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Just another Euro crisis?

  • The Cypriot parliament showed more collective sense than the Eurogroup finance ministers and rejected the raid on bank deposits without anyone voting in favour. The problem, of course, is that at least some Cypriot banks are insolvent without a bail out, and ECB promises of liquidity do not solve insolvency.
  • The Eurogroup finance ministers are to hold a meeting quickly (apparently they think this might be urgent, which is unusually perceptive of them). The Troika are suggesting Cypriot banks do not open for this week. The British have flown EUR1m into Cyprus, perhaps suggesting little faith in the speed of any solution.
  • The UK has a few releases of note. Unemployment is expected steady by the market. We have the Bank of England minutes (the governor last heard of languishing in a minority) and the government's budget.
  • The Fed offers its policy deliberations today. We see no change, but there might be a nod towards stronger data in the accompanying statement. The economic projections are published and Bernanke will give a press conference.

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