John Waldron Interviews T-Mobile CEO Mike Sievert...May QuickPoll...Real Estate's Recovery

[Goldman Sachs]( [BRIEFINGS] May 14, 2021 Talks at GS With T-Mobile CEO Mike Sievert Above (L to R): John Waldron of Goldman Sachs and Mike Sievert of T-Mobile When he became T-Mobile’s CEO just weeks into the pandemic, Mike Sievert faced a daunting set of circumstances. “At some points in the pandemic, we had 80% of our thousands and thousands of stores closed,” he tells Goldman Sachs President and COO John Waldron in a recent episode of Talks at GS. “We had nearly 100% of our people working from home, taking care of 100 million customers and the essential connection of their lives.” While Sievert says he is proud of the T-Mobile team for creating the technology and capability to service its customers while working from home, he is ready for the return to office. “Culturally, we've been borrowing from years of built-up equity with each other and with our teammates and with our employees at large…Borrowing from relationships with people we haven’t been in the same room with for over a year,” Sievert says. “Now that I’m vaccinated…it is just amazing to sit across the table from people and remember how you solve problems when you're not limited by [virtual] media.” [Watch video]( SHARE: [twitter]( [facebook]( [LinkedIn]( [email](mailto:?subject=Talks%20at%20GS%20With%20T-Mobile%20CEO%20Mike%20Sievert&body=https%3A%2F%2Fyoutu.be%2FHrIkZ9wkLlk) May QuickPoll: Focus on Inflation, Europe’s Reopening and Tax Reform As the euphoria over the reopening trade in the U.S. starts to fade, investors are shifting their focus to inflation, Europe and tax reform, according to the latest Marquee QuickPoll survey of 833 institutional investor clients. Here are the key highlights: Reflationary or inflationary? While the May QuickPoll was completed before this week’s surprise Consumer Price Index (CPI) number, the dispersion of investors’ views on real rates has increased. While many investors expect only a small upward shift (the modal outcome for investors seems to be that real rates will move up by 10 to 40 basis points until year-end), a majority of investors (56%) are now bullish on gold, which is historically an inflation hedge. Reopening theme has shifted to Europe. Positive sentiment over the “reopening euphoria” in the U.S. has fallen to pre-November 2020 levels as the majority of investors say they are now more worried about the economy than the pandemic—the first time since early 2020. Meanwhile, 27% of investors say they now prefer the Euro Stoxx 50—the stock index of eurozone stocks—over the S&P 500. “With U.S. hitting ‘peak growth,’ Europe is still the trade du jour as it is about to enter the maximum convexity phase with rapid reopening,” says Oscar Ostlund, head of content for Marquee, the digital platform for the Global Markets Division. “Across the franchise, we are seeing strong interest to express this theme in the various asset classes.” Risks around tax reform. While the market appeared to be well-positioned to digest a higher corporate tax rate in April, now investors seem to have increased concerns about expected tax reform, with 64% of respondents saying they believe it will negatively impact asset prices. For more information about QuickPoll and Marquee, [reach out to the team](mailto:gs-marquee-sales@ny.email.gs.com?subject=BRIEFINGS%20Follow-Up%3A%20Interested%20in%20Learning%20More%20About%20Marquee&body=BRIEFINGS%20Follow-Up%3A%20Interested%20in%20Learning%20More%20About%20Marquee.). SHARE: [twitter]( [facebook]( [LinkedIn]( [email](mailto:?subject=May%20QuickPoll%3A%20Focus%20on%20Inflation%2C%20Europe%E2%80%99s%20Reopening%20and%20Tax%20Reform&body=) Fostering Innovation Within Companies: A Look Inside GS Accelerate Above (L to R): Tanya Baker, Daniel Kovenat and Hasan Malik of Goldman Sachs Companies that excel at innovating tend to have three things in common, according to Tanya Baker and Hasan Malik, co-heads of the GS Accelerate platform where budding entrepreneurs within Goldman Sachs can pitch their ideas for a chance at capital, resources and support to build their businesses. First, innovative companies look for innovation at every level of the organization, Baker and Malik explain on the latest episode of Exchanges at Goldman Sachs. Second, they are willing to wait out the “painful experimentation” along the way. And finally, they are more willing to look outside their walls for inspiration. “Too often we become, in larger organizations, too inside-looking,” Malik says. But the more that companies connect with the outside world and consider other ways to work with clients, “the more innovative your own approaches tend to be.” For 2021, Baker and Hasan are focused on sustainability, financial services digitization and the financial cloud as the key areas of innovation. “Although there is a lot of change and evolution and disruption going on in our industry,” Baker says, “there are still a lot of analog businesses and opportunities for optimization, more scale and more self-service.” Enterprise software applications are one such area ripe for disruption, notes Daniel Kovenat, a Goldman Sachs employee whose idea for automating communications between applications was selected for GS Accelerate. “Applications are made up of a lot of small, little pieces. And they all have to talk to each other,” he notes. “And as applications have been getting a lot more complex, the only way to keep up with the scale is to be able to automate.” [Listen to podcast]( SHARE: [twitter]( [facebook]( [LinkedIn]( [email](mailto:?subject=Fostering%20Innovation%20Within%20Companies%3A%20A%20Look%20Inside%20GS%20Accelerate&body=https%3A%2F%2Fyoutu.be%2FsCMfI9NVRfY) The Daily Check-In With Goldman Sachs Above (L to R): Nora Creedon, Lou Miller and Gurpreet Gill of Goldman Sachs In recent episodes of The Daily Check-In, experts from Goldman Sachs discuss the real estate sector's road to recovery, the rotation from growth to value in equity markets and how central banks are addressing climate change and social inequality in their policymaking. Nora Creedon of Asset Management on what’s driving the recovery in the U.S. real estate sector: “The real estate market is recovering really strongly in the U.S. as vaccinations have been rolled out and as the stimulus has worked its way through the economy…The best-performing sector year-to-date is actually shopping centers and malls. That may surprise people, but in addition to seeking exposure to the vaccine, investors are also seeking exposure to the stimulus and where that's played out in the economy. And so consumer-oriented sectors in real estate are performing really well.” [[Watch video]( Lou Miller of Global Markets on the catalysts behind the shift from growth stocks to value: “The catalyst has been the economic recovery that we've seen…And that's really led to higher interest rates, higher commodity prices and then really, that's showing up in the equity market through value going up and growth stocks really not performing well, and in some cases, the highest multiple, most expensive growth stocks, indeed, going down.” [[Watch video]( Gurpreet Gill, macro strategist with Asset Management’s Fixed Income team, on why central banks are addressing environmental and social issues in their policymaking: “This is really consistent with what we're seeing in broader society in that climate change and social issues are moving up the agenda for governments on the fiscal policy front, but also for corporates and the private sector more broadly.” [[View video]( [Watch videos]( SHARE: [twitter]( [facebook]( [LinkedIn]( [email](mailto:?subject=The%20Daily%20Check-In%20With%20Wwith%20Goldman%20Sachs&body=https%3A%2F%2Fwww.youtube.com%2Fplaylist%3Flist%3DPLIyiGQywEp65ogt2Bi3vTK7ngXDTM6wT9) Goldman Sachs Media Highlights CNBC - May 7 [Economic Recovery Is Strong Despite Weak Jobs Numbers Says Goldman’s Hatzius]( (3:16) CNBC - May 6 [Stocks and the Economy Will Both Likely Remain Strong: Goldman’s Koch]( (4:02) CNBC - May 13 [David Kostin on the Companies Best Positioned Going Into Next Year]( (2:09) [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. 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