To bankrupt Greece or not to bankrupt Greece, that is the question, the question that will be thoroughly debated hopefully when European Finance Ministers meet today. EU Economic Commissioner Rehn also said the issue of leveraging the EFSF will also be a key topic of discussion as part of the Greek question in order to plug holes in the European banks. With only three countries left to ratify the enlarged EFSF, the time has come for the Euro Zone to say ‘no more candy.’ With respect to the ECB meeting on Thursday, don’t expect a rate cut after Friday’s Euro zone CPI report but do expect a 12 month liquidity facility to provide to banks that would complement current 3 and 6 month options available. S&P affirmed the AAA rating of the UK and kept its outlook stable. Sept UK mfr’g PMI bounced from the lowest since June ’09 to back above 50 unexpectedly. Japan’s Q3 mfr’g Tankan report rose to +2 from the earthquake influenced -9 in Q2 but remains below +6 in Q1.
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