37 Burst results for "Goldman Sachs"
Fresh update on "goldman sachs" discussed on Bloomberg Daybreak Asia
"Bloomberg daybreak Asia And it is 9 30 a.m. in Hong Kong and here in Singapore as we see markets in Hong Kong and China open up We've got the hang thing up a tenth of 1% China CSI 300 up two tenths of 1% and sun city plunging in Hong Kong after the CEO was arrested by Macau police Let's get to some of the other top stories of the day Jack Dorsey stepping down as CEO of Twitter ending a 6 year run at the helm He'll be replaced by chief technology officer parag agrawal Under Dorsey Twitter's user base which was once shrinking has been growing steadily for years However the company hasn't delivered the same kind of returns as peers like snap and Facebook owner met at platforms Twitter stock has climbed 67% since 2015 meta stock up 260% in that same period Bloomberg's mandate Singh tells us the impact of today's move I think overall it's a net positive for the stock at least given when you compare Twitter to all the other social media platforms It certainly undervalued as a company that has gone consistent level of engagement It's a really important real estate on the Internet And they just haven't done well in terms of monetizing that engagement Seeing also said having one man be the CEO of two companies wasn't very effective Now Dorsey will remain head of the digital payments company square and Twitter also said Dorsey will stay on the board of Twitter until his term expires in 2022 Will Goldman Sachs is adding new employee benefits including higher retirement contributions We get the story from Bloomberg's Charlie peles It's all part of a package of changes aimed at addressing worker burnout The additional perks include paid leave for miscarriages more paid leave for the death of an immediate family member and a 6 week unpaid sabbatical for long-term employees this according to an internal memo that was seen by Bloomberg news Other changes include boosting retirement matching contributions for U.S. employees to 6% of total compensation and increase of 2% In New York Charlie pallets Bloomberg daybreak Asia San city shares a plunge 37% off to the arrest of CO Alvin chow the arrest could signal the end of a $2.2 billion market Sunset accounted for more than 40% of Macau's junket market or about 15% of the city's gaming revenue in 2019 The junket network channel is about three quarters of Macau's roughly $3 billion in annual VIP gaming revenue It does this by bringing Chinese punters on trips to the territory Without junkets Macau casinos could suffer a 34% decline in gaming revenue on an 8% drop in profit this according to Bloomberg intelligence Sun city's casino gaming rooms when you empty this past weekend we're told Ponte's didn't want to be associated with Macau's biggest junket operator Let's get over to Brian Curtis now for a check of market Brian Well in addition to that big drop of more than 37% in sun city we also have the Macau gaming stocks weaker although not like anything similar to yesterday where they were down between 6 and 10% just looking at wind now trading down just about a half of 1% And indeed that is a story though that will reverberate around the gaming companies for probably many days to come until it becomes clear exactly what the authorities are planning to do Well we mentioned that economic sentiment has improved in China We're not seeing huge outperformance in equities this morning even with a better print on the PMI than was expected The CSI 300 is trading up about two tenths of 1% The Shanghai composite is also up about a quarter of 1% Banks hang index is negative It's down a quarter of a percent Well most of the other markets are positive today Some quite positive The nikkei of two two 5 for instance is up 346 points That's the gain of 1.2% And the ASX 200 in Sydney is up 1.2% as well It just seems like investors are taking a little bit more cautious view towards some of the aggressive selling we saw on Friday all tied to the omicron variant of the coronavirus It had people extremely nervous on Friday especially as many governments were acting quickly to shut down borders It seems that some of the policymakers have moderated since then and the markets have certainly done So we've got gains like the tie acts in Taiwan up more than 1% a 176 points It costs me was higher but it's trading flat to slightly lower The straight's times index up about two tenths of a percent Currencies pretty steady although the Bloomberg dollar spot index is now down about a tenth of a percent dollar yen is at one 1377 and the yield on the ten year treasury 1.51% 35 minutes past the hour Jules back to you Thank you Brian time for glove when you.
Fresh update on "goldman sachs" discussed on Bloomberg Markets
"All right coming up we're going to get the latest from our Friends on Wall Street house of capital markets business doing here as we finish up a strong 2021 We'll do that with Chanel Bassett Bloomberg's Wall Street border Plus President Biden is scheduled to make some remarks this half hour on the new variant of the COVID So we will bring those to you when he speaks But first let's go to Greg Jarrett Bloomberg news for a Bloomberg business flesh Ball responds by SEI visionary asset managers find opportunity where others are challenged exploit disruptions potential With SEI's global operating platform find out how SEI C dot com slash IMS Well the S&P erased its November losses then it started going back toward the negative section again And then it's back up again now So you might say that it is a bounced back led by gains in tech and retail shares buy on tech Moderna and Johnson & Johnson are working to adapt their COVID-19 taxes to address this latest variant So the S&P is up over 1% again up 47 The Dow is up three tenths of a percent of a 106 still well off earlier highs but at least back up over a hundred The NASDAQ is up one and a half percent up 227 The ten year is down 1130 seconds the yield 1.51% Which taxes intermediate crews up 3.7% is 70 65 a barrel Gomez goes down a tenth of a percent of 1786 60 announced the dollar yen one 1369 The Euro dollar 1269 in the British found the dollar 33 O two sources say Nordic oil producer London energy is exploring a potential sale that could rank as one of the largest European oil and gas deals in years of sources go on to say the Swedish companies working with an adviser to study strategic alternatives That is a Bloomberg business flash Bloomberg markets continues now Paul swimming and Matt Miller Hey great Jerry Thank you so much We appreciate that It's time to get our update on our good friends on Wall Street Lots of volatility And historically volatility is good for these Wall Street banks The thrive on that particularly on the trading desk is checking with Chanel basket Wall Street reporter for Bloomberg news So now I talked to about kind of the capital markets business on the street this year How was it And what's the outlook for next year Records all across the board but listen the reason I wanted to Bonuses bonuses Yeah That's what I want to talk about We could do that We could do that anytime you want But the reason I wanted to talk to both of you about the vix today is because my source is called the 25 handle on the vix a danger zone When it comes to a lot of this capital markets activity that means IPOs that means debt offerings all of which have seen records this year Even U.S. high yield bonds They weren't as high as they were last year but they were higher than they were in 2019 which makes you see that investors have really been lusting for these new issuance when it comes to stocks and bonds And this higher level of volatility will start to choke some of that activity off If you expect this to continue are you thinking that we're not going to see the vix get back down to less than 20 It only rose up on Friday amidst I guess light volume freak outs about omaka Omicron Yes It's a great question There's two ways this can go The vix comes back down and some of the activity resumes But for a while now there's been the sense that you should go public now while the window is nice and open And we've seen this flurry of IPOs Some have done spectacularly like rivian Others though and we saw this in the financial time just this morning half of the IPOs in the U.S. that have priced are trading below their IPO price So you're seeing that riskier part of the market start to lose some of its love from investors So what does that mean for the new issuance going forward It's going to get tougher What my banking sources are saying is that the new story now is that return to staying private will more private rounds be raised while more people look to wait out some of the volatility that are in the months ahead It's interesting because they've had such a great run here Wall Street has really over the last couple of years And it kind of goes back to another aspect of this story that we love to get the latest on from you is are the bankers are the traders Are they back in the office Are they working from home What's the latest there Because I know they made some pretty bold pronouncements several months ago Yeah The investment bankers certainly have been back in the office and the traders have been there because the activity has just been so hot This is all pretty circular because if the IPO and the debt offering start to slow then there is less new issue to trade Those usually fuel those desks in a big way So if the year starts in this again goes back to bonuses Paul because bankers kind of wait till the last minute to make that determination This is a record year They should be paid well no matter what But if it starts to go down then they may be paid a little less well than they may have hoped for the end What about the return to office How's that going to How is that going right now When you talk to your sources are the majority back at their desks in midtown or in the financial district or are they still in their bedroom communities of Greenwich and Westchester I think it depends on the bank because some of the cultures have been more back to work much more aggressive Right before the holidays I was at Goldman Sachs And when you walk into Goldman it's a very bit It's very busy It's very busy People are there they were getting coffees They were out in the field meeting meeting clients but other firms they've already let their employees work from other places I think Apollo's opening a Miami area office a west palm kind of center has been a big difference for some members of the community that have spent most of their lives in New York And has given them more of an ability to work from home as well as their companies make that kind of a big transition And listen back traveling Remember this was a huge part of a banker's job so these new traveling restrictions are creating a whole new complication So I mean are the league tables Are they pretty much kind of what they always are at Goldman Sachs Morgan Stanley JPMorgan Or is there any kind of big new upstart that's kind of come on I listen The big have gotten bigger and that has been happening for years It's especially true this year Where Goldman JPMorgan and Morgan Stanley have led the way in many areas M and a but you know some of the others the smaller banks.
