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Three Key Drivers To BNY Mellon's $27 Stock Value
June 5, 2012--BNY Mellon is the world's largest custodian bank with $26.6 trillion worth of assets under custody and management. JP Morgan Chase and State Street are its nearest competitors managing assets worth $25.2 trillion and $23.2 trillion respectively.
As we briefly discussed in our article Understanding Banks: Types & Functions, custody banks manage assets for other financial institutions – generally broken down into investment servicing and investment management services. In this article, we detail the functions that contribute the most to BNY Mellon’s value.
May 2012 Commodities Commentary: Dow Jones-UBS Commodity Indexes Down On Global Economic Uncertainty
June 5, 2012--The Dow Jones-UBS Commodity Index was down 9.14% for the month of May, with some commodities striking multi-year lows as investors focused on the strong U.S. dollar and economic uncertainty in Europe and China.
Moody’s Investor Service cut the ratings of 16 banks in Spain. Fitch Ratings also downgraded Greece’s credit. A new election in Greece on June 17 offers no guarantee of a viable government able to implement an EU-IMF bailout that has roiled the country.
The three most significant downside performing single commodity indexes were orange juice, cotton and WT1 crude oil, which ended the month down 21.01%, 19.97% and 17.79% respectively.
Redefining the Emerging Market Opportunity: Driving Growth through Financial Services Innovation
June 5, 2012--Redefining the Emerging Market Opportunity: Driving Growth through Financial Services Innovation reveals how global competition in financial services has been transformed by the rapid growth of emerging economies, which are now the leading source of the industry's long-term business prosperity.
The Report, produced in collaboration with The Boston Consulting Group, documents how innovative emerging-market financial companies have vaulted into the ranks of top-performing, world-class providers. They now dominate the list of financial companies providing the highest shareholder returns.
Financial providers worldwide, the study says, should regard developing economies as a historic opening to provide new financial services to low-income populations rapidly transitioning to middle-income status, as well as to regional companies evolving to world-class competitors. The study shows that the most significant opportunities lie in three sectors: consumer financial services, small- and medium-sized enterprise financing, and corporate bonds. The Report, accompanied by 33 real-world case studies, documents why innovation of business models, financial products and services – rather than simple capacity-building – will be the main driver of success in emerging markets.
WEF-International Monetary Stability Key for Maintaining Global Growth Says New Report
A new World Economic Forum report examines key challenges for the euro, dollar and yuan and their implications for global growth, investment and business environments.
International monetary stability is at risk due to uncertain future international roles of these currencies, while policy choices within each currency area could radically alter global patterns of trade and capital movement.
June 5, 2012--Growing instability in the international monetary system could significantly affect economic growth, investment and business environments, according to a new report, Euro, Dollar, Yuan Uncertainties: Scenarios on the Future of the International Monetary System, launched today at the World Economic Forum on the Middle East, North Africa and Eurasia in Istanbul.
The report explores the critical uncertainties underlying the future international roles of the euro, the dollar and the yuan – the world’s three major currencies – and posits three scenarios for the international monetary system in 2030 based on policy choices in each currency area.
"Currency uncertainties are an increasing concern for businesses from the real economy due to the rapid integration of global trade and capital flows over the past decades. This has made the links that connect different parts of the world economy ever more central to global prosperity while at the same time making the international monetary system, as well as the main international currencies that underpin this system, more vulnerable," said Kristel Van der Elst, Director and Head of Strategic Foresight at the World Economic Forum.
"It is clear that studying possible evolutionary paths of the international monetary system has moved out of the realm of academic discussion and into the real world in a way financial services providers cannot afford to ignore" said Christopher Harvey, Global Head of Banking and Securities at Deloitte Touche Tohmatsu Limited, a Partner of the World Economic Forum initiative.
Component Changes Made to Dow Jones Islamic Market China/Hong Kong Titans 30 Index
May 5, 2012-- Dow Jones Indexes, a leading global index provider, today announced that Hong Kong's Alibaba.com Limited will be removed from the Dow Jones Islamic Market China/Hong Kong Titans 30 Index due to its acquisition by Alibaba Group Holding Limited.
