Top of Mind on Racial Economic Equality...GS President John Waldron Speaks with Former Honeywell CEO David Cote...Honoring the Life and Legacy of Civil Rights Icon John Lewis

[Goldman Sachs]( [BRIEFINGS] July 22, 2020 Podcast: Top of Mind on Racial Economic Equality How do we close the large and persistent earnings and wealth gaps central to racial inequality in America? That’s the subject of the latest episode of Top of Mind at Goldman Sachs, which examines policy solutions to these pressing questions. For Kerwin K. Charles, dean and professor at the Yale School of Management, the most important step is to address higher education deficits in Black communities. “We've got to close the gap where the labor market cares about it,” Charles said in a conversation with Goldman Sachs Research senior strategist Allison Nathan. “The labor market cares about college-level training, that's task one.” As for the racial disparities in healthcare underscored by the pandemic, Dr. John Z. Ayanian, director of the Institute for Healthcare Policy and Innovation at the University of Michigan, emphasized that increasing access to high-quality healthcare is key. “We know that rates of uninsurance are higher among Black Americans than white Americans. And so, by reducing gaps in insurance coverage, we are likely also reducing disparities in health outcomes.” Finally, Nathan interviewed Margaret Anadu, head of Goldman Sachs’ Urban Investment Group, who emphasized the importance of access to private capital. “To close the racial wealth gap, private capital has to be part of the solution because it sits at the center of wealth creation in our country,” Anadu said. [Listen to podcast]( [Read report]( SHARE: [twitter]( [facebook]( [LinkedIn]( [email](mailto:?subject=Top%20of%20Mind&body=https%3A%2F%2Fyoutu.be%2F9fpwEmVZzcE) Talks at GS with David Cote, Former Chairman and CEO of Honeywell Above (L to R): John Waldron of Goldman Sachs and David Cote, former CEO of Honeywell For David Cote, the key to growing Honeywell’s market capitalization from around $20 billion to almost $120 billion over his 16-year tenure as CEO was focusing on both the short and the long term. “Success is always about achieving two seemingly conflicting things at the same time,” he said during a recent episode of Talks at GS moderated by Goldman Sachs President and COO John Waldron. “Do you want good short-term results or do you want good long-term results? And in every case, the answer is you want both, so you have to figure out how to do both.” In his new book, Winning Now, Winning Later, Cote explains how he balanced those objectives at Honeywell. “From a short-term basis, one of the big things that I focused on [was] gross sales and holding fixed costs constant,” Cote said. “[That gave me] the flexibility to provide returns to share owners…and to be able to reinvest.” While the benefits of some of those efforts were not immediately apparent, that didn’t mean they weren’t worthwhile. ”As a result of that seed planting in the long term,” Cote said, “we crushed the S&P 500 because all that stuff starts paying off.” [Watch video]( SHARE: [twitter]( [facebook]( [LinkedIn]( [email](mailto:?subject=Talks%20at%20GS&body=https%3A%2F%2Fyoutu.be%2F3Vk_PZcGsnM) The Daily Check-In With Goldman Sachs Chief Financial Officer [Stephen Scherr]( joined The Daily Check-In at Goldman Sachs recently to discuss major themes from the firm’s second-quarter earnings. “I would say that people were particularly interested, and in some sense excited, about the top line—what we did in terms of revenue and how that translated into earnings per share. I think people were also curious about provisions for credit loss, trying to understand what it was that we did, why we did what we did but, perhaps more significantly, thinking about what the underlying assumptions were to reflect more of an informed view about unemployment and GDP in the world. And I think people were also very interested in capital. Obviously, this came on the other side of the CCAR results where the Fed gave us a requirement, as they did other banks, as to what we needed to hold ourselves out to in terms of maintaining and husbanding capital.” Looking to the second half of the year, Scherr said: “We're living in a world and in an economy and in a trading environment which I would define more by its uncertainty than