Looking at the headlines, again it’s more evolution than revolution, continuing with ongoing themes. Spain continues to be a topic of interest, with the Wall Street Journal (WSJ) running an article on page A7 about how Spain will have to cede bank control to European regulators. The Financial Times has a front-page article on how Spain is stepping up austerity, while the New York Times (NYT) has an article in the business section on how, now that Spain has negotiated easier terms, it must meet them.
The LIBOR rigging scandal remains a hot topic, with a shift in focus. Where earlier discussion was on what happened and who was to blame, now the articles focus on who will be paying for it. The NYT has a front-page article on how the scandal has instigated a scramble for damages, and the WSJ has an article on page C2 about U.S. lawmakers joining the LIBOR probe. This will be a much bigger topic in days to come, as it has been described as banking’s “tobacco moment,” with prospective liabilities that could go into the billions.
Elsewhere in the world, the German Constitutional Court refused to be hurried in its evaluation of the European rescue mechanisms, as described on page A7 of the WSJ, and China was reported on page A1 of the WSJ as expanding its stimulus.
Nothing particularly exciting today. May it stay that way!