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Dovish RBA Minutes and RBS Could Float Branches As Independent Bank

Overnight the Reserve Bank of Australia (RBA) release its minutes from the October 2nd meeting, when the central bank cut rates by from 3.50% to 3.25%. The dovish tone of the minutes noted of the expected weaker growth next year and the decline in appetite for business spending. The strength of the Aussie was also highlighted as it remains high by historical standards. AUDUSD dropped following the release around 20 pips, but the minutes had no further detail or surprises the cross retraced the move.

The Royal Bank of Scotland branch sale collapsed on Friday when Santander pulled out of their agreed £1.5bn purchase. RBS is a forced seller under the terms of their state bailout, with the sale needing to have been completed by year end to avoid a fine from the European commission. Speculation in the media was that Virgin Money was a likely contender to go forward with the deal, however the CityAM is reporting in this morning’s paper that RBS may float the 316 branches as a new independent high-street bank. Following the success of the Direct Line float, RBS is said to be mulling over the idea of an IPO.

Headlines

Israel parliament voted to end its term early and hold elections on January 22nd 2013

Coca-Cola abandoning Athens listing leaves Greek market trailing Vietnam -Bloomberg

Nomura’s domestic brokerage unit was fined ¥300million, the most by the Japanese Dealers Association in 12 years, for insider dealing –Bloomberg

Renault leads biggest Europe car sales drop in almost 2 years


UK inflation data (RPI/CPI/PPI) out at 9:30am 

Eurozone CPI & German/Eurozone ZEW at 10am

US CPI at 13:30pm

(All above times are London)

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