Archiv: January 2007


Cooperation of NYSE and Tokyo exchange

The planned partnership of the New York Stock Exchange (NYSE) with the Tokyo Stock Exchange (TSE) is apparently being close of becoming a reality. According to a newspaper article the cooperation should be officially announced today. The cooperation is said to focus on listing standards for corporations. TSE would also want to introduce traded funds of foreign issuers in Tokyo. It is stil unclear if the cooperation includes a capital participation. NYSE did not comment so far on this newspaper article.

Source: Neue Zürcher Zeitung


Mobile internet use 'increasing'

Mobile phone users in the UK accessed the internet via their handsets about 15.9 million times throughout December 2006, says the Mobile Data Association. The association's report shows an increase of one million unique sessions over November 2006, the prior record. However, much of the recent increase could be due to seasonal gift-giving said Thomas Husson, a mobile analyst at Jupiter Research. In the past three months, mobile users accessed the web 45.6 million times.

Read the full article by BBC News.

Find out more about Telekurs Financial's mobile financial information offering Telekurs iD mobile


Davos: China tells yuan critics to back off

China wants the rest of the world to respect its gradual pace of economic reform, a senior Chinese central banker said here, telling critics to "clean your own house first." Wu Xiaoling, deputy governor of the People's Bank of China, avoided naming names but handed out the advice only a few weeks after top U.S. financial policy makers visited Beijing to press China to act faster on liberalizing the yuan. The U.S. Treasury secretary, Henry Paulson, after meeting the Chinese president, Hu Jintao and the prime minister, Wen Jiabao, last month, said the Chinese reluctance to let the yuan quickly appreciate remained a core bilateral issue.

Read the full article published by the International Herald Tribune.

You may also read the following related Weblog post (18.12.2006):
American-Chinese talks bring no immediate solution for trade deficit problem


Davos: the power of Bric

The concept of economic power shift has created a new buzz word: 'Bric'. This acronym comprises the first letters of those countries considered to be the the forerunners of globalisation: Brazil, Russia, India and China. Those countries currently seem to be the schoolbook examples of economic development with eternally growing currency reserves and perpetual technological innovation.

There is also a simpler way of assessing their force. Take the traditional market value for instance. Two companies from China (Petrochina and the Industrial and Commercial Bank) and the Russian Gasprom have already made it to the top 10 market value giants of the world.

The World Economic Forum (WEF) usually tries to present its annual meeting, which is traditionally held in the Swiss ski resort Davos at the end of January, under a very general motto. But the 2007 motto, namely "The Shifting Power Equation" seems to specifically focus on the Bric states. Participants at the WEF may be faced with questions, such as 'What challenges will these states present to the developed nations? - or - Will the lower and middle classes in Europe and USA suffer from this development? - or - Will countries, such as India und China, be able to solve their social disparities through rapid growth?'.

The growth perspectives of Bric states can still baffle Europeans. Take for instance the analyst figures from DB Research regarding the GDP growth for 2007: China shows a plus of 8.5 percent, India a plus of 6.6 percent, Russia a plus of 6.1 percent and Brazil a plus of 3.5 percent. And this may be just the beginning. Last year in Davos the American investment bank Goldman Sachs (also said to be the inventor of the Bric concept) predicted that in 2050 China, the US and India will be the countries with the biggest economic power subsituting the former top three league of USA, Japan and Germany.

Despite the overwhelming growth figures, Bric states still present a number of unsolved economic and political problems. In China, for instance, the homeland financial system is still underdeveloped and this regardless of the record-high IPOs in the last months. Many government-owned companies are ailing, government keeps l interfering too much in the private sector and corruption is still widespread. In half of the Chinese cities the ground water is poluted and 50 percent of the Chinese population lives on less than two dollars per day.

Therefore, one important factor for the sustainable and successful development of Bric states lies in the development of a larger middle class. The social structure of emerging countries is still made of a minority of super-rich and a majority of people living below the poverty line. A strong middle-class will be an important factor for economic and political stability. These people will be the future entrepreneurs, consumers, tax-payers of these economies and may want a greater say in political affairs one day. The latter will probably pose a problem to some authoritarian regimes.