'Let's Go, Brandon' Goes Mainstream
"You type in let's go brand into Google news, it is everywhere. AP news. How let's go Brandon became code for insulting bought Joe Biden. The Washington Post, let's go brain and is Republican vulgar governing agenda. By Dana millbank. Oh yeah, but drag queen story are perfectly cool. All right, the fact that 6 year olds get exposed to dudes that are in dresses. 22 hours ago Trump campaign joins the let's go Brandon trend. The NPR national public radio. Here's what let's go Brandon actually means and how it made its way to Congress. Fox 8, let's go Brandon, here's where the viral meme comes from. Three days ago, how the anti Biden song let's go Brandon became a shadow smash. And I can continue. The left is perplexed that there would be a grassroots non centralized non CNN non AT&T, by the way, this is what's so amazing about this is Black Lives Matter is totally corporate. It was top down centralized, every corporation was behind it. This is totally let's just say not coordinated. There's no central command center for let's go Brandon. There's no multi-million dollars spending campaign. There's no pledges from PepsiCo or from Coca-Cola, Goldman Sachs, saying we're going to pledge $30 billion to get rid of let's go Brandon equity in our country. No, this is just kind of bottom up. Where the Black Lives Matter thing B 11 incorporated was totally manufactured. It was absolute top down, and yet let's go Brandon thing is happening why because people are feeling the reality of Joe Biden's
Arizona Attorney General Mark Brnovich Brings Lawsuit Against ASU
"Okay, so now I want to get into where you can talk a little bit more about this. Is that right? Yes. Yes and no. I mean, we should preface this with well, let me preface it for my personal opinion. I think colleges are ripping people off. Yes. I think it's become a legalized scam for a lot of young people and you and I kind of hit it off when you started to say, well, Charlie, you don't understand what ASU has been doing. And so this is kind of like the third rail in our office here because we have so many that went ASU and they have some sort of loyalty to it. You want ASU to support a sun devil. There you go. And so for me, I just think they're ripping people off, families are going into debt and it's not right. The floor is yours. Walk us through what you're doing from the attorney general's office. This issue. And let me just preface this by saying that in the difficulty is, look, I literally the university and their law firm Perkins cooey his father more than 200 page bar complaint against. And people don't know that. And even my own lawyer has told me not to talk about it. I've been told not to talk about the subject, and that's why just this past week, the state Supreme Court accepted one of our cases for statesmen court on one of our lawsuits against the university sweetheart real estate deals. They accepted that case, and so then you get folks at me as you criticizing a saying stuff, but I'm not allowed to say anything because I can't I'm a lawyer so they file bar complaints every time I say anything can I say something about that though, which is that this is exactly what they do. Anyone up and down the conservative ladder and I know you have to be careful commenting on this for obvious reasons, but they go through the politics of personal destruction. Yeah. Like, you start to investigate something we don't like. We're going to use Perkins cooey or whatever coy, which is Hillary Clinton's like favorite law firm, by the way. Alongside, you know, the other one she used to use all the money that the dossier but Facebook uses Perkins, you know, Goldman Sachs does all of them to try to go after you to try to suppress you. And that means you're doing something significant. Well, I'm going to tell the folks from the university and from Perkins cooey. That means we're going to have to listen its entire podcast. We're going to have to listen to this because this is what happens. They listen to me whenever I talk about them, and then all of a sudden there'll be some things like this on, you know, this show would ever. So I have not actually talked about this for a long time. So thank you for letting me talk about this because I feel like it's been before and so this our lawsuit actually began or my fight with the universities began. And I didn't want. I mean, you've done amazing job amazing work exposing the hypocrisy and the left wing bias universities. I did not feel folks like you were doing it. I did not want to become this anti whatever higher education person, but what happened was we were involved in litigation is all started. The universities, here in Arizona, we're giving in state tuition for people that didn't have legal status. So we literally in 2017 went to the Court of Appeals we won. Three nothing at the Court of Appeals because voters in 2006 in Arizona had approved a ballot measure that said, if you do not have legal status, you can not get in state tuition. Period,
A highlight from Ep. 97: Origin Materials Co-CEOs John Bissell and Rich Riley, Laureate Education, Aerie Pharmaceuticals, GreenSky, Goldman Sachs.
"Like Athletic jersey from nike or adidas or something is often a typically polyester jersey in. That's after these axiom materials. So the polyester is the same as the serve and when you use our technology to make that he t it's exactly the same stuff sandy but it has a way lower separate is functionally meant to be as functionally the same. It is it is exactly the same in fact if you gave it to a lab to go analyze it you'd have to. You'd have to get beyond the electrons into the nucleus to understand that it came from a different source. It is exactly the same house apostle yes. That's the magic of sort of chemistry Is that as long as you arrange the atoms in the right configuration than you get the same thing on the other side and so without getting into all of the nitty gritty on it essentially the chemical transformations that we do and able to make the same stuff that you make from trillion but we make charting with that with would feedstocks instead and the trick with that kind of thing. Is you know we joke. Sometimes in the industry the you can make anything out of anything. The question is can you make economically and so in our case It's not surprising to most people in the industry that you might be able to make the would that surprising things you can do it so economically and that sort of our trek will. I would seem
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"And so we're kind of <Speech_Female> tracking a lot in <Speech_Female> our investors <Speech_Female> position in their <Speech_Male> portfolios <Speech_Female> only across <Speech_Female> capital structure <Speech_Female> but also within <Speech_Female> equities domestically <Speech_Female> in in the <Speech_Female> states but also internationally <Speech_Female> as <Speech_Female> signals in terms of <Speech_Female> their risk appetite. <Speech_Female> So there's a couple <Speech_Female> of macaroni <Speech_Female> more of the technical things that <Speech_Female> were certainly tracking <Speech_Female> not that we <Speech_Female> are concerned <Speech_Female> in any way shape or form about <Speech_Female> them mortgages <Speech_Female> that these are things <Speech_Female> that we want to make sure <Speech_Female> that we stay on. Top <Speech_Female> of in terms <Speech_Female> of tracking <SpeakerChange> <Silence> investor mindset <Speech_Female> then even <Speech_Female> beyond institutional <Speech_Female> investors. You <Speech_Female> know what about the <Speech_Female> retail investing <Speech_Female> space obviously <Speech_Female> until <Speech_Female> recently <Speech_Female> the institutional <Speech_Female> investors have <Speech_Female> typically bought up the <Speech_Female> lion's share of an <Speech_Female> ipo. <SpeakerChange> But is <Speech_Female> that now. Changing <Speech_Female> it reached l. <Speech_Female> In the past eighteen <Speech_Female> months has been a tremendous <Speech_Female> force <Speech_Female> within the market. <Speech_Female> Not only and as we <Speech_Female> know the broad market <Speech_Female> in terms of fanatics <Speech_Female> and trading but <Speech_Female> also kind <Speech_Female> of a follow one buyer <Speech_Female> in many ways within <Speech_Female> the ip space. <Speech_Female> So we're <Speech_Female> focused on is twofold <Speech_Female> one trying <Speech_Female> to get the best <Speech_Female> understanding of the psyche <Speech_Female> of broad <Speech_Female> retail investor <Speech_Female> base. What type <Speech_Female> of assets <Speech_Female> willing to kind of deploy <Speech_Female> capital and track <Speech_Female> with the ios <Speech_Female> but also <Speech_Female> thinking about <Speech_Female> the retail investor <Speech_Female> for <Speech_Female> issuing clients <Speech_Female> and. How can we <Speech_Female> harness that type of <Speech_Female> demand to <Speech_Female> really think about another <Speech_Female> an immediate <Speech_Female> of distribution. <Speech_Female> And so <Speech_Female> i think most <Speech_Female> people would <Speech_Female> agree that the retail <Speech_Female> investor is going to <Speech_Female> remain. You know berry <Speech_Female> active with inequities <Speech_Female> and we <Speech_Female> continue to learn <Speech_Female> and track <Speech_Male> more in <Speech_Female> terms of their <Speech_Female> flows and focus <Speech_Female> as a broad <Speech_Female> universe of investors. <Speech_Female> But i don't <Speech_Female> think in any way shape or form <Speech_Female> that it's gonna go away. <Speech_Female> And i still <Speech_Female> think you're gonna see <Speech_Female> very broad distribution <Speech_Female> in the ipo space <Speech_Female> across <Speech_Female> all different types <Speech_Female> of investors whether <Speech_Female> it's institutional investors <Speech_Male> or retail <Speech_Female> investors <Speech_Female> across the board. <SpeakerChange> <Speech_Female> Thanks so much <Speech_Female> for joining us at <Speech_Female> what is obviously <Speech_Female> a very <SpeakerChange> busy time <Speech_Female> for you. <Speech_Female> I was my pleasure. Thank <Silence> you so much. <SpeakerChange> For having me <Speech_Female> back includes <Speech_Female> this episode <Speech_Female> of exchanges goldman <Speech_Female> sachs. Thanks <Speech_Female> for listening and if you <Speech_Female> enjoyed this show. <Speech_Female> We hope this as five <Speech_Female> on apple podcasts and <Speech_Female> leave a rating comment <Speech_Female> this podcast <Speech_Female> for the on <Speech_Music_Female> <Advertisement> september tenth. Twenty <Music> twenty one <SpeakerChange> <Music> <Music> <Music> <Music> All price references <Speech_Male> and market forecasts <Speech_Male> correspond <Speech_Male> to the date of this recording. <Speech_Male> This <Speech_Male> podcast should not <Speech_Male> be copied distributed <Speech_Male> published or reproduced <Speech_Male> in whole <Speech_Male> or in part the <Speech_Male> <Advertisement> information contained <Speech_Male> in this podcast does <Speech_Male> <Advertisement> not constitute research <Speech_Male> <Advertisement> or recommendation <Speech_Male> <Advertisement> from any goldman <Speech_Male> sachs entity <Speech_Male> to the listener neither <Speech_Male> goldman sachs nor <Speech_Male> any of its affiliates makes <Speech_Male> any representation <Speech_Male> or warranty <Speech_Male> as to the accuracy <Speech_Male> or completeness of <Speech_Male> the statements or <Speech_Male> any information contained <Speech_Male> in this podcast <Speech_Male> and any liability <Speech_Male> therefore <Speech_Male> including <Speech_Male> in respect of <Speech_Male> <Advertisement> direct indirect <Speech_Male> or consequential <Speech_Male> loss or
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"See those three kind of pillars in the market right now plus a very stable macro backdrop a really allowing issuers and investors to focus on the asset class or whether they are going public or look into the capital on various efficient manner. So let's talk a little bit more about the various routes to going public that you just mentioned special purpose. Acquisition companies or stacks. They've obviously been quite a big focus of the markets. We talked a lot about specs on this podcast in the past. But there's been a broad-based decline in stock returns and greater regulatory scrutiny. So what's the outlook for stocks and some other alternatives. You mentioned sure so into one if two thousand twenty one we just saw record spec issuance levels and it's really normal. I think natural that when you have such an unbelievable uptick in terms of supply to the market. You're naturally going to have some indigestion. And so if you couple about alongside some of the regulatory focuses within that product. I think it's been healthy to see a pullback in that issuance volume issuance has come down from itchy. One highs it's still incredibly important viable product within the equity capital markets for a host of reasons and really encouragingly. The entire market is working together to create more sustainability within that product and really evolve the product composition the products criteria and so that really means in terms of the forward for spat ax is that it's positive. The market is certainly open for spec issuance. But i think importantly for issuing clients and for investors forward. We're going to continue to see a lot of innovation across the back product directly in product the traditional ipo products because it really is just the method to going public and the method in terms of partnering with investors and so we have a lot of conviction and confidence that all of these products are here to stay and we'll continue to see more evolution within them respectively. What types of companies are going public at. This point are you. Seeing any specific industry trends we continue to see great diversification in terms of our issuing coming to market within the ip space. And so we have very good growth oriented assets. They're coming to market as awesome very strong value oriented assets coming to market. I think that talks to the testament of the capital formation. That i spoke to earlier but it also find it very encouraging. That's matic whether it's in. The americas region are more international news to ring true. And so we're seeing great. Diversity across sector in product and region is certainly very encouraging and obviously supports amount of issuance volume. That's com last year but also the first of this year but talk a little bit about performance of deals and how that's affecting the mindsets of issuers and investors..
