UBS was ordered to increase capital buffers for legal risks - and said it had received inquiries from authorities investigating possible FX manipulation, in addition to opening its own internal probe. The bank said it will be delayed by a year in meeting its target of a 15 per cent return on equity in 2015 after the capital demand by Swiss regulators, which will increase risk-weighted assets by SFr28bn. Finma acted after comparing UBS's "recent loss history with the capital underpinning for operational risks," the bank said. UBS shares opened down 6 per cent on Tuesday (Financial Times, Bloomberg, WSJ). Profits dropped 94 per cent at Deutsche Bank in the third quarter. Net income fell to €41m from €747m after Europe's largest investment bank raised provisions for legal costs by €1.2bn, and announced a slowdown in fixed-income trading (Bloomberg). BP plans to sell off another $10bn of assets in the next two years. Bill Dudley, the oil major's chief executive, said the sales would fund further returns to shareholders after selling assets worth $38bn over the past three years (Financial Times). The company will also increase its dividend by 5.6 per cent after third-quarter profit, at $3.7bn, fell less than expected (Bloomberg). The Indian central bank raised its key rate by 25bps. The increase in the repo rate to 7.75 per cent was directed at controlling inflation, although business complained that it will worsen high capital costs. Liquidity restrictions on banks imposed during the rupee's summer slide were however eased (Financial Times). Morgan Stanley is considering asking the Fed to allow another share buyback next year. The bank's plans, which may include a larger buyback than 2013′s $500m programme, will become clearer this week as the Fed gives banks details on the next round of stress tests (Wall Street Journal). European junk bonds outperform the US: "Total returns on debt sold by European companies with higher probability of default stand at 7.3 per cent this year in dollar terms, beating the 6 per cent return amassed by its American peers, according to Barclays" (Financial Times)