First, CDS on the debt of the Irish Government took this next step, breaking the 500 item on Thursday, according to Markit. Secondly, the economy contracted by 1.2% in the second quarter. In Ireland, the situation of borrowing is quite good, as the government already has the necessary funds for this year. The question is uncertain obligations surrounding the nationalization of the bank AIB. Uncertainty (which the government promised to allow in this month) now gives the bears are too many forces that affect pressure on the CDS.Europe tightens monitoring. One of the still unresolved issues since the crisis in the eurozone, it is how to improve oversight of the imbalances within the euro area. For example, labor costs in the periphery is much ahead of Germany's growth rates over the past 10 years, adding about 30%. Previously, the consequences are not particularly attracted attention, but now we think that such imbalances are required to monitor and address. EU Commissioner Rhine continues to promote a system of monitoring indicators to assist, which, if properly applied, will be positive for long-term stability of the single currency.
Global tensions. Reports indicate that Japan released the captain of a fishing vessel, who was held to conflicts around the disputed islands. It is noteworthy, because yesterday was a peak of tension between China and Japan on this issue (yesterday there were differences over the ban on exports from China's rare earth minerals). Differences also remain between China and the United States since the American Committee of the House ways and means (House of Ways and Means) will vote on Friday on the recognition of China's currency is undervalued. However, as we approach mid-term elections, growing uncertainty about the passage of any bill at this time.
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