The early chatter in the markets this morning centre around these stories:
Chinese official news agency Xinhua confirms that the authorities and PBOC are fully aware of the liquidity crunch in the money markets, but that they don’t care and are using the episode to drive home the point that its up to Chinese lenders to ensure they are lending to quality names and to cut back on lending to overly risky ventures. Adam had the news, here: China explains crackdown on shadow financing
The Bank for International Settlements cheer on the winding back of quantitative easing in the US and warn other major central banks to get on with cutting back their extraordinary programs; Mike posted here: BIS tells central banks to head for the exits
UK Chancellor George Osborne cutting more spending from the budget. More from Mike:
UK’s Osborne says austerity still needed to avoid economic relapse
And, away from the markets, the chatter is about Edward Snowden taking a flight to Moscow. I can’t help thinking, surely he had less disruptive ways of breaking up with girlfriend?
Snowden takes flight to Moscow, likely headed to Venezuela