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Deals and downgrades

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  • The EU did a deal on bank bail-ins (at 0130 in the morning. With all the quality one would expect of decision taking at 0130 in the morning). A hierarchy of responsibility is sort of established to try and mitigate the damage done by the Cypriot bail-in. What is missing is a single resolution scheme for the Euro area.
  • The UK will be revising Q1 GDP data, in the wake of US revisions. The market does not expect changes to the UK numbers, although it is always worth watching previous quarter revisions. The weaker consumer in the US data yesterday was not as bad as the headlines suggest.
  • Australia has embraced the spirit of environmentalism and chosen to recycle one of its old Prime Ministers. A new Treasurer has also been appointed, as Swan resigned with PM Gillard yesterday. Elections are scheduled for September.
  • The Euro area has consumer and industrial confidence data (with markets expecting a slightly less negative result). The US has personal income and consumption data, which may attracted heightened interest in the wake of the GDP figures yesterday. There are also three Fed speakers.
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