which by and large closed weakish - and squarely negative in China, having been a positive outlier on Friday. Wen’s call for more hardship despite stabilization policies, meaning probably more orchestrated soft landing and no flash flush stimulus. Shanghai now through the Jan low of 2148, as well the lowest since Q1/2009, when the post-Lehman rebound took the index to 3472 (-38%).
European open as one could expect: Core a tick bid; Peripherals a couple of bps out; credit, too. Equities a touch lower, but still holding on to most of Friday’s surge. EUR unchanged. Commodities unchanged.
Financials wider, as Libor-gate is spreading on one hand and ECB hinting to see Spanish senior debt holder biting the bullet, too.
No data. Weekend titbits scarce on the official front with Merkel re-drawing a line in the sand (and filling it with concrete?) that there can’t and won’t be any uncontrolled solidarity. From the German side as well, BuBa’s Weidman rejections of using ESM funds to bring down (Italian) yields.
Talking of which the Constitutional Court announcement of
http://www.zerohedge.com/contributed/2012-07-16/16-jul-2012-%E2%80%93-sloe-gin-joe-bonamassa-2007?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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