April 22, 2008
Insurers Overly Focused On Cat Models, Says Expert | www.propertyandcasualtyinsurancenews.com
Primary insurers and reinsurers will demand that catastrophic modeling be used in order to justify their underwriting decisions of this type of insurance. These newer models in conjunction with in-house capacity aggregation tools (Insurers now know where and how much of their capacity is in play) will guide their underwriting decisions from windstorm and earthquake to workers compensation in terrorism prone cities like DC and NYC. The process is another way to spread the risk, so that any one insurer does not take a huge hit from any one event. Using technology to spread risk will utimately decrease volatility in insurance markets.
A Processing Giant Assessing Its Futures Future in a World of Turmoil
April 4, 2008
MF Global considers financing options | www.reuters.com
MF Global is one of the key players in the global exchange traded derivatives (ETD) brokerage industry with the power to make and potentially, to break, markets, leading to some fascinating -and very significant- political dynamics within the industry. MF Global has been stung by recent activity on the rumour mill as well as its own frank admission of a risk system failure that cost it dearly. MF Global has a massive opportunity but knows it must work hard to ensure its reputation is whiter than white - particularly as some of its acquisitions have included key elements of the tarnished Refco name etc.
Amazon Attempts a Monopolsts's Squeze
April 2, 2008
Amazon Tightens Noose on Print-On-Demand Publishers; Insists They Use Company's Own Service | www.washingtonpost.com
Amazon is attempting to own the book business by exercising control of the small fast growing independent end of the market. Ultimately having done much good for book buyers and helped publishers, Amazon is now in danger of squeezing the small houses they have helped encourage. Book publishing is in danger of having a very significant element of control levied by Amazon which will profit Messrs Bezos and Company in the short term but not in any way assist the development or innovation in the publishing business. In the long term Amazon will see their catalogue shrink. Their market share will decline and they will stifle the growth of the book publishing business. Make no mistake, this is a very very bad day for technological innovators, small businesses and publishing as an industry. For Amazon, it is a foolish plodding play of a monopolist which plainly has lost sight of the fact that treating suppliers with disdain will create a backlash. Finally expect higher book prices too!
How Foolish We Were ...and Will be Once Again!
March 26, 2008
A Nation of Enrons | www.fool.com
Ultimately all markets go in cycles. The concept that property, to name but one sector, would forever go up, was a delusion of the Florida land grab of the 1920s and umpteen other times in history, not just the very recent past... Sadly in the modern age, the analysis remains that even with new-fangled tools to lose money by, the old fashioned methods of over-leverage and foolishly bullish beliefs are working just fine too.
March 11, 2008
Nymex stakes in other exchanges a factor in talks with CME | www.marketwatch.com
CME has run its slide rule across cash exchanges before but never taken the plunge to acquire one. Equally, it seeks to create partnerships where it can act as a predator and buy out the partner (see my previous analysis on the subject). Sooner or later CME will likely acquire beyond its traditional futures sectors and there is a wealth of deals out there... However, the key thing CME (and other predatory exchanges) need to do in the long term is to diversify beyond US dollar denominated markets.
March 10, 2008
Thomson-Reuters Merger Approved | money.cnn.com
The ability of the new merged management team to keep clients happy when products are merged is going to be a key issue in making this merger work. Staff are understandably nervous about their prospects and the history of Reuters in recent years has included a great deal of almost ongoing upheaval.
February 8, 2008
Nymex Earnings Rise on Fee Growth | biz.yahoo.com
Another exchange, another strong processing result...Just imagine what would hapen if they could close the bottleneck of the floor!
February 8, 2008
Europe banks to launch derivatives platform | www.ft.com
The political battle between the big banks and exchanges is becoming more explosive than ever.
CME Uses the Predator Partnership - Again
January 30, 2008
CME-Nymex: Good Deal? | online.wsj.com
CME deal value is related not just to exchange growth but also the state of commodity prices. Nevertheless, CME is best placed to acquire CME for approximately 40 key reasons
Understanding the Potential Impact of Future Trends in the Life Insurance Industry
December 6, 2007
Global Expansion in Life Insurance | www.eds.com
The article is interesting because is evaluating the engines behind the globalization trend in life insurance insdustry. In particular, the article examines two important demographic trends: (1) the ageing of the world's population and (2) the increase in life expectancy of these populations. It is interesting to explore additional trends - customers becoming more demanding, the technology playing an even bigger role, and the challenge in attracting and retaining talent - and their potential impact on the future of life insurance industry.
February 7, 2012
SOPA and the wisdom of Yogi Berra
January 19, 2012
Larger wafers present a growth opportunity for LEDs
January 6, 2012
Smartphones threaten digital camera industry
December 1, 2011
Google music launches: The end of the end for the music industry
November 22, 2011