Global Index Briefing: Major MSCI Stock Markets Revenues & Earnings

Global Index Briefing: Major MSCI Stock Markets Revenues & Earnings May 2, 20 Dr. Edward Yardeni 1-2-3 eyardeni@ Joe Abbott 32-4-30 jabbott@ Mali Quintana 40-4-1333 aquintana@ Please visit our sites at www. blog. thinking outside the box

Table Of Contents Table Of Contents Revenues, Earnings, & Margins 1-2 Revenues 3 Earnings 4 Profit Margins Revenues Earnings Profit Margins Developed World Ex-US Europe Ex UK Emerging Markets Japan 12 May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

3000 200 Figure 1. Revenues, Earnings, & Margins MSCI FORWARD REVENUES PER SHARE (in local currency)* 3000 200 2200 2200 00 00 00 00 00 Developed World ex-us Emerging Markets (divided by 2 for scaling) United States 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 00 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. 230 200 Figure 2. MSCI FORWARD EARNINGS PER SHARE (in local currency)* 230 200 0 140 0 140 1 1 0 0 0 0 20 Developed World ex-us Emerging Markets (divided by 2 for scaling) United States 00 01 02 03 04 0 0 0 0 0 12 13 14 1 1 1 20 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. Page 1 / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

Revenues, Earnings, & Margins 12 Figure 3. MSCI FORWARD PROFIT MARGIN* (percent, using analysts average earnings and revenues forecasts) 12 Developed World ex-us (.) Emerging Markets (.3) US (.) 4 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 4 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. Page 2 / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

Revenues Figure 4. UNITED STATES MSCI REVENUES PER SHARE 1 00 00 00 00 00 2 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 DEVELOPED WORLD EX-US MSCI REVENUES PER SHARE (in local currency) 00 2 0 0 1 4/2 00 00 2 2 0 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 0 0 00 0 EMERGING MARKETS MSCI REVENUES PER SHARE (in local currency) 1 4/2 0 00 0 00 00 30 30 200 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. 200 Page 3 / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

Earnings 0 1 130 Figure. UNITED STATES MSCI EARNINGS PER SHARE 1 0 1 130 0 0 30 1 1 1 1 1 2000 2001 2002 2003 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 30 DEVELOPED WORLD EX-US MSCI EARNINGS PER SHARE (in local currency) 1 4/2 4 4 3 3 2 1 1 1 1 1 2000 2001 2002 2003 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 2 00 00 400 EMERGING MARKETS MSCI EARNINGS PER SHARE (in local currency) 1 4/2 00 00 400 300 300 200 200 0 0 00 1 1 1 1 1 2000 2001 2002 2003 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. 00 Page 4 / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

14 13 Figure. UNITED STATES MSCI PROFIT MARGIN Profit Margins 14 13 12 1 12 Forward profit margin* (.) 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201..0..0 DEVELOPED WORLD EX-US MSCI PROFIT MARGIN 1..0..0...0.0..0..0 Forward profit margin* (.) 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 EMERGING MARKETS MSCI PROFIT MARGIN..0..0 Forward profit margin* (.3) 1 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. Page / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

2 Figure. Revenues DEVELOPED WORLD EX-US MSCI REVENUES PER SHARE (in local currency) 2 0 0 1 4/2 00 00 2 2 0 200 2300 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 EUROPE EX-UK MSCI REVENUES PER SHARE (in US$) 0 200 2300 20 20 0 0 00 0 1 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 00 0 0 JAPAN MSCI REVENUES PER SHARE 0 1 10 10 00 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 00 Page / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

Earnings Figure. DEVELOPED WORLD EX-US MSCI EARNINGS PER SHARE (in local currency) 1 4/2 4 4 3 3 2 1 1 1 1 1 2000 2001 2002 2003 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 2 240 21 EUROPE EX-UK MSCI EARNINGS PER SHARE (in US$) 240 21 1 140 1 1 140 0 0 40 1 1 1 1 1 2000 2001 2002 2003 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 40 JAPAN MSCI EARNINGS PER SHARE 1 4 4 3 3 2 2 1 1 1 1 1 1 2000 2001 2002 2003 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 1 Page / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

Profit Margins..0..0 Figure. DEVELOPED WORLD EX-US MSCI PROFIT MARGIN 1..0..0...0.0..0..0 Forward profit margin* (.) 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 EUROPE EX-UK MSCI PROFIT MARGIN..0..0 1 Forward profit margin* (.) 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. JAPAN Source: Thomson MSCI Reuters PROFIT I/B/E/S. MARGIN 1 4 4 3 2 1 Forward profit margin* (.) 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. 3 2 1 Page / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

2 Figure. Developed World Ex-US DEVELOPED WORLD EX-US MSCI REVENUES PER SHARE (in local currency) 2 0 0 1 4/2 00 00 2 2 0 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 0 DEVELOPED WORLD EX-US MSCI EARNINGS PER SHARE (in local currency) 1 4/2 4 4 3 3 2 1 1 1 1 1 2000 2001 2002 2003 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 2..0..0 DEVELOPED WORLD EX-US MSCI PROFIT MARGIN 1..0..0...0.0..0..0 Forward profit margin* (.) 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201..0..0 Page / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

200 2300 Figure. Europe Ex UK EUROPE EX-UK MSCI REVENUES PER SHARE (in US$) 200 2300 20 20 0 0 00 0 1 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 00 0 240 21 EUROPE EX-UK MSCI EARNINGS PER SHARE (in US$) 240 21 1 140 1 1 140 0 0 40 1 1 1 1 1 2000 2001 2002 2003 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 EUROPE EX-UK MSCI PROFIT MARGIN 40 1 Forward profit margin* (.) 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. Page / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

Emerging Markets 0 00 0 Figure 12. EMERGING MARKETS MSCI REVENUES PER SHARE (in local currency) 1 4/2 0 00 0 00 00 30 30 200 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 200 00 00 400 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. Source: EMERGING Thomson Reuters MARKETS I/B/E/S. MSCI EARNINGS PER SHARE (in local currency) 1 4/2 00 00 400 300 300 200 200 0 0 00 1 1 1 1 1 2000 2001 2002 2003 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. Source: EMERGING Thomson MARKETS Reuters I/B/E/S. MSCI PROFIT MARGIN 00 Forward profit margin* (.3) 1 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. Page / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

Japan 0 Figure 13. JAPAN MSCI REVENUES PER SHARE 0 1 10 10 00 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 00 JAPAN MSCI EARNINGS PER SHARE 1 4 4 3 3 2 2 1 1 1 1 1 1 2000 2001 2002 2003 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 1 JAPAN MSCI PROFIT MARGIN 1 4 4 3 2 1 Forward profit margin* (.) 2004 200 200 200 200 200 20 20 2012 2013 2014 201 201 20 20 201 * Time-weighted average of the consensus estimates for current and next year. Monthly through December 200, weekly thereafter. 3 2 1 Page 12 / May 2, 20 / Major MSCI Stock Markets Revenues & Earnings www.

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