BofA Global Research Podcasts

Separating Web3/Digital Assets adoption from price volatility The current shakeout of the digital asset sector is ultimately likely to be healthy for the industry. Despite the market state, we believe focus should be on the tokens that power blockchains and on applications with strong user adoption, developer activity, clear use cases and roadmaps to cashflow and profits. Also, stablecoins have the ability to coexist with potential central bank digital currencies, and non-fungible tokens (NFTs) are moving beyond just art and collectibles. In this episode, Alkesh explains what the digital asset sector's price volatility means and how the digital asset space is continuing to evolve.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.  

Semis remain cyclical but secular strength should capture market focus again  Over the past decade, semiconductors (semis) have outgrown electronics on rising content and semiconductor growth has outpaced GDP by 2-3x. Looking ahead, Vivek expects semis to continue to outgrow GDP on rising content and pricing. And yet, semis are still cyclical, something which the market is focused on presently, and exposed to inventory cycles and demand destruction from economic downturns. Vivek Arya joins to explain why semis are less hyper cyclical than in the past, what a recession could mean for earnings estimates, where surpluses are present and when shortages in other areas should lessen. And just because markets have fallen, doesn't mean the compelling reshoring story is over - that's another long term positive. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.  

Staples companies looking a bit less defensive against this inflationary backdrop The Consumer Staples index recently logged it's 4th worst session in history suggesting the narrative on Staples is changing. A stretched consumer and pressure on discretionary sales is prompting some retailers to push back on price increases from staples companies and pushing some consumers to trade down. Bryan joins T.J. Thornton and Consumer Sector Specialist Michael Dick, who is not part of the BofA Global Research department, to discuss how high inflation is impacting consumer packaged goods companies (CPG), whether the Consumer Staples sector can still be considered defensive in this environment and whether this may all contribute to more M&A. Ultimately, Bryan believes staples aren't as well positioned as they've been in the past but pricing tiers and segments will help determine which companies handle this environment best.  You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Ticket sales for US airlines are close to fully recovered, but there are still demand drivers ahead Airline ticket prices are up relative to 2019 as demand recovers but supply isn't back to pre-pandemic levels. Corporate travel had lagged but is catching up quickly. But investors are trying to gauge the sustainability of the recovery, whether pent up demand fades and whether higher prices push the consumer to pursue lower altitude modes of transportation. Andrew joins us to discuss why he believes there's still demand strength ahead, how ticket prices still compare favorably to history and to other services in these inflationary times and the impact that higher oil and pilot shortages could have-one that is both positive and negative. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

It’s been a good ride for auto profitability, but as with many things, there’s a normalization coming Inflated vehicle prices have inflated auto profits too but Horst Schneider, Head of European Automotive Research, believes the days of outsized profits for automakers are numbered as supply and pricing both normalize. And chips may be scarce now, but slowing demand for electronics could mean that supply of chips for the auto industry improves sooner than some think. The shift to EVs and further penetration gains are undeniable, but Horst discusses some recent developments that could slow those gains somewhat. He also discusses some key competitive considerations for EV makers and new battery technologies that could solve cost issues further out. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Digital assets trade like risk assets and face many of the same headwinds The digital asset market is in a trading range near-term, but likely headed higher intermediate and long-term, along with other risk assets. Stablecoins had $6 trillion of transaction volume last year and are critical for future metaverse economies and for lowering the friction of making payments across borders. In this episode, Alkesh explains algorithmic stablecoins and the current state of the digital asset market. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

The 10-year yield has more than doubled since the start of this year, and it's now at the level at which it peaked in 2018. The higher 10Y yield has taken a toll on risk assets, especially growth stocks, and elevated rate volatility has contributed to the weakness. But Mark does believe 10Y yields have only modest upside from here and expects rates volatility to fall when the path for lower inflation becomes more clear and Fed moves more predictable. Mark also discusses the impact that structurally higher inflation could have on rates. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Forest products companies contributing carbon sequestration enter the sustainability and ESG discussion Forests are one of the largest sources of carbon sequestration through voluntary carbon markets. Wood products companies which own these forests harvest wood for housing and other applications and as long as the wood remains protected, as it would be in a house, the materials become a carbon sink. And from a revenue perspective, companies can sell carbon sequestration into the voluntary carbon markets, though those markets are still nascent. Awareness of the positive carbon attributes of wood could also boost wood construction and allow it to displace some concrete and steel. Join our discussion with George Staphos as he discusses forest product companies and their role in helping the world reach net-zero. "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.