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Mr. Goodyear warned of tough times ahead, with weak equity markets, high oil prices and lower consumer demand.
The bank cited weak equity markets for a drop in assets under management to 1.99 billion Swiss francs, from 2.03 billion last December.
Merrill's traditional sources of profitability, such as the underwriting and brokerage businesses, have suffered in recent years, in line with the weak equity markets.
But the company's results in its other businesses, analysts said, confirm that consumers are still slowly returning to travel and that asset management continues to suffer with the weak equity market.
"The additional funds will help absorb further losses in its investment portfolio and reduce the strain on capital caused by the weak equity markets," Standard & Poor's equity analyst, Bret Howlett, wrote.
"There will be no more smoothing of companies' pension costs," says Alan Rubenstein at Morgan Stanley.Pushed by weak equity markets and more stringent accounting rules, Britain is likely to follow the American path of 20 years ago.
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Morgan Stanley said profit dropped by a third on lower bond trading revenue, weak equities results and higher expenses, falling short of Wall Street's expectations and causing its stock to fall.
Treasury Prices Rise (By Reuters) -- Treasury prices pushed higher yesterday, aided by weak equities, with many bond investors shrugging off the president's nomination of a new Treasury secretary.
In that case the $100,000 principal would have grown to $353,823and that's after all fees, and despite relatively weak European equity markets and the disastrous Asian financial crisis (See page 72, Fund tables for a list of 100 offshore funds for long-term investors).
It is weak in equities and has relied overmuch on trading in derivatives and on highly-leveraged transactions.
But defensives are now starting to outperform, a sign that investors are losing confidence in the economy.Tomorrow is the start of May, traditionally the start of a weak period for equity prices (hence "sell in May and go away").
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