Time-varying price discovery in the eighteenth century: empirical evidence from the London and Amsterdam stock markets

This paper examines the time-varying nature of price discovery in eighteenth century cross-listed stocks. Specifically, we investigate how quickly news is reflected in prices for two of the great moneyed com- panies, the Bank of England and the East India Company, over the period 1723 to 1794. These British companies were cross-listed on the London and Amsterdam stock exchange and news between the capitals flowed mainly via the use of boats that transported mail. We examine in detail the historical context sur- rounding the defining events of the period, and use these as a guide to how the data should be analysed. We show that both trading venues contributed to price discovery, and although the London venue was more important for these stocks, its importance varies over time.

Seasonal intercomparison of observational rainfall datasets over India during the southwest monsoon season

The Indian monsoon is an important component of Earth's climate system, accurate forecasting of its mean rainfall being essential for regional food and water security. Accurate measurement of the rainfall is essential for various water-related applications, the evaluation of numerical models and detection and attribution of trends, but a variety of different gridded rainfall datasets are available for these purposes. In this study, six gridded rainfall datasets are compared against the India Meteorological Department (IMD) gridded rainfall dataset, chosen as the most representative of the observed system due to its high gauge density. The datasets comprise those based solely on rain gauge observations and those merging rain gauge data with satellite-derived products. Various skill scores and subjective comparisons are carried out for the Indian region during the south-west monsoon season (June to September). Relative biases and skill metrics are documented at all-India and sub-regional scales. In the gauge-based (land-only) category, Asian Precipitation-Highly-Resolved Observational Data Integration Towards Evaluation of water resources (APHRODITE) and Global Precipitation Climatology Center (GPCC) datasets perform better relative to the others in terms of a variety of skill metrics. In the merged category, the Global Precipitation Climatology Project (GPCP) dataset is shown to perform better than the Climate Prediction Center Merged Analysis of Precipitation (CMAP) for the Indian monsoon in terms of various metrics, when compared with the IMD gridded data. Most of the datasets have difficulty in representing rainfall over orographic regions including the Western Ghats mountains, in north-east India and the Himalayan foothills. The wide range of skill scores seen among the datasets and even the change of sign of bias found in some years are causes of concern. This uncertainty between datasets is largest in north-east India. These results will help those studying the Indian monsoon region to select an appropriate dataset depending on their application and focus of research.

The meteorology of the Western Indian Ocean, and the influence of the east African highlands

This paper reviews the meteorology of the Western Indian Ocean and uses a state–of–the–art atmospheric general circulation model to investigate the influence of the East African Highlands on the climate of the Indian Ocean and its surrounding regions. The new 44–year re–analysis produced by the European Centre for Medium range Weather Forecasts (ECMWF) has been used to construct a new climatology of the Western Indian Ocean. A brief overview of the seasonal cycle of the Western Indian Ocean is presented which emphasizes the importance of the geography of the Indian Ocean basin for controlling the meteorology of the Western Indian Ocean. The principal modes of inter–annual variability are described, associated with El Niño and the Indian Ocean Dipole or Zonal Mode, and the basic characteristics of the subseasonal weather over the Western Indian Ocean are presented, including new statistics on cyclone tracks derived from the ECMWF re–analyses. Sensitivity experiments, in which the orographic effects of East Africa are removed, have shown that the East African Highlands, although not very high, play a significant role in the climate of Africa, India and Southeast Asia, and in the heat, salinity and momentum forcing of the Western Indian Ocean. The hydrological cycle over Africa is systematically enhanced in all seasons by the presence of the East African Highlands, and during the Asian summer monsoon there is a major redistribution of the rainfall across India and Southeast Asia. The implied impact of the East African Highlands on the ocean is substantial. The East African Highlands systematically freshen the tropical Indian Ocean, and act to focus the monsoon winds along the coast, leading to greater upwelling and cooler sea–surface temperatures.

An investigation of QBO signals in the east Asian and Indian monsoon in GCM experiments

Observations have shown that the monsoon is a highly variable phenomenon of the tropical troposphere, which exhibits significant variance in the temporal range of two to three years. The reason for this specific interannual variability has not yet been identified unequivocally. Observational analyses have also shown that EI Niño indices or western Pacific SSTs exhibit some power in the two to three year period range and therefore it was suggested that an ocean-atmosphere interaction could excite and support such a cycle. Similar mechanisms include land-surface-atmosphere interaction as a possible driving mechanism. A rather different explanation could be provided by a forcing mechanism based on the quasi-biennial oscillation of the zonal wind in the lower equatorial stratosphere (QBO). The QBO is a phenomenon driven by equatorial waves with periods of some days which are excited in the troposphere. Provided that the monsoon circulation reacts to the modulation of tropopause conditions as forced by the QBO, this could explain monsoon variability in the quasi-biennial window. The possibility of a QBO-driven monsoon variability is investigated in this study in a number of general circulation model experiments where the QBO is assimilated to externally controlled phase states. These experiments show that the boreal summer monsoon is significantly influenced by the QBO. A QBO westerly phase implies less precipitation in the western Pacific, but more in India, in agreement with observations. The austral summer monsoon is exposed to similar but weaker mechanisms and the precipitation does not change significantly.