|Bid||301.00 x 800|
|Ask||0.00 x 900|
|Day's Range||303.52 - 317.56|
|52 Week Range||177.19 - 335.43|
|Beta (5Y Monthly)||1.23|
|PE Ratio (TTM)||46.90|
|Earnings Date||Apr 29, 2020 - May 03, 2020|
|Forward Dividend & Yield||2.72 (0.85%)|
|Ex-Dividend Date||Feb 19, 2020|
|1y Target Est||314.75|
(Bloomberg) -- Emerging-market bonds are on fire but there’s a worrying subtext to the rally as investors grow increasingly concerned about the long-term economic impact of the coronavirus.While the dollar-denominated debt of developing nations advanced for an 11th week in the five days through Friday, the longest winning streak in eight years, indexes of stocks and currencies retreated as the spread of the virus showed few signs of slowing. That’s left bonds more disconnected from stocks and currencies than at any time this year.The divergence underlines the concern that the rally may have less to do with the strength of emerging economies than the scramble for returns in a world where demand for havens is sending yields in the biggest economies ever lower. The yield on the benchmark 30-year U.S. Treasury bond dropped to an all-time low on Friday as the number of infections outside of China accelerated, fueling worries the epidemic will dent the world economy.“The search for yield is supported by a perception that global yields will remain low for the foreseeable future,” said Anders Faergemann, a London-based senior portfolio manager at PineBridge Investments, which manages about $100 billion. “Yet, the resilience we have seen in EM hard-currency bonds -- both sovereign and corporate -- tells a story of continued support for the asset class and further capital inflows.”MSCI Inc.’s index of emerging currencies dropped last week for the fourth week in five, sinking below its 100- and 200-day moving averages, levels that signal the potential for further declines. The MSCI stocks gauge slumped 2%.Listen here for emerging markets weekly podcast.It may not be as gloomy as some fear. Sara Grut and Caesar Maasry, analysts at Goldman Sachs Group Inc., say the relative safety of emerging-market debt is being driven by expectations that the virus’s impact will be temporary, and that easing by central banks will reduce the risk the turmoil will lead to defaults or restructurings.“The downside risks which tend to matter most for the pricing of credit risks appear relatively contained,” they said in a note. The drawback, though, is that bonds may be less likely to rally along with equities and currencies if the virus is contained and risk sentiment improves, they wrote.In South Korea, where the government raised the country’s infectious-disease alert to the highest level following a surge in new cases, the central bank was due to convene an emergency meeting Monday related to the coronavirus outbreak, ahead of the scheduled monetary policy meeting on Thursday.“It is no longer the problem of whether the BOK will cut or not, it is now whether it will cut once or twice,” and investors will try to seek hints from the meeting this afternoon, said Min Gyeong-won, an economist at Woori Bank.As policy makers struggle to find new ways to boost growth, attention is turning to fiscal policy. China said it will increase fiscal and monetary stimulus this year, while Malaysia will unveil an extra economic-stimulus package on Thursday. The start of February data releases will also give investors a clearer picture of the virus’s impact on global growth.Coronavirus concerns aside, Malaysian Prime Minister Mahathir Mohamad submitted his resignation to the king on Monday, and his party exited the ruling coalition after infighting over his successor came to a head. South African Finance Minister Tito Mboweni budget’s on Wednesday could be key to determining whether Moody’s Investors Service downgrades the nation’s debt to junk status next month. Argentina’s debt negotiations will continue, while Lebanon’s bondholders are bracing for a potential default next month.China PMIChina will report official gauges of manufacturing and services for February on Saturday, providing clues on how badly the world’s second-largest economy has been hit by the virusThe country is slowly getting back to work, with the economy running at 50%-60% capacity in the week to Feb. 21 and forecast to jump from Feb. 24, according to Bloomberg EconomicsRead: CHINA REACT: Small Companies Suffer from Virus, Support UrgentChina’s economy is likely to