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Intended to let investors, traders and financial execs factor weather forecasts into their equity, commodity and derivative strategies.
By Penny Crosman, Aug. 22 2008, 1030 hrs
Bloomberg has partnered with Storm Exchange, a provider of weather risk management services, to offer Storm Exchange's benchmark weather indices, weather-based risk analytics, and a weather risk newswire service covering financial impacts of the weather on business and markets via the Bloomberg terminal. The new solution will allow Bloomberg customers to identify and manage the sensitivities of their investments in the energy, agriculture and retail sectors to adverse weather conditions.
As increased weather volatility continues to affect the corporate earnings of companies in the energy, agriculture and retail sectors, the addition of Storm Exchange weather risk information will provide investors with hard data linking specific weather events to financial performance. In addition to daily weather news feeds and alerts, the solution will offer indices to benchmark the impact of weather on yield for specific crop types, same store sales and retail traffic, energy demand, and the probability and estimated intensity of U.S. hurricanes and wildfires. Premium subscribers will have the ability to use weather forecasts linked to these indices to predict future performance and will have access the Storm Exchange meteorology and analyst teams, which can perform specialized analysis.
"The weather has become an increasingly critical factor in the financial performance of companies across a variety of industries," said Storm Exchange president and CEO David Riker. "By incorporating our information and research applications into the Bloomberg terminal, we're providing the ability for investors, traders and financial executives to easily integrate weather into their equity, commodity and derivative strategies."
Beyond the indexed data, forecasts and bespoke research services Storm Exchange is providing, Bloomberg customers will also have access to the company's monthly analyst calls, crop projections and outlook reports in the energy, agriculture and retail sectors. Providing a regular source of insight from meteorologists, atmospheric scientists and industry analysts, the Storm Exchange analyst calls and outlook reports provide a much-needed financial context to understanding opportunities and challenges inherent in the weather.
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