Operator: Good morning. My name is Denise and I will be your conference facilitator today. I would like to welcome everyone to the Goldman Sachs's Second Quarter 2013 Earnings Conference Call. After the speakers' remarks, there will be a question-and-answer period. Also, this call is being recorded today, July 16, 2013.
Thank you. Mr. Holmes, you may now begin your conference.
Dane E. Holmes - IR: Good morning, this is Dane Holmes, Head of Investor Relations at Goldman Sachs. Welcome to our second quarter earnings conference call.
Today's call may include forward-looking statements. These statements represent the Firm's belief regarding future events that by their nature are uncertain and outside of the Firm's control. The Firm's actual results and financial condition may differ, possibly materially, from what is indicated in those forward-looking statements. For a discussion of some of the risks and factors that could affect the Firm's future results, please see the description of Risk Factors in our current Annual Report on Form 10-K for our year ended December 2012.
I would also direct you to read the forward-looking disclaimers in our quarterly earnings release, particularly as it relates to our Investment Banking transaction backlog, capital ratios, risk-weighted assets, and global core excess, and you should also read the information on the calculation of non-GAAP financial measures and regulatory capital ratios that are posted on the Investor Relations portion of our website at www.gs.com.
This audiocast is copyrighted material of the Goldman Sachs Group, Inc., and may not be duplicated, reproduced, or rebroadcast without our consent.
Our Chief Financial Officer, Harvey Schwartz will now review the Firm's results. Harvey?
Harvey M. Schwartz - CFO: Thanks, Dane and thanks to everyone for dialing in today. I'll walk through our second quarter results and then take your questions. Net revenues were $8.6 billion, net earnings $1.9 billion, earnings per diluted share $3.70. Our annualized return on common equity 10.5%. For the first half of the year, our return on common equity was 11.5%. All-in, a solid outcome and what continues to be a dynamic market environment.
On our earnings call last quarter, we discussed how the evolving economic outlook impacts client activity. Bearing economic data and substantial Central Bank actions during the quarter caused our clients to continually re-assess their expectations for global growth. As a result, our clients risk appetite and activity levels fluctuated over the course of the quarter.
At the beginning of the quarter, our clients remained focused on the European economic outlook. As the quarter progressed, solid economic data out of the U.S. began to moderate economic concerns. Client activity, risk appetite and asset prices improved as a result of the increased confidence in the U.S. economy. Macro concerns emerged again towards the end of the quarter and reflected in lower activity levels and risk appetite in certain businesses.
In addition, the market volatility created more challenging periods within the capital markets from managing client flows. As I previously mentioned, Central Banks around the world were particularly active during the second quarter. This activity was a key driver of market sentiment during the quarter. In Japan, the Central Bank undertook unprecedented monetary action to stimulate their economy. During the second quarter, the yen declined by approximately 5% versus the U.S. dollar and 7% versus the euro.