Archiv: March 2007


German Savings Banks and Börse Düsseldorf receiving data from Telekurs Financial

The savings banks of Gelsenkirchen, Kamen, Hamm and Unna as well as the Düsseldorf stock exchange have opted for the comprehensive range of international financial information offered by Telekurs Financial. This data is accessed via
Telekurs iD – intelligent Display, a tool that is proving an indispensable source of information for a growing number of banks and other companies. Read the full text of this press release (download 25 kb)


Man seeks 'green' profits

Man Group, the world's largest publicly listed hedge fund manager, will introduce funds seeking to profit from so-called green investments like carbon-emissions credits, said Stanley Fink, the outgoing chief executive of the company. The new funds will also invest in ventures that seek to capture methane from waste plants and use it to produce energy, and in forestation projects, said Fink, who will step down from his post at the end of next week. He was speaking at the Future of Fund Management conference in London on Wednesday.

Read the full article by Andrei Postelnicu (published in the International Herald Tribune).


Mellon Selects Valordata Feed from Telekurs Financial

Mellon Financial, a global financial services company, has chosen the Valordata Feed from Telekurs Financial as part of its enterprise-wide, global reference data infrastructure. Read full text of this press release (download 31 kb).


Focus on Asia: China regulates utilisation of IPO revenues

The Chinese securities regulator has taken measures which will attempt to hold back speculative buying. According to the China Securities Regulatory Commission one measure is destined to bar companies from using IPO revenues to reinvest in shares. Listed companies now have the obligation to use IPO revenues as stipulated in the issuing prospectus, unless their shareholders decide otherwise. Furthermore, the Regulatory Commission announced that companies would be subject to a closer monitoring.

This decision by the Regulatory Commission is motivated by the fear that the present IPO practice could further fuel the stock-market frency. The Chinese government wants that IPO revenues are to be reinvested in the companies itselves or distributed as dividend payments. This year Zhengzhou Yutong Bus and the real estate developer Finance Street Holding had announced their intention to use their own IPO revenues for reinvestment in IPOs of other corporations.

In February the Chinese goverment had given green light to the creation of a special task force to curb illegal IPO practices. In the last twelve months shares had been issued with a value of $24.4 bln.

Source: Neue Zürcher Zeitung


New management structure at Deutsche Boerse

The German exchange Deutsche Boerse is further developing its management structure with the aim of improving the Group’s focus on customer requirements and further increasing efficiency. The company positions itself along the three market areas cash market, derivatives market and securities settlement and custody, and streamlines decision-making processes. This new structure should strengthen Deutsche Boerse's integrated business model that covers the various stages in the securities process chain from a single source. The new structure will be implemented in the second quarter of 2007.

Each market area will be represented by one member of the Executive Board accountable for financial performance. Overall, the Executive Board under the leadership of CEO Reto Francioni will consist of six members, including the CFO and the Executive Board member responsible for IT. Frank Gerstenschläger will be responsible for the new cash market unit; he was appointed by the Supervisory Board of Deutsche Börse on Monday with effect from 1 April 2007. Andreas Preuss and Jeffrey Tessler will maintain their positions of responsibility for derivatives/clearing and securities settlement/custody respectively, and Michael Kuhn remains responsible for IT.

The CFO position will be filled in a timely fashion and in the meantime Francioni is covering the area in addition to his own duties. The position of a Chief Operating Officer is to be dispensed with. The Supervisory Board on Monday approved the resignation of Matthias Ganz and Mathias Hlubek as members of the Executive Board and thanked both for their service to the company.

Source: Deutsche Boerse


London and New York continue fight for 'business capital of the world' title

New York City and London are both proclaiming to have come out on top when matched up against a group of world capitals. City officials from London and business leaders from New York are brandishing dueling studies on the global competitiveness of their hometowns, whose rivalry for the title of business capital of the world has been intensifying in the past few years. A study commissioned by the Partnership for New York City, due out Tuesday, found that New York ranked first in "financial clout," ahead of London, Paris, Tokyo and seven other big cities. But a separate survey commissioned by the City of London, released last week, concluded that London had surpassed New York as a global financial center.