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"This is exchanges at goldman sachs and i'm alison nathan a senior strategist and goldman sachs research. Today we're going to look at the surgeon equity issuance end. What promises to be a record breaking market for. Ibo's this fall to do that. I'm joined by lizzie. We'd global head of the equity capital markets syndicate desk in our investment banking division lizzy. Welcome to the program. Thank you for having alison. So to start off lizzy set the stage for us. Give us a sense of overall equity issuance this year and where we are as we head into the fall wonderful well. The market is certainly open. And we're really excited about what will be very active september but also very active q four of two thousand twenty one. I guess to put some context around issuance. Volumes on a global perspective street-wide issuance year. Today is just north of a trillion dollars to put that in perspective. That's up thirty nine percent versus where we were this time last year in two thousand twenty and in fact or very close to the record breaking global issuance volume record which was one point. One six trillion that occurred full year of two thousand twenty. So clearly we're tracking very well in terms of absolute issuance levels for two thousand twenty one. So what is that. Look like by region every region is obviously up on the year and up substantially. So if you look at america's for example america's issuance stands just shy of four hundred fifty billion dollars. That's up about thirty five percent year over year. If you look at e e mia issue and stands just north of two hundred billion dollars year to date. That's up about fifty six percent your ear and if you look in the asia region asia issuances at three hundred sixty five billion which is also up about thirty five percent ear every year and so it's really encouraging to see issuance volume continue to increase. Not only by region but also by product by described street-wide issuance volume that's inclusive of ipo's marketed. Follow on's convertible offerings and registered blocks. So now that we're all back at work brian. This september calendar. How is the fall shaping up. We're really encouraged in terms of the backlog that we're seeing for september across all products and regions and so. Let's just take america's as a very quick example for you. September of two thousand twenty in the americas region was the most active september in history at fifty one billion dollars this.
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"This is exchanges at goldman sachs and i'm alison nathan a senior strategist research for this week's episode. I'm delighted to welcome back. John hutsi as the firm's chief economist and global head of research to discuss the economy takeaways from jackson hole and his us on economic growth and inflation. John welcome back to the program. Good we on so. Let's start with last week's fed conference in jackson hole. Wyoming which is of course a closely-watched annual meeting held by the kansas city fed. What were your key takeaways from the conference and did anything. Chair powell says surprise you not much no. It was pretty much in line with what we thought coming out of the minutes of the last ever eating in july. I think if you take what jabil said and what we saw in the minutes there too key points about the timing of tapering of asset purchases. One is that they want to get started this year. Which basically means that. They probably after announced by november and number two. According to the minutes they will provide bounce notice of date ring which basically means that they can't really announce it in september so that really only leaves the november meeting. Obviously that change. If we saw shifts in the economic outlook something very negative happening would be delayed of course bottle. Baseline is the will get a november announcement and the december star today bring. It's a little bit less clear how quick the tapering would occur. We haven't gotten as much indication about that. Baseline is they reduced purchases by fifteen billion dollars or meeting so we start from one hundred twenty billion of meeting that were basically. Take them down to zero apowa next year. They are some people who won't go faster but that still an open debate and ultimately we think it's probably going to be something more like fifty billion that would then mean that spy the fourth quarter of next year you could in theory star to hike rates. They're not going to be hiking while tapering jew. We bought for that. You would probably need to see significantly higher inflation and somewhat stronger role than what we have in. All forecast saw in all four counts. It takes until maybe third quarter of two thousand twenty three before you get the first rate hike. That's much want certain and depends on the economic outlook and what we see in the numbers. So let's talk about growth you've had strongly above consensus call for us growth for much of the year but you've recently taken your forecast down. What's behind those provisions and do they market important shift in growth expectations. I think it's always important when there's a change in direction. I'm there is a change in direction and drums of both where we are relative to the consensus partly on the back of our downward revisions and we've taken two thousand twenty one down by about a percentage point. We were seven or little above seven when all at six percent. That's one shift on net. The consensus has been revised up in two thousand and twenty one so far. So that's why would not a little bit below the consensus. And if you look at the sequential pace of growth. We now think that the peak is probably behind us and that's true for the quarterly. Gdp numbers just about. It's also true for the business. Survey's i think both have probably seen the highest levels and probably going to decline from here and that's always going to be an important shift for markets. What are the drivers of the shifts that we've made. The main driver really has been virus related the rebound in virus cases in the. Us has been certainly bigger than we thought several months ago. The impact on activity has still been reasonably limited. But there has been some impact we've seen somewhat more as the delta wave as progress and you know it's probably just going to take longer especially in the service sector four activity to get back. We already saw some signs that for example. The return to office was pretty slow. Even during the period when enthusiasm about vaccinations was probably at a peak and with this renewed setback. of course. you've got to believe that. It's going to take even longer and rebuild that in awe forecast a little bit more than the other thing i'd say is yom downgrade that we've made to our numbers we've always had a pretty subdued growth forecast in the second half of two thousand and twenty two basically because of the payback for the very large amount of fiscal supported. That we get thousands and twenty. Once we've only got one and a half to two percent sequential growth in the second half of next year. That's not a change. But obviously as we're moving closer to that it's also becoming more relevant for markets and for policy makers and what about other countries outside of the us. We've also been downgrading forecast there. So what's driving the weaker growth elsewhere in some places. I mean mainly in asia. We really haven't made significant changes elsewhere. But in asia we've taken by china most importantly on the back of the delta outbreak. Rake and you know much smaller numbers than in the us and drums of virus cases. This is a very small fraction but china's still trying to achieve basically zero colbert. And that's meant some pretty significant restrictions on activity in the service sectors that we now think that third quarter sequential growth is probably only going to be something like one and a half percent annualise. that's come down significantly. We do think that as the numbers in china have also improved again. As far as virus cases are concerned it will be significant. Rebound policymakers up providing support. But nevertheless it's going to leave an imprint in the annual number so a few tense lasts and drums of growth. Not eight and a half percent but maybe eight point two percent eight and a quarter percent those kinds of numbers than we've had some pretty significant outbreaks elsewhere in asia while more serious in southeast asia and with very bad health outcomes and of course they are economic consequences as well and then australia also some significant lockdowns soul. It's all been very much colder related and you know. The news has just been worse than we had expected in them. What we had built into our numbers. Europe continues to do pretty well despite the renewed outbreaks. We still think that european recovery is progressing quite well. Uk continues to progress pretty well. Despite the relative behind numbers are not in america. The virus numbers actually have been generally better. And that's also showed drouin somewhat better economic numbers so you know you look around the world there. Lots of different sort of trends and lots of different elvira situations and economic consequences from that. So it's no longer quite as synchronized on the upside on the downside as.
The Return of Evictions in the U.S.
