tightened more than their US counterparts, despite equities in both regions lagging [30]. * **Credit Picking Opportunities**: 2025 is expected to remain a good environment for dispersion and credit picking, with Morgan Stanley providing top single-name ideas from their sector credit team [13]. * **Impact of FOMC**: The recent volatility around December's 'hawkish' FOMC is seen as different from previous episodes, with rising yields and a strengthening DXY indicating confidence in growth [20]. * **Analyst Stock Ratings**: Morgan Stanley uses a relative rating system with terms like Overweight, Equal-weight, Not-Rated, or Underweight [41]. * **Important Disclosures**: The report includes important disclosures regarding the relationship between the companies mentioned and Morgan Stanley, as well as other regulatory disclosures [43-46].

Summary of Barclays Capital Goods Research Report Industry Overview - The report focuses on the **European Capital Goods** sector, providing insights into the performance metrics of companies within this industry [22][24]. Core Insights and Arguments - **Adjusted Operating Profit vs Reported EBIT**: - On average, reported EBIT is approximately **14% below** company-defined adjusted operating profit [24]. - Over the last five years, adjusted operating profit has been about **14% higher** than P&L EBIT [24]. - The report highlights that adjusted metrics are not covered by financial reporting standards and are subject to management discretion, necessitating greater scrutiny [24]. - **Performance Metrics**: - The average P&L EBIT is around **15% below** adjusted operating profit, with a range from **0% to 60%** [24]. - A median analysis shows that P&L EBIT is on average **greater than 10% below** adjusted operating profit per year, except in 2021 where it was less than 10% [24]. - Only **seven stocks** have had zero adjustments over the last five years, while **four stocks** are more than **30% below** adjusted operating profit, and another **eight stocks** are more than **20% below** on a five-year median [24]. - **Restructuring Considerations**: - Some companies have undergone restructuring over the past five years, leading to elevated adjustments. Continuous restructuring adjustments should be monitored closely [24]. Additional Important Information - The report emphasizes the importance of understanding the differences between reported EBIT and adjusted operating profit, as analysts often value companies based on adjusted earnings streams [24]. - The report is intended for institutional investors and not for retail investors, highlighting the potential conflicts of interest and the need for independent evaluation of investment opportunities [2][7]. Analyst Information - The report is authored by a team of analysts including Jonathan Hurn, Timothy Lee, Vlad Sergievskii, James Winchester, Xin Wang, and George Featherstone, all of whom are certified and have provided their contact information for further inquiries [4][11][24]. This summary encapsulates the key points from the Barclays Capital Goods research report, focusing on the performance metrics and considerations within the European Capital Goods sector.

Summary of Key Points from the Conference Call Industry Overview - **Sector Performance**: In 2024, seven out of ten sectors achieved positive returns, with Communication Services leading at 40% growth, followed by Consumer Discretionary at 46% and Health Care at 39%. Conversely, Consumer Staples was the worst performer, declining by 6%, and Technology continued to underperform, with a drop of 31% relative to its Emerging Market (EM) counterparts for the third consecutive year [2][34]. Company and Market Metrics - **MSCI India Performance**: MSCI India's ranking improved to 4th among 24 EMs, up from 9th in 2023 and 12th in 2022, outperforming the EM Index by 6 percentage points in 2024, following a 13 percentage point outperformance in 2023 [11]. - **Market Capitalization and GDP**: As of 2024, India's GDP reached $3,787 billion, with a market capitalization of $5,184 billion, resulting in a market cap to GDP ratio of 136.9%, up from 125.1% in 2023 [6]. - **Foreign Portfolio Investment (FPI)**: FPIs recorded a net inflow of only $14 million in 2024, a significant decrease from $21 billion in 2023, primarily due to participation in the primary market. Domestic institutions, however, purchased stocks worth $60 billion [32]. Trading and Investment Flows - **Trading Volumes**: Total trading volumes annualized in 2024 reached approximately $11.58 million, with cash trading volumes at $3.76 million and derivatives trading volumes at $7.82 million [6]. - **Mutual Fund Activity**: Total mutual fund assets under management (AUM) increased to $673.7 billion, with equity mutual fund AUM at $427.5 billion. Systematic Investment Plan (SIP) flows rose to $3 billion per month in the last quarter of 2024 [6][32]. Economic Indicators - **Yield Curve and Currency Fluctuations**: The yield curve rose by 21 basis points from its low in March 2023. The Indian Rupee depreciated by 2.7% against the USD but appreciated by 3.2% against the Euro [33]. - **Market Volatility**: Market volatility increased from multi-year lows after three consecutive years of decline prior to 2024 [12]. Additional Insights - **Equity Issuances**: Equity issuances rose sharply in 2024, accounting for 0.8% of market capitalization, compared to 0.5% in the previous year [13]. - **Sector Performance Trends**: Mid- and small-cap indices outperformed the Sensex by 16 and 19 percentage points, respectively, indicating a shift in investor preference towards smaller companies [31]. This summary encapsulates the critical insights and data points from the conference call, providing a comprehensive overview of the current state of the Indian market and its sectors.

The Stock Ratings described below apply to Morgan Stanley's Fundamental Equity Research and do not apply to Debt Research produced by the Firm. For disclosure purposes only (in accordance with FINRA requirements), we include the category headings of Buy, Hold, and Sell alongside our ratings of Overweight, Equal-weight, Not-Rated and Underweight. Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of bu ...

Key Points Industry/Company Involved - **Company**: WiSA Technologies, Inc. (NASDAQ: WISA) - **Industry**: Merger & Acquisition (M&A) - **Target**: CompuSystems, Inc. [1] Core Views and Arguments - **Forward-Looking Statements**: The call includes forward-looking statements subject to risks and uncertainties. [1] - **Acquisition Details**: WiSA Technologies plans to acquire CompuSystems. [3] - **Participants**: Nate Bradley (CEO, Data Vault Holdings), Mark LoGiurato (CEO, CompuSystems), Brett Moyer (CEO and President, WiSA Technologies), and Michael Fazio (Controlling Investor, CompuSystems) participated in the call. [4] - **No Obligation to Update**: WiSA assumes no obligation to update forward-looking statements except as required by law. [5] [1][3][4][5] Other Important Content - **Conference Call Details**: The call took place on December 30, 2024, at 11:00 AM ET. [6] - **Participant Roles**: David Barnard (Alliance Advisors, IR) moderated the call. [6] - **Listening Mode**: Participants were in listen-only mode during the presentation. [7] - **Recording**: The call was being recorded. [7] [6][7]

Cumulative bond fund flows Figure 14: Cumulative AsiaXJ hard currency bond fund flow USD billion -10 0 10 20 30 40 50 Dec-06Nov-07Oct-08Sep-09Aug-10Jul-11Jun-12May-13Apr-14Mar-15Feb-16Jan-17Dec-17Nov-18Oct-19Sep-20Aug-21Jul-22Jun-23May-24 Sovereign Corporate Mixed High-Frequency Trends: EM Retail Equity Fund Flows | --- | --- | --- | --- | --- | --- | |---------------|---------|---------|-------|--------|---------| | USD million | This wk | Last wk | Chg | 4w avg | 12w avg | | EM Equity | -996 | -4,624 | ▲ ...