Read the full article by BBC News.


Telekurs Financial issues IBEIs to support upcoming regulation

Telekurs Financial is pleased to announce the issuance of sixty nine thousand International Business Entity Identifiers (IBEI) for companies in which it is either the National or Substitute Numbering Agency (NNA).

Although the ISO standard is still under development, Telekurs Financial is closely involved in this process and has issued IBEI numbers which follow the current process. Any future changes to the standard will be incorporated into the process as they are announced.

The IBEI is one of the ways in which companies can be identified uniquely under the forthcoming Markets in Financial Instruments Directive, the Capital Requirements Directive and UCITS III. Its issuance further underlines Telekurs Financial's commitment to using international standards in supplying enterprise information to its clients in order to ease processes and assist in STP.

A full list of Telekurs Financial's IBEI coverage is shown below. As other NNAs issue IBEI numbers, the codes will be added to services.

ibei_coverage.jpg

For further information on the IBEI or on any of the EU Directives mentioned above, please email info@telekurs.co.uk or call on Tel. +44 (0)20 7550 5000.


Market watch: takeover struggle involving CBoT

On last Thursday morning the Intercontinental Exchange (ICE) made a purchase offer for CBoT Holdings, the operator of the Chicago Board of Trade. Last October CBoT had already accepted to merge with the Chicago Mercantile Exchange Holdings (CME).

Unlike a CME/CBOT combination, ICE believes there are no significant antitrust risks in an ICE/CBoT combination. There is no indication as to when the outcome of the regulatory review of the CME/CBoT combination by the U.S. Department of Justice will become known. ICE and CBOT have complementary product offerings and an ICE/CBoT combination would have virtually no product overlap.

Sources: NZZ, ICE


Focus on Asia: China passes new law on property

China's parliament has wrapped up its annual session, passing a landmark law to increase private property rights.
It also approved a bill ending preferential tax treatment for foreign firms, setting a standard rate of 25%. China's leaders have been struggling for decades to enact a law to cover private assets - seen an important step away from Communist collective ownership and towards a market economy.

Read the full article by BBC News.


Market Data Information: New currency in Sudan

A new currency was introduced in Sudan. It is valid with immediate effect. The old currency in Sudan, the Sudanese Dinar will remain valid until 1st July 2007.

The following rate was fixed: 1 (new) Sudanese Pound (SDG) = 100 (old) Sudanese Dinar (SDD).

The new currency has been entered into the database as follows:

ISO Currency Code alpha: SDG (old: SDD)
ISO Currency Code numeric: 938 (old: 736)
CH-Valoren: 2959976 (old: 274824)

Get an up-to-date overview of Telekurs Financial's global data range.

For a regular update on the data offering subscribe to Telekurs Financial's data newsletter DATAFLASH.


Structured products: Swiss Banker's Associates issues new transparency rules

On Thursday, the Swiss Bankers Association (SBA) issued directives which should give investors greater transparency with regards to structured products. These minimum standards should come into force on 1st July 2007. The directives of the SBA is compliant with the new Swiss legislation for collective capital investments (Gesetz über kollektive Kapitalanlagen, KAG) which came into force in January 2007. The KAG requires a simplified prospectus for structured products which should enhance investor protection.

The directives are only valid for non-listed Swiss stuctured products. No simplified prospectus is required for products listed at the SWX Swiss Exchange as listing requirements at this exchange already include some transparency rules. Furthermore, structured products where a prospectus is required under EU directives are also exempt.

Source: Neue Zürcher Zeitung


Focus on Asia: How Chinese face the volatile market

For many Chinese the Shanghai stock exchange is a living example of free trade and a shining representation of economic growth. But some Chinese investors have recently learned that stock markets can also have a downside.

"Like our neighbours we have recently starting investing," says Zhang Xiaoxian, a 60 year old dock worker. Zhang brought a good part of his savings to his broker. "Our broker composed a portfolio of 10 shares," he says. "We believe that this investment is worthwile. Our country is constantly growing." Many Chines share this opinion. The number of new portfolios is 6500 - per day!

