Connect with us

Business

Investors doubt LSE buyout of Refinitiv

Avatar

Published

on


The stock markets offer a direct measure of buyer’s remorse. Nothing more than the London Stock Exchange Group, whose shares fell more than 25 percent after a record high in February.

A month earlier, LSE closed the $ 27 billion purchase of Refinitiv, a deal that was sold to investors as transformational. It was a speech familiar to all finance professionals – that automation and big data were making their way into all levels of decision-making.

Combining Refinitiv’s 150,000 data sources with essential market plumbing owned by LSE would create a data-driven financial operator, breaking the link between trade volumes and revenue. Data and analytics accounted for roughly three-quarters of the pro forma group’s revenue for 2020, with capital markets and post-trade services providing the rest.

But by the time of LSE’s annual results in March, it was clear that to keep its promise, Refinitiv needed major surgery. Shareholders balked at LSE’s larger-than-expected £ 1bn budget to integrate Refinitiv in year one.

The slowing down of LSE’s data and analysis operations didn’t help, most dramatically to the FTSE Russell index compiler. Then last week came a sale by Thomson Reuters and Refinitiv management of nearly 2 percent of LSE’s stock, apparently to settle tax debts. There were many reasons to feel uncomfortable about what exactly LSE had bought.

Initial hype and bullish analysts’ forecasts pushed LSE’s market value beyond £ 55bn in February, placing it among the top 10 most valuable companies on the FTSE 100. Concerns have grown since then that LSE lacks the boardroom experience necessary to tackle a complex, imperfect, and very heavy business that, in terms of revenue, is twice its size.

As Warren Buffett put it, “When a management known for its brilliance attacks a company known for its poor fundamental economics, it is the reputation of the company that remains intact.” Refinitiv’s poor economy had repelled potential suitors for at least five years before LSE took the plunge. And although LSE bosses have shown ambition, their brilliance awaits proof.

David Schwimmer, Managing Director, and Don Robert, President, have little experience with merger integration. Plus, Refinitiv’s long-standing problems don’t have an easy fix. Trading screens, in terms of income, its largest data market, are also the most difficult. Refinitiv’s Eikon platform lags far behind Bloomberg’s ubiquitous terminal, which took part in a shrinking market. Cash has been spent on modernizing and improving Eikon since the acquisition of Refinitiv by Blackstone in 2018. However, its share continues to be squeezed by both high-end product companies at will. Bloomberg and selection options, such as FactSet and Capital IQ.

LSE’s solution is to remove the Eikon brand, which analysts interpreted as a tacit cession of traders’ office space to Bloomberg. Its replacement, Workspace, is built around open source software that mimics the modular flexibility of smaller competitors.

The hope is to make the trading platforms more like Enterprise, Refinitiv’s second data division. Enterprise takes an open access approach to the massive data collection and distribution network that is the backbone of Refinitiv’s many services. Foreign exchange and fixed income products will likely adopt the same modular model, inviting subscribers to shop at a data supermarket rather than buying access to the buffet.

LSE brings expertise to the project. The number of customers for its real-time data services has been steadily declining since 2015. Yet, because subscribers added more streams and purchased larger licenses, the division’s revenue increased.

Reasons for the optimism can be found in the transactions side of LSE’s business, including its controlling stake in Tradeweb for rates and credit markets. Having been relatively slow to embrace electronization, these markets now offer top notch growth, and Tradeweb offers the kind of proprietary critical content that is only occasionally found in other Refinitiv silos.

The media industry provides a parallel. In a world already drowned in data, must-have content gets the highest ratings. Having the delivery pipes is not enough. LSE has yet to prove whether the transformation will create a Netflix in financial markets or a National Grid.

[email protected]

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]