What's Interesting In Business News: Refinitiv, LSE, Small brokers, Fed rate cut, TAM, Mgmt oversight, Saudi stocks
August 5, 2019 #19
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Financial market data grew 6.5% last year and is now a $30B market.
Tough market for smaller brokers in the U.K.
Financial engineering can move the stock price materially. But now the LSE is about to learn that turning around this legacy financial data business will not be easy. This is round 4 or 5 (or more?) of massive cost cutting and turnaround strategies in the past decade. Good luck Refinitiv.
Two clear takes on the recent fed rate cut.
One strategy public companies are taking to tell a bigger story is to talk up their TAM. A page out of the VC startup playbook. Nice writeup by Barron’s.
I am consistently amazed at the amount of VC fundings going to robo-asset managers and “new” digital banks.
Jerry Capital@JerryCap"Financial institutions can’t offer high rates on cash, because low rates on cash is how they make money. For robos, the opposite is true. An AUM based biz model for investments means offering a high interest rate account is a great complement to their business model."-h/t @a16z https://t.co/X21XVAIiuQ
“The research, which examined US equity mutual funds between 2004 and 2017, said index funds were overall 12.5 percentage points less likely to vote against company executives when compared with active funds.”
Saudi Arabia is now an emerging market according to MSCI and other index providers. Driving massive allocation to Saudi stocks.
But Saudi market index up only 6% over past 12 months. Surprised it’s not much higher.