BlackRock Reaches New Asset Management High of $11.5 Trillion

BlackRock has achieved a record high in managed assets for the third consecutive quarter, reaching $11.48 trillion in the third quarter, a significant increase from $9.1 trillion a year ago and up from $10.65 trillion in the previous quarter. This growth is attributed to a surge in inflows into the company’s ETFs and a robust stock market, which has enhanced the investment value for clients. In the third quarter, BlackRock reported a long-term net flow of $160 billion, contributing to a quarterly record of total net inflows of $221.18 billion, compared to just $25.7 billion a year earlier. The majority of the inflows, totaling $97.41 billion, were directed toward ETFs, while clients invested $62.74 billion in BlackRock’s fixed income products.

BNY Mellon Surpasses $50 Trillion in Assets Under Custody

BNY Mellon, the world’s largest custody bank, announced that its assets under custody and management have surpassed the $50 trillion mark for the first time, driven by rising investment service fees. The bank reported a 16% increase in profits for the third quarter. Net interest income (NII) rose by 3%, as yields on BNY’s bond investments offset the rising costs of deposits. Analysts from LSEG estimate a projected decline of 1.3% in NII. For the quarter ending September 30, BNY Mellon reported profits of $1.11 billion, or $1.50 per share, up from $958 million, or $1.23 per share, from the same period last year. The total assets under custody management rose by 14% year-over-year to $52.1 trillion.

Tesla Unveils Autonomous Taxi Priced at $30,000

On the evening of October 10, Tesla held a highly anticipated event to showcase its autonomous taxi service. CEO Elon Musk presented the Cybercab, a self-driving taxi with two knife-style doors and no steering wheel or pedals, as well as the Robovan, an autonomous van designed to carry up to 20 passengers. Musk believes these innovations will pave the way for Tesla’s long-term growth. However, the absence of a clear business plan led to a nearly 8% drop in Tesla’s stock price during the early trading hours on October 11.

During the launch at the Warner Bros. studio in Los Angeles, Musk made a grand entrance in a prototype Cybercab. This two-door taxi is expected to start production in 2026 and will be available to the general public at a price below $30,000.

Market’s Shifting Expectations on Interest Rate Cuts Lead to Stock Fund Outflows

Amid shifting expectations regarding the Federal Reserve’s interest rate cut trajectory and soaring bond yields, investors have begun to lock in profits. According to data from SEG, U.S. stock funds experienced outflows for the week ending October 9. Following a net purchase of $30.86 billion in stock funds the previous week, investors turned to net selling, shedding $3.42 billion this week. Notably, there was a net outflow of $4.25 billion from large-cap U.S. stock funds, contrasting with a net inflow of $35.47 billion just a week earlier. Investors also withdrew $919 million from mid-cap funds while purchasing $197 million in multi-asset funds and $118 million in small-cap funds. Bond funds saw continued inflows for the 19th consecutive week, amounting to approximately $3.37 billion.