218.33 0.00 (0.00%)
After hours: 4:50PM EDT
|Bid||218.19 x 900|
|Ask||217.63 x 800|
|Day's Range||214.12 - 218.73|
|52 Week Range||134.28 - 247.57|
|Beta (3Y Monthly)||1.23|
|PE Ratio (TTM)||32.57|
|Earnings Date||Oct 31, 2019|
|Forward Dividend & Yield||2.72 (1.26%)|
|1y Target Est||246.22|
A bipartisan group of U.S. senators on Tuesday again asked a federal retirement fund to reverse a decision to track a popular index provided by MSCI Inc, saying a failure to act would lead to U.S. pension savings being funneled to companies controlled by the Chinese government. The request is the latest effort by Republican Senator Marco Rubio, and Jeanne Shaheen, a Democrat, to stem U.S. investment in specific Chinese companies and it included signatures from other lawmakers, including Senator Mitt Romney, indicating the issue is gaining traction.
A bipartisan group of U.S. senators on Tuesday asked a federal retirement fund to reverse a decision to track a popular index provided by MSCI Inc, saying to not do so would lead to U.S. pension savings being funneled to companies controlled by the Chinese government. The request comes amid heightened U.S. trade tensions and is the latest effort by Senators Marco Rubio, a Republican, and Jeanne Shaheen, a Democrat, to stem U.S. investment in specific Chinese companies.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Global index provider MSCI Inc. is pushing back against criticism by U.S. Senator Marco Rubio that it’s helping funnel billions of Americans’ investment dollars into Chinese companies linked to human rights abuses and national security threats.“Currently there is no U.S. law or regulation that prohibits an index company from creating an index containing China A securities or U.S. investors from trading in the China A market,” MSCI’s Chief Executive Officer Henry Fernandez said in a letter seen by Bloomberg. China A shares are open to buying and selling by foreign investors.Fernandez wrote in a response to questions from Rubio about the index’s composition that inclusion isn’t based on “subjective judgment regarding the company’s intrinsic value or basic practices,” but on standardized attributes such as company size and liquidity.MSCI’s response comes after the Florida Republican sent a public letter asking the index provider for an explanation on why it added hundreds of Chinese stocks to its benchmark emerging markets index since last year and then increased the weighting to them this year. The moves paved the way for billions of dollars more in investments and retirement-savings to flow to Chinese companies.Some stocks in the index, such as Hangzhou Hikvision, have recently been placed on a U.S. blacklist preventing business with American companies.Read more: U.S. Teachers, Firemen Fund Rise of China Tech Without Knowing It “It is deeply troubling that a company like Hikvision, which is complicit in China’s human rights abuses in Xinjiang and is on the Commerce Department’s banned Entity List, can get access to the U.S. capital markets through an MSCI index,” Rubio said in a statement on Monday. “I will continue to work with my colleagues in a bipartisan fashion to ensure that U.S. investors and pensioners are not at risk.”MSCI didn’t respond to requests for comment.Rubio’s pressure on MSCI is part of a larger campaign by U.S. lawmakers to slow the spigot of money that has flowed from U.S. investment funds into Chinese companies. The moves come during an ongoing trade war between the two countries that has prompted U.S. officials to increase scrutiny to the money going into China.American Securities Association CEO Chris Iacovella said MSCI’s response fails to address any of the concerns Rubio raised to protect American investors.“MSCI continues to look the other way as it funnels billions of dollars of American money out of the U.S. and into Chinese companies that are fraudulent, on the sanctions list, or do-not-do business list,” he said.Rubio has led a push by a group of bipartisan lawmakers advocating for more stringent restraints on investment and greater scrutiny of Chinese companies in stock indexes and U.S. pension funds. He has also proposed legislation that could delist Chinese companies from U.S. exchanges if they failed to comply with U.S. accounting practices and other laws.The White House has been in touch with Rubio to discuss its support for the matter, but the legislation’s