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OPINION
The Politics of Sovereign Wealth
By PETER MANDELSON
June 7, 2008; Page A11
Brussels
Sovereign wealth fund managers are not the type to court publicity. They are even more wary of controversy. For the last six months they have had both.
In a political climate in Europe and the United States that is increasingly defensive about globalization, the funds have become the target of anxiety about foreign investment and, in particular, about the growing economic strength of Russia and China. With the size of the funds set to grow hugely, publicity for the funds is a given. The question is how to avoid the controversy and to maintain business as usual. The basis for a deal is now taking shape.
NOTE: RUSSIA AND CHINA HAS BEEN NAMED AS THE SLEEPING GIANTS OF THE WORLD.
In my meetings with them, sovereign fund managers have often bridled at being the subject of suspicion. They rightly point out that for more than five decades they have been quietly investing the proceeds of oil and gas wealth for future generations without raising the slightest concern. Some have standards of transparency that are exemplary.
Although it is often made, the comparison of sovereign wealth funds to state-run businesses, especially powerful state-controlled monopolies like Gazprom, is misleading. A state acting like a business – throwing the resources of government behind a company that competes with others – is a different proposition from a state looking to invest its surplus capital in the most commercially advantageous way.
But the funds risk getting the facts right and the politics wrong. The explosion of resources under sovereign wealth-fund management and a shift by some into stocks rather than the more traditional bonds have made them front-page players. Some recipient countries feel that they should know more about their investment objectives or of their precise relationship with their sponsor governments. The possibility that a state might seek to use its investments for political leverage is very slim, but because recipients are not quite sure of the rules of the game, they can't exclude it entirely.
NOTE: FUND MANAGERS DOESN'T ONLY PLAY BASED ON THEIR CAPACITY, THEY ALSO LEARN MORE STRATEGIES TO BE MORE COMPETITIVE.
The smart move from the funds would be to confound the suspicions. If sovereign wealth funds want to manage the politics of their dramatic rise, they should study the experience of the hedge-fund and private-equity industries in Britain. When growing public anxiety about their intentions and business models put them on the defensive, hedge funds and private equity moved quickly to reassure the public with voluntary codes of conduct. Sovereign wealth funds should do the same.
Norway, which already sets a high standard for transparency and governance in sovereign wealth investment, has said it would work with the International Monetary Fund on a voluntary, world-wide code of conduct. Singapore and Abu Dhabi have both signed up to some basic investment principles agreed with the U.S. that could become a steppingstone to a wider global agreement.
Work between the funds and the IMF on such a code has gotten off to a prickly start. Some funds are suspicious of the IMF's motives. But the IMF is not, and will never be allowed to become, some sort of second International Criminal Court. The funds should grit their teeth and agree to a basic code that would cut the ground from under their critics. Sovereign wealth funds have a good track record as benign investors. Fund managers know that any attempt to use their investments for political leverage could backfire badly on them. So a voluntary and limited code of conduct would only formalize what they already do. Any fund unwilling to sign up to a reasonable code would have trouble explaining why.
Still, the funds are absolutely right to insist that such responsibility for transparency and fair treatment goes both ways. Assurances from the funds on transparency and openness deserve equivalent guarantees from OECD members that they will treat fund investments fairly and without discrimination. The OECD this week adopted a declaration welcoming investments by sovereign wealth funds, and recommitting members to principles of openness and nondiscrimination. The funds should see this as a gesture of good faith, and OECD politicians should stand by it. It is the essential quid pro quo that could seal this code and allow governments to turn down the heat under this issue.
Europe and the U.S. have no interest in turning away sound investment or encouraging public skepticism about foreign investment. So long as its capital is invested for no other goal than a good commercial return, a sovereign wealth fund is not different from a pension fund, and its investments are likely to be much longer-term.
But it would be a mistake for the sovereign wealth funds to believe that this will stop some more populist politicians from calling for discrimination or greater controls if public anxiety seems to demand them. Rather than responding with resentment or indifference, the funds should step up and show that if people want reassurance, they can have it.
Mr. Mandelson is the European Union's trade commissioner.
See all of today's editorials and op-eds, plus video commentary, on Opinion Journal.
And add your comments to the Opinion Journal forum.
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Tuesday, June 10, 2008
Monday, June 9, 2008
GLOBAL JORDAN SUCCESSFULLY MANAGES THE USD20 MILLION COMMERCIAL PAPER ISSUE FOR MIDDLE EAST COMPLEX FOR ENGINEERING, ELECTRONICS AND HEAVY INDUSTRIES
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Global-Jordan successfully Manages the USD20 Million Commercial Paper Issue for Middle East Complex for Engineering, Electronics & Heavy Industries P
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ADC Honors Winners of Distinguished Small Projects Award 2007
Global-Jordan successfully Manages the USD20 Million Commercial Paper Issue for Middle East Complex for Engineering, Electronics & Heavy Industries P
Posted: 07-06-2008 , 18:32 GMT
Global Investment House – Jordan (Global – Jordan) announced the successful private placement of a six-month, USD20 million commercial paper issue for Middle East Complex for Engineering, Electronics & Heavy Industries PLC (MEC).
A number of reputable financial institutions and commercial banks such as Union Bank, Jordan Ahli Bank, and Blom Bank participated in the issue. Global- Jordan acted as lead manager and structuring agent and Union Bank was the underwriter.
Click Here!
Mr. Sami Nabulsi, Head of Investment Banking, at Global-Jordan said, "We are proud to have worked with Union Bank on this deal for MEC, the leader in the electric appliances market in Jordan and a strong regional player."
note: Union Bank is a well respected bank worldwide.
He added, "We wanted to provide MEC with the funds required to expand its operations while reducing its financing costs at the same time. The best vehicle was a commercial paper issue because they are short-term fixed income securities that are flexible, relatively easy to structure, and usually a cheaper means to finance operations."
The USD20 million commercial paper will be used by MEC to improve the cost of its short-term borrowing and finance its working capital needs. According to Nabulsi, the commercial paper was denominated in USD in order to capitalize on the dollar's low interest rates.
note: MEC is one of the largest companies in the Middle East and North Africa regions.