Yet, many investors felt the roller coaster effect of the markets at the end of February. On 27 February the Chinese stock market suffered its worst day of trading in 10 years. (Read also the following blog entry: Shanghai stock market suffers heavy losses).

"The financial place has many freshmen who just wait to be slaughtered," says financial guru Jim Rogers who has recently switched to commodities. Others have a more positive approach. "This market slump will not have a great impact. We are not really worried with regards to the Chinese stock market for the economy is still robust", says Jonathan Anderson, chief analyst for Asia at UBS.

This, however, does not reflect the general opinion. The Chinese market currently presents three risk factors. It's based on companies which are difficult to assess, it's expensive and on top of that is depending on political decisions. Just last summer the government gave the go ahead for IPOs after it had stalled this decision for over a year.

Market observers also fear the creation of a 'speculative bubble' in the market. Blue chips such as China Life feature a P/E ratio of 70. Compared to this figure, the German insurance leader Allianz can 'just' present a P/E ratio of 10. And there's more bad news: investors on mainland China pay a higher price for those shares which are traded for less at the Hong Kong exchange. Nine out of 37 shares with a double-listing are more expensive at the mainland exchange than in Hong Kong.

Notwithstanding these downsides, the run for stocks continues unabated. One reason is that Chinese are often left with no other choice. At present many elderly in China must secure their pensions as many state-owned corporations are closing down. Furthermore, private pension funds are (still) unknown in China. One could hide the funds under the pillow or transfer it abroad...or you become a San Hu - the nickname for small investors. The prospect of easy made money is attracting many - but investment know-how is still lacking compared to European standards. Many investors do not really know what's in their portfolio. There's still hope for a ever growing economy in a market of 1.3 bln people, but hope cannot substitute knowledge.

"The Chinese stock market was developed within 20 years. Europeans, on the other hand, can look back to 200 years of experience", says professor Dehuan Jin, director of the institute for stock research in Shanghai. The Shanghai exchange was only opened on 19 December 1990 and the following year saw the opening of the Shenzhen exchange.

"Are stock markets beneficial or dangerous? Are they only reserved for capitalism or may socialist countries also endorse their benefits? Stock markets are certainly permitted, but everything needs to be done in a special manner." These were the words of reformer Deng Xiaoping in 1992. The present situation shows that Chinese were less keen on theories, but used the last 15 years to invest without really knowing the fundamentals.

And here lies the danger. Politicians have recognized the problem and have addressed it in a usual manner: propaganda. In February Cheng Siwei, vice-chairman of the National People's Congress issued warnings of a "growing speculative bubble" on the Chinese stock market and reminded investors "to start thinking about risks." This owed him the title of "Chinese Greenspan" in the press. The former Federal Reserve chairman Allan Greenspan was famous for his conservative stance during the Internet hype. Nobody followed his advice until the crash finally happened, but then it was to late.

Source: FAZ.NET


Capital market portal "db-markets", Dresdner Kleinwort and n-tv receiving data from Telekurs Financial

Frankfurt/Main - Telekurs Financial has gained further customers in the field of web-based financial applications. These now also include the "db-markets" capital market portal, the derivatives websites of Dresdner Kleinwort and the internet portal of the news channel n-tv. Read full text of this press release (download 26kb).


Mobile focus for hi-tech Hanover

Hanover is bracing itself for an influx of hi-tech firms and fans who will be in town for the giant Cebit show. Billed as the world's biggest hi-tech fair it will host more than 400,000 visitors during the six day event. Any and every type of technology will be on show at the trade fair but the main focus this year is likely to be on portable devices - be they phones or handheld computers. Cebit runs from 15-21 March and this year celebrates 21 years as a showcase for every kind of technology.

Read the full article by BBC News.