"The first time since march twenty twenty most american renters can be evicted with the federal eviction ban. now over in the last few state protections set to end this month. It's really hard to know how many people this could affect. But the census bureau estimates four point seven million adults live in households where eviction is at least somewhat likely in the next two months meanwhile goldman sachs estimates seven hundred and fifty thousand households could face eviction by the end of the year actresses chief financial correspondent felix. Salmon is with me for more hi felix. i hope so. We talked on the show a few months ago about how maybe fewer americans than many had thought would actually lose their this year. Has that assessment changed. Yes the supreme court case. I think came as a bit of a surprise. They basically said the. Cdc is not allowed to continue this eviction moratorium that they had and so now. That is no eviction. Mars horror this still illegal process. Any landlord has to go through in order to evict you and states have slow processes. The courts overwhelmed. It'll still take a while before people start getting evicted but it is now legally possible in the way that it wasn't just a week ago what government protections do still exist for people in more precarious housing situations right now. So it's changing rapidly. You know the new york state legislature is coming back to try and pas new rules extending protections now the federal protections on there anymore. I think other states are going to do similar things. I think it is just going to be much more case by case than it used to be. It used to be like this big federal blanket ban. And now it's just gonna be. You're going to have to talk to your lawyers. Who can have to also really work hard to try and work out whether you can access some of the federal funds which have been impact for helping out rentis declare. Easy thing is. That's probably more money earmarked for helping out renters than they is rent areas. But it's just very difficult to match. Those
Goldman Sachs AI Day Expectations
"Robin our here. And today we're going to be talking about a couple of analysts. Updates one from goldman sachs about their expectations for a day. I think those are kind of helpful. Just to get a sense of what institutions are expecting for events like that then we've also got a bit of an update on that yuan. Musk source city. Trial some news out of china and a couple of stores as well bit of a tougher day for tesla again. Today though the stock did recover some in the afternoon ended up finishing down about three percent. Six hundred and sixty five dollars. Seventy one cents. The nasdaq was also down today. Nine tenths of a percent. So i know feels like a rough week for tesla. But it's been kind of a rough week for all automakers looking at a handful here you can see. Gm down six for instilling tests down about four and a half percent. Volkswagen in neo down seven percent expand down six percent average across the board of those down six percent so desolate spent a little bit worse. But not really all that much especially given the context of the nitsa investigation as the interest from that fades from earlier. this week. Everyone is going to be turning their attention to a idea of course scheduled for this thursday. It'll be five. Pm pacific time eight pm eastern time. I do believe tesla intends to livestream it. We don't have those details yet. But i think eli had previously said that they would though i can't find that tweet at the moment i'd be shocked if they didn't and also plan on live streaming as well so as i mentioned goldman sachs last night. Put out a note with their expectations for a day and in their introduction. They did note that this is going to be a purposeful recruiting event. So hopefully that stands from tesla has kind of cut through to most investors and. I think that really helps to keep expectations a lot. More realistic in terms of what was going to be talking about as goldman sachs. They expect hustle to talk about five key topics which they outlined in this note. I they say they expect us to discuss its. Ai neural net now strained. I would agree. That is something that we've heard tesla talk about both at autonomy day and then if you followed andrea carpathia presentations. He's talked a lot about those sort of
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"This is exchanges at goldman sachs and i'm als- nathan senior strategist and goldman sachs research in this episode. We're going to discuss. The impact of china's heightened regulatory scrutiny on the capital markets and the implications for investors to do that. I'm sitting down with my colleagues from the asset management business. Stephanie que- a shock ws and critique so fought. Will i turn to stephanie who leads goldman sachs's private equity business in asia with a focus on growth equity investments stephanie. Welcome to the program. Thank you alison to start us off. We've seen a series of regulatory changes in china that have obviously rattled markets. Can you. I just give us a sense of the nature of some of these changes and their significance. So two weeks ago there happened. Announcements that rattled the stock market. It started with the attack sector there. The government announced that after school tutoring for kids from takes twelve needs to turn nonprofit there were restrictions in capital raising for these type of companies appeals not allowed in important vestige should not make investments there so the purpose of that stated still lower cost and anxieties of tribe weary as shortly after that there were other announcements that were made the focus spans across different sectors and i would say areas in food for example cyber security specifically companies that have more than one million users need to apply for cybersecurity approvals before they actually can listen in another trumpster. Antitrust is another area. That people were looking at and so i think that flurry of announcements caused the market to be very jittery in the last two weeks so i have been investing in the region in private equity for the last twenty five years i would say over the years. There have been a lot of cycles that came through right. I remember the asian financial crisis ninety seven saws. There was of course the cfc's an in between the volatility. It was always constant. I would say this time around. It came fast. In terms of the regulatory changes announcement. It came quite broad and it came cereal in terms of you know every day every other day so it did cause people to pause and take a look at ed but that being said i would say this change is not particularly very different from previous ones. In the sense that there will be adjustments. That will be made and we'll learn and will grow from here so uncertainty but definitely opportunity go forth and so what are we. Seeing in terms of private investor flows our clients getting to reallocate funds away from china. How they responded because we're in the private markets. The reaction is not that start yet. We're seeing people hundred understanding learning but we're not seeing any dramatic reaction at this moment in time. I think fundamentally people still believe that china is a very important market is large is growing and that this is more adjustment targeting internally to quote a quick fix the economy so that it could be a long term sustainable but that being said interestingly you observe the public markets while all that volatility was coming in china in the last two weeks in india. We actually saw that. There were a number of early stage. Tech deals are getting you know very strong funding closing and also some of the debut of the public market trading tech companies. Were doing very well. So why would try to put into together and say it's from china into india. One concluded that way. But i would actually say that it makes people think were diversification of geographies and diversification of sectors and industries. And i think a lot of the private investors remain very focus. I would say the pipeline deals that we have been discussing whereas all the discussion still going strong. So has this changed your medium or longer term thesis behind the growth opportunities in the region so we are focused on four actors in terms of growth investments namely enterprise software. Fintech consumer in healthcare. And i do think that. The whole seem of digitization and hence enterprise software into it will continue infrastructure still needs to happen and bieber not going to go back on that so we continue to look into quality companies let by good management teams in those sectors and in consumer for gen z. The whole theme about them be more individual. Sustainable you know looking for products are quality rather than clutter. I think that will continue. And we just have to again overlay with the lens of what is good for society as we make these investments and by the way some of these sectors are new. So we have to expect that regulation slow catch up at some way and so that any of those coming through would not be a surprise and on healthcare. I think the key there is innovation new stuff which is good for society which helps make the people healthier. I think that always be a need for that. That's therapeutic gap is there and it will remain there so we will continue to look into that and the key i would highlight again is margin setter fair and sustainable and that's how we're gonna look at the sectors so you ask me today. I was so saying that those four sectors are sound good and hopefully the valuations will be more reasonable right. So what i'm hearing from you is. This really hasn't changed your view. On the opportunities in the region the sectors that feel the most compelling from a growth perspective but ultimately is just putting a different lens on it as well absolutely. There's one element that is constan. It has changed and from. Our perspective is understanding the change seeing the change and continue to look forward. But i do believe the size scale of the marketplace will sustain our investments going for us and i think it is the key question in the sense that you can we still see the type of growth and innovation that the region's been known for in the wake of these type of developments. What is your sense of that. For sure i think innovation economic rose jock creation. it's imperative it will continue. I would see this as adjustment for quality for social goodness in factional. For the last i would say two. Three years has been a lot of talk about she about diversity and i would see this as highlighting the s within the es gsi rights sustainability when we make investments now we need to consider increasing lay is good for society but what does it mean for. Quality is a good for the next generation. Now what would regulators think about these type of industries and it is imperative that we actually factor that in when we look at sectors industries and companies. So i think as market calms down by the way. We're starting to see a bit of that happening already. There will be renewed interest into the markets. And it's probably not a bad thing for the valuations to the adjusted because it was actually getting pretty hefty. I would say in the in the last call. Eighteen months so the market is beginning to digestive at this point and turtled looking ahead absolutely. Thanks so much for giving us. This insight stephanie. We appreciate you joining the program. Thanks a lot. Allison is a real pleasure when now turn to a shock you abuse who has collided. Emerging markets equities and procrustes afaat a fixed income portfolio manager to discuss the regulatory impact on equities and fixed income markets but shock and critique. Welcome to the program. So i start having us so. We just spoke with stephanie. About the impact of china's regulatory moves on private investor flows. What's public investors sentiment looking like in the wake of these developments and bassac your investor in china on the equity side. So maybe you can give us a sense of.
The Keys to Start Innovating in Your Business
"I our conversation with brett. His nonprofit journey started with a trip that inspired him to think differently about housing and homelessness. Brad thanks so much for being with us today. How are you georgia great. It's an honor to be on with you. So you have an amazing story. You're a very accomplished person. Just reading your bio. I got tired. I literally it. Was you know cancer survivor. Y combinator graduate forbes. Thirty under thirty top one hundred most interesting entrepreneurs in the world by goldman sachs or speaker angel investor. What haven't you done. What is on the bucket list for you at this point. No dude it's a. I think. I just got started at a at a younger age. That was really just. Did you know out of college Starting a first startup that ended up failing. And so that that just gave me. I think an experience insight and Yeah the last last five years have been better but but yeah. It's it's still very early. So it's clear you've always kind of had this entrepreneurial bug in you but it wasn't always that you were you know this aspiring kind of business owner so talk to me about the story from you going on a life changing trip to haiti to go on all right. I'm not going to be a missionary. I'm gonna go be a business owner. What was that. like Yeah it's a great question. So i took a trip to haiti and It was actually for a for profit. Startup that i had and We were starting to give back a little bit of the money. We're making to a charity wasn't a lot. It was a little bit. And that's what put me on that trip. And then what. I saw was families living in extreme poverty without shelter. I mean just just horrible tents. And then when i came back george i didn't think i would start A charity necessarily in my early twenties. I always wanted to be more of a technology. Entrepreneur was kind of the the hope one day and so. I try to find other organizations that i could get really excited about and i could champion and i could really behind
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"He could just take longer for global industrial sector to recover similarly or baseline view in the us on the labor market is quite bullish. We expect unemployment rate to fall from five four nine percents to the low four percents this year on the back primarily of the expiration of the generous federal unemployment benefit dope ups but also rising vaccination rates. It could take longer perhaps that there are more complex reasons why people are not back at work. People are potentially revisiting their priorities. Host endemic between work leisure money family health. And so i think a slower. Us labor market will go reasonable. Something i worry about him going to learn a lot in next month's by an from that ultimately it's just are there people to service the industries that had been lagging and if there aren't there could be a constraint on growth but we're expecting that to fate exactly thank you so much for the update dan. Let's hope we don't have another variant coming our way but we appreciate you being here. Thanks for having me. That concludes this episode of exchanges at goldman sachs. Thanks for listening. And if you enjoyed the show we hope you subscribe on apple podcasts. And leave a rating and comment this podcast recorded on august fourth and fifth twenty twenty one all price references and market forecasts correspond to the date of this recording. This podcast should not be copied distributed published or reproduced in whole or in part the information contained in this podcast does not constitute research or recommendation from any goldman sachs entity to the listener neither goldman sachs nor any of its affiliates makes any representation or warranty as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore including in respect of direct indirect or consequential loss or.