MEC's CFO, Mr. Mashhour A. El Basha, said that, "Through its long experience and in partnering with well known brands like; LG, Daewoo, and Haier in addition to developing its own brands (mainly Acma), MEC has become one of the largest companies in the Middle East and North Africa ("MENA") regions. Our announcement of the new project, which is considered the first of its kind in the region, has further reinforced our status as a regional heavyweight. With an initial investment JD117 million, projected average annual sales of JD213 million, and ROI of 27%, production is scheduled to begin in early 2009."
He added, "MEC always cares to finance its working capital needs in co-operation with the best investment companies in the region such as Global-Jordan".
It is worth mentioning that Global-Jordan is fully owned by Global Investment House (Global), one of the leading asset management and investment banking companies in the GCC and the wider Middle East and North Africa ("MENA") regions.
With over 45 employees and total assets exceeding JD35 million, Global-Jordan is growing to be a full-blown investment company providing services in asset management, investment banking, wealth management, research, and brokerage. Global-Jordan's Investment Banking division provides a wide array of services that include private placements, M&As, privatizations, advisory services, and initial public offerings (IPOs) to name a few.
Nabulsi, ended by saying that "the successful closing of this deal is a testimony to Global's commitment to excellence through its delivery of financial and investment products and services that exceed market expectations. Establishing a solid track record and an excellent reputation over the past few years is one of the main reasons MEC selected Global for its investment needs".
About Global Investment House "Global"
Global Investment House "Global" is a full-fledged investment company incorporated in 1998, and falls under the regulation of the Central Bank of Kuwait. Its underlying foundation is to meet the high expectations of local and international clients, and to enhance the investment service industry and the capital market in Kuwait and the region. Today, Global stock lists on the Kuwait, Bahrain, and Dubai Stock Exchanges. Global plays an important role in promoting investment opportunities in the MENA region to investors through expert financial engineering, in-depth research and reports to advance the capital market in the region. Thus, Global's achievements have been recognized on local, regional, and international levels. The company's current assets under management reached KD2.5 billion (USD 9.3 billion) by 31 March 2008.
For more information, please visit our website on www.globalinv.net
Algeria Bahrain Cyprus Egypt Iran Iraq Jordan Kuwait Lebanon Libya Mauritania
Morocco Oman Palestine Qatar Saudi Arabia Sudan Syria Tunisia Turkey UAE Yemen
Search
Main
News
Entertainment
Business
Kids
Travel
Forums
E-cards
Albawaba's Email
Blogs
Music
Webguide
Popular E-cards
Red Rose
A love Virus
Happy Birthday
Main Countries Jordan
Global-Jordan successfully Manages the USD20 Million Commercial Paper Issue for Middle East Complex for Engineering, Electronics & Heavy Industries P
Saba Mubarak overcomes her sadness with love
Jordan-based Artists Have Less than Two Weeks Left to Apply for World's Richest Art Prize
Umniah Deploys Microsoft Server 2008 in its Operations
Mayor of Amman Receives Daegu City's Vice-Mayor for Economic Affairs
ADC Honors Winners of Distinguished Small Projects Award 2007
Global-Jordan successfully Manages the USD20 Million Commercial Paper Issue for Middle East Complex for Engineering, Electronics & Heavy Industries P
Posted: 07-06-2008 , 18:32 GMT
Global Investment House – Jordan (Global – Jordan) announced the successful private placement of a six-month, USD20 million commercial paper issue for Middle East Complex for Engineering, Electronics & Heavy Industries PLC (MEC).
A number of reputable financial institutions and commercial banks such as Union Bank, Jordan Ahli Bank, and Blom Bank participated in the issue. Global- Jordan acted as lead manager and structuring agent and Union Bank was the underwriter.
Click Here!
Mr. Sami Nabulsi, Head of Investment Banking, at Global-Jordan said, "We are proud to have worked with Union Bank on this deal for MEC, the leader in the electric appliances market in Jordan and a strong regional player."
note: Union Bank is a well respected bank worldwide.
He added, "We wanted to provide MEC with the funds required to expand its operations while reducing its financing costs at the same time. The best vehicle was a commercial paper issue because they are short-term fixed income securities that are flexible, relatively easy to structure, and usually a cheaper means to finance operations."
The USD20 million commercial paper will be used by MEC to improve the cost of its short-term borrowing and finance its working capital needs. According to Nabulsi, the commercial paper was denominated in USD in order to capitalize on the dollar's low interest rates.
note: MEC is one of the largest companies in the Middle East and North Africa regions.
MEC's CFO, Mr. Mashhour A. El Basha, said that, "Through its long experience and in partnering with well known brands like; LG, Daewoo, and Haier in addition to developing its own brands (mainly Acma), MEC has become one of the largest companies in the Middle East and North Africa ("MENA") regions. Our announcement of the new project, which is considered the first of its kind in the region, has further reinforced our status as a regional heavyweight. With an initial investment JD117 million, projected average annual sales of JD213 million, and ROI of 27%, production is scheduled to begin in early 2009."
He added, "MEC always cares to finance its working capital needs in co-operation with the best investment companies in the region such as Global-Jordan".
It is worth mentioning that Global-Jordan is fully owned by Global Investment House (Global), one of the leading asset management and investment banking companies in the GCC and the wider Middle East and North Africa ("MENA") regions.
With over 45 employees and total assets exceeding JD35 million, Global-Jordan is growing to be a full-blown investment company providing services in asset management, investment banking, wealth management, research, and brokerage. Global-Jordan's Investment Banking division provides a wide array of services that include private placements, M&As, privatizations, advisory services, and initial public offerings (IPOs) to name a few.
Nabulsi, ended by saying that "the successful closing of this deal is a testimony to Global's commitment to excellence through its delivery of financial and investment products and services that exceed market expectations. Establishing a solid track record and an excellent reputation over the past few years is one of the main reasons MEC selected Global for its investment needs".