pick up quickly after the coronavirus is contained and stage a “V-shaped” recovery, according to a senior official with the nation’s central bankThe “sound” fundamentals of the domestic economy remain unchanged in the medium to long run, Chen Yulu, a deputy governor at the People’s Bank of China, wrote in an opinion piece in the Financial Times dated Feb. 20While emerging Asian currencies are likely to weaken further, the Chinese yuan will be more resilient as policy makers seek to slow its decline, Mansoor Mohi-uddin, a Singapore-based senior strategist at NatWest Markets, wrote in a reportThe yuan fell for a third day on Monday, hovering near its weakest level in more than two monthsSouth Korea’s DilemmaThe chance of a 25 basis-point rate cut in South Korea is on the rise because domestic consumption may take a hit as virus concerns intensify, Eugene Leow, a rates strategist at DBS Group Holdings Ltd., wrote in a note. Exports -- a key driver of the economy -- are under threat as the outbreak rattles global supply chains and hurts demand.DBS had expected the BOK to wait until April before lowering the key rate, which is already at a record low. Policy ammunition is limited given the current rate of 1.25%, when adjusted for inflation, is already at minus 0.25%, according to the Singapore-based bankGovernor Lee Ju-yeol said this month authorities would need more time and economic data to assess the impact of the virus, downplaying growing speculation the bank may need to ease policy. The number of virus cases locally has surgedThe won is the worst performer in Asia this year after the Thai bahtElsewhere, central banks in Israel and Hungary will probably keep interest rates unchangedMozambique and Botswana will also decide on monetary policyHong Kong, Malaysia Budgets:Hong Kong will announce its budget on Wednesday. Bloomberg Economics expects the budget deficit for fiscal 2020-2021 could reach more than HK$65 billion ($8.4 billion), or about 2% of gross domestic productMalaysia has already widened its deficit target for fiscal 2020 to 3.2% of GDP, from 3%Indonesia is backing calls for a coordinated global response to the coronavirus outbreak, warning that authorities may be underestimating its impact on trade and economic growthMake-or-Break BudgetWith South Africa’s investment-grade credit rating hanging by a thread, Finance Minister Mboweni will have to convince rating companies and investors that a rescue plan for the debt-ridden state electricity company Eskom Holdings SOC Ltd. is on track, and that the government is ready to take measures to curb rising debt, narrow the budget deficit and fuel economic growthBailouts for state-owned companies including Eskom and South African Airways have pushed up government debt in an economy growing at less than 1% a year and collecting insufficient revenueThe rand is the worst-performing emerging-market currency this year after Brazil’s realTrump Visits IndiaPresident Donald Trump visits India on Feb. 24-25. Prime Minister Narendra Modi’s administration was hoping a trade deal could be reached after improving its offer for market access to American products“We have low expectations for more substantial progress in trade talks,” Shilan Shah, a senior India economist at Capital Economics Ltd. in Singapore, wrote in a note. There have been suggestions India could ramp up purchases of U.S. defense equipment in exchange for the restoration of preferential trade status but the affected goods are worth only 0.2% of Indian GDP, Shah saidRead: Trump’s India Trip to Produce Huge Crowds, Little Trade ProgressIndia will release fourth-quarter GDP data on Friday. Emerging Asia’s second-largest economy probably grew 4.7% from a year earlier, compared with 4.5% in the prior quarter, according to a Bloomberg surveyArgentina and LebanonArgentina Economy Minister Martin Guzman and International Monetary Fund Managing Director Kristalina Georgieva discussed plans for a “secure and orderly resolution” of Argentina’s debt situation, the IMF said on SaturdayThe nation will probably release December data that show wages once again rose less than inflation, according to Bloomberg EconomicsLebanon was downgraded deeper into junk by two of the three biggest credit-rating companies Friday. The moves capped a week for Lebanon in which a bank run intensified, the World Bank warned of “implosion” and the yield on the government’s Eurobonds maturing next month