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


Market watch: New Century delisted

New Century Financial, the second biggest subprime lender of the US, was delisted from trade at the New York Stock Exchange (NYSE) on Tuesday. The reason for delisting is the current liquidity crisis in the US mortgage sector as well as current investigations by the US attorney and the US Securities and Exchange Commission (SEC). On Monday the shares of New Century had already been suspended from trading. Since the beginning of the year the price fell by 95 percent.

Source: Neue Zürcher Zeitung


Swisscom offers USD 3.74 billion for FastWeb of Italy

Swisscom offered €3.74 billion Monday to acquire FastWeb, one of the largest fixed-line phone companies in Italy, in what analysts suggested could signal the start of a consolidation wave in the telecommunications industry.
The deal, worth $4.93 billion, would give Swisscom, a phone operator, the chance to counter slowing growth in its home market while giving FastWeb financing to continue its expansion in the underdeveloped broadband Internet market in Italy.

Read the full article by Eric Sylvers (International Herald Tribune).


VZ Holding announces IPO details

Today the financial services provider VZ Holding has announced details regarding its forthcoming IP at the Swiss exchange SWX. Shares will be issued up to 31.3 percent of the company capital. A price range of 62 to 72 Swiss francs (around $50 to 60) has been fixed. The subscription period for the public offering will terminate on 22 March accoring to the issuing prospectus. VZ announced its IPO on 22 February.

Source: Neue Zürcher Zeitung


Get an up-to-date overview of Telekurs Financial's global data range.

For a regular update on the data offering subscribe to Telekurs Financial's data newsletter DATAFLASH.


Focus on Asia: UBS acquires fund business in India

UBS Global Asset Management will acquire the fund investment business from Standard Chartered in India which comprises around 4 bln Swiss francs (around $3.2 bln) in assets. Furthermore, UBS plans a strategic alliance with Standard Chartered with regards to fund distribution in Asia, Middle-East and Africa. Further details have not yet been communicated by UBS.

Source: Schweizer Bank


Market watch: Tough rules draw funds to Brazil

Brazil is attracting overseas investors by playing their game. The Novo Mercado, a new stock market whose corporate governance rules mirror those of the United States and Europe, almost doubled its listings in 2006. And an index of companies that follow the regulations has outperformed the benchmark Bovespa index in the past 12 months. "It went from water to wine," said Wagner Pinheiro, president of Petros, a pension fund. He said he had doubled his stock holdings over the past four years.

Read the full article by Alexander Ragir (published in International Herald Tribune).


US Time Change a mini Y2K in Tech Terms

Two years ago, when Congress passed a law to extend daylight saving time by a month, the move seemed a harmless step that would let the nation burn a little less fossil fuel and enjoy a bit more sunshine.

Representative Fred Upton, a Michigan Republican, predicted that children would rejoice at the prospect of an extra hour of daylight trick-or-treating on Halloween. But there is no rejoicing among corporate technology managers.

The change takes effect Sunday, as daylight saving time begins three weeks earlier (and ends a week later, on the first Sunday in November). And many companies are scrambling to reset BlackBerry e-mail devices, desktop PCs and big data-center computers used to automate payrolls, purchasing and manufacturing.

This puts the United States out of sync with the rest of the world for longer than usual this spring, almost certainly disrupting not only computers but also the business and travel schedules of companies, workers and travelers. Most of Europe goes to daylight saving time March 25, two weeks after America, while most of Asia, Africa and South America do not observe daylight saving time at all.

Read the full article by The New York Times.


New Web sites connect lenders and borrowers

It is a little like Internet dating, but the objective is money. A Web site based in Britain, Zopa.com, and another in the United States, Prosper.com, have started businesses that connect individuals eager to borrow money to other people willing to lend, offering both sides better interest rates than banks.

"We bring together people who have never met to lend and borrow," said Chris Larsen, co-founder and chief executive of the San Francisco-based Prosper, which has had 140,000 users since it started a year ago. "Somebody who has money should be able to loan it out and somebody looking to borrow should be able to find a lender."

Banking analysts suggest that these hyper-efficient operations, with few employees and no costly real estate, could force changes to established banks.