About Global Investment House "Global"
Global Investment House "Global" is a full-fledged investment company incorporated in 1998, and falls under the regulation of the Central Bank of Kuwait. Its underlying foundation is to meet the high expectations of local and international clients, and to enhance the investment service industry and the capital market in Kuwait and the region. Today, Global stock lists on the Kuwait, Bahrain, and Dubai Stock Exchanges. Global plays an important role in promoting investment opportunities in the MENA region to investors through expert financial engineering, in-depth research and reports to advance the capital market in the region. Thus, Global's achievements have been recognized on local, regional, and international levels. The company's current assets under management reached KD2.5 billion (USD 9.3 billion) by 31 March 2008.
For more information, please visit our website on www.globalinv.net
© 2008 Al Bawaba (www.albawaba.com)
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Sunday, June 8, 2008
DOW STOCK INDEX FALLS NEARLY 400 POINTS IN OIL
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MARKETS
Dow stock index falls nearly 400 points on oil, jobs news
Major indexes plunge 3%. Indicators have been mixed, stirring volatile trading.
By Walter Hamilton, Los Angeles Times Staff Writer
June 7, 2008
NEW YORK -- Illustrating the stock market's deep confusion about the economy, bad news about oil prices and jobs sent the Dow Jones industrials tumbling almost 400 points Friday, a day after the index rallied strongly on optimism about jobs and consumer spending.
The sharp reversal reflects a pattern of uncertainty that is leading investors to react frantically to each day's helping of news.
* Graphic: Spike in unemployment rate
Graphic: Spike in unemployment rate
* Graphic: Volatility
Graphic: Volatility
* Chart: Crude oil prices rise sharply
"It goes to show how bipolar the attitude is," said Paul Hickey, co-founder of investment research firm Bespoke Investment Group in Harrison, N.Y. "One day things can be great, and the next day things can be bad."
The Dow plummeted 394.64 points Friday, or 3.1%, to 12,209.81. It was the blue-chip average's biggest drop since February 2007.
NOTE: STOCKMARKET NEEDED TO BE STUDIED WELL FOR IT'S EFFECT IS WORLDWIDE.
Other major indexes suffered similar declines.
Stock/fund symbol or name:
empty
The Standard & Poor's 500 sank 43.37 points, or 3.1%, to 1,360.68. The Nasdaq composite index lost 75.38 points, or 3%, to 2,474.56.
The market fell sharply in the morning, after the Labor Department reported that the unemployment rate jumped in May to 5.5%, its highest level since 2004. The half-point increase from 5% in April marked the rate's biggest monthly increase in 22 years. Economists had expected only a tick up to 5.1%.
After absorbing the job news, stocks gradually extended their losses as oil prices ballooned throughout the day.
Crude futures rocketed up $10.75 to settle at $138.54 a barrel, exceeding their record close set two weeks ago. It was the biggest one-day rise in dollar terms in the New York Mercantile Exchange's history.
Oil's rally was triggered in part by an analyst's prediction that crude would hit the $150-a-barrel mark by the Fourth of July.
The stock sell-off was the opposite of Thursday's trading, which boosted the Dow 214 points. Benign economic data and impressive retail sales raised hopes that the economy would sidestep the worst-case scenario.
But that optimism may have set the market up for disappointment. Though the economy shed fewer jobs last month than expected -- 49,000 versus analysts' consensus estimate of 60,000 -- so-called whisper numbers circulating on Wall Street had raised hopes for a better showing.
"That budding optimism in a lightly traded summer market was vulnerable to a correction on bad news," said Alan Gayle, senior investment strategist at RidgeWorth Capital Management in Richmond, Va. "And when the jobs report came in, the market got crunched. The exclamation point was the over $10-a-barrel rise in crude prices."
NOTE: ANALYSTS ARE VERY CRITICAL WITH THEIR STUDIES ON THE SEESAW MOVEMENT OF THE STOCKMARKET.
The seesaw action shows that investors can't figure out which way the economy is going and are simply listing with each day's news.
"You're getting a lot of mixed signals out there," said Georges Yared, chief investment strategist at Yared Investment Research in Minneapolis. "The dots of bad news and good news just aren't connecting yet."
The market losses were widespread. Declining issues outnumbered advancers by more than 4 to 1 on the New York Stock Exchange. All 30 of the stocks in the Dow industrials lost ground, as did all 10 major industry groups in the S&P 500. And all 91 financial stocks in the S&P 500 fell, tumbling 5% as a group, dropping below their March low. The 24-member BKX bank index slid 5.3% to a five-year low.
Credit card stocks fell on concern that rising unemployment will lead to more defaults among cardholders. American Express dropped $2.78, or 5.9%, to $44.65. Capital One Financial retreated $3.47, or 7%, to $46.15.
Among brokerages, Morgan Stanley led the declines, tumbling $3.78, or 8.5%, to $40.81.
Washington Mutual sank $1.08, or 13%, to $7.53, losing its title as the largest U.S. savings and loan by stock value to Hudson City Bancorp. WaMu is still the largest thrift by assets.
Midwest regional bank National City dropped 40 cents, or 7.5%, to $4.95 after the Wall Street Journal reported that regulators had effectively put the company on probation.
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MARKETS
Dow stock index falls nearly 400 points on oil, jobs news
Major indexes plunge 3%. Indicators have been mixed, stirring volatile trading.
By Walter Hamilton, Los Angeles Times Staff Writer
June 7, 2008
NEW YORK -- Illustrating the stock market's deep confusion about the economy, bad news about oil prices and jobs sent the Dow Jones industrials tumbling almost 400 points Friday, a day after the index rallied strongly on optimism about jobs and consumer spending.
The sharp reversal reflects a pattern of uncertainty that is leading investors to react frantically to each day's helping of news.
* Graphic: Spike in unemployment rate
Graphic: Spike in unemployment rate
* Graphic: Volatility
Graphic: Volatility
* Chart: Crude oil prices rise sharply
"It goes to show how bipolar the attitude is," said Paul Hickey, co-founder of investment research firm Bespoke Investment Group in Harrison, N.Y. "One day things can be great, and the next day things can be bad."
The Dow plummeted 394.64 points Friday, or 3.1%, to 12,209.81. It was the blue-chip average's biggest drop since February 2007.
NOTE: STOCKMARKET NEEDED TO BE STUDIED WELL FOR IT'S EFFECT IS WORLDWIDE.
