FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Valuations – Toward On-Demand Evaluated Pricing

Risk and regulatory imperatives are demanding access to the latest portfolio information, placing new pressures on the pricing and valuation function. And the front office increasingly wants up-to-date valuations of hard-to-price securities.

These developments are driving a push toward on-demand evaluated pricing capabilities, with pricing teams seeking to provide access to valuations at higher frequency of update than before.

Download this special report for FREE now! Click the link below.

Source: A-Team, 26.06.2013

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Filed under: Data Vendor, Library, Market Data, Reference Data, , , , , , , ,

News and updates on LEI standard progress and development

As a follow up on G20 acceptance in Los Cabos in July 2012 and the Financial Stability Board guidelines and recommendations of the Legal Entity Identifier  LEI, we will regularly update this post with news and article to provide an overview of  LEI standard progress and development.

 
First Published  13.07.2012 , Last Update 27.09.2012

Filed under: Data Management, Data Vendor, Reference Data, Standards, , , , , , , , , , , , , , , , , , , ,

S&P Capital IQ aquieres QuantHouse low latency market data provider

S&P Capital IQ, a business line of The McGraw-Hill Companies (NYSE: MHP) offering global multi-asset class data solutions, market research and portfolio risk analytics to global investors, today announced it has acquired QuantHouse, an independent global provider of market data and end-to-end systematic trading solutions. This includes ultra-low-latency market data technologies, algo-trading development frameworks, proximity hosting and order routing services for hedge funds, market makers, proprietary desks and latency-sensitive sell-side firms.

“The acquisition of QuantHouse will provide our clients with access to exchange pricing globally, including securities valuations and portfolio analytics, throughout all our desktop and enterprise solutions. In addition, the extensive capabilities QuantHouse brings will enable S&P Capital IQ to build our own unique real-time monitors, derived data sets and analytics,” said Lou Eccleston, President of S&P Capital IQ and S&P Indices.  “As the foundation for our growing Enterprise Solutions business, QuantHouse will enable us to offer one integrated low-latency feed for all our data, including fundamental, fixed-income, equity and derivatives.”

“We are very excited to be a part of S&P Capital IQ,” said Pierre-Francois Filet, chairman and co-founder, QuantHouse. “Together, we can focus on developing a new generation of alpha-generation tools, low-latency transaction infrastructure and integrated low-latency data feeds to maximize offerings and strengthen S&P Capital IQ’s competitive positioning.”

This purchase, along with the recently announced acquisition of R2 Financial Technologies and the expected acquisition of CMA later this year, provides S&P Capital IQ with the components necessary to offer its clients the most comprehensive market data and risk analytics platforms in the industry.

Following the acquisition, QuantHouse’s 90 employees, based in Paris, London and New York, will become a critical component to S&P Capital IQ’s global growth strategy as part of the Enterprise Solutions unit. In the short term, its products and services will continue to be sold as standalone feeds and applications, although all S&P Capital IQ and S&P Indices content will gradually be consolidated into QuantHouse feeds.

Source: Mondovisione, 04.04.2012

Filed under: Data Vendor, Market Data, , , , ,

Brazil: BM&F BOVESPA – March 2012 -News Nr 31

Cross-Listing of Global Benchmark Equity Index, Commodity and Energy Futures
BM&FBOVESPA (BVMF), CME Group and S&P Indices announced on March 6 a cross-listing and cross-licensing agreement involving S&P 500 Index and BOVESPA Index (IBOVESPA) futures.

BRICS Exchanges to Cross-list Benchmark Equity Index Derivatives
The five founding members of the BRICS Exchanges Alliance will begin cross-listing benchmark equity index derivatives on each other’s trading platforms on March 30.

New Market Maker for Options on the Stock of Companhia Siderúrgica Nacional (CSNA3)
BM&FBOVESPA announced on March 20 that Citadel Securities LLC is the third institution selected as market maker for options on the stock of CSNA3.

Volumes and trades by Direct Market Access (DMA)

BM&F Segment (Derivatives)
In February, the transactions carried out via Direct Market Access (DMA) in the BM&F* segment totaled 25,853,695 contracts traded in 2,616,094 trades.

