Wall Street Watch: China Mulls Further Bank Cuts, Facebook Sets IPO Date

The People’s Bank of China is considering additional cuts to banks’ required reserve ratios as an easing measure option to increase liquidity and banking lending, Xinhua news service reported on Wednesday. This speculation comes after a Standard Chartered note emphasized a M2 money supply slowdown from changing monetary dynamics. China sits as No.1 in the world for cash circulation, as defined by M2 or total cash in circulation and deposits, as noted in the aforementioned research note.

Japan saw a trade deficit of 82.6 billion yen ($1.02 billion) in March after February’s surplus of 29.3 billion yen; the number did come in below the estimated deficit of 223.1 billion yen. In addition, exports increased 5.9 percent on the year to 6.20 trillion yen vs. the -2.4 percent consensus. This came from a weaker yen and rising U.S. demand for automobiles and parts. Imports rose 10.5 percent as nuclear plant closures increased the energy bill.

According to TechCrunch, Facebook will have its IPO May 17 if the Securities and Exchange Commission can approve the company’s paperwork by then. Facebook will try to raise just under $10 billion with a $100 billion market cap as suggested on secondary market trading. This does come in higher than the $75 billion plus that Facebook and Instagram valued the company after their recent deal, reported the New York Times.

In an effort to catch up with its rival General Motors (NYSE:GM), Ford (NYSE:F) disclosed expansion plans in China. The company said it will spend $760 million to build its new plant in the eastern Zhejiang province. Two weeks ago, the company said it would spend $600 million to build factory No. 3 at its southwestern China Chongqing complex.