Source: Frankfurter Allgemeine Zeitung


More energy-efficient computers on the horizon

Prodded by fears of global warming and surging electric bills, corporate computer users are demanding more energy-efficient machines, and the U.S. government is preparing to issue tough new standards for greener machines. Energy concerns are starting to drive change across the computer industry. Major computer makers like Dell and Hewlett-Packard are also trying to meet the demand by promoting machines that do more work with less wattage.

Read the full article by Hiawatha Bray (The Boston Globe).


Borsa Italiana will roll out market data feed in 2007

The Italian stock exchange Borsa Italiana will roll out a new data feed this year. The new feed is said to improve the efficiency of its data distribution in order to support rising volumes of data without the need for members to install additional hardware or bandwith. The new market data feed will provide data on a range of instruments across the exchange's equities and derivatives markets, as well as data from Deutsche Börse's Xetra cash and Eurex derivatives market, and the Chicago Mercantile Exchange (CME).

Source: Inside Market Data


U.S. issues subpoenas to banks on online gambling

The Department of Justice has issued subpoenas to at least four Wall Street investment banks as part of a widening investigation into the multibillion-dollar online gambling industry, according to people briefed on the investigation. The subpoenas were issued to firms that had underwritten the initial public offerings of some of the most popular online gambling sites that operate abroad. The banks involved in the investigation include HSBC, Credit Suisse, Deutsche Bank and Dresdner Kleinwort, these people said. The developments appeared to be part of an indirect but aggressive and far-reaching attack by U.S. prosecutors on the Internet gambling industry just two weeks before one of its biggest days of the year, the Super Bowl.

Read the full article by Andrew Sorkin and Stephanie Saul (International Herald Tribune).


LSE fends off Nasdaq bid

In another attempt to fend off the unfriendly takeover by US-exchange Nasdaq, the London Stock Exchange (LSE) announced yesterday that it would buy back as much as £250 million (or $493 million) in shares this year. LSE also released a document on Thursday which stated that Nasdaq's offer would only be the 20.7 times equivalent of LSE's prospected benefit for 2007. Nasdaq, however, projects a less optimistic revenue forcast for LSE as the exchange would suffer the impact from project 'Turquoise'. 'Turquoise' is the initiative of seven global investment banks to underbid LSE's trading fees by a minimum of 50 percent. LSE did not agree with this bleak forcast saying that 'Turquoise' has already been preceded by eight similar initiatives within the last seven years.

Source: Neue Zürcher Zeitung


Caracas stock market remains volatile

Venezuela's stock exchange slump has taken a break. On Tuesday the prices at the Caracas exchange were still dropping by around 12 percent. Yesterday the market seemed to recover with prices rising by over 7 percent. However, the market is still at its 8 weeks low. The main index of the exchange, the Bolsa de Valores de Caracas remains at 44850 points. Since Venezuela's president Hugo Chavez has announced plans to nationalize larger parts of the country's telecom, utility and energy suppliers, the index has been loosing three thirds of its former value.

Source: Tages-Anzeiger


LSE reduces exchange fees

The London Stock Exchange (LSE) announced its decision to reduce its exchange fees for this year. This decision is said to be motivated by the growing competition in the European market. Investment banks will launch their own pan-European trading platform. This latter project is seen as a response to the new EU regulation MiFID (Market in Financial Instruments Directive), which will come into force in November 2007. An important aim of MiFID is to enhance competition in the European stock trading. One of the effects will be that investors will no longer be bound to stock exchanges for trading or settlement operations.

LSE announced that the first fee cuts will come into force on 1st April. Before that the LSE will have to find ways to ward off the unfriendly takeover attempt from the US exchange NASDAQ.

Source: Tages-Anzeiger


Times are changing for hedge funds

Hedge funds have always provided enough debating topics for the global financial industry. They deliver high commissions to the banks, their strategies have a great impact on the markets and the salaries paid to hedge fund managers leave those of other Wallstreet professionals well behind. But what makes the hedge funds of today unique? The times of George Soros or Julian Robertson are definitely over. In the 80ies they revolutionized the market with their unorthodox strategies. Today the hedge fund branch is much more than just a bunch of highly intelligent individuals, who can do the magic tric by providing high return on investment with cutting-edge financial arithmetic and know-how. The rapid growth of the branch has largely institutionialized the hedge funds business over the years. As a consequence, today's Wallstreet professionals ask if there remains much difference between traditional fund management and top league hedge funds.

