After escalating for months, Europe's refugee crisis hit its most serious tipping point yet, when when earlier today European Union leaders held a mini-summit on Sunday debating whether to send hundreds of guards to its borders with the western Balkans, as well as deploying more ships off Greece, as the bloc seeks to balance Germany's welcome for refugees with tougher security measures.
In spite of what you hear by the nanny-zone Eurocrats, the rifts keep getting wider and the odds the Merkozy agreement gets tossed to the dogs rises every day.
Today the UK put a nail in the coffin of more money to the IMF and Sweden may do so as well. Please consider Euro zone IMF lending plan in danger as UK declines
Good morning, dear reader. Wall Street remained edgy in overnight trade ahead of the outcome of US Fed's rate-setting meeting later today while most Asian markets are trading mixed this morning, setting the stage for a cautious start on Dalal Street. The Fed huddle in New York, a big crash in the Valeant Pharma stock and speculation about an imminent rate cut by RBI dominate today's snapshot of major and minor events that may have change the market when you were sleeping.
BRUSSELS: Greek Prime Minister Alexis Tsipras won a commitment to seek a last-minute rescue at an emergency euro zone summit on Tuesday, before his country's banks run out of money. Italian Prime Minister Matteo Renzi told reporters that EU leaders would hold a further summit on Sunday to approve a plan to aid Greece if creditor institutions are satisfied in the meantime with a Greek loan application and reform commitments. "The ball is in Greece's court," Renzi said.
Marc Chandler submits:The reprieve on Greek bonds after the successful placement of 5-year bonds (at a hefty premium to existing 5-year bonds) was short-lived. Benchmark 10-year yields are up 23 bp today, while 2-year yields are up 32 bp, bring the total increase over the past five sessions to 71 bp and 62 bp, respectively.In contrast, the pressure on Portugal is considerably more modest but rising.