BOVESPA Segment (Equities)
In February, the transactions carried out via Direct Market Access (DMA) in the BOVESPA* segment had a total financial volume of BRL104.5 billion in 14,985,594 trades

MARKET RESULTS

BM&F Segment February 2012 (derivatives)
In February, the markets in the BM&F segment had a total of 47,434,891 contracts traded with a financial volume of BRL3.11 trillion.

BOVESPA Segment February 2012 (equities)
In February, the total financial volume in the BOVESPA segment reached BRL157.36 billion, compared to a total of BRL132.26 billion in January.

Click for detailed announcement

Source: BM&FBOVESPA, 24.03.2012

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, , , , , , , , , ,

Mexico: The bad news is finally out – December 2009 IXE Banif Market Analysis

Fitch has finally downgraded Mexican debt. However, as always, there is good news with the bad, for they say that the outlook is now stable. In addition, Congress has finally approved the tax increase, which should result in an improvement in government revenues, although the decision was not sufficient to avoid the downgrade. S&P has still to give its verdict on the country’s outlook. Expectations are that they will avoid downgrade and, as Fitch did, maintain a stable outlook, but with a higher notch.”

Mexico – Monthly Allocation – December 2009

The economic outlook seems to be improving. Although still negative, indicators are above expectations. GDP dropped 6.2% in 3Q09, which compares to the market’s estimated drop of 6.8%. For 2010, investors expect a turn around, estimating a 3.1% growth. Much still remains based on an improvement in the USA. Approximately 27% of the country’s economy depends on its neighbor.

Inflation watched closely

Inflation has not been a concern up to now, continuing below the 4% level. However, expectations are that the beginning of the year will show it moving above this level, increasing concerns that the Central Bank will start moving basic rates up. Expectations are that the beginning of an upward trend in rates will only start in September 2010. Investors will be on the lookout for the Mexican’s Central Bank estimate, scheduled for release during the first week of December.

Other data investors are going to be paying a lot of attention to during the next couple of weeks are on the US, especially Black Friday sales that will give an indication of how good (or bad) Christmas sales will probably be. An improvement should indicate an increase in remittances to Mexico, improving the Mexican economy.

No real concern with the change to Central Bank

The change in the President of the Central Bank is no real concern. Although doing a good job, the leaving President was eternally in dispute with President Calderon. Replacing him is Mr. Carstens, who is the Secretary of Finance, and who has good international exposure. The question that arises is who is going to replace him as Finance Secretary.

December is the month with the highest sales, due to Christmas. Thus, we are basing our portfolio on the stocks of companies that will benefit from this. We are not recommending any shorts this month.

Outperforming the IPyC – Recommended BUY Portfolio (“LONG”)

Stock – Catalysts/Fundamentals

AMXL – excellent results from the launching of promotions for post paid subscribers

AXTEL – possible change in foreign shareholder legislation

CEMEX – should successfully place convertible bonds

FEMSAUBD – reducing due to uncertainties coming from rumors

GAP – December traffic should be positive

GEOB – trading at attractive valuations

GMEXICOB – defensive play on copper price increases

ICA – expectations that it will win the tenders for more public projects

Peñoles – precious metal price seasonal increase

Simec – better outlook on USA auto sales in 2010

Televisa – looking for a JV to participate in wireless spectrum auctions

URBI – should do well on Moody’s and S&P’s upgrade and on attractive valulations

WALMEXV – strongest month for retailers with 4Q representing 30% of sales.

Source: IXE Banif, 01.12.2009

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, News, , , , , , , , , , , , ,

Thomson Reuters Faces EU Probe of RIC Data Code Issues

Nov. 10 (Bloomberg) — Thomson Reuters Corp., the news and data provider created in a merger last year, faces a European Union antitrust probe into possible restrictions on competitors’ use of identification codes for real-time market data feeds.

Bloomberg provided free access to it’s code just a few days ago.

The probe will focus on whether Thomson Reuters prevents clients from translating Reuters instrument codes  (RIC’s) to alternative identification codes of rival data-feed suppliers, a process known as “mapping,” the European Commission, the EU’s antitrust regulator, said in a statement today from Brussels.

“Without the possibility of such mapping, customers may potentially be ‘locked’-in to working with Thomson Reuters because replacing Reuters instrument codes by reconfiguring or by rewriting their software applications can be a long and costly procedure,” the commission said.