Alibaba.com Limited will be replaced by Brilliance China Automotive Holdings Limited. Headquartered in Shenyang, China, Brilliance China Automotive Holdings Ltd. is engaged in manufacture and sale of minibuses and automotive components.
The changes in the Dow Jones Islamic Market China/Hong Kong Titans 30 Index will be effective as of the open of trading on Friday, June 8, 2012.
The Dow Jones Islamic Market China/Hong Kong Titans 30 Index measures the performance of the 30 largest companies whose primary operations are in mainland China and Hong Kong but whose stocks trade on the Stock Exchange of Hong Kong. The components of the index must pass rules-based screens for Shari`ah compliance.
Company additions to and deletions from the Dow Jones Islamic Market China/Hong Kong Titans 30 Index do not in any way reflect an opinion on the investment merits of the company.
Dow Jones Islamic Market Titans 100 Index Closed Down 8.04% In May
Index Measures Performance Of 100 Of World's Leading Shari'ah-Compliant Stocks -Dow Jones Islamic Market Asia/Pacific Titans 25 Index, Dow Jones Islamic Market Europe Titans 25 Index End May In Negative Territory - Dow Jones Islamic Market U.S. Titans 50 Index Lose 6.08%
June 5, 2012--The Dow Jones Islamic Market Titans 100 Index finished May down 8.04%, according to data compiled by Dow Jones Indexes. The index measures the performance of 100 of the world's leading Shari'ah-compliant stocks.
The Dow Jones Global Titans 50 Index, which measures the world’s 50 largest companies, posted a May loss of 7.76%.
Regionally, the Dow Jones Islamic Market Asia/Pacific Titans 25 Index, which measures the performance of 25 of the leading Shari’ah-compliant stocks in the Asia/Pacific region, decreased 10.92% in May; the Dow Jones Asian Titans 50 Index dropped 10.95%.
In Europe, the Dow Jones Islamic Market Europe Titans 25 Index, which measures the performance of the 25 the leading Shari’ah-compliant stocks in Europe, dropped 12.43% in May; the Dow Jones Europe Titans 80 Index, which measures the performance of 80 blue-chip stocks traded in the developed markets of Europe, declined 12.90%.
G7 to hold emergency euro zone talks, Spain top concern
Canada says G7 to hold conference call on euro zone
G7 source says concern about possible Spanish bank run
Germany says up to Spain to decide if needs aid
Brazil says G20 to press Germany to stimulate economy
June 5, 2012--Finance chiefs of the Group of Seven leading industrialised powers will hold emergency talks on the euro zone debt crisis on Tuesday
in a sign of heightened global alarm about the threat posed by strains inside the 17-nation monetary union.
With Greece, Ireland and Portugal all under international bailout programmes, financial markets are anxious about the risks from a Spanish banking crisis and fret a Greek election on June 17 could lead Athens to leave the single currency and precipitate yet more economic turbulence.
DCGX Academy-BIS RAISES ALARM -US Employment, Chinese Manufacturing Decline as Euro hurts
June 4, 2012--HIGHLIGHTS
INDIAN Rupee
India's rupee was little changed against the U.S. dollar. Indicative bid prices for the rupee were at 55.5650 as of 9:04 a.m. in Mumbai versus 55.5800 the previous trading day, Offer prices were indicated at 55.5700 per dollar, versus 55.5900 the previous day
FOREIGN EXCHANGE
Shirakawa Bows to Yen Bulls as Intervention Fails on Euro Escape
Euro Falls as Debt Crisis Clash Increases Global Growth Concern
Aussie, N.Z. Dollars Fall as Shares Drop Before RBA Decision
Banks Cut Cross-Border Lending by Most Since Lehman, BIS Says
Banks Crimp Loss Leader Loans as Capital Rules Bite: Euro
BIS Says Europe's Debt Crisis Stoking Global Financial Turmoil
Asia Currencies Trade Near 20-Month Low on Global Growth Concern
BIS Says Asia Can Consider Currency Gains to Cap Reserve Growth
BoJ Governor Masaaki Shirakawa is being steamrolled by investors pushing the yen toward a post-World War II high against the dollar, negating his attempts to weaken the currency. After epreciating 10.4 % in the first quarter, the most since 1995, the yen is up 13.4 % since March, the best among 10 developed-nation currencies.
