24 Jan 2012: Berlin to boost the size of ESM

INDICES POINTS CHANGE
FTSE 100 5743 Down 70bp
S&P 500 1316 Up 5bp
NIFTY 50 India 5127 Up 161bp

Major Stories

  • Berlin ready to boost EU Rescue fund
    • Berlin are ready to boost the size of the EU Rescue fund to Euro 750bn in exchange for strict budget rules
    • Merkel wants European leaders to sign for rules regarding budget deficits and public spending which will be much stricter than the current ones
    • This larger fund risks German tax payers into exposing them to the fund’s risks
  • HK banks helped by the return of liquidity
    • HK banking market shows a sign of return with return of liquidity
    • Liquidity is being boosted because savers in HK are slowing purchase of Remnibi and instead are depositing in HK or US Dollar
    • This helps HK banks to have more lending power, as dollar rates are much lower
  • Iran warns about Oil-embargo
    • Iran have warned that they will not give up their legitimate and legal rights under Western pressure
    • Iran have also said that it will not be hard to find new customers to replace European nations, and that provisions were made sometime back
    • The major issue here is Iran’s development of Nuclear Technology, which they claim is for civilian purposes
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