Global Investing

from Jeremy Gaunt:

Splendour in China and other branding

MSCI, the index provider used by leading investors across the world, has decided it needs a name change in Greater China. In a news release this morning the firm (which is no longer owned by Morgan Stanley, the MS in its title) said its Chinese business would henceforth be branded as  MSCI 明晟.

When I tweeted this @reutersJeremyG, one wag suggested  this meant "MSCI small-ladder-bigger-ladder-books-on-a-picnic-table", which is what it indeed looks like to an untrained eye (like mine).  But it is actually Ming Sheng, which  apparently is supposed to symbolise "brightness and transparency, prosperity and splendour".

That might sound a little flowery for an index provider, but is arguably apt given the role such indices have in opening up markets to investment.

The key point, however, is that MSCI decided it needed a Chinese business name. Henry Fernandez, MSCI's chairman and chief executive officer, said that as his business had grown in China, so it had become increasingly important to have local branding.

So we have MSCI Bright Splendour, or something like that.  Parlour game time: What would other companies be?

Avoid financial meltdown – use a thesaurus

So it’s not just investors who are guilty of moving in a herd-like fashion.

Financial journalists use the same verbs and nouns with greater frequency as stock markets overheat but display more variety in their phraseology after the bubble bursts, a study by Irish computer scientists has shown.

Trawling through nearly 18,000 on-line news articles that mention the Dow Jones, FTSE and Nikkei stock indices between 2006 and 2010, Aaron Gerow of Trinity College Dublin and Mark Keane of University College Dublin found that the language used by the writers had become more similar in the run-up to the global financial crisis.

from MacroScope:

Sssh. Don’t say stimulus

William Safire, the language maven whose musings on how we use words have graced The New York Times and other newspapers for decades, has discovered something about the current crisis. Not for the first time, politicians are scrambling to avoid using common words that might get too close to the truth.

This time the target is the economy, specifically what needs to be done about it. In a column, Safire notes that some Democrats, notably the incoming White House chief of staff Rahm Emanuel, are steering away from using the world "stimulus" when referring to efforts to, er, stimulate the economy. "Recovery" is being used instead. As in, recovery plan.

Who could argue with that? Republicans, apparently. According to Safire, they are favouring "spending", presumably as in spend, spend, tax, tax etc.