The 10 most valuable brands in the world

• Lara O'Reilly
 
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• 17h
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APLarry Page, CEO of Google parent company Alphabet. Google reclaimed the top spot back from Apple this year.

Google has overtaken Apple to become the "most valuable global brand" this year, according to brand consultancy Millward Brown's annual BrandZ rankings.

Just like last year, technology brands dominated the top 10.

The ranking is based on interviews with more than 3 million consumers plus data on the financial and business performance of each company, using data from Bloomberg and Kantar Worldpanel.

These are the top 10 most valuable brands in the world and an analysis of what happened over the last 12 months to shift those companies into their respective rankings.

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10. IBM

IBM

IBM CEO Ginni Rometty.

Brand value: $86.2 billion

Percentage change from last year: -8%

Last year's rank: 4

What happened: Millward Brown says that IBM is "investing in its future," particularly with its cognitive-computing system Watson, which is working across areas such as advertising, healthcare, education, and retail.

The company has also quietly built the world's largest digital agency: IBM iX.

Millward Brown doesn't give a reason why IBM's brand value dropped from the previous year, but it is probably IBM's move away from consumer products that has seen the company drop down the rankings.

Millward Brown says that "consumer perception of a brand is a key input in determining brand value."

9. McDonald's

By Heikomari on Flickr

Brand value: $88.6 billion

Percentage change from last year: +9%

Last year's rank: 9

What happened: Millward Brown says that McDonald's has made a number of improvements to the business this year.

It is making efforts to separate its drive-thru offerings — based on convenience and speed — from its in-store experience, where it has been rolling out customization, premium products, and improving hospitality.

Meanwhile, Millward Brown also notes the success of its healthier and lifestyle-focused McCafe offerings.

8. Verizon

Thomson Reuters

Brand value: $93.2 billion

Percentage change from last year: +8%

Last year's rank: 7

What happened: Millward Brown says that Verizon is another company that is investing in its future.

Verizon has expanded its business into the digital and video content and advertising markets, thanks to the $4.4 billion acquisition of AOL in May 2015. It also launched its Go90 mobile video-streaming app in October 2015.

7. Amazon

AP Photo/Reed Saxon

Amazon CEO Jeff Bezos.

Brand value: $98.9 billion

Percentage change from last year:+59%

Last year's rank: 14

What happened: Amazon was the fastest riser in this year's rankings.

Millward Brown said that Amazon is constantly disrupting other sectors by creating new industry standards — everything from one-hour delivery time and its own proprietary entertainment content to the testing of delivery drones and its Echo personal assistant.

6. Visa

Justin Sullivan/Getty Images

Brand value: $100.8 billion

Percentage change from last year:+10%

Last year's rank: 5

What happened: Visa is the only financial brand in the top 10 this year.

The company is a big sponsor of sporting events, and its blue, white, and yellow logo is ubiquitous in retailers across the world.

Last year, Visa, a FIFA sponsor, came out strongly against the corruption scandal at world football's governing body. The company is continuing its partnership with FIFA and also the NFL and the Olympics.

5. Facebook

David Ramos/Getty

Facebook CEO Mark Zuckerberg.

Brand value: $102.6 billion

Percentage change from last year:+44%

Last year's rank: 12

What happened: Facebook continued its strong financial performance in 2015, and the company has been working to transform itself into a media platform, encouraging publishers to post original content —particularly video — to its site.

Millward Brown also credits Facebook's long-term vision in areas such as virtual reality, artificial intelligence, and connecting the parts of the world that are not yet on the internet for the increase in its overall brand value this year.

4. AT&T

Tim Boyle/Getty Images

Brand value: $107.4 billion

Percentage change from last year:+20%

Last year's rank: 6

What happened: AT&T is the second telecoms company in the top 10.

Millward Brown suggests that one of the reasons AT&T outperformed its competitors was the quad-play — mobile, fixed-line, internet, and TV — bundle it offers, through the acquisition of DirecTV.

The research company also notes that AT&T formed connected car partnerships with automakers, including Ford, BMW, and Tesla.

3. Microsoft

Reuters/Robert Galbraith

Brand value: $121.8 billion

Percentage change from last year: +5%

Last year's rank: 3

What happened: Microsoft is the world's most valuable B2B brand, according to Millward Brown.

The company has seen "exponential growth" in its commercial-cloud business — which has mostly been driven by its Office 365 programs — and Windows 10 is now active on more than 270 million devices worldwide.

In order to keep laser-focused, the company has streamlined its smartphone hardware business.

2. Apple

Andrew Burton/Getty

Tim Cook, CEO of Apple.

Brand value: $228.5 billion

Percentage change from last year: -8%

Last year's rank: 1

What happened: Millward Brown said that Apple's lack of big new products launching this year affected its brand value.

The company did launch the Apple Watch in April, but that hasn't yet reached mainstream appeal — despite selling more units than its other smartwatch competitors.

But Millward Brown says that Apple's move to invest in Didi Chuxing in China has shown how "Apple has progressively moved to building an ecosystem served not only by gadgets, but also services."

Another big service launch was Apple Music, which rolled out last summer.