surpassed 1,000%“Investors are following the situation in Argentina and Lebanon for clues about potential debt restructurings,” said Faergemann at PineBridge. “We don’t expect any serious contagion to other markets from the events in Argentina and Lebanon”Turkey GDP, Mexico InflationThailand reported on Monday January exports rose 3.4% from a year earlierSouth Korea will unveil January industrial production statistics on FridayEconomic growth in Nigeria probably slowed to 2.2% year-on-year in the fourth quarter, from 2.3%, according to the median estimate in a Bloomberg survey. The data may be released on MondayTurkey’s economic growth accelerated to 5% year-on-year in the fourth quarter, from 0.9%, as interest rate cuts and a weakening currency helped fuel output, according the median estimate of economists in a Bloomberg survey. The data are due FridayNorway’s sovereign wealth fund, the world’s biggest, publishes its annual report on Thursday. The fund said less than a year ago it got the go-ahead to cut government and corporate bonds from emerging markets in an overhaul of its fixed-income holdingsMexico’s central bank will release its quarterly inflation report on Wednesday and meeting minutes on Thursday, which may shed light on its economic health and future policy stance. Final fourth-quarter GDP figures are expected to be released on Tuesday. Bloomberg Economics expects a wider than initially estimated contractionBrazil’s week is shortened by the Carnival holiday, with markets resuming trading on Wednesday afternoon. Investors will look for January primary budget balance data on FridayChilean unemployment, copper production and retail sales figures on Friday will inform investors weighing the risks of a constitutional referendum in April\--With assistance from Karl Lester M. Yap, Aline Oyamada and Tomoko Yamazaki.To contact the reporters on this story: Netty Ismail in Dubai at email@example.com;Lilian Karunungan in Singapore at firstname.lastname@example.org;Robert Brand in Cape Town at email@example.com;Sydney Maki in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Alex Nicholson at email@example.com, Justin Carrigan, Paul WallaceFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today that Linda S. Huber, Chief Financial Officer, will present at the Raymond James & Associates’ 41st Annual Institutional Investors Conference in Orlando, Florida on Monday, March 2, 2020 at 09:15 AM EST.
MSCI Inc. (NYSE:MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today that it priced its private offering of $400.0 million aggregate principal amount of 3.625% senior unsecured notes due 2030 (the "notes") at an issue price of 100.0% to yield 3.625% (the "Offering"). Interest on the notes will be 3.625%, and will be payable in cash semi-annually, beginning on September 1, 2020. The Offering is expected to settle on March 4, 2020, subject to customary closing conditions. MSCI intends to use the net proceeds from the Offering to redeem the remaining $300.0 million aggregate principal amount outstanding on its 5.250% senior unsecured notes due 2024 (the "2024 Notes"), including related redemption costs, and for general corporate purposes, including, without limitation, repurchases of its common stock and potential investments and acquisitions. The notes will be senior unsecured obligations of MSCI and will be guaranteed by MSCI and certain of its domestic subsidiaries. This press release does not constitute a notice of redemption with respect to the 2024 Notes.
MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today that it intends to issue $400.0 million aggregate principal amount of senior unsecured notes due 2030 (the "notes") in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The proposed offering is subject to market and other conditions. If the offering is successfully placed, MSCI intends to use the net proceeds from the offering to redeem the remaining $300.0 million aggregate principal amount outstanding on its 5.250% senior unsecured notes due 2024 (the "2024 Notes"), including related redemption costs, and for general corporate purposes, including, without limitation, repurchases of its common stock and potential investments and acquisitions. The notes will be senior unsecured obligations of MSCI and will be guaranteed by MSCI and certain of its domestic subsidiaries. This press release does not constitute a notice of redemption with respect to the 2024 Notes.