The probe is the EU’s second into financial information providers this year after the regulator said in January that it would review how Standard & Poor’s charges customers for the use of certain codes in databases. Thomson Reuters said last week that third-quarter profit dropped 59 percent on declining revenue at its sales and trading business and legal division.

Thomson Reuters said in a statement that it received an EU questionnaire Nov. 3 and is cooperating with the probe.

“Thomson Reuters data is reliably and consistently identified by a managed code, which we create and maintain to enable navigation of the company’s global content,” the New York-based company said in the e-mailed statement. “Our customers are at the heart of our business and we continue to work with them to explore how best to add value to our data services.”

The commission said it started the probe on its own initiative. Under EU rules, companies can be fined as much as 10 percent of annual sales for antitrust violations. Companies can appeal antitrust decisions at EU courts.

Bloomberg LP, the parent of Bloomberg News, competes with Thomson Reuters in selling financial and legal information and trading systems.

Source: Bloomberg 10.11.2009 by  Matthew Newman in Brussels

Filed under: Data Management, Data Vendor, Market Data, News, Reference Data, Risk Management, Standards, , , , , , , , , ,

Tokyo Stock Exchange lists Indian ETF – S&P CNX Nifty linked ETF

Today, the Tokyo Stock Exchange approved the listing of the “NEXT FUNDS S&P CNX Nifty Linked Exchange Traded Fund” managed by Nomura Asset Management Co., Ltd.. The ETF is planned to be listed on Thursday, November 26, 2009.

This is the first ETF linked to Indian stocks to be listed on markets in Japan. The “S&P CNX Nifty Index” to which the ETF is linked is comprised of the 50 premier issues of the National Stock Exchange of India.

Code 1678 (ISIN JP3047100007)
Name NEXT FUNDS S&P CNX Nifty Linked Exchange Traded Fund
Fund Administrator Nomura Asset Management
Listing Date November 26, 2009
Trading Unit 100 units
Underlying Index S&P CNX Nifty Index

TSE entered into a memorandum of understanding with the National Stock Exchange of India on October 15, 2006. Through this ETF, TSE hopes to supply investors with better access to the Indian securities market and contribute to the development of the markets in both of our countries.

With this listing there will be a total of 69 ETFs listed on the Tokyo market, bringing us closer to the goal of 100 listed ETFs by fiscal year 2010, as laid out in the Medium-Term Management Plan. TSE will continue working to diversify the ETF market and improve the convenience of our market for all investors.

Additional ETF’s listed in Tokyo include Brazil’s IBOVESPA, China A Share CSI300 as well as  ETC (Exchange Trade Commodities) like Gold, Silver, Platinum and Palladium. See also TSE lists Brazilian ETF.

Tokyo Stock Exchange officel ETF site
ETFs on TSE November 2009 (.doc and .cvs)

Source: Tokyo Stock Exchange 06.11.2009

Filed under: Asia, Exchanges, India, Japan, News, , , , , , , , , , , , , , , , , , , , , , , , , ,

Bloomberg smashes proprietary instrument identifier market – Bloomberg Open Symbology

Market data vendor Bloomberg is looking to create an open standard for financial instrument identifiers by making its own proprietary symbology available for free to developers and market practitioners.

While Reuters Thompson and S&P are under probe by EU, 11.11.2009

The vendor – which has built its business by maintaining tight control over its proprietary data feeds – has created a Website where industry participants can search for and access identifiers developed for the Bloomberg Professional terminal and enterprise data products.

The Website, at bysm.bloomberg.com, offers a repository for Bloomberg Symbology codes at no charge to users, with no material impediments on use. The vendor promises global coverage across all asset classes and “freedom and flexibility in application development”.

Financial instrument identifiers are necessary for a wide array of essential functions in the front and back office. Typically, organisations that administer symbologies – such as Reuters’ RIC codes, Markit’s RED database and S&P-administered Cusip datasets – assert proprietary rights over their identifiers, impose significant limitations on their use and either charge users license fees or include their symbology licenses with the purchase of related products.

By making its identifiers available for free, Bloomberg is driving a horse and cart through this established market model and laying down the gauntlet for other competitors to follow.

