Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Equity Bottom-Up

<ul><li class="p1">The Federal Public Prosecution Service in Brazil is seeking USD 43 billion in compensation from Samarco, Vale, and BHP Billiton for the Samarco tailings dam failure.</li><li class="p1">If successful with the full amount, a worst case that we think highly improbable, BHP Billiton's share of the damages would equate to USD 21.5 billion or AUD 5.35 per share.</li><li class="p1">We think the claim is opportunistic and unlikely to be resolved at an amount anywhere near as large as the headline figure suggests.....</li></ul>Analysts: Mathew Hodge &amp; David Wang

The Federal Public Prosecution Service in Brazil is seeking USD 43 billion in compensation from Samarco, Vale, and BHP Billiton for the Samarco tailings dam failure.If successful with the full amount, a worst case that we think highly improbable, BHP Billiton's share of the damages would equate to USD 21.5 billion or AUD 5.35 per share.We think the claim is opportunistic and unlikely to be resolved at an amount anywhere near as large as the headline figure suggests.....Analysts: Mathew Hodge &amp; David Wang

Ambitious Lawsuit Against Samarco and BHP Billiton

Temporary tightness should abate as demand falters and supply surges.<ul><li class="p1">Iron ore prices have surged to $69 per tonne, up 23% from last week and continuing their recent upward trend from a bottom of $37 per tonne in December.</li><li class="p1">Leveraged mining stocks are also up by double-digit levels this week, having already more than doubled since February.</li><li class="p1">We think this rally is unsustainable, as it is based on short-lived demand measures and near-term supply disruptions.</li><li class="p1">As temporary tightness in the market abates, iron ore prices should fall by more than half to $30 per tonne in the long term, driven by falling Chinese steel demand and rising scrap availability.</li></ul>Analysts: David Wang, Daniel Rohr and Mathew Hodge

Temporary tightness should abate as demand falters and supply surges.Iron ore prices have surged to $69 per tonne, up 23% from last week and continuing their recent upward trend from a bottom of $37 per tonne in December.Leveraged mining stocks are also up by double-digit levels this week, having already more than doubled since February.We think this rally is unsustainable, as it is based on short-lived demand measures and near-term supply disruptions.As temporary tightness in the market abates, iron ore prices should fall by more than half to $30 per tonne in the long term, driven by falling Chinese steel demand and rising scrap availability.Analysts: David Wang, Daniel Rohr and Mathew Hodge

Global Head of Research, Smartkarma

Mark Artherton

Global Head of Research

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
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More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Macroeconomics

<div class="content-highlight">The failure to use or the aggressive implementation of asset write downs in emerging markets and Asia will have far reaching implications for investors.</div> We live in a world where investors are uncertain about asset values both in financial and non-financial companies.  Whilst a lot is written about the nature of bad debts at banks, little has been comprehensively written about the balance sheets of non-financial companies.We see the following evidence in our analysis: <ul><li><div class="content-highlight">The failure of some…</div></li></ul>

The failure to use or the aggressive implementation of asset write downs in emerging markets and Asia will have far reaching implications for investors. We live in a world where investors are uncertain about asset values both in financial and non-financial companies.  Whilst a lot is written about the nature of bad debts at banks, little has been comprehensively written about the balance sheets of non-financial companies.We see the following evidence in our analysis: The failure of some…

FX Strategist

Greg Gibbs

Fundamental analysis of topical themes in FX

Amplifying Global FX Capital

Amplifying Global FX Capital was founded in 2015 and is fully owned by Greg Gibbs. It is a registered company both in Australia and Colorado, USA and is a licensed in Australia to provide financial services.

We are producing a regular trading view orientated macroeconomic analysis of topical themes in global financial markets, with a particular focus on foreign exchange. We invite you to view an “executive summary” of these reports in “AmpGFX Reports” under our “Research” menu.

These reports are drawn from the analysis of Greg Gibbs and inform the capital management he undertakes on behalf of the company. The trading performance is posted periodically on our website. We aim to build our company into both a research and capital management business. We are currently in the planning phase for managing capital for wholesale customers.

Greg Gibbs has spent his working life of more than 26 years in financial markets, beginning in 1989 at the Reserve Bank of Australia, after completing a Bachelor of Economics Degree (Honours) at the Australian National University. He has been a CFA Charterholder since 2005. He has worked in Sydney, Singapore, New York and London for major global banks and presented on foreign exchange markets to major financial institutions and companies around the world, and maintained a high profile in the financial media.

Before Amplifying Global FX Capital, Greg was the Head of Asia Pacific Market Strategy at the Royal Bank of Scotland based Singapore. He now resides in Breckenridge Colorado.

