17 Dec 2012: US banks push to ease liquidity requirements

Markets

 

Equities

Indice

Latest

Day Change

S&P 500

1413

– 0.41%

FTSE 100

5921

– 0.13%

NSE (India)

5867

– 0.21%

Nikkei 225

9835

+ 1.01%

Shanghai Comp

2165

+ 0.69%

 

Debt

Security- 10 year

Latest

 Day Change

US Treasury

1.73%

+ 0.02%

UK Gilts

1.86%

+ 0.00%

India G-sec

8.145%

– 0.01%

German Bunds

1.35%

+ 0.00%

 

Commodities

Commodity

Latest

Day Change

Gold (100 oz)

$1692

– 0.22%

Copper (pound)

$3.65

– 0.19%

Brent Crude

$108.25

+ 0.06%

 

Economy

US banks call for easing Basel III: US banks are making a last minute push to ease global liquidity requirements as they would need to come up with an additional $800 billion under proposed standards. The banks have already increased their liquid holdings by $700 billion, and claim that the US market is ‘significantly more liquid compared to 2 years ago’.

  • · RBI likely to hold IR: While major indicators show that price pressures might be easing, it is not enough for the Reserve Bank of India to cut repo rates atleast until January. The WPI-based inflation eased to its lowest level in 10 months. In order to fight tight liquidity, RBI has cut the CRR, which it might cut again by 25 bps to 4%.  The RBI is also set to review the monetary policy this week.

Companies

• AIG to sell AIA holding: AIG has begun to sell its remaining stake of 13.7% in AIA. The exit from the Hong-Kong company is expected to raise $6.4 billion. AIG is offering a discount of 3.2-6.3% in comparison to the closing stock price of AIA on Friday. AIG has been selling non-core assets in order to raise money as it moves to repay the US govt. for bailing it out in 2008.

 

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