1. Google

Getty Images

Google CEO Sundar Pichai.

Brand value: $229.2 billion

Percentage change from last year:+32%

Last year's rank: 2

What happened: Millward Brown says that "Google has thrived thanks to continual innovation, increased revenue from advertising, and growth in its cloud business."

Google has also been "very transparent about what it's working on," which boosted its brand value, Millward Brown added.

Google officially restructured its business under new holding company Alphabet in October, which allows its separate businesses to operate independently and move faster.

More: Features BrandZ

Yahoo is selling its search technology and a bunch of other patents that could be worth $1 billion

• Eugene Kim
 
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• 14h
• 3,761
 
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Thomson ReutersYahoo CEO Marissa Mayer.

Yahoo  $37.05

YHOO

+/-+0.30

%+0.80

Disclaimer

See Also

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AT&T reportedly wants to buy Yahoo's internet business

Here's a stark new reminder that investors don't really care about Yahoo's core internet business

Yahoo plans to sell roughly 3,000 patents, including for its proprietary search technology, in a deal that could bring in an additional $1 billion to the company, The Wall Street Journal reports.

Yahoo has hired investment bank Black Stone IP to handle the sell-off of its patent portfolio, which includes intellectual property that dates back to 1996. Yahoo confirmed that it was exploring the sale of 3,000 patents, and a source told the WSJ that Yahoo will take bids until mid-June.

The report comes a day after the second-round deadline for Yahoo's core internet business. The WSJ reported on Monday that Verizon has placed a $3 billion bid for Yahoo's core business, which includes its search and email services.

The estimated value of Yahoo's core business varies depending on who you ask. Wall Street analysts believe that it's worth in the range of $4 billion to $8 billion, but that's if you include only Yahoo's real-estate and licensing deals. For example, Yahoo has a deal with Yahoo Japan that pays it $100 million in pure cash every year forever.

SunTrust's research analyst Bob Peck wrote in a report on Tuesday that Yahoo's IP patents should be worth at least $1.5 billion, while a recent report by the New York Post said that it could be worth $4 billion in total.

There are a number of companies reported to be interested in buying Yahoo's core business, including Verizon, AT&T, and a number of private-equity firms.

Yahoo's representative wasn't immediately available for comment.

SEE ALSO: Yahoo's bidding price could get a big boost because of a business it has nothing to do with

NOW WATCH: Here's Everything Yahoo CEO Marissa Mayer Just Said About Alibaba

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More: Yahoo

Oil just did something it hasn't done for nearly 11 months

• Will Martin
 

• 5h
• 5,400
 
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Both major oil benchmarks, US West Texas Intermediate and Brent crude, closed the later part of Tuesday above $50 a barrel.

For Brent, which crossed the mark late last week, it wasn't a huge deal. But the close marked the first time since July 21, 2015, that both the world's most prominent oil benchmarks have ended a trading day higher than $50, marking a significant moment for the oil markets, which have been battered for the last two years.

On Wednesday, both benchmarks are holding comfortably above the $50 mark, suggesting that oil may have settled in a new price bracket. Around 11.10 a.m. BST (6.10 a.m. ET) Brent is up by 1.07% to $51.99, while WTI is also higher, having gained 0.95% to trade at $50.84.

Here's how both benchmarks look Wednesday morning:

Investing.com

Investing.com

After hitting bottom in January when it slipped as low as $28 a barrel, oil has now gained as much as 80%, and there is an increasing feeling within the markets that things are starting to rebalance, which will in turn help to boost prices.

In mid-May, Goldman Sachs suddenly turned bullish on oil, saying the market is now rebalancing, and pointing to huge supply disruptions as the crucial reason for doing so.

Despite oil's recent climb, it does seem unlikely that oil will break much higher than $50 in 2016, with a large number of the market's most respected oil analysts, including Goldman, backing oil to end the year at around the $50 mark. That could cause big issues for smaller oil-producing nations, which need higher prices to make their production profitable.

In an email this morning, Mike van Dulken from Accendo Markets notes that later on Wednesday, markets will be paying keen attention to the latest US inventory data, which could give oil another price boost, should they show a third weekly decrease:

Oil in the spotlight having broken back above $50, the US’s latest EIA oil inventories will attract much attention after API data last night suggested another weekly drawdown (-3.6m barrels). With last week’s EIA drawdown making it two weeks on the trot for the first time since September 2015, a hat-trick will add to hopes of markets moving a step closer to rebalancing even if supply issues (Nigeria, Canada) are providing artificial buoyancy.

NOW WATCH: CLINTON: 'We've reached a milestone'

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More: Oil Brent Crude WTI OPEC 

MONEY & MARKETS

China's trade data for May has come in mixed

DAVID SCUTT 

JUN 8, 2016, 1:45 PM   

Photo by China Photos/Getty Images

Chinese trade data for May has come in mixed, with an improved performance from imports offset by a weaker-than-expected result for exports.

According to China’s Customs Bureau, the value of imports in US dollar terms fell by 0.4% compared to the levels of a year earlier, easily accounting forecasts for a steeper drop of 6.0%.