Other major indexes suffered similar declines.
Stock/fund symbol or name:
empty
The Standard & Poor's 500 sank 43.37 points, or 3.1%, to 1,360.68. The Nasdaq composite index lost 75.38 points, or 3%, to 2,474.56.
The market fell sharply in the morning, after the Labor Department reported that the unemployment rate jumped in May to 5.5%, its highest level since 2004. The half-point increase from 5% in April marked the rate's biggest monthly increase in 22 years. Economists had expected only a tick up to 5.1%.
After absorbing the job news, stocks gradually extended their losses as oil prices ballooned throughout the day.
Crude futures rocketed up $10.75 to settle at $138.54 a barrel, exceeding their record close set two weeks ago. It was the biggest one-day rise in dollar terms in the New York Mercantile Exchange's history.
Oil's rally was triggered in part by an analyst's prediction that crude would hit the $150-a-barrel mark by the Fourth of July.
The stock sell-off was the opposite of Thursday's trading, which boosted the Dow 214 points. Benign economic data and impressive retail sales raised hopes that the economy would sidestep the worst-case scenario.
But that optimism may have set the market up for disappointment. Though the economy shed fewer jobs last month than expected -- 49,000 versus analysts' consensus estimate of 60,000 -- so-called whisper numbers circulating on Wall Street had raised hopes for a better showing.
"That budding optimism in a lightly traded summer market was vulnerable to a correction on bad news," said Alan Gayle, senior investment strategist at RidgeWorth Capital Management in Richmond, Va. "And when the jobs report came in, the market got crunched. The exclamation point was the over $10-a-barrel rise in crude prices."
NOTE: ANALYSTS ARE VERY CRITICAL WITH THEIR STUDIES ON THE SEESAW MOVEMENT OF THE STOCKMARKET.
The seesaw action shows that investors can't figure out which way the economy is going and are simply listing with each day's news.
"You're getting a lot of mixed signals out there," said Georges Yared, chief investment strategist at Yared Investment Research in Minneapolis. "The dots of bad news and good news just aren't connecting yet."
The market losses were widespread. Declining issues outnumbered advancers by more than 4 to 1 on the New York Stock Exchange. All 30 of the stocks in the Dow industrials lost ground, as did all 10 major industry groups in the S&P 500. And all 91 financial stocks in the S&P 500 fell, tumbling 5% as a group, dropping below their March low. The 24-member BKX bank index slid 5.3% to a five-year low.
Credit card stocks fell on concern that rising unemployment will lead to more defaults among cardholders. American Express dropped $2.78, or 5.9%, to $44.65. Capital One Financial retreated $3.47, or 7%, to $46.15.
Among brokerages, Morgan Stanley led the declines, tumbling $3.78, or 8.5%, to $40.81.
Washington Mutual sank $1.08, or 13%, to $7.53, losing its title as the largest U.S. savings and loan by stock value to Hudson City Bancorp. WaMu is still the largest thrift by assets.
Midwest regional bank National City dropped 40 cents, or 7.5%, to $4.95 after the Wall Street Journal reported that regulators had effectively put the company on probation.
* Single Page
* |
* 1
* |
* 2
* |
* Next »
Save/Share [Mixx] [Google] [Digg] [Del.icio.us] [Reddit] [Facebook] [Yahoo] [Newsvine] Post to MySpace!
Tell us where to go contest
Here's your chance to tell The Times Travel staff where to go. If we like your idea, we'll send a reporter out to write about it.
Meerkat Manor season 4
How will the Kalahari burrows recover from the death of its fearless leader Flower in Season 3? Follow the drama of these furry critters. Story
Save over 50% off the newsstand price. Click here to subscribe to The Times.
* |
* |
* Text increase text size increase text size decrease text size decrease text size
* |
* Single Page
* |
*
RSS
ADVERTISEMENT
Most Viewed
Most E-mailed
Real Estate Headlines
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Thursday, June 5, 2008
2nd UPDATE: NASDAQ OFFERS FREE, REAL - TIME STOCK-PRICE DATA
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2nd UPDATE: Nasdaq Offers Free, Real-Time Stock-Price Data
Dow Jones
June 02, 2008: 03:19 PM EST
(Updates throughout to note it is a one-month trial program, adds comments from Nasdaq executive, context on dispute over access to market information and latest share prices.)
By Doug Cameron
Of DOW JONES NEWSWIRES
Nasdaq OMX Group Inc. (NDAQ) announced plans Monday to provide free, real-time stock-price data through online vendors such as Google Inc. (GOOG) as part of a one-month trial program, a move that comes amid a debate over access to stock- market information.
Retail investors had been limited to price data with a 15-minute to 20-minute delay from the major U.S. equity exchanges, which derive a large part of their revenue from charging institutional clients and online brokerages for more- detailed information.
Under the pilot program announced Monday, Nasdaq will allow its online partners to redistribute real-time stock-price data this month, at no cost to the online partners or the end user. After that, Nasdaq will charge the vendors up to $150,000 per month for the right to distribute the real-time data, leaving the partners to determine whether they will continue to provide the information free of charge.
NOTE: NASDAQ IS A WELL RESPECTED COMPANY IN THE STOCKMARKET INDUSTRY.
Nasdaq said it will provide "last quoted price data" for stocks on its own bourse, the New York Stock Exchange and the American Stock Exchange. Professional traders will still be charged for "depth of book" data such as trading volumes at particular prices.
Adena Friedman, Nasdaq OMX's executive vice president, said the move was " overdue," claiming to be the first U.S. stock exchange to offer free, universal access to real-time data.
The move comes more than a year after efforts by Nasdaq and the NYSE to publish free price data foundered amid opposition from some online vendors represented by the NetCoalition, an industry lobby group. The U.S. Securities and Exchange Commission has also failed to sign off.
Nasdaq has refiled to the SEC for permission to provide free, real-time quotes. Meanwhile, NYSE, a unit of NYSE Euronext (NYX), said Monday its own plans to offer free data have been awaiting approval from the SEC since January 2007. The SEC didn't return calls seeking comment on Nasdaq's latest move.