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"Now one of the questions is maybe this has to do with the timeframe of vaccination as many people know israel was at the leading edge of the global vaccination campaign and so there could be some of waning effect of the vaccines over time. and so. that's one thing that again. The companies are studying. We're gathering more data on to fully understand that now as we shift to look at severe disease. Remember as i mentioned before this is a spectrum right so again here importantly i think the message is the vaccine. Efficacy against severe disease in hospitalization is still around ninety percent even with the delta variant and that comes from some data out of both israel and canada. So that's very encouraging and so bottom line is if you're double vaccinated have very good protection against delta especially against severe disease and hospitalization and that's obviously a big focus of the healthcare system because when we talked about these lockdowns in different measures that countries are taking it relates to really trying to preserve that healthcare system capacity. And so given the vaccine efficacy. Were seen here out of israel and canada very encouraging protection against severe disease. Let me just thought to that. Because obviously we have pfizer. We've moderna we have other vaccines around the world. Are there any very material differences between these vaccines. So i'd say bottom line it looks like the messenger. A vaccine so pfizer by on tech and madeira are somewhat better than the adenoviruses. Vaccines those from astrazeneca. Jay for symptomatic kovic nineteen so again that kinda symptomatic disease but all four these vaccines look to be very very good again. Severe disease hospitalization. So not as much of a difference there and remember that's the big focus of the healthcare system is ensuring that we're protected against severe disease and hospitalization so less differentiation among the vaccines on that front. We're hearing that the severity of illness for breakthrough infections so meaning vaccine to people getting the infections is actually lower. Is that true. What is the evidence. Say around that yet. Obviously another very important topic here in everyone's probably seen a lot of different headlines on this. So look you know. Vaccine breakthroughs are still generally rare. But unfortunately they do happen. Now the flip side of it is if you do have a breakthrough infection. The symptoms and duration of illness is likely much less severe than it would be if you aren't vaccinated and there's some data that's emerged on this front from earlier in the pandemic that suggests if you do have a breakthrough infection you still have about sixty percent..
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"This is exchanges at goldman sachs and i'm alison nathan a senior strategist at goldman sachs research. In this episode. we're going to discuss the delta variant and how the fast spreading virus is affecting the path of reopening and economic growth. More broadly to do that. I'm sitting down with my colleagues in research. Terence flynn in our healthcare group and dan driven from our economics team. When i turn to terence flynn who covers the us bio pharma sector gs research for his thoughts on the delta variant and vaccines terrence. Welcome to the program. Thanks so much else in really appreciate the invite so the delta variant seems to be driving yet another wave of corona virus cases. Obviously the news is dominated by the spread of it so just to start why is it delta variant. So worrisome sure so as most people know by now the virus changes over time and there've been a number of these different variants that have arisen over the course of the pandemic delta's obviously the latest one and the thing about delta is it's more transmissible so basically has the ability to spread much more rapidly and so for example when a person infected with delta they can infect a greater number of people than a person who is infected with one of the earlier strains of the virus. And for this reason. It's why it's become the predominant strain around the globe. This also means that you could become infected during a shorter period of exposure and so that really relates to the fact that delta leads to higher levels of virus and people so as a result even if you come in contact with someone who has the delta variant and you're not vaccinated. You could become infected over. You know a very short period exposure versus some of the prior strains of the virus where it might take longer for you to become infected so those are two of the reasons. The third one is essentially relates to something that relates to the vaccination so even if you're vaccinated people are able to spread the delta variant and that's a little bit different from before with some of the earlier strains of the virus where if you were vaccinated it was very unlikely that you would be able to spread the infection via eight symptomatic infections. So you know some differences here with delta and that's why there's such a big focus on it now and the reason why it's spreading so rapidly so what do we now about how. Well the current vaccine's hold up against the delta variant yet..
If You Don't Like The "Woke" Nonsense, Stop Using The "Woke" Banks
"Look we all complain. About the woke industrial complex the woke marxist that are running our schools that are running media and yes also running our banks. You see like the real estate market. It's red hot tyler. He just sold his home and he said charlie. I've never seen the market so unbelievable. So maybe you want to go buy a home. Maybe they're taking advantage of low interest rates with all the economic uncertainty underway. People need to invest in real stuff. So here's a rule of thumb. We hear our solution based show. So if you don't like the woke nonsense stop using the woke banks. It's that simple. No more wells fargo. No more j. p. morgan no more goldman sachs no more big bank culture instead. I have these two great friends and they do a great job. It's andrew and todd andrew del ray and todd avakian. They love the lord. They are christians. They are honest. They are straight shooters and they are a mission to make sure that you guys can refinance but be told the truth. Look when i took out mortgages for the properties that i have. It was one of the worst experiences i've ever been through. Yes some of the people. Were very nice. But i could tell you. The bank itself was just so bureaucratic and hard to work with my producer. Andrew is working right now with andrew and todd to fight against the woke banking culture. And he tells me that they're part counselors part financial counselors planners. And they're really helping and so here's the thing andrew and todd our mortgage bankers they're not brokers that means andrew and todd and their team can take care of your loan personally from start to finish. You'll likely actually talked to andrew and todd yourself to right now. Maybe you're walking. You're like i want to refinance the home. Or maybe i'm under the process stop it no more wells fargo their funding a billion dollars. The belove inc drives me
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"This is exchanges at goldman sachs and i'm alison ethan a senior strategist goldman sachs research. Today we're going to discuss. The in emanate activity. And what's in store for the second half of this year we're joined by stefan feld voice and mark sorelle the global co heads of mergers and acquisitions in the investment banking division here at goldman sachs stephan mark. Welcome back to the program. Thank you for having us. Look forward to you..
Steve Bannon: 'Joe Biden Was Not Legitimately Elected'
"Do you think happened is it just me. Does it look like the election was stolen. Because as an american there can be nothing more horrifying to me than the idea that we the people would have been murdered. That somebody decided. We don't care what you. The american people want in a leader. We've got another idea and we're gonna do what we can. I don't believe that that's true. But when i talked to people who know way more than i do they can give me. Chapter and verse. You seem to be someone. Also who is convinced. That joe biden was not legitimately elected. I don't want to believe that. But you believe that. I think the facts. I think the reason. I believe it goes the shows that i think. That's why you're getting to the bottom of it. In arizona in georgia benchley pennsylvania. Wisconsin i coming out of no h. b. s. autographs from hp was recruited by the toughest department goldman sachs mergers and acquisitions department. So i can do math. And i've talked to many prominent Guys around the world is mathematically impossible for joe biden of one now the proving those now the proving that with data in evidence. I'm a big supporter. We can't go forward to we get to the bottom of three november in get to the bottom of On lap when you saw those two parts of the equation right. What happened in on what happened to three november. We're going to gonna make progresses ohana that but there are a lot of pessimistic people often often conservatives and they go it's never gonna come out. They've got this. They wanna lose their sort of in the They have this idea that were the ba- losers but you and i were controlled opposition. What they are controlled. opposition was. That's mary justice workers. They're almost as dangerous as the
Does the Data Show the 2020 Election Was Stolen?
"You said something earlier. I wanna go back to it. I i know. I said this on your program yesterday but i i. After the election. I was always asking people that i know are smarter than i am about about politics. What do you think happened is it just me. Does it look like the election was stolen. Because as an american there can be nothing more horrifying to me than the idea that we the people would have been murdered. That somebody decided. We don't care what you. The american people want in a leader. We've got another idea and we're gonna do what we can. I don't believe that that's true. But when i talked to people who know way more than i do they can give me. Chapter and verse. You seem to be someone. Also who is convinced. That joe biden was not legitimately elected. I don't want to believe that. But you believe that. I think the facts. I think the reason. I believe it goes the shows that i think. That's why you're getting to the bottom of it. In arizona in georgia benchley pennsylvania. Wisconsin i coming out of no h. b. s. autographs from hp was recruited by the toughest department goldman sachs mergers and acquisitions department. So i can do math. And i've talked to many prominent Guys around the world is mathematically impossible for joe biden of one now the proving those now the proving that with data in evidence. I'm a big supporter. We can't go forward to we get to the bottom of three november in get to the bottom of On lap when you saw those two parts of the equation right. What happened in on what happened to three november. We're going to gonna make
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"Can you provide some insight into this growth trend in the family office. Space share and allison. I think i'll start by defining. As j because it's used all the time it stands for environmental social and governance investing and. It's certainly been on the rise for quite some time now. But i think recent events around climate issues social unrest and the pandemic have really amplified investor. Focus on the s g and family office interest in the space is really a combination of mission and value driven as well as a search for innovation and outside returns. And if we look at this year two thousand twenty one has been the strongest year on record for flows into espn investments and global es g funds have generally outperformed their category peers over the last ten years on a risk adjusted basis. This is according to morningstar and goldman sachs zone. Investment research and i think regulatory tailwinds are really key factor here and have reinvigorated. Espn focus from.