Read the full article by Thomas Crampton (International Herald Tribune).


Compliance professional by e-learning

Regulation is abounding in the financial industry. Sarbanes-Oxley, national data regulations and increasing amounts of corporate rules...companies are struggling hard to keep track with compliance. But more and more firms discover e-learning as an innovative solution to tackle the information overload. According to a new survey published by the market research firm Aberdeen, every fifth CIO indicates that e-learning is used in the company to train the compliance staff. 30 percent have already been using it for two years and 27 percent alreday made a start with e-learning five years ago. Only every 10th CIO was indifferent to e-learning.

For 81 percent the key motive to use e-learning is the possibility to automate training sessions. 73 percent wanted to "reduce risks and errors", 49 percent wanted to "enhance responsibility". 34 percent see e-learning as part of a certification process. And every third (29 percent) believes that productivity can be improved with e-learning.

But CIOs still have a long way to go to achieve these results. Except for costs (43 percent of the statements), CIOs still identify the following obstacles for a successful integration of e-learning: long integration period (41 percent) and inefficient communications regarding workflows and policies. Every third (35 percent) admits to have no general overview of all risks which may or might exist in their companies.

Source: CIO.de


Michael Frank appointed as Managing Director of Telekurs (Nederland) BV

As of 1 April 2007, Michael Frank will head Telekurs (Nederland) BV while continuing to perform his function as Managing Director of Telekurs (Deutschland) GmbH and of the Austrian branch office in Vienna.
Read the full text of this press release (download 21 KB).


Europe shares show recovery signs

European shares rose in early trade on Friday, after three days of market volatility and global falls. France's Cac-40 index gained 0.62%, Germany's Dax added 0.76% and the UK's FTSE 100 climbed 0.58%. The upturn echoed an increase in the Chinese markets, which were the trigger for a worldwide sell-off on Tuesday, although other Asian shares were down. Analysts have been worried that recent volatility suggested deeper economic problems, with talk of a recession.

Read the full article by BBC News.


Focus on Asia: Rush hour for China's cellular operators

By now just about everybody who cares knows that China is the world’s biggest cellular market. Every once and a while, it’s useful to step back and think about just how big China really is. And what better time than now, when the whole country is shut down for a week’s worth of Chinese New Year celebrations (and there’s very little news to blog about)?

So, consider this number: 14 billion. According to the China Daily, that’s how many text messages China’s two cellular operators, China Mobile and China Unicom, are expecting to send over the long holiday. That’s also an 11% increase over last year, when Chinese sent 12.6 billion SMS. In 2005, Chinese sent 304.6 billion text messages, one third of all SMS worldwide.How much has China changed? Consider that in 2001 China’s operators only sent 18 billion SMS for the whole year. Now, with 460 million Chinese using cell phones, the two companies have to figure out how to handle close to that number in just one week.

Read the full article by Bruce Einhorn, author of the Asian tech blog of BusinessWeek online.

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


Computer malfunction sends Dow Jones index down

A computer malfunction was responsible for the sudden slump in the Dow Jones Industrial Average (DJIA) during late trading on Tuesday. According to Sybille Reitz, spokesperson of the provider of Dow Jones Indexes, the calculation of the index was delayed due to the unusually high order volumes. Traders were unaware of the true value of the DJIA, a key indicator of American market sentiment, for a full 70 minutes yesterday at the height of the turmoil gripping world markets.

The spokesperson of Dow Jones further explained that one hour prior to trading close a switch had been made to a backup system. Selling orders, which would normally have been executed within 20 to 30 minutes, were settled within seconds. This sent the DJIA down around 200 points. Other financial instruments wich use the index as indicator were not concerned by the malfunction according to an information received by the Chicago Board Options Exchange.

Some traders noticed the discrepancy between the DJIA and the Dow Jones Futures. Normally the movements of the futures go paralell with the index. On Tuesday, however, a difference of 200 points was registered according to Brian Williamson of Boston Company Asset Management.

Source: Handelsblatt


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