its certainty—up or down. And so it's against that uncertainty that I think the best we can do is articulate a view, as I have been, which is that the firm is ready for business. Goldman Sachs is ready to meet the demands and the interests of our clients and serve our clients in that regard.” In other episodes of The Daily Check-In, [Lindsay Drucker Mann]( head of Consumer Retail Equity Capital Markets within Goldman Sachs’ Investment Banking Division, explained ways in which the economic shutdown has accelerated trends in the consumer retail space. [Dominic Wilson]( senior markets advisor for Goldman Sachs Research, discussed the tension in the market between robust current cyclical news and the increased focus on downside risks from deteriorating medical news. From Global Markets, [Jennifer Roth]( shared insights from the trading desk on the outlook for the US dollar. For more Daily Check-In videos, [subscribe to our channel]( on YouTube. [Watch videos]( SHARE: [twitter]( [facebook]( [LinkedIn]( [email](mailto:?subject=The%20Daily%20Check-In&body=https%3A%2F%2Fyoutu.be%2Fnku9Ye7Q5aI) Talks at GS: Honoring the Life and Legacy of Civil Rights Icon John Lewis Above (L to R): Lloyd Blankfein of Goldman Sachs and US Representative John Lewis As the world reflects on the life and legacy of civil rights icon and US Representative John Lewis, some of the most enduring images are from Lewis’ march with other peaceful protestors across the Edmund Pettus Bridge in Selma, Alabama on “Bloody Sunday,” March 7, 1965. “I was hit in the head by a state trooper with a night stick. My legs went from under me. I had a concussion at the bridge. I thought I was going to die. I thought I saw death," he told former Goldman Sachs chairman and CEO Lloyd Blankfein during an episode of Talks at GS in 2014. "I don't how I made it across that bridge, but I do recall being back at the little church that we'd left from. Several hundred, maybe 1,500 people or more, outside of the church trying to get in. The church was full to capacity, and someone asked me to say something. And I stood up and said something like, 'I don't understand it how President Johnson can send troops to Vietnam, and cannot send troops to Selma to protect people whose only desire is to register to vote.' The next thing I knew, I'd been admitted to the Good Samaritan Hospital, a little Catholic hospital in Selma, where a group of nuns took care of us. And the next morning, early that Monday morning, Dr. King came by my hospital room and met with me and said, 'John, don't worry. We will make it from Selma. We will make it to Montgomery.'” Five months later, President Johnson signed the Voting Rights Act of 1965 into law. “The reason we made some progress, and a great deal of progress, was because of the Voting Rights Act.” Lewis said. “If it hadn't been for the march from Selma to Montgomery and Bloody Sunday, and the passing of the act, we wouldn't be where we are today." [Watch video]( SHARE: [twitter]( [facebook]( [LinkedIn]( [email](mailto:?subject=Talks&body=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DDuLCgA4YuAM) Goldman Sachs Media Highlights Reuters - July 16 [Insurers favor warehouse investments over offices as pandemic hastens real estate shifts]( Bloomberg - July 16 [Goldman's Scher Expects Strong Equity, Debt Issuance]( (3:37) Bloomberg - July 16 [Goldman’s Kostin Says Tech, Health Care Are Stocks to Own]( (4:23) [Subscribe]( [Unsubscribe]( The data provided in this newsletter is for information purposes only and should not be construed as investment or tax advice nor as a recommendation to buy, sell, or hold any particular security. Goldman Sachs believes the data in this newsletter is accurate, but does not verify its accuracy independently and does not warrant or guarantee that it is accurate or complete. Goldman Sachs has no obligation to provide any updates or changes to the data. No investment decisions should be made using this data. To the extent this newsletter includes material from the Goldman Sachs Securities Division, please click [here]( for information relating to Securities Division material and your reliance on it. © 2020 Goldman Sachs, All rights reserved. 200 West Street, New York, NY 10282, USA [GS.com]( | [Careers Blog]( | [Privacy and Security]( | [Terms of Use]( [Facebook]( [Twitter]( [LinkedIn]( [YouTube]( [Instagram](