This question is very important and leads to a specific institution of the industry, the so-called fund of hedge funds. Their objective is to distribute capital to the hedge funds. Another intermediary in the process usually means higher transaction costs for the investor. So is this structure really necessary? Many Wallstreet professionals doubt it, since the institutionalization of the branch should also enable to realize standard strategies with easier means. In other words, the performance of many hedge funds can be reproduced by using traditional asset classes, such as stock indices, options or bonds. This would result in a special type of Exchange Traded Fund (ETF), which would reflect the performance of certain hedge funds strategies and give the investor a less costly access to hedge funds.

This product is based on the conception that a majority of hedge funds pursue similar strategies. One example to support this idea are the so-called mean-reversion-strategies. They are based on the presumption that a quote moves away from an average (mean), but quickly returns to the latter. Today these strategies, which represent a major part of hedge fund products, can be translated into statistical models, which, in turn, may also serve Wallstreet for launching competitive hedge fund products. Similar to ETFs these products should reflect certain investment strategies and represent a new and cheaper alternative investment form. It is no wonder that hedge funds are not very happy about this latest development as it could certainly lead to fiercer competition in this market segment.

Source: Neue Zürcher Zeitung


Intra-day pricing from the National Stock Exchange of India through Intraday Pricing Service

Telekurs Financial is pleased to announce that from Monday 15 January 2007, the Intraday Pricing Service will provide intraday snapshots for equity instruments and derivatives traded on the National Stock Exchange of India (NSE).

Data will be available in snapshots every five minutes. Currently, only end of day prices are available. The data supplied will be best bid and best ask prices.

The new data feed has been sourced in response to increased interest in NSE instruments from Telekurs Financial's clients and reflects the growing importance of the Indian economy on the world stage.

In addition to this change, on 12 February 2007, NSE futures and options will be migrated from EC 326 to EC 793.

Any client who would like to receive this data should contact their account manager or the Telekurs UK Helpdesk on +44 20 7550 5000.


The Year of the Backup

If there is one New Year's resolution even more likely to fail than "I vow to lose weight," it's "I vow to start backing up my computer." After all, setting up and remembering to use a backup system is a huge hassle. The odds are good that you don't have an up-to-date backup at this very moment. Fortunately, 2007 may turn out to be the Year of the Backup. Both Microsoft and Apple Computer have built automated backup software into the latest versions of their operating systems; both make their debuts this year. At the same time, an option that was once complex, limited and expensive is suddenly becoming effortless, capacious and even free: online backups, where your files are shuttled off to the Internet for safekeeping.

Read the full article by David Pogue (International Herald Tribune).


SIS confirms successful launch of Global Funds Service

SIS SegaInterSettle announced today that its Global Fund Service was successfully launched in the market in past December.

With the successful launch of GFS – Global Funds Services – the traditionally labour- and paper-intensive settlement of offshore & hedge funds will be largely automated. The service is based on a real-time link between the GFS Internet portal and SECOM, SIS SegaInterSettle's online real-time settlement system. It offers standardised settlement at the ISO 15022 quality standards. The service simplifies securities and cash reconciliation and allows for monitoring and overview of the statuses of pending orders at all times.

Source: SIS SegaInterSettle


Resounding success of China Life IPO

On Tuesday the shares of China Life made a successful debut at the Shanghai stock exchange. China Life is the biggest Chinese life insurance corporation. The revenues of the IPO amount to around euro 2.75 bln. Based on the last quote of the shares on Tuesday the current market capitalisation of China Life amounts to nearly euro 110 bln. China Life only placed 5 percent of its capital in the IPO.

This successful debut automatically pushed China Life in the world top 3 league of the branch: Only the US-firms American International Group and Berkshire Hathaway have a larger capitalisation with euro 142 and 126 bln respectively.

China Life stock, issued at Yuan 18.88, started trading with Yuan 37, climbed up to Yuan 40.20 and closed at Yuan 38.93. Mainly Chinese investors were the beneficiaries of this IPO as the strict quota system of the Shanghai exchange is still restricting foreign investment.