Source: Finextra, 04.11.2009

Filed under: Data Management, Data Vendor, Market Data, News, Reference Data, , , , , , , ,

Rapid loan growth puts Chinese banks at Risk

Aggressive loan growth could significantly stretch the banks’ newly developed risk management systems, and the quality of new loans is expected to be inferior to the quality of those written a year ago, S&P analysts say.

Loan growth among Chinese banks hit more than Rmb7.76 trillion ($1.13 trillion) in the first half of 2009, a record high. As a result, asset quality is likely to slip further in 2009, but should remain highly manageable. It could deteriorate sharply in the next two to three years, however, if the economic slowdown is protracted in China.

Chinese banks seem to be lending so aggressively despite the economic slowdown for three key reasons.

First, the strong growth suggests that the banks’ corporate governance is still relatively weak and that the government continues to exert strong influence over banking practices as a dominant shareholder.

Second, the banks appear willing to extend additional funding to borrowers facing cash-flow difficulties on the premise that such difficulties are short-term in nature and should correct themselves when China’s growth recovers.

And third, they may be looking to compensate for the negative effects on earnings from the squeeze in net interest margins.

We expect the quality of new loans to be on average inferior to the banks’ loan book a year ago. That’s because the banks are either expanding into an enlarged but inferior client base or making incremental loans to existing clients with deteriorated financial metrics. Some new borrowers had no or limited access to bank credit in the past because they didn’t meet previous underwriting standards. But banks are likely to have eased their underwriting standards for projects related to the government’s stimulus package, as the government relaxed the capital leverage requirement for many types of projects. Loan quality should, however, be adequate for infrastructure projects that the central government or affluent provincial governments have backed; but these loans perhaps represent only a fraction of total new lending.

While further slippage in bad loans in 2009 and 2010 is likely in our view, it should be at a manageable pace. This is due to the very supportive liquidity environment for corporations as a result of strong loan growth, the limited exposure of major banks to severely hit small businesses in the export sector, and signs of economic recovery, particularly at home. A jump in the non-performing loan ratio is still very likely, as the dilutive effect gradually wanes and banks eventually stop renewing loans.

Barring a protracted slowdown in the Chinese economy, we anticipate the system will on average be able absorb incremental credit costs, given still healthy official interest spreads and banks’ improving capacity to generate fee-based income. For banks that are aggressively increasing their exposure in concentrated segments or regions, we expect potential credit losses to significantly weigh down their already below-average earnings profile. This is likely to lead to further divergence in credit profiles across the sector.

The aggressive loan growth in the first six months of this year could significantly stretch Chinese banks’ newly developed risk management systems and undermine their underdeveloped risk culture. Inflationary pressure may be the single-largest macroeconomic risk that the banks face. Historically in China, inflation often followed when loan growth ran above 20% (it was about 30% year-over-year at the end of June 2009). We’ll have to wait to see if this time will be an exception as the global economic slowdown continues to weigh on overall pricing levels. If the inflation pressure becomes so acute that the government resorts to a policy u-turn and increases lending restrictions, the heightened policy risks could exacerbate the difficulties for borrowers and banks.

The government’s role and commitment to reforms

The government remains highly influential with regard to lending policy at the banks, in our view. It has encouraged banks to make loans to prevent the economy from making a hard landing. But some government agencies, particularly the China Banking Regulatory Commission, have continually warned against excessive lending. Recently, the government seems to be fine-tuning its policy to favour a greater check on bank loan growth. The central government appears to have a delicate balancing act. It’s trying to use bank credit as a lever to maintain economic growth while preserving the banking system’s fundamental strengths. This reflects an inherent conflict between the government’s different roles as the country’s policymaker, banking regulator and major shareholder.

There are still strong incentives for the government to press ahead with banking reforms. The aggressive response to the government’s call for greater lending indicates that the banks do not yet have a sound risk culture and effective corporate governance in place. Given the experience in some markets, Chinese policymakers are likely to take a cautious approach to deregulating relatively risky activities and products. They’re also likely to slow down some reforms, such as those regarding compensation schemes. Some recent initiatives, such as those related to the development of the debt market and renminbi convertibility, indicate the government’s intention to proceed with market-oriented banking reforms.

