Posted on June 11, 2010 at 5:06 PM
Global investment bank Nomura is determined to see the advantages in the post-economic crisis world. Nomura has achieved market gains in Asia ex-Japan and Europe and is now seeking to expand into the US franchise to tap into that market’s massive fee pool. Jesse Bhattal, president and CEO of Nomura’s wholesale department admits that the scale of their investments will “engender several quarters of challenged profitability,” but points to the crucial opportunity to gain a foothold in a market where even a 50bp increase in market share equates to over half a billion dollars in new revenues.
Nomura is just one example of a globally competitive franchises seeing past the disadvantages to the advantages in the post-economic crisis world. Globalization’s pace creates an opportunity for franchises with global platforms to create practical and profitable businesses. Global markets are now at a crossroads when it comes to the importance of new emerging markets versus traditional economic powers, such as the US, Japan, and Europe. The amount of wealth flowing into emerging markets will transform and aid the global economy, with $2.5 trillion of reserves in China alone.
Current market disadvantages are still present, such as the loss of personnel and the fact that the West is over-leveraged and heavily dependent on government liquidity. Yet the competitive landscape is open to change as players continue to recover from the credit crisis.
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