27 Jan 2012: Review for Greek rescue imminent

INDICES POINTS CHANGE
FTSE 100 5795 Up 126bp
S&P 500 1318 Down 57bp
NIFTY 50 India 5158 Up 60bp

Major Stories

  • Greece rescue review imminent
    • Eurozone policy makers will review the size of the originally Euro 130bn rescue package for Greece, depending upon the outcome of negotiations with private creditors
    • A lower interest rate on bonds, which means losses for private debt holders, would allow Greece to reduce its debt to GDP ratio, making its debt viable in the long term
    • European leaders say they will need a comprehensive report from Greece before finalising the package; the summit is scheduled for Monday
    • Greek Govt still has to sign and make official, very severe austerity measures
  •  Russian wheat surge hits US prices
    • US wheat prices have plummeted owing to Russian wheat exports
    • The world’s wheat supply has gone from ‘grave’ to ‘plentiful’ over the last year, which has led to a depression in prices
    • Wheat is selling at $6.53 a bushel, down 24% from last year
  •  Industrial groups see strong growth in US
    • Industrial companies find sanctuary in US for 2012; demand has been increasing in most sectors and segments
    • According to some analysts, the US growth is expected to ‘pick up steam’ and the ‘risk of a global recession is significantly lower’
    • Even the US residential market has started to mildly improve after its worst year in 2011
    • Orders for Durable Goods increased 3% in December
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