prospects in Congress remain unclear.The MSCI letter agreed with Rubio that investors should know where they are investing and said in some cases the company makes specific references to China’s different accounting standards, and identifies China as an authoritarian regime. A Rubio spokesman said the Senator’s office received the letter earlier this month.The MSCI CEO drew the distinction between passive index funds that MSCI powers, which do not serve as investment recommendations, and active asset managers, who can pick and choose which stocks to direct funds. In addition to serving as a benchmark for investments, MSCI said its indexes are used by academic institutions and researchers, cautioning that requiring the index to exclude certain stocks would “severely limit the ability to understand and assess global markets.”Rubio told Bloomberg earlier this year that he’s not advocating for an all-out ban on U.S. investment in China, but for a regulatory body charged with examining investments, modeled on the Committee on Foreign Investment in the U.S., which was recently granted greater power to restrict Chinese acquisitions of U.S. technology.“Firms like MSCI have an obligation to make sure investors know whether their investment dollars are unwittingly aiding Chinese state-owned and state-directed companies linked to China’s efforts to steal American innovation, undermine fair competition, increase threats to U.S. national security and economic security, and support China’s systemic and egregious human rights abuses,” Rubio said in an accompanying statement in June. “We can no longer allow China’s authoritarian government to reap the rewards of American and international capital markets.”(Updates with comment from Rubio in sixth paragraph.)\--With assistance from Daniel Flatley.To contact the reporters on this story: Shelly Banjo in Hong Kong at firstname.lastname@example.org;Jenny Leonard in Washington at email@example.comTo contact the editors responsible for this story: Brendan Murray at firstname.lastname@example.org, Margaret Collins, Sarah McGregorFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
MSCI (MSCI) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
MSCI Inc. , a leading provider of critical decision support tools and services for the global investment community, announced today it will release its results for third quarter 2019 on Thursday, October 31, 2019.
Some of the biggest public pensions funds in the United States have invested in one of the world's largest purveyors of video surveillance systems that the U.S. government claims are used in wide-scale repression of the Muslim population of western China. The Trump administration's decision to put the company, Hangzhou Hikvision Digital Technology Co, on a blacklist last week has prompted at least two of the pension plans to say they are reviewing or monitoring that development. The blacklist applies to Hikvision and seven other companies because they allegedly enabled the crackdown that has led to mass arbitrary detentions in the Xinjiang region.
Some of the biggest public pensions funds in the United States have invested in one of the world's largest purveyors of video surveillance systems that the U.S. government claims are used in wide-scale repression of the Muslim population of western China. The Trump administration's decision to put the company, Hangzhou Hikvision Digital Technology Co, on a blacklist last week has prompted at least two of the pension plans to say they are reviewing or monitoring that development.
World-class money managers like Ken Griffin and Barry Rosenstein only invest their wealthy clients' money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. […]
Index provider MSCI has launched a new set of thematic indexes for investors looking to focus their exposure on major trends such as millennials or disruptive technology which it expects to shape society and the economy for decades to come. Equity indexing is big business with providers such as MSCI, FTSE Russell, Nasdaq, S&P and Dow Jones jostling for market share in an investment landscape where replicating lists of securities compiled along certain criteria has become increasingly popular and a benchmark for active investors. Traditionally, index providers have sliced and diced stocks along sectors, size or geographic lines, but thematic indexing has emerged as a theme in recent years.
