Above (L to R): Stephen Scherr and Carey Halio of Goldman Sachs
This week, Goldman Sachs reported its second-quarter 2021 earnings results. Per-share earnings came in at $15.02, bolstered by strong client activity and engagement. “Our performance underscores the strength of our client franchise and the constructive but more normalized market environment relative to a year ago,” Goldman Sachs Chairman and CEO David Solomon told investors during the firm’s second-quarter earnings call. On an episode of The Daily Check-In, Chief Financial Officer Stephen Scherr reiterated the importance of client engagement. “There’s no substitute for physical engagement and proximity…to our client set and for engagement broadly,” Scherr says. “The level and nature of client engagement, which was extraordinary during the deepest moments of COVID as we stayed quite connected to our client base, is now manifesting itself in more physical meetings and engagement.”
Above (L to R): John Greenwood and Cindy Quan of Goldman Sachs
The financial pressure on companies to decarbonize is growing by the day, explains John Greenwood, head of the new Decarbonization Group in the Investment Banking Division, on an episode of Exchanges at Goldman Sachs. “There has been an increased focus now from institutional investors to actually embed ESG into their investment decisions,” he says. “What that means is that there is now a direct financial impact for corporate clients that do not embed decarbonization into their core business strategy.” It could raise their cost of capital, lower their valuation and even hurt their recruiting efforts. “A lot of new recruits are looking for companies that truly value what the impact of the company is on the broader environment,” says Cindy Quan, a vice president who leads corporate conversations for the Decarbonization Group. “On the people side of ESG and sustainability, companies are realizing [those initiatives are] a great way to recruit and retain human capital.”Listen to podcast SHARE:
2021’s ‘Stellar’ Stock Market: Will It Last?
After “stellar” equity market performance in the first half of the year, the outlook for the second half also looks robust, explains John Storey, head of Goldman Sachs’ equities franchise in EMEA. “What we’re seeing is corporate earnings performance, guidance and confidence are very strong,” Storey says in an episode of The Daily Check-In. Whether the market rally lasts, however, depends on the underlying strength of the economy and a continuation of accommodative policies, he notes. “So much of the thesis hinges on whether inflation spikes are transitory or more permanent.”