The euro declined versus the dollar as prospects European leaders won't be able to agree on how to resolve the region's debt crisis boosted concern global growth will slow. euro slid versus the yen before German Chancell meets fellow coalition leaders today after opposing joint debt sharing in the 17-nation euro bloc.
ETFS Precious Metals Weekly: Gold Price Rally Following Weak Payrolls Hints at What May Lie Ahead
June 4, 2012--Gold price breaks through $1,600/oz as weak payrolls numbers raises expectations of quantitative easing. It is interesting to note the
strong immediate positive reaction of the gold price to the weaker than
expected US May Nonfarm Payroll data (69K vs 150K expected) reported on
Friday.
In the first few hours after the report the gold price surged 5%,
breaking through the key barrier of $1600/oz. It appears that investors are
taking the view that weaker than expected US growth will cause the Fed to
move ahead with further quantitative easing (QE) (this view is supported by
comments by Fed Boston president on Friday highlighting the Fed’s mandate
to ensure full employment). Over the past few years the gold price has
tended to have a strong positive correlation to perceptions of potential US quantitative easing as gold is viewed as one of the few hedges against US dollar debasement (i.e. a fall in the real purchasing power of the US dollar).
If US growth slows further in the coming months, expectations of further quantitative easing will likely continue to rise, driving the gold price up with it. As Spanish CDS levels hit record levels, a balancing factor in the nearterm, is the risk of further Euro weakness if Europe does not quickly find a solution to its spreading sovereign/banking crisis. Ultimately, if US growth slows and further QE is implemented, gold should benefit.
World’s largest platinum mine recovers to 85% of production capacity. Implats owned Rustenberg platinum mine in South Africa has returned to 85% of its pre-strike capacity in May and is expected to reach full production in June, according to the company. Along with silver, platinum has been one of the weakest performing precious metal, dropping 10% over the past month. The absence of supply side production constraints, coupled with the generalised rise in risk aversion may constrain upside price potential in the near-term.
China re-introduces car subsidies for rural residents. Subdued activity in the Chinese auto market has prompted authorities to re-introduce subsidies for new car sales for rural residents. Initially introduced in March 2009, the previous round of subsidies helped bolster the auto market and was a key factor pushing China to surpass the US in terms of vehicle sales.
As most autos sold in China run on gasoline rather than diesel, continued robust China auto sales is particularly bullish for palladium, the main metal used in gasoline autocatalysts.
The week ahead. On the data front, Eurozone Q1 GDP will be the highlight, along with retail sales early in the week. It will also be interesting to gauge the Eurozone economic weakness on Germany via industrial production data. However, the key for commodities markets will be a raft of Chinese data scheduled for release at the back-end of the week, including CPI, industrial production and export figures.
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June 2012 Quarterly Review: returning doubts drive up financial market volatility
June 4, 2012--The optimism that followed the ECB's second LTRO has given way to doubts about global growth and the financial health of some euro area countries and banks.
In the fourth quarter of 2011, cross-border lending by internationally active banks fell by the largest amount since the end of 2008, with BIS reporting banks cutting claims on all regions.
Over the past decade, countercyclical macroeconomic policies have helped to stabilise emerging market economies. This represents a significant change from earlier procyclical policies that stoked economic volatility.
The history of the eurodollar market since the 1960s suggests that China's current account surplus need not hinder its currency's internationalisation.
The growth of central bank balance sheets in emerging Asia over the past decade has coincided with stable inflation and stable financial systems. But balance sheets have now reached a size that distorts markets and increases the risks of inflation and financial instability.