A review of news analytics and its applications in finance is given in this chapter. In particular we review the multiple facets of current research and some of the major applications. It is widely recognised news plays a key role in financial markets. The sources and volumes of news continue to grow. New technologies that enable automatic or semi-automatic news collection, extraction, aggregation and categorisation are emerging. Further machine learning techniques can be used to process the textual input of news stories to determine quantitative sentiment scores. We consider the various types of news available and how these can be processed to form inputs to financial models. We report applications of news, for prediction of abnormal returns, for trading strategies, for diagnostic applications as well as the use of news for risk control.
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