16 Jan 2012: Osbourne pushes for offshore Yuan trading

INDICES POINTS CHANGE
FTSE 100 5634 Down 4bp
S&P 500 1289 Down 49bp
NIFTY 50 India 4875 Up 19bp

 

Major Stories

  • Remnibi deal set to boost City trade
    • George Osbourne will sign a deal which will help turn City (of London) into an offshore Remnibi trading centre
    • A forum will be set up which will investigate UK and China’s synergies; this will include looking at clearing and settlement systems, and new Remnibi denominated products
    • This has come as a ‘vote of confidence’ for UK after they were isolated at Brussels recently
    • Total trade settled in Remnibi has risen from 0.7% in H1 2010 to more than 9% in H1 2011

 

  • Lazard given 5 weeks to find buyers for RBS
    • Lazard, the largest non-bank M&A advisors have been given 5 weeks by RBS to find buyers for RBS’s equity and advisory divisions, before managers will start firing the employees
    • Stephen Hester, RBS CEO, had recently announced completely dismantling the equities and advisory divisions; 2900 employees have already been fired (Full story: 10 Jan)
    • RBS will need a quick sale, lest it be sold at a very low cost; the longer they wait, more commission will slip to competitors
    • The advisory business is unlikely to be bought by anyone, and as a result, is expected to be closed, which will result in over 250 jobs being lost
    • RBS’s corporate broking, has ‘drawn interest’ from RBC, Oriel, and Numis Corp
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