(Bloomberg) -- Follow Bloomberg on Telegram for all the investment news and analysis you need.Responsible investing is going to be big -- so much so that MSCI Inc. expects its ESG indexes to eventually get more following than its traditional benchmark offerings.The index provider already has about 1,000 equity and fixed-income gauges that measure companies and governments against 37 issues related to environmental, social and governance investing. Think themes such as Catholic or Islamic values, women’s leadership and low-carbon target.Remy Briand, head of ESG at MSCI, sees more money tracking such benchmarks than the market-value weighted ones “over time.” For starters, assets under management following the company’s ESG gauges will likely double in 2020, continuing last year’s trend, he said in a phone interview.“Do-good” investing has picked up globally, with at least $30.7 trillion held in sustainable or green investments in 2018, according to the Global Sustainable Investment Alliance. This has proved to be a lucrative business opportunity for index providers, with MSCI’s ESG benchmark revenue likely growing between 60% and 65% to $38 million in 2019, according to Morningstar Inc. analyst Colin Plunkett. Its operating revenue for the overall index business was $921 million last year, up 10% from 2018, MSCI said Jan. 30.Several studies have shown that more sustainable companies tend to outperform over the long term. The MSCI ACWI ESG Leaders Index surged 52% in the past five years, beating the 39% advance in the MSCI All-Country World Index. Tech and finance shares have the biggest weightings in both, accounting for more than a third of the gauges.Index compilers typically make money by providing investment firms with access to data and licensing benchmarks for the creation of financial products. MSCI also offers an ESG ratings system and research on the subject to help active managers build their portfolios.To be sure, a common issue with socially and environmentally conscious investing is the so-called greenwashing by companies using misleading labels or advertising to create an illusion of environmental responsibility. Asset managers such as BlackRock Inc. have faced activist ire for not doing enough, and hedge funds have been slow to adopt the strategies, citing inconsistent data and a shortage of expertise.While it may take decades to overtake the traditional indexes, “my personal view is the shift to ESG is going to happen much more quickly than most people would expect” because adoption is accelerating at a “surprising” pace, according to Briand.Interest from European and American wealth-management firms is on the rise, while take-up of ESG indexes among Asia-headquartered private banks has been slower, he said, adding that between 80% and 90% of the assets under management tracking MSCI indexes still follow its market-value-based gauges. Revenue for the firm’s sustainable-investing gauges could grow by 35% to 40% annually in the next five years, Morningstar’s Plunkett estimated.Briand said MSCI is now diversifying sources for sustainability-related information to go beyond company disclosures to proxies such as government fines, product reports and news coverage. About 45% of the input that goes into the ratings is not coming from company disclosures, according to him.So far, the company’s strategy has worked: MSCI shares surged 75% last year, compared with a 29% gain in the S&P 500 Index.“We cannot spend enough on ESG,” MSCI Chairman and CEO Henry Fernandez said in an earnings call last year.(Updates moves in fifth paragraph, adds estimates in ninth and stock performance in 11th)To contact the reporters on this story: Ishika Mookerjee in Singapore at firstname.lastname@example.org;Abhishek Vishnoi in Singapore at email@example.comTo contact the editors responsible for this story: Lianting Tu at firstname.lastname@example.org, Cecile VannucciFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, announced today the results of the February 2020 Quarterly Index Review for the MSCI Equity Indexes - including the MSCI Global Standard, MSCI Global Small Cap and MSCI Micro Cap Indexes, the MSCI Global Value and Growth Indexes, the MSCI Frontier Markets, and MSCI Frontier Markets Small Cap Indexes, the MSCI Global Islamic and MSCI Global Islamic Small Cap Indexes, the MSCI Pan-Euro and MSCI Euro Indexes, the MSCI US Equity Indexes, the MSCI US REIT Index, the MSCI China A Onshore indexes and the MSCI China All Shares Indexes. All changes will be implemented as of the close of February 28, 2020. These changes have been posted on the Index Review web page on MSCI's web site at https://www.msci.com/index-review.
Bloomberg and MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, today announced the expansion of the Bloomberg Barclays MSCI ESG Fixed Income Index suite with the global launch of nine environmental, social and governance (ESG) high yield indices.