Ratings impact on Chinese banks

We believe the major rated banks have sufficient financial strength to weather the economic slowdown. Although we see growing pressure from credit risks, policy risks and other risks for the banking sector, these are still within our expectation. We have long factored the significant volatility in Chinese banks’ financial metrics into the ratings on banks. If we are convinced that any bank has been performing better than we originally expected due to its own structural strengths, we would acknowledge these strengths against the context of a less-supportive operating environment.

Ratings On Chinese Banks
Banks Issuer Credit Rating
Industrial and Commercial Bank of China Ltd. A-/Positive/A-2
China Construction Bank Corp. A-/Stable/A-2
Bank of China Ltd. A-/Stable/A-2
Bank of Communications Co. Ltd. BBB+/Stable/
China Merchants Bank Co. Ltd. BBB-/Stable/A-3
CITIC Group BBB-/Watch Pos/A-3
Agricultural Development Bank of China A+/Stable/A-1+
China Development Bank A+/Stable/A-1+
Export-Import Bank of China A+/Stable/A-1+
Note: Ratings as of July 20, 2009.

The authors of this article, Qiang Liao and Ryan Tsang, are senior analysts in the financial institutions ratings team at Standard & Poor’s Ratings Services.

Source:FinanceAsia.com, 23.07.2009

Filed under: Asia, Banking, China, News, Risk Management, Services, , , , , , , , , , , ,

Mexico Central Bank prohibit some Lender/Credit/Banking Fees

July 21 (Bloomberg) — Mexico’s central bank said it will prohibit commercial banks from applying some fees in a bid to make charges more transparent and bolster competition.

Starting Aug. 21, banks won’t be able to charge fees for depositing checks that are returned, for exceeding debit card limits or for canceling deposit accounts, credit cards, debit cards or online banking services, the central bank said today in an e-mailed statement.

FiNETIK recommends

The measures may force Mexican banks to issue more loans to compensate for revenue they currently get from fees, which may open up credit channels that seized up amid the global financial crisis, said Gabriel Casillas at UBS AG in Mexico City. Fees and commissions accounted for 20 percent of the Mexican banking industry’s operating revenue in 2008, Standard & Poor’s says.

“This is an important blow to one of the biggest sources of revenue for Mexican banks,” said Casillas, who is chief economist for Mexico and Chile. “This should give them an incentive to increase credit and obtain revenue from there.”

Banco Bilbao Vizcaya Argentaria SA, which controls Mexico’s largest lender BBVA Bancomer SA, fell 1.4 percent to 9.675 euros at 12:15 p.m. New York time from 9.81 euros at 10 a.m., when the measures were announced.

Banks will also be unable to charge customers for opening or managing accounts that were opened in order to receive a loan, the bank said.

Antitrust Chief

Mexican antitrust chief Eduardo Perez Motta said in a July 17 interview that authorities needed to make it easier for customers to switch banks so they could more easily shop for low-cost services, which would in turn boost competition.

“When you tell your bank you want to leave, they make your life difficult,” Perez Motta said.

Still, Angelica Bala, an S&P credit and banking analyst in Mexico City, said increased regulations won’t improve competition or transparency.

“The central bank is doing this because there has been a big political push against banks charging so much for fees and commissions,” Bala said in a telephone interview. “But putting a cap on fees and commissions is not a good thing. It has to be driven by competition.”

Source: Bloomberg, 21.07.2009 by : Jens Erik Gould in Mexico City at jgould9@bloomberg.net.

Filed under: Banking, Latin America, Mexico, News, Services, , , , , , , , , , , , , ,

Cusip Global Services taps Fow Tradedata for development of US options service

Cusip Global Services (CGS), managed by Standard & Poor’s on behalf of the American Bankers Association, today announced that Fow Tradedata, a United Kingdom-based financial information provider specializing in futures and options products, will aid in the development of a Cusip identification system for listed equity options in the U.S.

CGS plans to launch its CUSIP Options Service by the end of June, at which time there will be approximately one million option CUSIPs with accompanying ISINs and related data elements. Market participants who wish to receive the CUSIP Options Service will be able to do so directly from CGS or via a properly licensed vendor. FOW TRADEdata’s Xymbology product, which maps option contracts to market data and proprietary vendor codes, will also contain option CUSIPs and ISINs.

