Early kneejerk exuberance in Cable and European bond risk is rapidly unwinding as the reality of a revolting youth raise concerns over social stability [4]. Nowhere is that more evident than in Spain this morning as pro-Catalan independence supporters push the government for a referendum on their secession in November:
- *CATALANS SAYING LOUDLY BUT GENTLY THEY WANT TO DECIDE: MAS
- *SPAIN GOVT OPEN TO DIALOG, HAS TO COMPLY WITH LAW: SAENZ
- *REFERENDUMS ARE NOT POSSIBLE IN SPANISH LAW, DEPUTY PM SAYS
Catalan President Artur Mas says it is a mistake to think the Scottish "No" votes casts a shadow over Catalonia and is threatening Rajoy if he blocks the vote. Spanish bond risk is up 12bps off the lows of the day.
As Bloomberg notes,
- *MAS SAYS SCOTS-STYLE REFERENDA ONLY WAY TO RESOLVE CONFLICTS
- *MAS SAYS CATALONIA PUSHING ON WITH INDEPENDENCE VOTE
- *MAS SAYS MISTAKE TO THINK SCOTS NO CASTS SHADOW OVER CATALONIA
- *MAS SAYS BLOCKING VOTES CREATES DIVISIONS
- *MAS SAYS RAJOY IS FUELING CATALANS' AVERSION TO SPANISH STATE
- *MAS SAYS HE'LL CALL MEETING OF ALLIES IF RAJOY BLOCKS VOTE
- *MAS SAYS RAJOY CAN'T HOLD BACK CATALANS JUST WITH LAW
But, the government says...
- *SCOTS VOTED ACCORDING TO LEGALLY ESTABLISHED PROCESS: SAENZ
- *REFERENDUMS ARE NOT POSSIBLE IN SPANISH LAW, DEPUTY PM SAYS
- *SPAIN GOVT OPEN TO DIALOG, HAS TO COMPLY WITH LAW: SAENZ
So change it...
- *CATALANS SAYING LOUDLY BUT GENTLY THEY WANT TO DECIDE: MAS
- *CATALONIA WANTS TO HOLD VOTE IN AGREEMENT WITH SPAIN: MAS
- *REFERENDUM WOULD SOLVE CATALAN QUESTION, MAS SAYS
The Reaction - spanish bond risk is rising...
[5]
and Cable has roundtripped last night's gains as new policies are better understood
[6]
* * *
It appears this secession movement is far from over...
Charts: Bloomberg