MSCI Inc. (MSCI), a leading provider of critical decision support tools and services for the global investment community, today announced that its subsidiary MSCI Barra (Suisse) Sàrl has completed its acquisition of Zurich-based environmental fintech and data analytics firm specializing in climate change scenario analysis, Carbon Delta AG (“Carbon Delta”). Remy Briand, Head of ESG at MSCI, said: “The Carbon Delta team brings a depth of expertise unrivalled in the industry. MSCI is a leading provider of critical decision support tools and services for the global investment community.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Trump administration officials are discussing ways to limit U.S. investors’ portfolio flows into China in a move that would have repercussions for billions of dollars in investment pegged to major indexes, according to people familiar with the internal deliberations.The discussions are occurring as Washington and Beijing negotiate a potential truce in their trade war that’s rattled the world’s two biggest economies and investors for more than a year. They also come as China is removing limits on foreign investment in its financial markets. A U.S. crackdown on capital flows would therefore expose a new pressure point in the economic dispute and cause disruption well beyond the hundreds of billions in tariffs the two sides have levied against each other.Among the options the Trump administration is considering: delisting Chinese companies from U.S. stock exchanges and limiting Americans’ exposure to the Chinese market through government pension funds. Exact mechanisms for how to do so have not yet been worked out and any plan is subject to approval by President Donald Trump, who has given the green light to the discussion, according to one person close to the deliberations. Trump officials are also examining how the U.S. could put limits on the Chinese companies included in stock indexes managed by U.S. firms, three of the people said, although it’s not clear how that would be done. More Chinese companies in recent years have been added to major indexes that a broad array of investors have access to.‘This Is Huge’ as China Threat Dents Markets: Wall Street ReactsFor instance, hundreds of Chinese businesses have been added into the MSCI Inc.’s indexes since last year — raising questions from Florida Republican Senator Marco Rubio and others on Capitol Hill who are advocating for stronger investment restraints and greater scrutiny for Chinese companies in stock indexes and U.S. pension funds. Bloomberg Barclays began adding Chinese bonds to its flagship Global Aggregate Bond Index in April.The S&P 500 Index sold off initially after the news and ended about 0.5% lower, while U.S.-listed shares of China-based companies tumbled. Alibaba Group Holding sank 5.2%, JD.com Inc. lost 6%, and Baidu Inc. fell 3.7%.The White House has been discussing its plans with Rubio. It is now considering whether to back legislation he put forward over the summer that provoked much debate over the issue of how to protect U.S. investors with funds allocated into what are often opaque Chinese companies.The White House has not had any discussions with the Chinese government over the issue, said one person close to the administration. It also wants to keep any action isolated from the broader trade negotiations now underway, the person said.But high on the list of U.S. concerns is the unusual influence the Chinese government has over private sector companies and restrictions Beijing places on the release of some financial information of even listed Chinese firms.Trade War Hasn’t Stopped Wall Street’s $9 Billion China RushThe fresh momentum behind the effort is partly due to a push from lawmakers to demand reciprocity with Beijing and a pending deadline for the government’s main retirement savings fund — administered by the Federal Retirement Thrift Investment Board — to channel billions of dollars into Chinese companies next year, according to several people involved in the discussions.The National Economic Council has been chairing meetings on the issue and the Treasury Department and National Security Council are involved as well, people familiar with the discussions said. While action is not imminent, according to the people, Trump’s advisers are talking through the various options and their expected impact.At a dinner hosted by the Center for Strategic and International Studies in Washington last week, a group of China and finance experts debated the value and risks of a financial decoupling from Beijing, including how it could be done and what the impact on U.S. investors would be.Among the speakers was White House economic adviser Larry Kudlow, who declined to discuss any specifics, according to people who attended the dinner.Supportive MoodThe evening also featured deputy national security adviser Matt Pottinger, a China hawk who was just appointed the No. 2 at Trump’s NSC, as well as members of Congress.The push to unilaterally limit Chinese access to American capital is spearheaded by White House trade adviser Peter Navarro, one of Trump’s most hawkish aides, and officials at the NSC, but people involved in the process say even more dovish advisers have rallied behind some of their suggestions.An NSC spokesman and Navarro declined to comment, and Pottinger didn’t respond to a request for comment. Spokesmen for the White House and the Treasury also declined to comment. What Bloomberg’s Economists Say...“The U.S. has a comparative advantage in provision of financial services. A longstanding U.S. priority has been to open China’s market to its firms and investors. In the last few years, they have gained traction, with China removing barriers to foreign financial institutions and lifting caps on foreign investors. A policy which placed barriers in the path of U.S. portfolio flows to China would sacrifice those gains.”