On the margins


HK, Spain & Greece come to our attention
United States: Nothing much going on
United Kingdom: Housing slowing quickly?
Eurozone: German inflation normal!
Eurozone: Hans-Werner Sinn

Good morning,

Neymar with a hat-trick and Messi with a brace sent a clear message to anyone who was worried, that Barca are a team with a strike force that Liverpool can only dream of. This weekend the most glamorous football team in Europe – Catalan’s finest – were on fire. So too was Catalonian politics.

Yes I know it is quite remote, but Catalonia matters to Europe and Hong Kong matters to China and Greece matters to the Euro. All three are in our sights today.

Spain’s Prime Minister vowed to defend the “sovereignty” of his country yesterday, shooting down a bid by Catalonia to hold its own Scottish-style referendum on independence. Rather than follow the lead of UK Prime Minister David Cameron and allow a vote on independence, Mariano Rajoy instead said legal action would be taken by his government to block the regional plebiscite.

Rajoy knows that referendums are dangerous for the status quo.

Mr Rajoy announced that his conservative government had launched an appeal to Spain’s Constitutional Court against the Catalan decision to hold an independence vote on November 7 calling the move “anti-democratic”.

“It’s false that the right to vote can be assigned unilaterally to one region about a matter that affects all Spaniards,” Mr Rajoy said in a statement following an emergency cabinet meeting on Monday morning. “It’s profoundly anti-democratic.”

The appeal puts Madrid on a collision course with Catalonia following the signing on Saturday by Artur Mas, the president of the Catalan government, of a decree to allow the “consultation” on breaking away from Spain.

This is a serious, but not surprising development.

Download a FULL PDF version of the Daily Note:

Global Macro-Daily Note 30th September 2014


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Categories: Daily Note