"We have returned (to the idea) as a pilot project," Nasdaq's Friedman told Dow Jones Newswires, noting that Nasdaq will waive charges to its online partners during June.
In addition to Google, vendor partners for the free data include business TV channel CNBC, a unit of General Electric Co. (GE), Xignite, an online quote service, and WSJ.com, a unit of News Corp. (NWS), which also publishes The Wall Street Journal and Dow Jones Newswires.
Friedman said the pilot would allow online vendors to develop a business model for providing the service. After June, Nasdaq will charge online vendors $100, 000 a month for access to data from its own platform, plus $50,000 a month for prices from NYSE and the Amex.
Friedman said the last quote price data had become an "innocent victim" of a wider debate at the SEC over ownership and access to depth-of-book data. She described the new initiative as "a safe way to start."
Nasdaq Doesn't Expect Revenue To Suffer
Nasdaq's move also reflects intensifying competition in the U.S. cash equities market, with Nasdaq and NYSE Euronext losing market share to electronic rivals such as Kansas City-based BATS Trading.
BATS last week launched real-time price quotes via Yahoo Inc. (YHOO), though it said it had never charged for data as part of its pitch to undercut trading costs on established exchanges. BATS has lifted its share of U.S. equities trading above 10% and is applying for regulated exchange status, with plans to launch a European platform later this year.
"We believed that market data - including full depth of book, not just last quotes - should be free to investors," said Randy Williams, a BATS spokesman.
Nasdaq OMX generated 22% of its revenue from market data related to its U.S. and European exchange platforms in the first quarter of 2008, its second-largest business segment after issuer services, which accounted for 23%. U.S. equities trading fees accounted for 16% of sales in the quarter.
NOTE: NASDAQ'S MONEY MAKING SCHEMES ARE NOT ONLY EFFECTIVE BUT ALSO BENEFITS IT'S CO PLAYERS..
Friedman said the trial wasn't expected to have a negative impact on revenue. Nasdaq plans to launch a similar trial for data from its European exchanges this month.
Nasdaq shares were recently down 3.7% at $33.73, in line with a broader downturn for exchange sector stocks.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com
(Shara Tibken contributed to this report.)
(END) Dow Jones Newswires
06-02-08 1519ET
Copyright (c) 2008 Dow Jones & Company, Inc.
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* : Time reflects local markets trading time. † - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer
Copyright © 2008 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. All Times are ET.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
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SEC Filings data provided by Edgar Online Inc..
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TRADING
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2nd UPDATE: Nasdaq Offers Free, Real-Time Stock-Price Data
Dow Jones
June 02, 2008: 03:19 PM EST
(Updates throughout to note it is a one-month trial program, adds comments from Nasdaq executive, context on dispute over access to market information and latest share prices.)
By Doug Cameron
Of DOW JONES NEWSWIRES
Nasdaq OMX Group Inc. (NDAQ) announced plans Monday to provide free, real-time stock-price data through online vendors such as Google Inc. (GOOG) as part of a one-month trial program, a move that comes amid a debate over access to stock- market information.
Retail investors had been limited to price data with a 15-minute to 20-minute delay from the major U.S. equity exchanges, which derive a large part of their revenue from charging institutional clients and online brokerages for more- detailed information.
Under the pilot program announced Monday, Nasdaq will allow its online partners to redistribute real-time stock-price data this month, at no cost to the online partners or the end user. After that, Nasdaq will charge the vendors up to $150,000 per month for the right to distribute the real-time data, leaving the partners to determine whether they will continue to provide the information free of charge.
NOTE: NASDAQ IS A WELL RESPECTED COMPANY IN THE STOCKMARKET INDUSTRY.
Nasdaq said it will provide "last quoted price data" for stocks on its own bourse, the New York Stock Exchange and the American Stock Exchange. Professional traders will still be charged for "depth of book" data such as trading volumes at particular prices.
Adena Friedman, Nasdaq OMX's executive vice president, said the move was " overdue," claiming to be the first U.S. stock exchange to offer free, universal access to real-time data.
The move comes more than a year after efforts by Nasdaq and the NYSE to publish free price data foundered amid opposition from some online vendors represented by the NetCoalition, an industry lobby group. The U.S. Securities and Exchange Commission has also failed to sign off.
Nasdaq has refiled to the SEC for permission to provide free, real-time quotes. Meanwhile, NYSE, a unit of NYSE Euronext (NYX), said Monday its own plans to offer free data have been awaiting approval from the SEC since January 2007. The SEC didn't return calls seeking comment on Nasdaq's latest move.
"We have returned (to the idea) as a pilot project," Nasdaq's Friedman told Dow Jones Newswires, noting that Nasdaq will waive charges to its online partners during June.
In addition to Google, vendor partners for the free data include business TV channel CNBC, a unit of General Electric Co. (GE), Xignite, an online quote service, and WSJ.com, a unit of News Corp. (NWS), which also publishes The Wall Street Journal and Dow Jones Newswires.
Friedman said the pilot would allow online vendors to develop a business model for providing the service. After June, Nasdaq will charge online vendors $100, 000 a month for access to data from its own platform, plus $50,000 a month for prices from NYSE and the Amex.
Friedman said the last quote price data had become an "innocent victim" of a wider debate at the SEC over ownership and access to depth-of-book data. She described the new initiative as "a safe way to start."
Nasdaq Doesn't Expect Revenue To Suffer
Nasdaq's move also reflects intensifying competition in the U.S. cash equities market, with Nasdaq and NYSE Euronext losing market share to electronic rivals such as Kansas City-based BATS Trading.
BATS last week launched real-time price quotes via Yahoo Inc. (YHOO), though it said it had never charged for data as part of its pitch to undercut trading costs on established exchanges. BATS has lifted its share of U.S. equities trading above 10% and is applying for regulated exchange status, with plans to launch a European platform later this year.
"We believed that market data - including full depth of book, not just last quotes - should be free to investors," said Randy Williams, a BATS spokesman.
Nasdaq OMX generated 22% of its revenue from market data related to its U.S. and European exchange platforms in the first quarter of 2008, its second-largest business segment after issuer services, which accounted for 23%. U.S. equities trading fees accounted for 16% of sales in the quarter.
