The most crucial thing I can see today is the maturation of €435m that Greece issued under foreign laws. Now there is a grace period, so we might not get anything today other than a technical default notice. If they pay out in full investors who took the negotiated haircut back in April are not going to be happy. If they don't then they will suffer the indignity of a foreign court dictating terms to them. It may be somewhat indicative that the Greeks honored a coupon payment on JPY denominated bonds on May 8. Clearly it would be easier to only deal with the Greek law bonds, but €435m is a lot more than a ¥900m (US$11.3m) coupon payment.
So the new French President flies out soon to meet with the now Sarkozy-less Merkozy. Can it be anything other than a disaster? I guess that depends where you're coming from. If Merkel backs down on austerity then she's doomed to join other ex-national leaders on the lecture circuit. If she and her phalanx of treasury officials call the Presidents bluff (because that's what it is), she probably has doomed Greece and Spain. My theory is that they'll make a joint statement along the lines that they are reviewing the current agreement and would both like to see more incentives given to the Greek nation . . . yadda, yadda, ... At least Merkel and German's are cruising along with the help of the weak Euro. German GDP expanded at 0.5% in the first quarter.
Enough of the doom and gloom . . . see I didn't mention J P Morgan once!
In the Giro I was happy to see a rider on a Pinarello Dogma 2 take out stage 9 yesterday. I'm bias as I ride a Dogma 1, but most agree that it's one of the most unusual bikes in the Peleton with it's curved lines that seem to be always in motion. I'd like to have the electronic shifting, but at around 4 grand it's a lot for a simple amateur like me.
|Pinarello Dogma 2 with Campagnolo electronic shifting|
|Cavendish's Pinarello Dogma 2|