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March 14Th International Financial Headlines

2012/3/14 10:36:00 11

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美聯(lián)儲公布19家大型銀行最新壓力測試結果

The Federal Reserve released the latest stress test on the big US banking industry on Tuesday. 4 of the 19 large banks undergoing stress tests failed to meet the minimum capital ratios of one or more stress tests.

The Fed said that most large US banks could continue to meet capital requirements after financial shocks, but under the assumed financial impact, the total losses of 19 large banks could reach $534 billion in the 9 quarter of the fourth quarter of 2013.

Under the hypothetical stress test, the pre tax net losses of Bank of America and Citigroup from the fourth quarter of 2011 to the fourth quarter of 2013 may exceed $50 billion, while Goldman Sachs Group, J.P. Morgan, Morgan Stanley and Wells Fargo Bank may have a net pre tax net loss of over US $19 billion.

The joint motor finance group, Citigroup and sun trust failed to meet the pressure test hypothesis that the first class common stock is equivalent to the risk weighted asset ratio index of 5%.

The interest rates of the three financial institutions were 4.4%, 4.9% and 4.8% respectively.

Fed interest conference optimistic about economic outlook

The Federal Reserve released its latest outlook on the economic outlook on Tuesday local time, saying it expected moderate economic growth this year, but the agency maintained zero interest rates until 2014.

In a statement Tuesday, the Fed policy committee said that although oil and gas prices had recently risen, it was expected to have only short-term effects on inflation.

The Fed said: "the Committee expects the US economy to grow moderately in the next few quarters, so it is expected that the unemployment rate will gradually decrease."

The Fed said it would continue to implement the $400 billion short debt and long debt program to extend the average maturity of the Federal Reserve's bonds, which is known as the "reverse operation".

The policy of the Federal Reserve's expiry of the housing debt portfolio reinvestment mortgage guarantee securities will remain unchanged.

After the announcement of the Federal Reserve, the US stock market continued to rise, the 10 year treasury bond yield rose, the US dollar rose against the main currencies, and the euro reached 1.3055 against the US dollar.

UK considers issuing long-term government bonds

Britain

Minister of Finance

Osborn plans to issue a 100 year term "Osborn bond", which even considers that it will never expire to take advantage of the UK's current historical minimum interest rate.

The bond plan is similar to that in the British history of the South China Sea bubble and the financial bonds issued after the first World War.

George Osborn said he would "lock" Britain's low borrowing cost advantage at next week's budget meeting.

Investors have two different attitudes towards this bond issue plan.

Some people call this fixed rate long-term bond, but others are hesitant to buy it because of low yield or low returns.

Osborn will work out a plan for the debt management office to test the market's attitude towards this 100 year or even longer "Phnom Penh bond", and it also wants to test the possibility of issuing "permanent" bonds with uncertain interest rates.

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Prudential Group CEO threatens to move its headquarters away from Britain

British insurance giant

Prudential Group CEO

Tan Tianzhong (Tidjane Thiam) on Tuesday criticized the EU's new solvency regulation (European Solvency II), saying the new rules could destroy its US business and force it to move its headquarters away from the UK.

Nearly half of Prudential's revenue comes from Asia, and reiterates that it will consider whether to move its headquarters to foreign countries based on the results of the new rules discussed in Brussels.

The EU's new solvency regulation rules will take effect in 2014, and Hongkong is regarded as the most likely destination for the new headquarters of Prudential.

For the EU based insurance companies in the non EU business, if the EU decides that the local regulatory level is not up to standard, the insurance company will have to apply Solvency II to these local businesses.

According to Morgan Stanley analysts, Prudential may have to raise its capital holdings to more than two and a half times.

Britain will issue 100 year treasury bonds

Britain

Minister of Finance

The budget report released next week by George Osborn (George Osborne) will announce that the UK will issue 100 year treasury bonds, which means that this government loan will be repaid in the next century.

The British government hopes to issue 100 year treasury bonds, which will help to "lock in" the status of the British International "safe haven" status.

British bond yields have fallen to a record low recently.

Historically, Britain has only issued two 100 year bonds, one for the first World War and the other for the South Sea Bubble, which still pays interest on these loans.

The issue of 100 year treasury bonds highlights the scale of the economic crisis facing the country.

At present, the British government holds an average of 1 trillion pounds of treasury bonds for an average period of 14 years, ranging from a few months to 50 years.

It is generally believed that longer term debt can make a country's economy more stable.

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Bank of Japan increases loan supply potential growth industry

The Bank of Japan announced on Tuesday that it will maintain the benchmark interest rate at a low interest rate of zero to 0.1%, increase the loan scale of the potential growth industry from 3 trillion and 500 billion yen to 5 trillion and 500 billion yen, and decide to maintain 65 trillion yen, and the scale of asset purchase fund remains unchanged.

After ending the two day monetary policy meeting, the Bank of Japan said in the conference communique that the existing financing plan should be extended for two years to the end of March 2014, while the preferential financing plan for financial institutions in the East Japan earthquake stricken area will be extended for one year to the end of April 2013, and the local economic development can be promoted through monetary policy.

Shirakawa Gataaki, governor of the Bank of Japan, said the bank would take all means to support potential growth industries.

Fitch upgraded Greece's rating to B-

International rating agencies

Fitch announced on 13 that it would remove the Greek rating from "partial default", saying that the debt exchange plan changed the situation of Greece's debt.

Fitch has raised Greece's long-term foreign currency and local currency issuer default ratings from "partial default" to B-, with a stable outlook.

The short-term foreign currency issuer's default rating has been raised from C to B, with a national cap rating of AAA.

Fitch rated Greece's newly issued debt rating as B- in a debt replacement scheme with private sector creditors.

The rating of bonds issued under foreign law is still C, and Fitch will make a final decision in April 11th.

At the same time, the issuance ratings of securities that do not meet the requirements of debt replacement remain unchanged.

The agency pointed out that the completion of the private sector debt swap plan and the loss of creditors have improved the debt services in Greece and reduced the risk of the recurrence of short-term payment difficulties.

But Fitch also warned that Greece's risk of serious default is still in view of Greece's high debt levels and severe economic challenges.