Out Leadership, the oldest and largest coalition of global companies working to improve LGBT+ equality in the world, is delighted to welcome MSCI Inc. (NYSE:MSCI) as our first new member firm of 2020. MSCI joins an illustrious and influential group of 76 member companies that span industries such as global banking, investment management, private equity, business advisory, media, manufacturing and more.
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.China’s expanding links to the global financial system means it’s harder than ever for the nation to keep its own troubles from spilling over to the rest of the world.A deadly virus outbreak has shattered optimism in the world’s second-largest stock market, creating the biggest price swings in four years. Authorities stepped in to stem the panic, banning some brokerages from net selling equities and injecting a net 550 billion yuan ($79 billion) of liquidity in two days as markets reopened after an extended halt.Index inclusion and fewer restrictions for foreign investors are creating new channels for moves in China’s markets to resonate globally. This week’s measures from Beijing helped soothe nerves, avoiding the kind of global meltdown triggered by the yuan devaluation in 2015 and a liquidity-driven crisis in 2016.Read how the coronavirus has worsened the outlook for Chinese defaults in 2020But the central bank won’t be pumping cash into the banking system forever -- it actually skipped open-market operations Thursday after withdrawing funds the previous day. China also risks the ire of global investors if it restricts the selling of shares for much longer. Below is a look at how China’s capital markets are connected to the outside world like never before.Size and scaleThe world’s most populous nation is gaining a bigger share of global benchmarks tracked by many investors. Stoked by the nation’s economic rise, Chinese shares comprise about a third of the stocks on MSCI Inc.’s Asia ex-Japan gauge. The Bloomberg Barclays Global Aggregate Index of bonds has started including Chinese debt, which will this year account for about 6% of the more than $50 trillion in bonds included in the benchmark.Read why the SARS comparisons don’t work for marketsGlobal equity markets are moving increasingly in lockstep with China’s: the 30-day correlation between the Shanghai Composite Index and the MSCI Asia ex Japan Index is near the highest since August. The possibility for the Shanghai gauge to move in the same direction with the S&P 500 Index is at a one-month high.Foreign exposureBeijing is also allowing foreigners to hold more Chinese assets. Last year, it scrapped limits on overseas purchases of stocks and bonds and said global funds no longer needed approvals for quotas. Through initiatives such as the stock link with Hong Kong, international investors now own about 3% of the onshore equity market. Foreigners only hold about 2% of the world’s second-largest bond market, but are steadily building their positions to records.MSCI Inc. in November completed its latest round of inclusion of yuan-denominated equities, increasing the weighting of the stocks to 12% of its benchmark China index.Investors outside the mainland have taken advantage of the sell-off in China. They bought a net 18.2 billion yuan of shares via Hong Kong’s links with mainland exchanges on Monday even as onshore stocks fell the most since 2015.Overseas listingBut with many Chinese companies listed abroad, in particularly Hong Kong and New York, the virus outbreak has directly impacted offshore markets. About half the companies in Hong Kong’s Hang Seng Index generate most of their revenue from the mainland. The Singapore bourse also houses almost 50 Chinese companies.Investors will now likely have to cope with a delay on financial updates from Chinese companies as work and travel restrictions make it hard to finish accounting. But even worse will be the earnings pressure from the spreading virus, with large parts of China’s economy shut down. The impact on non-financial companies’ first-quarter earnings could be 20 to 30 percentage points, according to brokerage China International Capital Corp.Investors are betting that China will be able to contain the spread and prevent a global market meltdown.“We believe that a broad-based correction should be relatively short-lived with a more effective virus containment policy,” said Ronald Chan, chief investment officer Asia ex-Japan at Manulife Asset Management, referring to the global market.Yuan politicsWhile the Chinese yuan is far from being a global currency -- and its internationalization hasn’t taken off as expected -- China’s large role in global trade means its exchange rate is closely watched. The currency has been a key point of contention for the Trump administration -- the recently signed phase-one trade deal between the U.S. and China included a currency pact to avoid manipulation.The yuan’s volatility last year jolted emerging market Asia peers, such as the Korean won and Malaysian ringgit. China’s central bank has this week set the yuan’s daily reference rate stronger than 7 per dollar -- all eyes are on whether it will allow market forces to weaken the currency much further.