NOTE: NASDAQ'S MONEY MAKING SCHEMES ARE NOT ONLY EFFECTIVE BUT ALSO BENEFITS IT'S CO PLAYERS..
Friedman said the trial wasn't expected to have a negative impact on revenue. Nasdaq plans to launch a similar trial for data from its European exchanges this month.
Nasdaq shares were recently down 3.7% at $33.73, in line with a broader downturn for exchange sector stocks.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com
(Shara Tibken contributed to this report.)
(END) Dow Jones Newswires
06-02-08 1519ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Top of page
More Markets
Stocks fumble on bank woes
June could be crazy month for stocks
Treasurys rise on economic contraction
The Hot List
100 best places to start a business
Diesel: The truck stops here
'You're working for gas now'
Top Stories
Bush: 43M families hurt if tax cuts expire
Stocks fumble on bank woes
Milberg Weiss top gun sentenced
Abandoned homes: Lenders foot the bill
Rising rates? Not too late to refi
Get a FREE TRIAL Issue!
Cover
Outside the U.S. and
Canada, click here.
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Home Portfolio Calculators Contact Us Newsletters Podcasts RSS Mobile Widgets Press Center Site Map User Preferences
Advertise with Us Magazine Customer Service Download Fortune Lists Reprints Career Opportunities Special Sections Conferences Business Leader Council
Live Quotes automatically refresh, but individual equities are delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET.
* : Time reflects local markets trading time. † - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer
Copyright © 2008 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. All Times are ET.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Hemscott.
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.
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Wednesday, June 4, 2008
US INSURANCE CHIEFS UNVEIL ALTERNATE MUNI RATING
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U.S. insurance chiefs unveil alternate muni rating
Mon Jun 2, 2008 3:06pm EDT
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NEW YORK (Reuters) - A group representing state insurance regulators on Monday said it will offer a substitute rating for municipal bonds backed by downgraded insurers so that insurance companies are not pressured to sell such debt.
Insurance companies have long been among the biggest players in the $2.6 trillion muni market. Currently, ratings on municipal bonds can rise and fall with their bond insurers.
NOTE: INSURANCE COMPANIES ARE KNOWN TO INVEST IN THE STOCKMARKET FOR OVER A CENTURY.
This was not a problem until this spring when several insurers lost the top "AAA" ratings their business requires because of their money-losing plays in the subprime mortgage market.
The National Association of Insurance Commissioners said it will begin offering a substitute rating on July 1.
Relieving the pressure on the insurance companies to sell their muni bonds should benefit the states, cites, agencies and hospitals that sell this debt by helping to prevent their borrowing costs from spiking, the group said.
An insurance company that holds a muni bond that is downgraded might have to reserve more capital for it, and if the rating falls below investment grade "some insurance companies will no longer want to hold them," the group said.
"We know that many municipal bond credit ratings are no longer accurate because they are based on the downgraded rating of the bond insurer, not of the municipal issuer," said Wisconsin Insurance Commissioner Sean Dilweg in a statement. Dilweg said he made the proposal.
NOTE: DILWEG IS A WELL RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
New York State Insurance Superintendent Eric Dinallo said in a statement that "removing the current restrictions on our rating unit will permit insurance companies to submit downgraded municipal securities to it." He noted, "The unit, where appropriate, will now be able to assign the correct rating to those municipal bonds."
Bond insurers that have lost the highest rating from at least one credit agency includes: MBIA (MBI.N: Quote, Profile, Research), Ambac Assurance Corp (ABK.N: Quote, Profile, Research), Financial Guaranty Insurance Co., Security Capital Assurance XL Capital Assurance (SCA.N: Quote, Profile, Research), Radian Asset Assurance (RDN.N: Quote, Profile, Research), CIFG Guaranty, and ACA Financial Guaranty Corp ACAH.PK.
(Editing by Leslie Adler)
© Thomson Reuters 2008 All rights reserved
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U.S. insurance chiefs unveil alternate muni rating
Mon Jun 2, 2008 3:06pm EDT
Email | Print |
Share
| Reprints | Single Page| Recommend (-)
[-] Text [+]
NEW YORK (Reuters) - A group representing state insurance regulators on Monday said it will offer a substitute rating for municipal bonds backed by downgraded insurers so that insurance companies are not pressured to sell such debt.
Insurance companies have long been among the biggest players in the $2.6 trillion muni market. Currently, ratings on municipal bonds can rise and fall with their bond insurers.
NOTE: INSURANCE COMPANIES ARE KNOWN TO INVEST IN THE STOCKMARKET FOR OVER A CENTURY.
This was not a problem until this spring when several insurers lost the top "AAA" ratings their business requires because of their money-losing plays in the subprime mortgage market.
The National Association of Insurance Commissioners said it will begin offering a substitute rating on July 1.
Relieving the pressure on the insurance companies to sell their muni bonds should benefit the states, cites, agencies and hospitals that sell this debt by helping to prevent their borrowing costs from spiking, the group said.
An insurance company that holds a muni bond that is downgraded might have to reserve more capital for it, and if the rating falls below investment grade "some insurance companies will no longer want to hold them," the group said.
"We know that many municipal bond credit ratings are no longer accurate because they are based on the downgraded rating of the bond insurer, not of the municipal issuer," said Wisconsin Insurance Commissioner Sean Dilweg in a statement. Dilweg said he made the proposal.
NOTE: DILWEG IS A WELL RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
New York State Insurance Superintendent Eric Dinallo said in a statement that "removing the current restrictions on our rating unit will permit insurance companies to submit downgraded municipal securities to it." He noted, "The unit, where appropriate, will now be able to assign the correct rating to those municipal bonds."
Bond insurers that have lost the highest rating from at least one credit agency includes: MBIA (MBI.N: Quote, Profile, Research), Ambac Assurance Corp (ABK.N: Quote, Profile, Research), Financial Guaranty Insurance Co., Security Capital Assurance XL Capital Assurance (SCA.N: Quote, Profile, Research), Radian Asset Assurance (RDN.N: Quote, Profile, Research), CIFG Guaranty, and ACA Financial Guaranty Corp ACAH.PK.