Source: Neue Zürcher Zeitung


LSE fights bid with rising profit

The London Stock Exchange has rushed out its latest profit figures as part of an attempt to ward off a hostile takeover from US market Nasdaq. In a statement three weeks ahead of schedule, the LSE said that its pre-tax profit for the final three months of 2006 rose 12% to £44.2m ($85.7m). Revenues were up across all parts of its business, the LSE said. On Monday, the Nasdaq had said its £2.7bn ($5.2bn) bid remained the best deal for LSE shareholders.

Read the full article by BBC News.


The war for the '4th screen'

For functions from e-mail and instant messaging to mobile MySpace and ESPN, computer users are increasingly turning to the "fourth screen" — the one on their cellphones — which is evolving to adopt more characteristics of the three previous generations of screens: movie, television and computer. That shift may well be underscored Tuesday when Steve Jobs, the chief executive of Apple Computer, is expected to introduce an Apple phone representing his company's new mobile communications strategy — highlighted by a device that could include Jobs-inspired refinements like a sleek ceramic case and a transparent touch screen.

Read the full article by John Markoff (International Herald Tribune).

Find out more about Telekurs Financial's mobile financial information offering Telekurs iD mobile


Telekurs iD screen of the month

We report that the Research Screen showing live quotes, analysis and news of top global companies is Telekurs iD's most popular screen within the last month.

research-small.jpg

For a bigger picture please click here.

The screen shot above presents the most popular global Telekurs iD screen this month, showing:

>> Major market quotes of major companies globally
>> An analysis from theScreener for these company profiles and news (example shown: Barclays)
>> PDFs with the detailed analysis as an additional feature

Telekurs iD is built modularly and offers an array of packages to meet the requirements of front, middle and back office users alike. The latest version of Telekurs iD, which went live at the end of August 2006, enhanced the functionality available in the product as well as incorporating LSE Level 2 data.

theScreener

As an independent provider of stock analysis, theScreener has advanced to become the European market leader in this field. Twice a week, theScreener provides ratings based on the latest information for some 5000 equities from 37 countries which Telekurs Financial clients can use to access objective analysis and recommendations on these globally attractive stocks. The newly integrated stock analysis from theScreener – offers considerable added value for the investment advisory and asset management fields. Highlights:

>> Ratings are guaranteed to be independent and objective since they are derived strictly from machine-generated data analysis.
>> The Rating process is transparent and easily replicated and uses a recognized, broadly accepted method.
>> The performance relevance of the ratings is continually monitored by applying the method to portfolios in multiple currencies.
>> Telekurs Financial's current price information now includes links to independent ratings.

For more information on Telekurs iD please click here.
For more information on theScreener please click here.

If you would like to get in touch with a representative from Telekurs (UK) Ltd, please email info@telekurs.co.uk or call on Tel. +44 (0)20 7550 5000.


EFG International acquires PRS Group

The Swiss private banking group EFG International announced today that it has reached an agreement to acquire PRS Group from its main founder. The purchase price has not been disclosed. PRS Group was founded in 1981 to provide specialized investment services to a a global high net worth and institutional investor base. PRS has been a leader in hedge fund investing sinces 1987. PRS is majority-owned by its founders. In addition, Banque Piguet & Cie, S.A. of Geneva, a subsidiary of the Swiss based Banque Cantonale Vaudoise, holds a 25% stake. The transaction is expected to close by early February 2007 and is subject to approval by regulatory authorities.

Source: EFG International


Restructuring of the SMI and SPI families

This year, the SWX Swiss Exchange is restructuring its SMI and SPI families. The most important change is the stipulation that the SMI must comprise 20 constituent securities and the SMIM 30. The SWX will also introduce a capped equity index that will comprise the 30 largest securities of the Swiss equity market. The largest securities in the index will have a maximum weighting of 9 % or 4.5 %. The review dates will change as well: they will be moved to the trading days following the Eurex expiration dates in March and September.

Source: SWX Swiss Exchange


Swiss financial industry creates database for funds

The Swiss Funds Association (SFA) and the Swiss exchange SWX have created a new Internet based information platform for investment funds. It is aimed to become the central information platform for all investment funds licensed in Switzerland. The plaform was dubbed Swiss Funds Data AG and relaunches the existing TIF project. TIF, which stands for 'Transparency in the Funds Market' was already initiated in 2001.

Source: Neue Zürcher Zeitung


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