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"Now i think osceola ambitious goal and upload players can actually lead the charge on best from our side but it means is really making diagnosis of cancer really reliable and absolutely making cancer. Less your disease for sure as a side effect that very much. We'll begin breakdown barriers walls and really lead the innovation to everyone. Looks like how to bring safe. A i enj- everyday practice antonia from your seat in investment banking. What's the outlook. What's the future of the space setting prior to kobe. There was a clear. Any long-term everyone saw clear need for greater application of technology and digitization of healthcare more broadly in particular given the increasing. Health costs that. We're going to see over time with an aging population. Potential constraints from government's inability to spend on healthcare spending a long term trend. Was there i think there. Just wasn't that koster impetus necessarily for investors today to invest in technologies. They didn't necessarily see that. Catholics their adoptions of certain technologies are digital in healthcare today and starting with the practitioners themselves and sometimes allergy from medical practitioners themselves in doing things differently to the way they've been attending patients and giving care over the past decades. I mean that was a big With kobe what we've seen is medical nerves. I'm governments Meeting to give treatment differently needing to use digital technology an speaking of much broader sense than what they'd had previously and it's worked very effectively. And i think about spin a real eye opener in the change both medical practitioner level but will set the government loved one through regulations working hand in hand with companies owns. We have on podcast today. Driving charge and change. Thanks so much to all of you for joining us and for all of the amazing worker. Doing that has so much promise. For having that concludes this episode of exchanges. That goldman sachs. Thanks for listening. And if you enjoy the show we hope you subscribe at apple. Podcast and leave rating and comment. This podcast.
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"And our shareholders we in the investment banking team have newly created a decarbonization group that ultimately is meant to be the entry point for our clients as well as their newly changing commitment specifically in space and who are also looking for solutions to meet their own net zero targets. I think what's interesting about this right. Is that like any company like goldman sachs were trying to figure out our own path towards carbon neutrality and now tonette zero. We learned a lot in that process. We learned a lot about how to set up the goals themselves. What is appropriately aggressive. We've learned a lot about how to ensure that our es g and our carbon emissions story is consistent with our own corporate strategy and that its core to our business and then also you know how to disclose that to the market. I think in that whole process we have now thought about. We've been through that process. How can we help. Our clients go through that process right and so it obviously makes sense for our own decarbonization group now within the investment bank as we start to advise and support clients in their own targets for carbon reduction for cindy for example. Who did it for goldman to now. Help advise our clients in terms of how to get there and so what sectors are most active in these efforts. Yeah i would say elson ultimately. It's really the carbon intensive sectors right. The majority of the activity has really been driven by large tech as john had mentioned the likes of apple. Google microsoft who've really been very innovative in a lot of the structures that they have brought to market and some of the targets ultimately microsoft was the first to come out with their own carbon negative goal. Which is a new term that ultimately they'd coined and followed very closely with by this onslaught of just net zero targets. But we've also seen just a tremendous uptake in heavy industry as well as the transport sectors following big tech and so over four hundred companies now across some of the largest greenhouse gas emitting industries from shipping to steelmaking have now all come together to decarbonise not only their own operations but given that they are in numerous supply chains as well to be able to bring down their missions by twenty fifty euros. Interesting people off and say well obviously big tech. I've been the leaders and decarbonization because they have the liquidity and balance sheets to focus on it right and thinking through innovation so for an example..
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"This is exchanges at goldman sachs and i'm also nathan of goldman sachs research today. We're going to talk about climate change. And what companies are doing to reduce their carbon footprint a trend. Broadly known as decarbonization to do that. I'm joined by john. Greenwood and cindy quan who are spearheading an effort within our investment banking division to help companies and sovereigns which their net zero goals. John is a partner within the financing group and has co head of the division sustainable solutions council and cindy is leading corporate conversations for the newly formed decarbonization group johnson. Cindy welcome to the program. Thank you thanks. Alison the pressure on companies to reduce carbon footprint. Continues to bill. John start by first explaining to us. What decarbonization actually means for companies and how it's fitting into their overall esp framework so we often say that decarbonisation and that zero is the new es g so espn is obviously a very broad concept covering companies environmental social and governance practices. But in the last year there has really been a strong focus on the e part of es g primarily coming from our institutional investors who are now integrating efg into their investment decisions so decarbonization is simply the reduction of carbon intensity removing carbon from process. Why is that important. There has been a massive focus on climate change. and how does the world combat climate change. And i think most of this has around the paris agreement which is now that there is a kind of broad alignment across the world to try to reduce temperature rises to one point five degrees celsius. And we all have a part in this governments regulators companies and consumers and. I think there's a broad awareness that this cannot only come from government regulation and that companies really have to change their own way. They go about doing business. In order to be able to reach the goals that we've set forth for the world under the paris agreement but as you just said the paris agreement is not new so why now for increased efforts from companies. I think what has really changed over. The last say. Eighteen months is not just companies acknowledging that climate change is a big issue in the fact that they need to start thinking about their own carbon footprint and weighs into which to reduce their carbon footprint. It's really coming from their. Shareholders is really coming from institutional investors. There has been increased focus now from institutional investors to actually embed..
David Vlez on Building the Branchless Bank
"So david i think an interesting entry point here is fun and interesting once since the news was just announced that berkshire hathaway made a very large investment into your company. And you just told me that they're the largest bank investor ever so that's quite an interesting dynamic. Can you walk us through this story. Why do you think berkshire was so interested in your business out of this down. To be completely honest we never really considered him as potentially investor as we've seen him very actively investing in traditional banks. Intriguing convents where one of the biggest investors and goldman sachs surprises. Today they to be best for bank of america and they tend to look more traditional recumbents in more mature industries but we had a conversation with them a few months ago and they started digging in and they were very very curious can really really good questions about the market size of the unit economics of the business about cohorts very thoughtful understanding financial services. In what we're doing here in the mark because howard getting with some of the traditional banks in latin america and in a few weeks they were very excited and very willing to lead around in. No bank can so for us has been we see days and i think the market has proceedings a bit of the big validation of the business model validation of or ability to show bags eventually your ability to surpass traditional banks in the future financial services. What do you think are the most important differentiator between what will call the incumbent banks that maybe berkshire invested in more traditionally versus new bank. What are the largest important differences for those out there listening to understand the thing. The first one is the consumer obsession and a culture that is based on consumer obsession. Nah i don't think this is shirley specific to financial services. I think what common denominator of incumbent industries either financial services. You look at insurance or even media or transportation is that after. Let's say six. Seven decades of traditional capitalism you ended up with a number of players oligopolies where four five companies effectively owned the markets.
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"Weaker at some point in the future because of this. This is a matter of great debate. We believe it has pulled forward demand. We think that those statistics just throughout or pretty informative that you've seen no growth in these categories for years and yet all the sudden we've seen an incredible amount of growth. I think that we believe that doubt. Full hoard may attenuate over time as opposed to just immediately drop off in a binary way. So there's a little bit of debate in our minds about how fast this attenuates but whether or not at attenuates i think we have put forward quite a bit of demand and we'll see somewhere out in the next eighteen months of fall off of demand as consumers move their spending to other areas like going on vacation for example. So what's the outlook for the sector. All will overall we think for consumer electronics. The outlooks pretty poor. You know right now. We're seeing incredibly high demand that'll be followed by a period of weakness as normalized and then we'll come out the other side of that to a more normal world but that may not happen for a couple of years. We haven't talked about the it hardware part of this. The servers compute storage networking all. Those products are probably going to be a little bit higher demand particularly think campus networking and things that enabled to zoom calls and all kinds of other digital interaction on campuses. They go back to offices will be in high demand. Some companies like cisco for example should benefit from that. Actually let me just clarify that so at least zoom in the rear view mirror a little bit. So why do you think the sectors will benefit. We're moving to a little bit more hybrid way of working in my mind. I think all of us want to be back in offices. All of us see a lot of benefit to being together. Personally i know that we in san francisco's goldman sachs. San francisco office have opened up more and we all saw each other last week. Which was great. I think that at the same time people learn that these technologies can be leveraged for greater efficiency. Where when we're traveling people will be working from home a little bit more those times. You wanna be able to integrate people in the office with people that aren't in the office and zoom. We've all learned a great way to do that. But we need to enable that in the office we need greater network capacity to support all this video traffic it loads networks substantially more than boys. So that's the reason that we think these technologies are going to be really in demand the next couple of years by companies trying to make sure that can work in the office. Say where does it hold. It does feel like the future. Work is evolving here. And some of what we've seen will persist. Thank you so much for joining us today. Rod charles and length pleasure that concludes this episode of exchanges at goldman sachs. Thanks for listening. And if you enjoyed the show we hope you subscribe on apple podcasts. And leave a rating and comment. This podcast was acquitted the week of june twenty-first.
