On August 4, Dow Jones Indexes, a leading global index provider, launched the Global Dow, an index with components are selected by the editors of the Wall Street Journal.
The launch of this new icon was unveiled today by Rupert Murdoch, chairman and chief executive of News Corporation in Mumbai, India. Dow Jones Indexes is a business unit of Dow Jones & Company, a News Corporation subsidiary.
In Murdoch's words: "The world is changing, and how we measure that change economically and financially is clearly a challenge and an opportunity. We have seen a re-weighting of risk around the world, but the world itself is being economically re-rated, and so we need an index that allows investors to take advantage of these changes. Indian companies will obviously have a place in the Global Dow as will companies from other emerging countries where we have seen an unprecedented economic emancipation over the past two decades."
And Robert Thomson, managing editor, the paper explains, "While we must reflect the global stock market as it is, we must also recognize the rapid rise of companies in countries such as India. We have already seen great Indian companies acquiring famous brands such as Jaguar and Land Rover, but these developments are just the beginning of a long-term trend that will fundamentally change the international corporate landscape. As with the Dow Jones Industrial Average, the component choices for the new index will be based on the editorial judgment of the world's leading business journalists, that is Dow Jones journalists."
The Global Dow will track the share prices of existing and future global leaders in every industry. Vigorous companies from emerging economies will be included along with companies from emerging sectors such as alternative energy, according to News Corp.