US uncertainty to dominate markets

As we move into the first day of trading in 2013, uncertainty over the US budget crisis continues to loom large.

There are doubts whether the US lawmakers can reach a deal to avert the so-called fiscal cliff which could lead to $600bn (£370bn) in automatic tax increases and spending cuts.

The fear is that these cuts and tax increases may derail the US economic recovery and in a worst case scenario even plunge it into a recession.

Richard Jerram, chief economist at the Bank of Singapore told Sharanjit Leyl that even if a deal is reached, there is still lots of uncertainty remaining over the US budget.