—Tom Orlik, chief economistClick here for the full insightThe arguments for action inside the Trump team vary from simply enforcing U.S. transparency laws and creating a level of reciprocity, to raising national-security concerns with some of the Chinese companies that American pension funds are exposed to, according to people familiar with the conversations.Some of those companies are firms that the U.S. government has identified as bad actors or has imposed sanctions against. The argument continues that Americans would unlikely want to invest in those companies if they had the choice.The market capitalization of the 156 Chinese companies, including at least 11 state-owned firms, listed on the three-largest U.S. exchanges — the NASDAQ, New York Stock Exchange and NYSE American — stood at a collective $1.2 trillion as of late February, according to a report by the U.S.-China Economic and Security Review Commission.China earlier this month removed a $300 billion cap on overseas purchases of Chinese stocks and bonds meaning global funds no longer need to apply to purchase quotas to buy the assets. The move is designed to lure more foreign capital into Chinese markets.Next Big PhaseRoger Robinson, president and CEO of RWR Advisory Group who has been working on the issue since the ’90s, said this type of pressure can make a difference. “Treating the unequal financial dimensions and undisclosed material risks associated with China’s presence in the U.S. capital markets will likely represent the next big phase in the bilateral economic relationship,” he said.One of the most extreme arguments for cutting China off from American capital — advanced by Navarro and outside advisers like Steve Bannon — is that U.S. investments in Chinese companies or on China’s exchanges mean that Americans are unwittingly giving financial support to the Chinese Communist Party and a rising strategic and economic rival.QuicktakeHow China’s Trying to Woo Foreigners to Buy BondsTrump would also have the support of hardline advocates, like Bannon, his former chief strategist, and hedge fund manager Kyle Bass. Both are leading the Committee on the Present Danger: China. It’s a group that advocates for total economic decoupling as a way to secure America’s national security.In a recent “threat briefing” — which is how the group titles its meetings — Bannon said American financing have helped spur China’s economic ambitions and technological advances.“The Frankenstein monster that we have to destroy is created by the West. It’s created by our capital,” Bannon said at the Sept. 12 briefing.Rule of Law While some administration officials see these steps as giving the U.S. more leverage in the trade negotiations, others are working hard to ensure the two are kept separate. At the same time, the administration is hesitant to move forward on this out of fear that the already fragile economic relationship between Beijing and Washington could collapse.In particular, officials at the Treasury Department and the National Economic Council are wary of how any action could spook investors and are trying to signal to relevant stakeholders that the rule of law can be trusted. Those officials would want to frame any move as taking action against known bad actors that have persistently been out of compliance with U.S. laws.The NEC is still working on an analysis of the potential impact of any moves targeting financial flows. Just when that might be completed is unclear. Nathan Sheets, former Treasury undersecretary for international affairs, said action to delist Chinese companies or direct American dollars away from certain firms would be “a big deal” for markets and the bilateral relationship. “Both of those would be very disruptive. On the order of a kind of Huawei announcement,” he added, referring to the Trump administration’s blacklisting of China’s biggest telecommunications-equipment manufacturer.Capital Hill HawksRubio, who sponsored the so-called EQUITABLE Act, is the biggest champion of such efforts on the Hill and his public comments largely mirror what the White House is discussing. The senator applauded the White House’s work on the issue.“This administration deserves credit for their efforts to deal with the threat that the Chinese government and Communist Party poses to U.S. national and economic security, including how Beijing takes advantage of its access to U.S. capital markets for predatory purposes,” Rubio said in a statement.(Updates with markets in sixth paragraph.)\--With assistance from Saleha Mohsin and Mark Tannenbaum.To contact the authors of this story: Jenny Leonard in Washington at email@example.comShawn Donnan in Washington at firstname.lastname@example.orgTo contact the editor responsible for this story: Margaret Collins "Peggy" at email@example.com, Brendan MurraySarah McGregorZoe SchneeweissFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The U.S. government is considering the possibility of delisting Chinese companies from U.S. exchanges, a source briefed on the matter said, in what would be an escalation of trade tensions between the U.S. and China. The move would be part of a broader effort to limit U.S. investments into China, the source said.
Moody's Investors Service ("Moody's") affirmed MSCI Inc.'s ("MSCI") Ba2 corporate family rating ("CFR"), Ba2-PD Probability of Default rating ("PDR") and Ba2 senior unsecured rating. Moody's expects EBITDA of over $800 million and EBITA to interest expense around 5 times in 2019, driven by growth in revenue and EBITDA through the continued adoption of equity exchange traded funds ("ETF") and international equity indices, and steady subscriber retention rates around 95%. MSCI has some customer concentration.
The ratings on the six P&I classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. Moody's rating action reflects a base expected loss of 8.8% of the current pooled balance, compared to 6.1% at Moody's last review. Moody's base expected loss plus realized losses is now 8.5% of the original pooled balance, compared to 5.9% at the last review.
