I like Bob Crow, leader of the RMT union for his transparency and honesty. I would we had more like him in UK public life. Even arch Tory Fallon of the TSC acknowledged these qualities in Crow. So as I opined earlier this week in this blog our Union boys will not be outdone by Johnny Foreigner as England's footballers were in South Africa. The real action will start after the summer hols.
Following the end of the 12 month, 442 bn€ ECB repo demand for refinancing this week was less than expected. Yesterday's 132 bn€ of 3 month money was much less than expected and led to a reduction in PIIGS bond bund spreads and in today' one week money ops only 112 bn€ was taken up. This means rates will rise on the inter-bank market. I suspect the ECB has been taking much bigger haircuts on Euroland banks sovereign bond collateral so increasing the rate to these banks.
Worryingly for the City the EU will restrict hedge fund bonus payments by applying the bank bonus rules to these and other funds. I predict a large geographical movement of these funds from Mayfair to Geneva. They could also think about the Channel Islands which paradoxically are not in the EU. Its seriously bad news for City lawyers. When the host disappears the parasites also die.
The Tories have of course rolled over to the EU as we all, except Lord Pearson, knew they would. Hague is waffling on about the UK being under-represented in EU officialdom. Its been like that since 1973. Its purely a distraction before the next ConLib sell out.