The Markets February 14, 2007

Global Equity Picture Is Mixed in January

Emerging markets dropped by 0.11% over the month of January, while developed markets gained 1.20%, but developed market returns trailed emerging markets for both the three- and 12-month periods, according to new Standard&Poor’s data.
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The S&P data indicated that in January, 21 of the 27 developed markets posted an average gain of 3.27%, with substantial declines in Ireland (-4.09%) and South Korea (-5.96%). The emerging markets had mixed results, with 15 of the 26 gaining (7.49%) and 11 losing (-6.44%) for the month, according to a Standard & Poor’s news release about its global stock market review.

Posting impressive returns were Nigeria (20.07%) and Pakistan (14.42%). In January, Jordan had a 13.81% recovery, returning the market to positive territory for the three-month period with a 1.62% gain. For the month, Venezuela’s loss was significant, wiping out prior impressive gains, as investors sold the index down 33.95% because of economic and political concerns, the S&P data indicated.

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For the month, eight of the 10 economic sectors showed gains, with Industrials as the best-performing sector at 2.72%. Energy remained the worst performer with a 2.59% decline due to concern over oil prices and production.

Performance remained mixed for the sectors in January, with strong gains posted for Internet Software and Services (7.06%), Marine Transportations (6.15%) and Building Products (5.80%), while there were significant givebacks in Semiconductors & Semiconductor Equipment issues (-1.73%) as well as Oil, Gas and Consumable Fuels (-2.69%).

More information on the January report is here.

Deals & People February 14, 2007

Merrill Hires Former Representative Ford

Former U.S. Representative Harold E. Ford Jr. has been hired by Merrill Lynch&Co.
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Ford, a Democrat from Tennessee who served five terms in the House, will serve as vice chairman and senior policy adviser in the global markets and investment-banking division, according to the Wall Street Journal.

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Ford will do banking and recruiting work and will report to Greg Fleming, co-head of the firm’s global markets and investment-banking division, the report said.

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