(Adds details on Thursday’s open market operations in fourth paragraph)To contact the reporters on this story: Jeanny Yu in Hong Kong at email@example.com;Livia Yap in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Sofia Horta e Costa at email@example.com, Jonas BergmanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MSCI Inc. (NYSE:MSCI), a leading provider of research-based indexes and analytics, will announce the results of the February 2020 Quarterly Index Review for the MSCI Equity Indexes - including the MSCI Global Standard, MSCI Global Small Cap and MSCI Micro Cap Indexes, the MSCI Global Value and Growth Indexes, the MSCI Frontier Markets, and MSCI Frontier Markets Small Cap Indexes, the MSCI Global Islamic and MSCI Global Islamic Small Cap Indexes, the MSCI Pan-Euro and MSCI Euro Indexes, the MSCI US Equity Indexes, the MSCI US REIT Index, the MSCI China A Onshore indexes and the MSCI China All Shares Indexes. All changes will be made as of the close of February 28, 2020.
MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, has today launched a solution to help investors assess their exposure to climate related risks and opportunities.
MSCI Inc. ("MSCI" or the "Company") (NYSE:MSCI), a leading provider of critical decision support tools and services for the global investment community, published a management presentation for investors on its website, ir.msci.com, on Tuesday, February 4, 2020. This presentation reflects certain information regarding the Company's results for the three months and fiscal year ended December 31, 2019. The Company’s management may use this presentation during meetings with investors.
The Zacks Analyst Blog Highlights: PulteGroup, Rollins, D.R. Horton, L3Harris Technologies and MSCI
Despite severe market fluctuations, a closer look at the S&P 500 Index reveals that a bunch of of stocks provided double-digit returns in January.
It's been a good week for MSCI Inc. (NYSE:MSCI) shareholders, because the company has just released its latest annual...
(Bloomberg Opinion) -- When Sleeping Beauty pricked her finger on a spinning wheel, the rest of the kingdom went to sleep along with her.Not so in China. As an epidemic rages, many provinces have extended their Lunar New Year holiday by weeks, but financial markets – from commodities and stock exchanges to bond clearing houses – will resume operating Monday. The Hong Kong Stock Exchange has been in business since Wednesday.This creates a problem for investors: With China’s real economy practically shut down, they don’t know how to trade or position themselves. That could make things more volatile.Consider how this is playing out in the hardware supply chain. Until recently, this sector was a shining star, as investors bet that consumers would rush to buy 5G phones later this year. The coronavirus outbreak has completely changed the calculus. In the smartphone-manufacturing provinces of Zhejiang and Guangdong, the government has forced employees to stay home until Feb. 10. More delays could be coming; these two areas are the hardest-hit after Hubei, the epicenter of the virus. How can smartphone makers and their suppliers fill demand – if there is any – when factories are closed?And then there’s the trouble of earnings reports. While the U.S. market is getting propped up by solid corporate profits from the likes of Amazon.com Inc., we may not see anything out of China for weeks, if not months. Because of strict travel restrictions, auditors may not be able to visit company sites and do their work. The Hong Kong bourse, which hosts more than 1,000 mainland companies, may have to extend the March 31 deadline for 2019 reports.That leaves investors only with broad-brush data on the outbreak. Depending on their mood, those reports can be read as glass half-full or half-empty. For example, the number of new patients in Hubei has been roughly steady for three consecutive days. Optimists could see that as evidence of China’s bureaucratic machine effectively controlling the disease, while pessimists might say this is proof of underreporting. Diagnosis tool kits are in short supply, so conceivably, thousands of infected people are just waiting to be tested positive.You might ask why China is willing to open its financial markets so soon, with businesses closed and factories quiet. To its credit, Beijing has learned a thing or two after