(Editing by Leslie Adler)
© Thomson Reuters 2008 All rights reserved
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Market to stay bearish this week
Press Trust Of India / Mumbai June 02, 2008, 4:39 IST
The capital market that moved up marginally last week is likely to be sluggish this week as expectations of fuel price hike and fears of negative cues from global markets weigh heavily, say analysts.
The BSE benchmark index, Sensex, managed to gain just 67 points last week and settled at 16,415.57 on Friday, while the National Stock Exchange's (NSE) Nifty closed at 4,870.10, up 34 points.
Analysts believe market sentiments is likely to remain bearish in the coming week as the bourses are at a vulnerable stage. Any negative cue from the global market can send them on a downward frenzy.
"This week, the stock market is likely to remain volatile with a negative bias, as foreign institutional investors (FIIs) are on a selling spree in uncertain times. The domestic market can go in for a sharp fall if there is any negative trigger from global markets," domestic brokerage firm SMC Global's Vice President Rajesh Jain said.
NOTE: STOCK MARKET REMAINS VOLATILE THEREFORE IT'S IMPORTANT TO WATCH AND STUDY CAREFULLY.
The only positive trigger for the markets could be the better-than-expected fourth quarter gross domestic product, which was at 8.8 per cent in the last quarter of 2008 from a year earlier, led by strong expansion in the services sector.
However, analysts are unsure as to how much it would help the domestic bourses to stabilise and restrict the downward slide.
Buoyancy in agriculture has pushed economic growth to 9 per cent, up from 8.7 per cent as estimated earlier, even as the performance of the manufacturing sector has been deteriorating.
Also, in the absence of any major domestic trigger, the market is likely to track the global equities and increase in crude oil prices.
Last week, the market had succumbed to selling pressure as weak global equities and soaring crude oil prices had worried investors. An imminent hike in domestic retail fuel prices owing to the record crude oil prices could further weigh on market sentiments this week, analysts believe.
The government is expected to take a decision on whether to raise fuel prices in the next few days as crude prices hover near $126 a barrel in the global market after dropping $4 on May 29.
NOTE: INCREASE IN OIL PRICES HAS BEEN IMPLEMENTED ALL OVER THE WORLD.
Last week, crude prices had touched a record $135 a barrel in the global market.
Meanwhile, according to latest government data, inflation rose to a 45-month high of 8.1 per cent for the week ended May 17. The Wholesale Price Index-based inflation was 7.82 per cent a week ago and 5.3 per cent in the corresponding week last year. However, the stock market seemed to remain unperturbed by surge in inflation and on Friday, the BSE Sensex climbed 100 points.
FIIs continued their selling spree and made a net sale for eight days in a row last week. FIIs were net sellers to the tune of Rs 5011.50 crore in May while in the year, so far, they have sold shares worth Rs 15,369.60 crore.
Domestic mutual funds sold shares worth Rs 387.60 crore in May.
Also, some more companies are left to announce their results such as GMR Industries, PVR, Mcleod Russell, Engineers India, Balmer Lawrie, Berger Paints and Sundaram Fasteners.
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Market to stay bearish this week
Press Trust Of India / Mumbai June 02, 2008, 4:39 IST
The capital market that moved up marginally last week is likely to be sluggish this week as expectations of fuel price hike and fears of negative cues from global markets weigh heavily, say analysts.
The BSE benchmark index, Sensex, managed to gain just 67 points last week and settled at 16,415.57 on Friday, while the National Stock Exchange's (NSE) Nifty closed at 4,870.10, up 34 points.
Analysts believe market sentiments is likely to remain bearish in the coming week as the bourses are at a vulnerable stage. Any negative cue from the global market can send them on a downward frenzy.
"This week, the stock market is likely to remain volatile with a negative bias, as foreign institutional investors (FIIs) are on a selling spree in uncertain times. The domestic market can go in for a sharp fall if there is any negative trigger from global markets," domestic brokerage firm SMC Global's Vice President Rajesh Jain said.
NOTE: STOCK MARKET REMAINS VOLATILE THEREFORE IT'S IMPORTANT TO WATCH AND STUDY CAREFULLY.
The only positive trigger for the markets could be the better-than-expected fourth quarter gross domestic product, which was at 8.8 per cent in the last quarter of 2008 from a year earlier, led by strong expansion in the services sector.
However, analysts are unsure as to how much it would help the domestic bourses to stabilise and restrict the downward slide.
Buoyancy in agriculture has pushed economic growth to 9 per cent, up from 8.7 per cent as estimated earlier, even as the performance of the manufacturing sector has been deteriorating.
Also, in the absence of any major domestic trigger, the market is likely to track the global equities and increase in crude oil prices.
Last week, the market had succumbed to selling pressure as weak global equities and soaring crude oil prices had worried investors. An imminent hike in domestic retail fuel prices owing to the record crude oil prices could further weigh on market sentiments this week, analysts believe.
The government is expected to take a decision on whether to raise fuel prices in the next few days as crude prices hover near $126 a barrel in the global market after dropping $4 on May 29.
NOTE: INCREASE IN OIL PRICES HAS BEEN IMPLEMENTED ALL OVER THE WORLD.
Last week, crude prices had touched a record $135 a barrel in the global market.
Meanwhile, according to latest government data, inflation rose to a 45-month high of 8.1 per cent for the week ended May 17. The Wholesale Price Index-based inflation was 7.82 per cent a week ago and 5.3 per cent in the corresponding week last year. However, the stock market seemed to remain unperturbed by surge in inflation and on Friday, the BSE Sensex climbed 100 points.
FIIs continued their selling spree and made a net sale for eight days in a row last week. FIIs were net sellers to the tune of Rs 5011.50 crore in May while in the year, so far, they have sold shares worth Rs 15,369.60 crore.
Domestic mutual funds sold shares worth Rs 387.60 crore in May.
Also, some more companies are left to announce their results such as GMR Industries, PVR, Mcleod Russell, Engineers India, Balmer Lawrie, Berger Paints and Sundaram Fasteners.
