The chair of the Eurogroup meetings, Jeroen Dijsselbloem, spooked markets with comments that the last-minute bailout of Cyprus set a precedent for any future interventions. The so-called bail-in of individual savers has been met my disbelief of many, after the move that was supposed to help Cyprus, send shockwaves through Europe. The unprecedented move led many to quickly draw parallels between Cyprus and other EU countries (PIGS), though EU official’s continuously stated that Cyprus was an individual case. Dijsselbloem’s comments yesterday reignited fear within the markets that bail-ins could occur in other EU countries. Following his comments, EURUSD sold off aggressively from the US session throughout Asia into the European open, trading around 1.2850.
The China Banking Regulatory Commission has urged banks to pay close attention to the credit risks in key industries affected by the economic downturn and hit by overcapacity woes - China Daily
Saving Cyprus Means Nobody Safe as Europe Breaks Taboo - Bloomberg
Current Governor of the Bank of England, Sir Mervyn King spoke on Monday evening at the London School of Economics, stating "Whichever crisis we are talking about it is far from over”
Cyprus banks not due to open until Thursday
Fears that Britain is heading for an unprecedented triple-dip recession have intensified as economists warned that the severe weather gripping much of Britain threatened a second successive quarter of falling national output - Guardian