The market tried to work its way back into a bullish groove and end the week on a high note, but to no avail. By the time Friday's closing bell rang, the S&P 500 was 0.49% lower than Thursday's last trade. The true direction of the undertow remains in question.Source: Shutterstock Netflix (NASDAQ:NFLX) did more than its fair share of the damage, tumbling more than 5% after CEO Reed Hastings conceded looming competition from Walt Disney (NYSE:DIS) and others would be impressively tough. At the other end of the spectrum, though not by enough, was Fitbit (NYSE:FIT). The fitness tracker ticker jumped more than 11% on a rumor that it was considering selling itself to a so-far-unnamed suitor.Headed into the new trading week, it's the stock charts of MSCI (NYSE:MSCI), Abbott Laboratories (NYSE:ABT) and Macerich (NYSE:MAC) that are of the most interest. Here's why, and what's apt to be next.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Macerich (MAC)Macerich shares have been losing ground for a couple of years now, with seemingly no end in sight. Although up for the past few weeks, that move didn't necessarily snap the losing streak. * 7 Worst Stocks in the S&P 500 in 2019 Except, that gain may have set the stage for a recovery effort. After such a prolonged selloff, the stock's certainly ripe for a rebound. And, another missing link has finally materialized. Fortunately, the lines in the sand have become very clear. Click to Enlarge • The most important of those lines is the one that has steered MAC stock lower since the August-2018 peak, marked as a yellow dashed line on both stock charts.• The action over the course of the past month exhibits many of the clues of a reversal. Namely, volume swelled into the bottom from last month, and the turnaround has taken shape on even higher volume. It's a sign of a pivot from a net-selling to a net-buying environment.• Even if the falling resistance line is broken, notice the gray 100-day moving average line could still bring a quick end to that effort. It needs to be cleared as well. Abbott Laboratories (ABT)The past couple of months haven't been especially good ones for Abbott Laboratories shareholders. After an incredibly bullish summer following a great start to the new year, the stock has fallen back.That selloff is part of a well-established pattern, though, and that pattern has been amazingly well defined by straight support and resistance lines. ABT stock is somewhat in limbo right now, trapped between various floors and ceilings. Whether you want to buy it or short it depends on what happens next, and your intended timeframe. Click to Enlarge • There are two sets of support and resistance levels. The lesser ones are marked as yellow lines on both stock charts, while the bigger ones are plotted in light blue.• Though edging lower, the gray 100-day moving average line has thus far held up as a support level, much like it did back in May.• The white 200-day moving average line is also in play here, so if the short-term, yellow floor that's guided Abbott to higher lows since the end of last year doesn't hold up, ABT stock doesn't necessarily have to fall all the way back to the mid-$70's. MSCI (MSCI)Finally, although MSCI looked (and was) unstoppable through the first half of the year, the rally was stopped cold as the second half began. It didn't slip over the edge of the cliff though, so to speak, until last week -- and Friday in particular -- when a sizeable stumble dragged shares below a trio of key moving average lines. Those same moving averages, in fact, also dished out sell signals of their own. Click to Enlarge • The divergence of those three moving average lines that started to take shape in February has not only ended, the convergence is starting to become a divergence again … in the other direction.• Take a close look at the daily volume bars, and the red, bearish ones in particular. They've become decidedly taller than average since July, and continue to rise.• Zooming out to the weekly chart of MSCI stock makes clear just how overextended this off-the-radar financial services was. It also illustrates how the gray 100-day moving average line has been a make-or-break level in the past … the white 200-day moving average line as well, although less so.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Worst Stocks in the S&P 500 in 2019 * 7 Reasons to Own Intuit Stock -- The Unsung Hero of Fintech * Apple and 4 Other Tech Stocks on the Move The post 3 Big Stock Charts for Monday: MSCI, Macerich and Abbott Laboratories appeared first on InvestorPlace.
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Index and research giant MSCI Inc. has seen its stock outperform the market this year, buoyed by its rapidly expanding ESG — or environmental, social and governance — investing services.
MSCI inks an agreement to acquire Carbon Delta. The buyout is expected to help it offer enhanced climate change assessment to global investors.
MSCI Inc. (MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today that Salli Schwartz has been appointed Head of Investor Relations and Treasurer, effective September 16, 2019. “We are thrilled that Salli is joining MSCI. “MSCI is continuing to evolve and grow rapidly, and I am excited to work with Linda and the Executive Committee to enhance its capital management strategy and to tell the company’s story to the investor community,” said Ms. Schwartz.