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Add To Favorites Default Page Top
BS Primer
Understanding the basics
Indian Premier League
The business of cricket
Inflation
Centre's woes mount
More Specials
The Smart Investor
Melting under pressure
The Strategist
Swift Makeover
The Weekend
On the road to China
Advanced Search
Sensex 16063 (-352)
Nifty 4740 (-130)
Rs-$ 42.34
Gold (Rs) 12319 (120)
Silver (Rs) 23440 (64)
Updated:02-06-08 23:34 hrs IST
Most Popular
Read
Emailed
Commented
Jet, Spice, Kingfisher to cut flights, routes to prune losses
Outdoing China`s Three Gorges project
IIT Bombay cuts back on foreign internships
Maruti, Hyundai car sales spurt in anticipation of price rise
M Govinda Rao: Policy inaction and looming crisis
More
Read
Emailed
Commented
Outdoing China`s Three Gorges project
Tata Motors completes Jaguar Land Rover deal
More
Read
Emailed
Commented
Editorial: Bleeding to death
Subir Gokarn: Stress scenario
BS Primer: Oil prices and subsidies
Srei plans 25,000 kiosks
Thrice as agile
More
StatsGuru
Economic indicators
Your Money
Personal finance
Time Out
Books,fashion...
SEZs
Boon or Bane?
Retail
The Indian Story
More
Main Section
BS Online | Companies & Industry | Banking & Finance |
Economy & Policy | Opinion & Analysis | Life & Leisure | SME
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Monday, June 2, 2008
NOMURA TO ENTER U.S. RETAIL MUTUAL FUND MARKET
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Nomura to enter U.S. retail mutual fund market
Mon Jun 2, 2008 2:12am EDT
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TOKYO (Reuters) - Nomura Holdings Inc (8604.T: Quote, Profile, Research) has inked a deal to become the investment manager of a U.S. mutual fund specializing in Japanese issues, marking its full-scale entry into the U.S. retail mutual fund market.
Nomura Asset Management said it would invest significant resources to market and distribute The Japan Fund, the oldest independent U.S. fund focused on investing in Japan and which has over $300 million in assets under management.
NOTE: JAPAN HAS BEEN KNOWN FOR IT'S INDEPENDENCE AND TALENT IN ALL MONEY MAKING INDUSTRIES.
Japan's largest brokerage group replaces Fidelity as the fund's asset manager. Fidelity has its own fund specializing in Japanese issues.
"This alliance provides Nomura Asset Management with an expedited entrance into the U.S. retail mutual fund market. It allows us to leap frog to a leadership position in the marketplace," Shigeru Shinohara, Chief Executive of Nomura Asset Management U.S.A., said in a statement on Monday.
Nomura also hopes to offer several other funds specializing in stocks from other Asian countries such as China and India, a spokesman for Nomura Asset said.
The broker is eager to expand its overseas presence and also
said on Monday that has started a fund worth 2.1 billion euros ($3.3 billion) to buy unsold loans and undervalued companies in Europe.
(Reporting by Yuka Obayashi and Edwina Gibbs)
© Thomson Reuters 2008 All rights reserved
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Nomura to enter U.S. retail mutual fund market
Mon Jun 2, 2008 2:12am EDT
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TOKYO (Reuters) - Nomura Holdings Inc (8604.T: Quote, Profile, Research) has inked a deal to become the investment manager of a U.S. mutual fund specializing in Japanese issues, marking its full-scale entry into the U.S. retail mutual fund market.
Nomura Asset Management said it would invest significant resources to market and distribute The Japan Fund, the oldest independent U.S. fund focused on investing in Japan and which has over $300 million in assets under management.
NOTE: JAPAN HAS BEEN KNOWN FOR IT'S INDEPENDENCE AND TALENT IN ALL MONEY MAKING INDUSTRIES.
Japan's largest brokerage group replaces Fidelity as the fund's asset manager. Fidelity has its own fund specializing in Japanese issues.
"This alliance provides Nomura Asset Management with an expedited entrance into the U.S. retail mutual fund market. It allows us to leap frog to a leadership position in the marketplace," Shigeru Shinohara, Chief Executive of Nomura Asset Management U.S.A., said in a statement on Monday.
Nomura also hopes to offer several other funds specializing in stocks from other Asian countries such as China and India, a spokesman for Nomura Asset said.
The broker is eager to expand its overseas presence and also
said on Monday that has started a fund worth 2.1 billion euros ($3.3 billion) to buy unsold loans and undervalued companies in Europe.
(Reporting by Yuka Obayashi and Edwina Gibbs)
© Thomson Reuters 2008 All rights reserved
Share:
Del.icio.us
Digg
Mixx
My Web
Newsvine
More Business News
Wachovia ousts CEO Thompson after losses mount
Bank downgrades, Wachovia ouster rocks markets
Class action king Weiss sentenced to 30 months
Gas prices a risk for casual restaurants, Starbucks
More Business News...
Related Blog Posts
Strata of Mutual Fund Expense Ratios
My Retirement Blog
Digital Asset Management Global Market
Digital Lifescapes | by David H. Deans
Mutual fund industry suffers
FierceFinance
How Do You Benchmark a 130/30 Mutual Fund?
Wheredoesallmymoneygo.com
Creating a Personal Micro Mutual Fund
Hilo Living
Powered by BlogBurst
Views in these blog posts are those of the author and not of Reuters.
Also on Reuters
Photo
Japanese robot weathers rain to climb Grand Canyon
Photo
Full Coverage: The real costs of rising food prices
Photo
Gas prices a risk for casual restaurants, Starbucks
Ads by Career Builder
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Details: ...individuals in the specialty skill areas of information technology, finance & accounting, human resources, engineering, pharmaceutical...
Client Finance Analyst
Details: ...seeking a client finance analyst for its...senior accounting/finance team. If you are...information technology, finance & accounting, human...
Finance & Performance Management Senior 3
Details: ...Ernst & Young's Finance & Performance Management...services, including Finance Function Strategy, Finance Organizational Design...
Finance Manager - Tradebook Team
Details: ...Geller & Company provides finance, accounting, and tax outsourcing...trading industry working in finance and/or strategic planning groups...
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