What's Interesting In Business News: Refinitiv, LSE, Small brokers, Fed rate cut, TAM, Mgmt oversight, Saudi stocks

August 5, 2019 #19

Financial market data grew 6.5% last year and is now a $30B market.

Data Boom Fuels London Stock Exchange’s Deal With Refinitiv

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Tough market for smaller brokers in the U.K.

Tough times for brokers as they face long list of challenges


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.

LSE Still Needs to Prove Logic of Buying Refinitiv



Two clear takes on the recent fed rate cut.

  1. Today’s Reckless, Irresponsible, Politically-Motivated FOMC Rate Cut

  2. 1 big thing: Jay Powell's constraints


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.

How’s Your TAM? And How Did ‘Total Addressable Market’ Become the Buzzword of the Moment?


I am consistently amazed at the amount of VC fundings going to robo-asset managers and “new” digital banks.


“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.”

US index funds less likely to hold companies to account, study finds


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.

Saudi stocks attract billions of dollars in inflows

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