Hopes of a ‘stall’ in secession proceedings have been dashed amid speculation that Catalonia’s regional parliament will convene on Monday, despite a suspension ordered by the central government in Madrid.
The bounce yesterday has been erased…Putting a nail in the coffin of ‘stall’, El Mundo reports that Catalan pro-independence party says not working on any scenario that delays declaratiuon of independence.
It’s now very clear what the establishment’s strategy is…
As The Duran.com reports, Enric Millo, a Spanish official in Catalonia has offered the first attempt at an apology for the police brutality that marred the Catalan independence referendum on the 1st of October.
Spanish police were filmed beating civilians, shooting unarmed individuals with rubber bullets, as well as harassing and assaulting women and the elderly. The scenes caused a great deal of consternation, even among those who support the Spanish position vis-a-vis Catalonia.
Today, Enric Millo, who represents the Madrid regime, spoke in Catalonia and said,
“When I see these images, and more so when I know people have been hit, pushed and even one person who hospitalised, I can’t help but regret it and apologise on behalf of the officers that intervened”.
Having passed the law making it easier for companies to leave Catalonia, Spain’s Economy Minister Mendez iproclaimed rather quickly that “the business exodus from Catalonia was very sad,” with Guindos adding snidely that “irresponsible policies have economic responses.”
Mendez also lashed out at Puigdemont, saying that he “is breaking social cohesion” in the nation.
The IMF has chimed in… (via Bloomberg)
The International Monetary Fund said the Catalan crisis could have an impact on Spain’s economy, which has been one of the best performing in the euro area in recent years. In its latest assessment, the IMF said the banking system has become more resilient, while the economy has benefited from structural reforms and wage moderation as well as a favorable global backdrop. The report, based on an Article IV consultation that ended on Sept. 20, would usually attract attention in Spain, but it’s been overtaken by the political drama related to the secessionist push in Catalonia.
“The outlook for the Spanish economy is currently strong,” Andrea Schaechter, IMF mission chief, said in an interview.
“However, prolonged tensions and uncertainty related to Catalonia could weigh on confidence and investment decisions.”
On a humorous note, Spain’s Election Watchdog rejected the Catalan vote.
Spanish yields are rising across the entire yield curve with 10Y up 7bps and 2Y decoupling from Germany…
“The more conservative international investors, who have just cautiously returned to Spain in recent quarters, should remain inclined to reduce risk until the situation clears,” wrote Commerzbank AG strategist Christoph Rieger.
“Spreads should thus stay elevated at least until Monday’s scheduled session of the Catalan Parliament,” he said, referring to the yield premium demanded to hold Spanish bonds over their German counterparts.
JPMorgan is desperately tryting to play down the potential for contagion…
“It is not a threat to the euro,” said Jan Loeys, chief investment strategist at JPMorgan Chase & Co., in an interview with Bloomberg Television.
“This is a local problem. There will be affects on the local banks, local asset prices — yes, Spanish equity prices will be hurt a bit.”
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