the stock rout of 2015, when it put indefinite trading halts on as many as half of mainland-listed firms. In a stroke, public markets were practically transformed into a private one. Not only did that sour investor appetite, it also delayed MSCI Inc.’s decision to include A-shares in its well-tracked indexes. So we’re unlikely to see a repeat performance, even if bureaucrats do conduct window guidance now and then to stem a selloff.Compared with the SARS epidemic, whose spread was dangerously underreported, China has vastly improved its communication strategy. It now releases updates of confirmed cases twice daily.Beijing is left with few good options, with a viable vaccine possibly months or even years away. Still, the government can do more to improve transparency. It could, for instance, open up its medical-supply database so the public can assess the severity of test-kit shortages for itself. China also needs to prove its bureaucratic apparatus works – and a lot more urgently than in 2003, when the economy was operating at full steam. Until then, we’re left with wild guessing games.To contact the author of this story: Shuli Ren at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Concerns that the recent slide in global stocks could mark the beginning of a bear market are misplaced, and investors should keep buying on dips, according to Citigroup Inc.Global equities should still rise 4% this year, in line with forecast earnings growth, so any further declines in prices would make expected returns more attractive, wrote strategists including Robert Buckland in a note Thursday. The MSCI AC World Index by Friday had practically erased its 2020 rise on fears about the spreading coronavirus.“As markets fall so our targets are starting to look more interesting,” the strategists wrote. “The bigger the dip over the next few weeks, the more interested we would get.”Global stocks have been under pressure since the seriousness of the epidemic became clear early last week, while havens from Treasuries to gold have rallied. The MSCI Inc. world benchmark has fallen about 2.3% since Jan. 20, with the MSCI Asia Pacific Index down about 5% over the same period.Experience from the 2003 SARS outbreak suggests equities, particularly in Asia, will keep declining until coronavirus infections stabilize, with cyclical sectors most vulnerable, the strategists said.Still, the number of “red flags” on Citigroup’s “Bear Market Checklist” of 18 warning signs for the global stock market is too low to expect a severe sell-off, they added.“Five out of 18 just isn’t enough for us to stop recommending that investors should keep buying the dips,” they wrote. “We don’t need all 18 to turn red to finally turn bearish, but we certainly need more than 5.”To contact the reporter on this story: Cormac Mullen in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Joanna OssingerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Peru’s capital markets are drying up and the drop-off in trading is leaving the country at risk of losing its coveted emerging-market status with a downgrade to frontier.Equity trading on the stock exchange has tumbled 41% since 2012 to $3.6 billion last year, a pittance compared with regional peers such as Colombia and Chile. While the currency and corporate bond markets are somewhat more active, they also suffer from a dearth of volume.It’s a sensitive subject for Claudia Cooper, who’s entering her second year as head of the Lima Stock Exchange with a mandate to turn things around. She’d prefer to talk about the surge in so-called factor investing at the local bourse, or the efforts undertaken to make it easier for real estate investment trusts to list shares. But when pressed, she acknowledges the overwhelming concern that a lack of trading will compel MSCI Inc. to reclassify Peru as a periphery country, potentially taking out billions of dollars of investment.The problem, Cooper and most observers agree, is that Peru’s capital markets are dominated by four pension funds holding a total of 172 billion soles ($51 billion) in assets, 11% of which is invested in Peruvian equities. The funds, known locally as AFPs, ensure strong demand for any bond or stock listing, but because they tend to buy-and-hold, they crush volume. Habitat, Integra, Prima and Profuturo are the largest.A case in point is Banco Internacional del Peru SAA, or Interbank, whose parent Intercorp Financial Services Inc., listed on the New York Stock Exchange in July and now has a $4.8 billion market cap. Intercorp shares that trade in Lima changed hands only 1,868 times last year, and Interbank, its main subsidiary, saw just 194 trades.With as much as 60% of the shares listed on the Lima exchange sitting on the books of pension funds, it’s hard to get other money