Once operational, the CUSIP Options Service will generate a 9-character CUSIP and 12-character ISIN for each contract strike price. FOW TRADEdata will be the source of the contract data and it will cover all the major options exchanges in the U.S. The CUSIP Options Service will contain unique identifiers that will not conflict with other CUSIPs. Moreover, the use of the letter C (call) and P (put) in the third position of the CUSIP will be reserved for Options CUSIPs.

“CUSIP Global Services (CGS) is pleased to work with FOW TRADEdata to expand our asset class coverage, and more importantly, to address a long-standing industry need,” said Matthew Bastian, Director, Product Development at Standard & Poor’s. “The Options Service represents another leap ahead for CGS in its mission to help market participants uniquely identify financial instruments.

To both collect feedback and to keep market participants apprised of this development, CGS outlined its plans for a CUSIP Options Service before several industry groups in the last year, including the Financial Information Forum (FIF) and the SIFMA Operations Committee, as well as the CUSIP Agency Board of Trustees.

“The feedback we have received from the industry is that a common nine to twelve character identifier is a tremendous step forward in standardization, and is an essential complement to the OCC’s planned 21-character OSI code,” continued Bastian.

Source: CUSIP S&P, 06.05.2009

Filed under: Data Management, Market Data, News, Reference Data, Risk Management, Standards, , , , , , ,

Business Entity Identifiers White Paper – The Crucial Foundation for Accurate Risk Management »

Download: Business Entity Identifiers- March 2009 White Paper A-TeamGroup

There is an immediate and pressing requirement from financial institutions for a usable global enumeration standard for business entity identifiers. Getting risk management houses in order is a clear driver, but this also comes against the backdrop of the anticipated onslaught of new regulations that financial institutions will have to contend with, along with the ongoing need to improve operational efficiencies, reduce errors, and reduce costs.

So while industry bodies continue the lengthy process of agreeing on a standard format to bring to market, is there an immediate step that financial institutions can take to fill this void? We believe there is, and it is a step that a number of fund managers and investment banks are already piloting.

Source: A-TEAM Group,  27.02.2009

Filed under: Data Management, Library, News, Reference Data, Risk Management, Services, Standards, , , , , , , , ,

Mexican Bank Outlook update 2009

Mexican Senate to limit Excessive Credit Card charges by foreign banks, observed by U.S. Senate – 28.03.2009 Update

Mexico: Big foreign banks highest charges, lowest services – 20.03.2009 Update

Banamex  Citibank Earnings (Excerpt from Bloomberg article  17.03.2009)

Profits at Mexico City-based Banamex doubled from 2002, the first full year it was part of the U.S. bank, through 2007, Citigroup Latin America Chief Executive Officer Manuel Medina- Mora said last year. Banamex revenue climbed 6.3 percent in 2008 to 85 billion pesos ($5.86 billion), Chief Executive Officer Enrique Zorrilla said last month. Citigroup’s 2008 sales fell 33 percent to $52.8 billion, according to Bloomberg data.

Now, after New York-based Citigroup received $45 billion in government rescue funds and its shares tumbled 73 percent this year, the outlook for Mexican banking subsidiaries also is dimming as the country heads for its first recession in eight years. The deepening slump in the U.S., the destination for 80 percent of Mexican overseas sales, is curbing export revenue and trimming remittances that help keep up local consumer demand.

Mexican banks will have a “complicated year because of pressures from defaulted loans, a byproduct of the economic backdrop,” said Juan Partida, a banking analyst with UBS AG in Mexico City. UBS estimates Mexico’s economy will contract as much as 4 percent this year.

Paulo Carreno, a spokesman for Banamex in Mexico City, didn’t return calls seeking a comment. Ovidio Cordero, a press representative for Madrid-based Santander, declined to comment. Ruth Lavelle, a press officer at London-based HSBC, didn’t reply to an e-mail request seeking a comment.

Shrinking Economy

Mexico’s economy will shrink 1.9 percent in 2009, according to the average forecast of 30 economists surveyed by the central bank and published this month. Morgan Stanley said yesterday that the economy will contract 5 percent this year. Mexico’s gross domestic product expanded 1.5 percent in 2008, central bank Governor Guillermo Ortiz said in January, after growing 3.2 percent in 2007.

