Page 3: Tailoring products for the market
Bloomberg has products for a wide range of businesses which take from the system the elements most pertinent to them.
With over 750 Bloomberg journalists reporting from 80 different cities around the world together with feeds from other news agencies and research from brokerage houses, the data on the Bloomberg Professional is supplemented by news stories explaining and analysing the market movements. The stories can appear in many different formats:
- on the Bloomberg Professional where they are stored and cross-referenced
- on TV
- in the Bloomberg Magazine
- Bloomberg Radio.
A technical analysis package provides a complete range of tools that enables users to analyse market movements using graphs and charts. Using a mouse driven application to pinpoint market-moving events and ultimately predict changes in direction and opportunities for profit.
Supplying the data and analysis may not be enough. Some clients may need to populate a proprietary valuation system or pricing model of their own. By making use of the Bloomberg API, data can be linked live into a Microsoft Excel spreadsheet or alternative application.
With the incredible interest currently focused on e-commerce, every bank is deliberating how to capitalise on the trend. Bloomberg can offer the capability to trade a huge range of instruments electronically, linking a bank’s customers directly to its trading floors.
With the change to an electronic environment, stock exchange buildings, as we once knew them, are being closed, sold and used for other purposes, while the business transacted on that exchange is now carried out via a computer network. One of the great benefits of this is you no longer have to reside in a city to be an active member of that exchange.
An example of this would be the London Financial Futures market (LIFFE). All business that is transacted on LIFFE is no longer done in person, in London, on the LIFFE floor. Instead it is done electronically via a computer network. Bloomberg has programmed to the LIFFE market to give all Bloomberg users the ability to transact electronically the futures traded on LIFFE. This means if you are based in Spain or Germany and in the past you have used a broker in London to manage your futures business, you can now use your Bloomberg instead.
In addition to building links to live markets, Bloomberg can link to a specific broker for a specific product, sending equity orders to a broker without having to use the telephone. This gives greater accuracy and speed as well as increasing the capability of both sides to handle greater trading volumes. A further example would be enabling a corporate treasurer to buy and sell currencies and money market instruments over the Bloomberg screen.
In addition to giving brokers the ability to transact electronically, Bloomberg has also developed its own ECN (Electronic Communications Network). Bloomberg Tradebook is Bloomberg’s Electronic Agency brokerage which provides clients (both exchange members and non members) with direct anonymous access to trade global markets through their Bloomberg terminal.
Bloomberg Television is a 24-hour financial news channel that reports the news that moves markets. The unique data screen provides financial data and breaking news headlines at all times, even during the adverts. There are ten channels around the world in seven different languages, with each channel tailored to local markets. For example, in France, Bloomberg broadcasts in French, with interviews from the key people in French industry, finance and politics. The recommendations of traders and economists based at leading banks in Paris are brought direct from TV cameras installed on the trading floors.
Bloomberg’s television screen is a unique multi-screen format that delivers more information than traditional news broadcasts. With over 180 million viewers worldwide it includes:
- Video Screen - Delivering 24-hour business news, interviews and live broadcast from global stock exchanges and trading floors.
- Index box - Constantly updated quotes on the leading market indicators.
- Context Box - With an extensive running order of share prices, stock indices, bond yields, foreign exchange rates and commodity prices.
- Headline Bar - Displaying news headlines, business features, analyst recommendations, personal finance and breaking news headlines.
- Scrolling Tickers - Lists of moving share prices from stock exchanges around the world.