Domestic Australian factors are being overshadowed by global developments.  These global drivers account for both its rapid rebound over the last month and its significant correction in recent days.  Throughout this move we have been skeptical that the AUD can sustain its rally with significant local political and economic uncertainty.  These risks remain and continue to make it difficult to hold long AUD positions.  On the other hand, political and economic uncertainty in many alternative currencies are equally troubling. In Australia, economic momentum picked up in 2015, but has been more mixed in 2016.  The housing market is starting to ebb from strong levels, political risks remain elevated, bank equity performance has been weak, potentially a drag on confidence.  However, Global drivers remain in control, and while uncertainty is elevated in Australia, it is not clear that it will be sufficient to throw the Australian economy off course.  The RBA Statement continued to express a steady policy outlook albeit with an easing bias.

Domestic Australian factors are being overshadowed by global developments.  These global drivers account for both its rapid rebound over the last month and its significant correction in recent days.  Throughout this move we have been skeptical that the AUD can sustain its rally with significant local political and economic uncertainty.  These risks remain and continue to make it difficult to hold long AUD positions.  On the other hand, political and economic uncertainty in many alternative currencies are equally troubling. In Australia, economic momentum picked up in 2015, but has been more mixed in 2016.  The housing market is starting to ebb from strong levels, political risks remain elevated, bank equity performance has been weak, potentially a drag on confidence.  However, Global drivers remain in control, and while uncertainty is elevated in Australia, it is not clear that it will be sufficient to throw the Australian economy off course.  The RBA Statement continued to express a steady policy outlook albeit with an easing bias.

AmpGFX - AUD in No Man's Land, Political and Economic Risks Remain Elevated

Global markets and investor confidence have reached an inflection point.  They have recovered from the extreme bearishness in the early months of the year supported by significant further monetary policy easing, cooperation among oil-producing nations, a sense that Chinese policymakers are working harder to underpin growth and stabilize its capital markets, and ECB efforts to mitigate the dampening effects of its negative rate policy on bank profits.  However, last week, global asset markets retreated after bumping up against down-trends established over the last year. Investors are worried that global growth and potential earnings remain tepid, that structural problems in emerging markets and over-supplied commodity markets remain. They may be concerned by the prospect of a return to monetary policy tightening in the US, the lingering doubts over bank profitability and loan quality, and limited further space to ease monetary and fiscal policy if required.  The outlook for US monetary policy will be important and key events this week will be watched closely.  We see the wages data at end week particularly important in the wake of a benign wage growth outlook in the 16 March FOMC meeting.

Global markets and investor confidence have reached an inflection point.  They have recovered from the extreme bearishness in the early months of the year supported by significant further monetary policy easing, cooperation among oil-producing nations, a sense that Chinese policymakers are working harder to underpin growth and stabilize its capital markets, and ECB efforts to mitigate the dampening effects of its negative rate policy on bank profits.  However, last week, global asset markets retreated after bumping up against down-trends established over the last year. Investors are worried that global growth and potential earnings remain tepid, that structural problems in emerging markets and over-supplied commodity markets remain. They may be concerned by the prospect of a return to monetary policy tightening in the US, the lingering doubts over bank profitability and loan quality, and limited further space to ease monetary and fiscal policy if required.  The outlook for US monetary policy will be important and key events this week will be watched closely.  We see the wages data at end week particularly important in the wake of a benign wage growth outlook in the 16 March FOMC meeting.

AmpGFX - US Wages Data a Potential Flash Point, Global Markets Inflection Point

Australia

BHP Billiton Limited is an international resources company.  The Company's principal business lines are mineral exploration and production, including coal, iron ore, gold, titanium, ferroalloys, nickel and copper concentrate, as well as petroleum exploration, production, and refining.  Dually-listed company with BLT LN.

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BHP Group Ltd (BHP US)

Ambitious Lawsuit Against Samarco and BHP Billiton

The Federal Public Prosecution Service in Brazil is seeking USD 43 billion in compensation from Samarco, Vale, and BHP Billiton for the Samarco...

Morningstar, Inc.

Iron Ore Rally Unsustainable

Temporary tightness should abate as demand falters and supply surges. Iron ore prices have surged to $69 per tonne, up 23% from last week and...

Morningstar, Inc.

Beware Impairments in EM and Asia

The failure to use or the aggressive implementation of asset write downs in emerging markets and Asia will have far reaching implications for...

Mark Artherton

AmpGFX - AUD in No Man's Land, Political and Economic Risks Remain Elevated

Domestic Australian factors are being overshadowed by global developments. These global drivers account for both its rapid rebound over the last...

Greg Gibbs

AmpGFX - US Wages Data a Potential Flash Point, Global Markets Inflection Point

Global markets and investor confidence have reached an inflection point. They have recovered from the extreme bearishness in the early months of...

Greg Gibbs

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