Migrant worker remittances will decline this year after falling in 2008 for the first time since the central bank began tracking transfers in 1995, Mexican Deputy Finance Minister Alejandro Werner said last month. Mexico’s unemployment rate surged to 5 percent in January, the highest since the statistics agency began measuring the data in 2000.

Consumer Lending

While Shaw wrote in a report last month that bad loans will keep rising, Deutsche Bank AG recommended last week that investors take an “overweight” position in Mexican financial stocks. New York-based strategist Guilherme Paiva said Mexican banks will benefit from an increase in lending to consumers who have low debt levels relative to disposable income.

The recommendation helped send shares of billionaire Carlos Slim’s Grupo Financiero Inbursa SA to their biggest gain since 2002, and pushed up Grupo Financiero Banorte SAB, Mexico’s largest publicly-traded bank.

“Banks are going to suffer, but the year is not going to be a catastrophe,” said Angelica Bala, a banking analyst with Standard & Poor’s in Mexico City. “The capitalization of the Mexican banks is the system’s strength.”

Legislators from the nation’s three biggest political parties and bankers will get together on March 19 and 20 in Acapulco, Mexico. President Felipe Calderon, Ortiz, Finance Minister Agustin Carstens and former U.S. Federal Reserve Chairman Alan Greenspan are scheduled to speak at the conference.

Source: Bloomberg, 17.03.2009  Jose Enrique Arrioja at jarrioja@bloomberg.net; Valerie Rota vrota1@bloomberg.net.

Filed under: Banking, Latin America, Mexico, News, , , , , , , , , , , , , ,

S&P launches US Carbon efficient index

Standard & Poor’s, the world’s leading index provider, today announced the launch of the first in a series of global low carbon indices to meet the growing investor demands for environmentally focused indices.
The S&P U.S. Carbon Efficient Index will measure the performance of large cap U.S. companies with relatively low carbon emissions, while seeking to closely track the return of the S&P 500.

The new Index, which is part of the Standard & Poor’s global thematic index series, provides a benchmark to the market, as represented by the S&P 500, while allowing investors to create financial products that seek to gain exposure from a more environmentally efficient perspective.

“Organizations around the world are paying greater attention to the impact of greenhouse gases on our climate, as increasingly more investors consider carbon efficiency as an important investment theme,” said David Blitzer, Managing Director and Chairman of the Index Committee at Standard & Poor’s Index Services.

“Standard & Poor’s is the first independent index provider to offer a broad U.S. market index with an environmental focus, reinforcing our position as the premier provider of global thematic focused indices.” With the addition of the S&P US Carbon Efficient Index to the global thematic family, the series will now cover such green themes as Water, Forestry, Eco and Carbon efficiency.

To reflect its carbon efficiency, the Index is comprised of constituents of the S&P 500 that have a relatively low Carbon Footprint, as calculated by Trucost Plc. Trucost, the environmental data organization quantifies the environmental impact of over 4,500 companies across different sectors and geographies. Trucost calculates the carbon intensity of companies in the S&P U.S. Carbon Efficient Index by researching and standardizing publicly disclosed information and engaging directly with companies to verify its calculations on an annual basis.

Carbon Footprint is calculated as the company’s annual greenhouse gas emissions assessment (expressed as tons of carbon dioxide equivalent) divided by annual revenue.

“With the world’s most st comprehensive database of corporate carbon emissions, Trucost is uniquely able to provide Standard & Poor’s with information to significantly reduce the carbon exposure of its Index,” said Simon Thomas, Chief Executive of Trucost Plc.

The Index is rebalanced quarterly at which point the stocks in the S&P 500 are ranked by their Carbon Footprint. The 100 equities with the highest Carbon Footprints, whose aggregate exclusion does not reduce any individual GICS(i) sector weight of the S&P 500 by more than 50%, are removed.

Historically, the choice to maintain at least 50% of each GICS sector weight provided the greatest reduction in carbon footprint while closely tracking the return of the S&P 500. Standard & Poor’s also excludes companies, if any, which have not yet been assigned a Carbon Footprint by Trucost.

Through 2008, the average annual Carbon Footprint of the S&P U.S. Carbon Efficient Index was 48% lower than that of the S&P 500.

Source: Standard & Poor’s, 10.03.2009

Filed under: Data Management, Data Vendor, Energy & Environment, News, , , , , , , , ,