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Double the fun

| Posted by: Paul Donovan | Tags: Paul Donovan

  • There are not one but two emergency summit summits in the Euro area (double the fun). The finance ministers meet, but it is really the heads of government summit that matters – we may as well give up any pretence that the Greek crisis is about economics, it is a political decision.
  • Any deal that keeps Greece in the Euro in practical terms has two requirements. 1) Creditors would need to trust the Greek government to implement the deal. 2) Greek bank depositors would need to believe the deal is sufficient to keep Greece in the Euro. Achieving both seems a rather difficult task.
  • Chinese equity markets continue to put in a "good" performance ("good" means tending towards economic fair value, i.e. falling). The Chinese NBS tells us that economic indicators are turning up, and economic indicators would surely not defy the will of the NBS.
  • Australia left interest rates unchanged, with a nod to the risks of China and Greece and a further attempt to talk down the Australian dollar. The US offers nominal import and export data (in the wake of the dollar's moves recently, stressing the nominal nature of these numbers may be important).