Global equities to remain volatile on prospects of Greece exit: Nomura

NEW DELHI: Stating that the political uncertainty in Greece will continue, Alastair Newton of Nomura International told ET Now that the global markets will continue to be impacted by the possibility of Greek exit from the Eurozone.

Asked about the concern over possible regulations that France's new President elect Hollande will advocate, Newton said that it was overstated. Newton told ET Now that a big push for bank transaction tax will be made by Hollande.

Newton was of the opinion that Hollande would not follow any regulations that would be very much different from what Nicloas Sarkozy would have. Hollande, Newton felt is keen to relax Basel III rules.

Newton expects the current Italy government by Monti to survive till 2013 and also feels that the country will see reforms at a steady pace.

Expressing concern over the growing fiscal deficit of Spain, Newton said that the country may emerge as the next big problem for the Eurozone, despite the government's efforts. He also said that Spain may soon need financial aid from the Eurozone.

Talking about the impact of the European crisis on the emerging markets, Newton said that the Long-term refinancing operations (LTROs) are not very relevant for them. However, he felt that emerging markets will keep a keen eye on the growth prospects of the Eurozone.

With respect to the recent delay in the implementation of General Anti-Avoidance Rules (GAAR), Newton said that the current Indian government was known to be market-friendly. He admitted, however, that bogged down by coalition politics, the government was unlikely to push for any key reforms before the 2014 general elections