managers interested in the market, especially foreigners who need some volatility in prices to find good entry and exit points for their investments. The benchmark S&P/BVL Peru General Index has fallen a little less than 1% in the past year, while MSCI’s Emerging Market Index has returned more than 6% in that span.Cooper argued in an interview in the Peruvian capital that the pension funds also ultimately hurt issuers by suppressing the trading that would be needed to bring about higher prices and greater market values. There hasn’t been a new IPO for a company locally since 2012.The Lima Stock Exchange is looking at solutions.Among them is a plan to tap firms similar to BlackRock Inc. to structure new long-only equity funds. The idea is that the AFPs would invest in these funds, which would have a mandate to trade the shares actively. AFPs already invest in funds to buy foreign stocks and local bonds, but don’t have a similar structure for Peruvian equities.Cooper, a 51-year-old former finance minister, called the AFPs “whales in the pool” and said at the rate they’re growing the country will have to loosen restrictions on how much of their portfolios can be invested abroad or risk the possibility they’ll simply run out of options in Peru.Solving the liquidity problem is of paramount importance because of the threat that MSCI could downgrade Peru to frontier status -- joining countries such as Vietnam and Nigeria -- from its current status as an emerging market. Investors with $12.3 trillion in assets track MSCI indexes, so the classification is critical to the country.For now, Peru meets the basic requirements to keep its status, but only by a hair. In June, MSCI officials said that they could start the process to reclassify Peru as a frontier market if it falls short of having three stocks that qualify for the emerging-market index. At the moment, it has: Compania de Minas Buenaventura SAA, Credicorp Ltd. and Southern Copper Corp. A delisting of one would almost overnight set up Peru for reclassification, and even just a sufficiently big drop in volume could send it over the edge.The exchange’s proposal to create equity funds for AFPs to invest in has met resistance from the industry, which sees the moribund trading volumes as primarily a problem for the bourse, not for funds or their clients. They also have reservations about outsourcing the management of assets to a third party when they’ve been doing it themselves for years.“We’d have to be able to justify handing over the management of shares to someone else, and with a commission on top,” Jean Pierre Fournier, the deputy head of investments at AFP Integra, Peru’s biggest pension fund.Fournier said he’d be more interested in hiring a fund to invest in assets such as small-cap stocks or private bonds, which AFPs are currently unable to purchase.“We’re open to listening, but the main challenge is demonstrating how this vehicle can create value for our clients,” Fournier said by phone from Lima. “Whether there’s liquidity or not is a structural problem. The AFPs and their investment teams’ top priority is generating returns for their clients. Liquidity is a second-tier objective.”Cooper and her deputy chief executive, Miguel Angel Zapatero, who previously structured equity funds for BlackRock and Barclays Plc, don’t see it that way. They’re desperate to get more companies onto the MSCI index by helping facilitate share sales and freeing up liquidity. Intercorp and Ferreycorp SAA are among the companies best placed to join the index, they said.“The pension funds need to be persuaded that if they want to remain in this country, they need to create some sort of viability for the local capital markets,” Cooper said. “Their survival depends on it.”(Adds stock index performance in sixth paragraph)\--With assistance from Sydney Maki.To contact the reporters on this story: John Quigley in Lima at firstname.lastname@example.org;Daniel Cancel in Sao Paulo at email@example.comTo contact the editors responsible for this story: Juan Pablo Spinetto at firstname.lastname@example.org, Brendan Walsh, Joanna OssingerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MSCI (MSCI) delivered earnings and revenue surprises of 2.45% and 0.71%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today that Paula Volent and Sandy C. Rattray have been appointed to serve as independent directors of MSCI’s Board of Directors (the "Board"). Their appointments will be effective February 26, 2020. These appointments increase the Board from ten to twelve directors.
MSCI Inc. ("MSCI" or the "Company") (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today the financial results for the three months ended December 31, 2019 ("fourth quarter 2019") and twelve months ended December 31, 2019 ("full-year 2019").