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"This is exchanges at goldman sachs alison nathan of goldman sachs research. Today we're going to explore the global chip shortage and why it's causing major real world consequences to do that. I'm joined by three of my colleagues and goldman sachs research to she a hurry. Could i use our and rod hall. Will i turned into a shia. Who covers the us. Semiconductors sectors for us to shiite. Welcome to the program. Thanks having me also does she. These semiconductor chip shortage is impacting. So many industries were seeing nearly daily stories about industry. Being disrupted by rewind the clock for us and describe how the industry got to this point. Sure so if we rewind the clock too early twenty twenty the semiconductor industry had just gone through a prolonged downturn germ primarily by inventory corrections light chain and in our view was on the verge of a cyclical upturn but then kobe hit in the spring and the knee jerk reaction on the part of the customers of the semiconductor companies that we cover was to reduce or cancel orders in anticipation of weaker demand environment. What transpired immediately post. The emergence of covid and during the pandemic was very different though. And if anything the complete reverse happened in minneapolis nations. Many of us working from home learning from home went out and bought things. Pc's game consoles wifi router and demand for cars increases. Well as people moved the suburbs and avoid taking public transportation on the supply side of the equation not only did the suppliers step on the breaks when customers reduced or cancelled orders but the lockdown measures that were in place across many regions. Made it very difficult for the supply chain to react and to increase production and furthermore there have been a number of executives events or natural disasters for example the winter storm in texas earlier this year that have been destructive to supply recovering over time so in a nutshell alison. The shortage has been caused by a combination of better than expected demand and also very bumpy recovery on supplies. You mentioned some reasons. Why supply is taking so long to respond. But it's been over a year now. So what explains that length of delay of course so it does take a very long time for semiconductor companies to increase output. It takes time to purchase the tools it takes time to install the tools and the actual manufacturing. The chips takes a couple of months as well to give you some context for a front end. Wafer-processing tool elite times can be as long as six to nine months sometimes longer installing and testing the tools before going into mass production can take several weeks or a couple of months. Depending on the factory and the actual production of semiconductor joke can be as long as four months depending on the device. Type so assuming. Many companies in the industry came to the realization that there was going to be a severe of chips in late. Twenty year early. Twenty twenty one and placed orders. Then there likely accepting delivery of those tools just around now or sometime in q three and would have access to the actual only in q four and this is all assuming that a company already had the space and the cleanroom place to the extent accompany is starting from scratch or applaud land. It would take multiple years as opposed to multiple quarters. So when do you expect the situation to get better. We do think peak shortage is in q two so the current quarter we expect tightness to ease somewhat in q. Three more so into q. Four definitely the twenty twenty two that said given the expectation for companies up and down the supply chain to restock inventory to a level that exceeds pre pandemic levels. We would expect another couple of quarters of strong semiconductor sell in for the entire supply chain to be comfortable with overall maturity levels suing the week of of this are semiconductor companies making any longer term changes to their supply chains. And what about customers. Or policymakers are there any efforts there to reduce the strains on the industry so in the short term clearly companies are increasing cutbacks and trying to address the shortage through. I suppose traditional measures the one big change that appears to be happening which is a little bit more. Fundamental structural long-term is customers and customers customers are increasingly willing to share their meeting too long term demand forecasts with the supplier base and more importantly in some cases they're willing to sign long term contracts that provide more transparency and more predictability for the supplier. This way the semiconductor companies can plan ahead and they can invest with less hesitation which in turn will reduce the risk of severe shortages for the customer. Going forward as well separate from this. You're seeing sovereign states. Not just the united states but governments around the world getting involved. Many governments have announced funding for the semiconductor industry. Some governments are in the process of writing up policies to fund the domestic semiconductor industries to a address. The shortage be create more robust mobile supply chains and see for national security purposes as well companies like intel. Some have publicly stated their intention to build capacity in the us also in europe. So i think that's the other mental chains that seems to be happening in response to the current shortage of some. So what does this mean for investors and for semiconductor stocks. The big enemy if you will. I mean conductor stocks. The industry historically a really to this day has been volatility or is cyclicality the peak to trough and trough to peak changes again historically have been really really large and frankly that's been the biggest reason for these stocks to be trading at a significant discount to the broader market to the extent. There's tighter collaboration. Between the suppliers and customers again in the form of for example launch contracts and to the extent the volatility of the cyclicality is reduced. Going forward that should show up in the form of higher multiples for these stocks whether the semiconductor stocks semi type of government stocks and that should obviously serve as a positive for the investor. Bases sounds like this is going to continue to unfold. Thanks so much for laying this out for us today. To shia venture program will now turn to coulda yuzawa of goldman sachs research in tokyo. Who's been covering the auto and auto parts sector for more than fifteen years. Kodo welcome to the program. I thank you for having me coda. The makers have been among the hardest hit by the chip shortage. Can you explain the factors that have made this industry sue vulnerable. Sure i think now a couple of things. First of all oto accounts for less than ten percent of the global sin the context of supply and on the back of covid nineteen situation. There was a severe allocation battle than when those conductor and the consumer simpson actor and historically oto semiconductor as less profitable business force in front of the company. But it's not easy to make old toll simcoe connector where for factory into the consumer stick. It doesn't be two additional lines of or smart. foreign semiconductor. factory cannot be used for audubon actor. So what happened is that there was a big declining old demand on the back of covid. Nineteen automaker stress order to emcee but at the same time there was another very big. No are increase all of a sudden. Then.
The Hard Truth of the Marijuana Industry
"Two thousand eighteen. Almost seven hundred thousand people in the us were charged for possession of marijuana. Black people were almost four times more likely to be arrested for possession than white people despite the fact that both groups use marijuana at similar rates for a long time because of the so-called war on drugs of the eighties and nineties. These disparities were the primary story of marijuana people of color in the us. But now that story is. Changing as marijuana is legalized in more states. Across the us and growing into a multibillion dollar industry black entrepreneurs are trying to reclaim the plant that crushed their communities for so long black entrepreneurs like gmo modern. I saw this as an opportunity to say if i watch people my community get arrested for this. Why can't i help people my community enter from the legal quote unquote right governmental legal standpoint of this and seeing where we can seek those opportunities. Jia runs her own. Pr firm gb m. communications and public relation services for marijuana businesses. She started her company in two thousand twelve after working goldman sachs for fifteen years three years after starting her company into the marijuana industry. This was in twenty fifteen. Twenty seven states in dc had either legalized medical marijuana or decriminalized marijuana possession but it was instill is illegal at the federal level. So entering that space meant carrying the stigma of working in what many still considered to be an illegal business. My gut never said. Stop what my gut said is back. Be prepare. that you're gonna get a lot of flack keep coughing
SEC Chair Gary Gensler Plans 'Woke' Corporate Disclosure Rules
"Charlie. I don't know that we've ever spoken. If we did. It was a long time ago. How are you? It's a huge honor and pleasure, Mark. We did speak. You had me out for a book I wrote back in 2000 and three when I was at Newsweek magazine believe. Oh, my God. Well, let me say this. It's a real pleasure. You're a real serious reporter and you do your work and You broke a story today that caught my ear. And I'd like you to explain who is Gary Gansler. And what is he doing? Gary Gensler is a longtime fixture on Wall Street, essentially the revolving door between Wall Street and Washington in the sort of he worked at Goldman Sachs. He worked in the Obama administration, and he worked at the end. I think he worked in the Clinton administration, so he's been going back and forth. He's pretty rich. She was a partner at Goldman Sachs. Now he's the head of Wall Street's top cop, the Securities and Exchange Commission. Um, and he's doing something really interesting now over the years. Gary Gensler has more from sort of a Clinton Democrat into, I guess the best way to put it as an Elizabeth Warren Democrat. He's extremely woke extremely progressive. And he has some extreme ideas of how he wants Corporate America to act. He wants corporate America to adopt extreme woke. Policies he wants. Essentially every company to environment embrace environmental standards. He wants every company to have quote unquote diverse boards and diverse workforces, and he he wants to use government as the lever to do that, and he's doing that right now. At the Securities Exchange Commission. Because the Security Exchange Commission has enormous power over corporate America. It basically can mandate what they do and how they do it, and it could do that through a lot of different levers enforcement actions. In this case, what he's doing is he's proposing rules. And those rules will be passed by the Securities Exchange Commission, which is majority Democrat now, so he's going to ram them through without any without any Republican voice, And these are rules that essentially forced companies. To be more woke in certain areas in in terms of environmental issues in terms of board diversity, they will have to disclose those that their diversity have what they're doing for the environment. And when they do that, obviously, it's going to be a an object where the mainstream media is going to weigh in and say, Look at this company. Company. X is not his woke his company wide. They're not doing as much here than not doing as much there. Uh And I guess the bottom line is this. Listen, you may believe in these policies if you're liberal, if you're a free market capitalist like me, I care about the bottom line, to be honest with you, But if you're a shareholder, you really should be caring about the bottom line. These are not bottom line issues, and they Feed the S E. C s mandate. If you read the mandate, which is to make the markets safe, poor investors to make sure companies disclose stuff that investors care about for too wet to to weigh whether they should Invest in the stock or not. I mean, this is politicizing companies and corporate disclosure to a level that we've never seen before, and he's doing it. He proposed these rules and they
Here's Why We Believe ETH Can Overtake BTC
"Episode. I'm gonna be covering why ethereal and it's been a long time coming but how it's going to be the major currency all right. Everyone talks about bitcoin and unfortunately bitcoin is windows. Ninety five and finally you know. I was hoping that people are realizing that. And that's why that initial run was happening a fourth theorem. And i'm gonna talk about in this episode. The three or four main reasons as to why if theorem is actually going to be the dominant Crypto or i and you can even goldman sachs has their version of it. Just drop recently and You know once you start actually understanding. The blockchain does get out of the hype of over bitcoin. Or whatever you want to actually understand. What's the difference. Between block chain crypto currency. bitcoin theory. You understand that. Ethereal is actually the true vertical the true Crypto currency. that has the technology to scale. Are i and that's why it's ethereal not bitcoin. That's gonna be the crypto of the future and again this. His investment advice is purely educational. But i wanna make it clear. As to why even companies like goldman sachs are able to showcase that uranium is the future or i the first major point in the most simplest reason as to why this is the case is just because of the er see twenty technology all right so the twenty technology if you don't know what it is that it's basically the you or mainly looking at any old coin any wallet any most of what you're looking at and what you're trying to do in crypto currency when you're trading learning or anything these are coins. Icao's nature are released on an ear. See twenty type of scale which means it's built on the area m- blockchain not