Not only was it a sharp improvement on the 10.9% decline seen in the year to April, it marked the slowest annual contraction since October 2014.

Although seemingly a bullish development, there were once again anomalies in the data, particularly when it came to cross-boarder flows between China and Hong Kong.

According to Bloomberg, the dollar value of imports from Hong Kong surged by a record 243% compared to a year earlier, surpassing the previous record of 204% set just one month earlier.

“(This) suggests China’s issues with fake trade invoices as a back-door channel to circumvent capital controls is getting worse,” noted Bloomberg.

On the other side of the ledger the monthly export performance underwhelmed, falling 4.1% from 12 months earlier.

The result was below expectations for a decline of 3.6%, and an acceleration on the 1.8% decline registered in April.

Much of the weakness was concentrated in the value of exports to the United States which skidded by 12%. In comparison, those to the European Union fell by a smaller 2.1%.

Combined, it saw the nation’s trade surplus come in at US$49.98 billion, up from US$45.56 billion in April but below the US$58 billion figure expected.

Despite the mixed nature of the report, markets have taken the view, on this occasion at least, that the beat on imports is a sign of an improvement in Chinese demand, pushing aside the weak exports figure that points to tepid external demand for Chinese goods and services.

MONEY & MARKETS

NO RATE CUT HERE: RBA leaves cash rate on hold, signals near-term cut is unlikely

DAVID SCUTT 

JUN 7, 2016, 2:30 PM   

Photo by Michael Dodge/Getty Images

The Reserve Bank of Australia (RBA) left interest rates unchanged at 1.75% at the conclusion of its June monetary policy meeting, an outcome that was widely expected by financial markets.

While that decision surprised few, the board dropped somewhat of a bombshell on financial markets, providing a neutral rates bias in the final paragraph of its policy statement.

“Taking account of the available information, and having eased monetary policy at its May meeting, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time,” said the RBA.

Many had been expecting an explicit easing bias to be delivered, indicating that rates were more likely to fall rather than remain steady in the period ahead.

Instead, it presented a view that past rate cuts, along with recent declines in the Australian dollar, were already helping to strengthen the domestic economy.

“Low interest rates have been supporting domestic demand and the lower exchange rate overall is helping the traded sector. Over the past year, growth in credit to businesses has picked up, even as that to households has moderated a little.

“These factors are all assisting the economy to make the necessary economic adjustments.”

Continuing the theme of recent months, the board suggested that “an appreciating exchange rate could complicate this”, a subtle warning to investors looking to drive the currency higher.

On inflation, the main factor behind the rate reduction in May, the board noted that it had been “quite low”.

“Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time,” read the statement.

In regards to recent strength in the residential housing market, particularly in Sydney and Melbourne, the board reaffirmed that “the effects of supervisory measures have strengthened lending standards in the housing market”, adding that “a number of lenders are also taking a more cautious attitude to lending in certain segments”.

In terms of certain segments, it’s likely that the bank was referring to investor lending, something that decelerated sharply in recent months according to the bank’s own private sector credit metrics.

Although the board acknowledged that house prices had “begun to rise again recently”, it hinted that increased supply — predominantly from units — could mitigate price pressures.

“Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities,” it said.

Following last week’s bumper March quarter GDP report, something that revealed that the Australian economy grew by 3.1% compared to the levels of a year earlier, the bank was upbeat, noting that “overall growth is continuing, despite a very large decline in business investment”.

“Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend,” it said.

In relation to the labour market, while the board acknowledged that recent data had been “mixed”, it suggested that it was still consistent “with continued expansion of employment in the near term”.

On the external economic environment, the board noted that economic conditions in major advanced economies “improved over the past year”, helping to counteract difficulties “for a number of emerging market economies”.

On China, a key determinant to the health of the Australian economy, the board stated that “growth rate moderated further in the first part of the year, though recent actions by Chinese policymakers are supporting the near-term outlook”.

The board also acknowledged that the were upcoming risks to financial markets, presumably related to the UK referendum to leave the European Union, known across markets as “BREXIT”.

“Attention is now turning to some particular event risks,” said the bank.

Despite the event risk facing markets and the benign outlook for domestic inflation, the tone of the statement oozed cautious optimism, providing little indication that the bank believes that there’s an urgent need to further stimulate the economy.

The tone of the statement, in conjunction with the absence of a clear easing bias, certainly surprised financial markets, especially given many were expecting that the board would signal that another near-term rate cut was likely.

The AUD/USD currently sits at .7422, up 0.76% from Monday’s close, while Australian stocks are now trading flat, having been up as much as 0.8% earlier in the session.

Bonds have also weakened, indicating a reduced likelihood of lower interest rates to come. Mirroring this view, cash rate futures now price the odds of a rate cut in August at less than 50%.

In the absence of near-term unexpected market turmoil, the next truly live rate meeting now looks to be when the RBA meets on August 2, something that will follow the release of Australia’s June quarter CPI report in late July.

This will also give time for the RBA to gauge additional domestic economic data, evaluate monetary policy movements from the US Federal Reserve and clear both the Australian federal election and UK BREXIT vote.

You can access the RBA’s full June monetary policy statement here.

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