NYDIG Partners With FIS to Offer Bitcoin via Hundreds of Banks
"Bitcoin in your bank account fintech firm f. Fis is partnering with digital asset manager. Dick to bring about an industry first customers at hundreds of us banks will be able to purchase hoddle or sell bitcoin directly within their bank account without having to go through an exchange such as coin base or payment obligation like paypal ni- dig will handle custody insecurity. The program has already enrolled hundreds of smaller institutions as reported by cnbc night big is in discussions with several of the larger banks in the us. About bringing them into the program. Morgan stanley and goldman sachs have already announced that they will offer bitcoin funds to their high net worth clients with j. p. morgan repeatedly mulling a similar product. Perhaps the decision of smaller banks to train front run. Bitcoin adoption for the everyday customer will pressure the larger institutions to follow suit for their retail customers
Bank Earnings Blow Past Expectations
"Goldman sachs reported net revenues for the first quarter of this year that we're about five billion dollars higher than expected. Jp morgan chases revenues beat expectations by about three billion dollars. Goldman's investment banking and trading businesses surged. J. morgan was able to release billions of dollars. It had set aside for loan
Good Friday Delays Market Reaction to March Employment Report
"Good Friday holiday. But it is not completely quiet today, with the government releasing the March employment report. Of course, there won't be any market reaction to that until Monday. It is good Friday being the holiday, some questioning why the jobs report by the government is being released on a holiday. Well, the government follows a very strict schedule. It takes its household surveys during the week that contains the 12th of the month. And then it always releases the report on the third Friday following that week, so every few years it comes out on good Friday. According to Goldman Sachs chief economist Young Hotsy is it should paint a picture of an improving labor market? What seeing acceleration in the numbers as the economy reopens, and you can see it in some of the most covert affected sectors, and we'll also getting a boost from the tax free dates that went out a couple weeks ago. So all of that should really give us I think strongest growth rates of the year if consensus forecasts are correct the U. S economy and it's 675,000 nonfarm jobs last Ones. With the unemployment rate dropping from 6.2% down to 6%. However, some of the more optimistic forecasts are calling for job additions of one million or more. CNBC's Peter
We are spending more on smartphone apps than ever before
"More signs that we're spending more in the app store. I told you yesterday of global numbers from any those had folks spending record amounts in apple's app store as well as the google play store both seeing revenue growth of forty percent in the first quarter of twenty twenty one with combined revenue of thirty two billion dollars. Now a piece from tech crunch has new data from sensor tower estimating how much iphone and one assumes ipad users are spending on apps here in the states according to the center tower estimates iphone users in the us spend an average of one hundred thirty eight dollars on apps and twenty twenty. A number of the firm expectancy grow. It's kind of funny but not there was a piece ice. On apple's read out oh that had goldman sachs analysts hall being so rod hall. I couldn't bring myself to bring you the report blending down. He still has a cell rating on apple shares. That's partly because he sees op store revenue taking a dive as the country. Reopened post covid. Nineteen so he can't imagine apple doing well but he has no problem imagining things getting back to normal so fast. It hurts apple's line. That's beyond imagining for center tower. They say the record up spend by consumers ends one twenty twenty was driven by the great hunker down. And guess what's going to drive growth in twenty twenty one. According to the report senator tower tells tech crunch it expects the trend of increased consumer spend continuing twenty twenty one when it projects consumer spend per active iphone in the us to reach an average of one hundred eighty dollars. This will again be tied at least in part to the left caused by the pandemic and particularly the lift and pandemic fueled spending on mobile games because right mobile games where the big winner in twenty twenty
Jessi Pujji - A Primer on Performance Marketing
"So jesse the first part of this conversation is going to be what. I'll call the definitive conversation on performance marketing and i guess really just marketing generally speaking to set the stage as to why you are the right person to be having this conversation with. Just tell us the short history thumbnail version of an push how it got started. And what you've been doing since its founding. Yeah sure. I was not born. A performance marketer. Rank wouldn't wouldn't have expected myself to end up here. Ten years ago is i was working at goldman sachs and i went to wharton and if you go to wharton goldman sachs says the goal of every word kid. I got that ring and my dad was an entrepreneur came from india. I grew up around that entrepreneurship. What i thought i was going to do. But kinda said man. I want to see what it's like to be an investor and learn about that. And you know i liked it but i didn't love it and i said i wanna love what i do and so pretty much on a whim moved out west and said hey i'm gonna start a business and was as in love with the idea of starting a business as i was about and i specifically wanted to build something building organization culture and said you know what let's bootstrap this thing. We don't want to raise angel round and then have a gun on her head and burn money. We want to get something that can make money from early on. And we went around talked a lot of mentors and friends and they said oh you're good with numbers and data go look at performance marketing. That you'll figure something out there and we started calling it sandbox entrepreneurship. which was. We're not going to come up with an idea. Sitting are goldman sachs as what we get in the sandbox of something. We'll figure something out and so we kind of did it like nerdy. People would pick a business ideas so he's okay. We got it number. Zero online marketing. That works will. We don't have any relationships with anyone. We're twenty-five years this. this is late. Two thousand nine early thousand ten or don't know anyone don't have any relationships so how do we get into digital marketing. Well there's this thing called performance marketing netflix's invented it and they'll just pay you kind of like a bounty. They'll pay you fifty dollars or one hundred dollars every time you get them a customer you take all the risks and you make the margin and we go arbitrage. That sounds familiar like. Let's go do that right. And let's go figure that
"goldman sachs" Discussed on Exchanges at Goldman Sachs
"A little bit earlier about how it yet to be proven. How these companies will evolve overseas outside of China? Do we now see innovation in Asia or China specifically influencing how other? Are evolving globally, or is it still uncertain how much pure innovation? There is in Asia and China versus Silicon Valley the influence of Chinese companies on a global basis, it's very early days to point out with the Chinese business models are getting adopted. You might argue that the way Amazon runs is similar to the business models that we see in China, Amazon has gone into cloud, very very effectively, and it did something that clearly no other company had done in the past. And it's moved recently into media. We think that that model is similar to the way Alibaba has evolved over time. So I'm not one hundred percent sure, you would say that the model is gone one way or the other because both of adopting to certain conditions that were just happened to be similar in that both were able to get into the cloud business and the entertainment side. So we're just waiting to see how this falls, but the fintech. Side of China is very interesting. It's early stages there in terms of how we've seen that acid evolve where they've been able to leverage high frequency transactions across different platforms. I it was in the online world, then it moves to the off line world. And then if you can leverage information you're able to simulate and use that to make lending decisions to both the SME customer base or the consumer base. Then you start to see a business model unique now conduct business model be replicated in a similar manner. Elsewhere will that depends largely on regulation. So it's early days. But the aspiration of some of these companies is to take successful business models from China Ellsworth having covered industry for number years. What would you say is most interesting about it at the current moment? These Calif investments that we're seeing in the space is now much larger in China than we're seeing in North America. That's a first second. As we see this space continue to evolve. The business models are unique, and they will continue to evolve in that manner and fed. We're at that stage where let's say hypothetically, speaking of China to open up, then we'll see the battle lines being redrawn. But given how competitive the Chinese companies are at this stage, given the penetrated their respective markets. They're better understanding of their consumer base in particular, give them a tremendous advantage over anyone else that tries to come into the market. There's no track record today of anyone really gaining scale from the outside so far. Is there anything you feel may not be on people's radar today that you think will get a lot of traction over the next few years. He trends, you're seeing we always like to point to what we see an entertainment, and gaming, that's one. It's the online entertainment or the living in a virtual world description that we've talked about in the past that matters a lot. I'm not sure whether the rest of the world has the same unique demographic structures we see in. China because of the unique household size household structure that you have in China, the virtual world ends up becoming as real as the real world in a manner of speaking. Which is why you'll gaming experience your time spent online, and that could be on your messaging app that could be on social networks that could be on short phone video long phone video the semi different areas of that time spent that gets to be so different. Now, the jury's out on whether the rest of the world will become as engaged in their virtual world, and the virtual identity potentially as China has become we'll wait to see whether that will take over. But clearly with the success of some of the games in the west those business models are beginning to look more like the business models, the proven to be very successful in China and the game I referring to particular sport night. Let's take over the world staking over the world. But the business model is very similar business model to every other game that was launched and was successful in China. All right. Well, thanks again for joining me today. It's been fascinating discussion. That concludes this episode of exchanges, Goldman Sachs. Thanks for listening. And we hope you join us again next time. Despite cast was recorded on October twenty fourth two thousand eighteen. All price references and market. Forecasts correspond to the date of this recording. This podcast should not be copied distributed published or reproduced in whole or in part. The information contained in this podcast does not constitute research or recommendation from any Goldman Sachs entity to the listener, neither Goldman Sachs nor any of its affiliates makes any representation or warranty as to the accuracy or completeness of the statements or any information contained in this podcast, and any liability therefore, including in respect of direct indirect or consequential loss or damage is expressly disclaimed the views expressed in this podcast or not necessarily those of Goldman Sachs. And Goldman Sachs is not providing any financial economic legal accounting, or tax advice or recommendations in this podcast. In addition, the receipt of this podcast by any listener is not to be taken as constituting the giving of investment advice by Goldman Sachs to that listener nor to constitute such person a client of any Goldman Sachs entity.