Spain

Hopes of a 'stall' in secession proceedings have been dashed amid speculation that Catalonia’s regional parliament will convene on Monday, despite a suspension ordered by the central government in Madrid.

The bounce yesterday has been erased...Putting a nail in the coffin of 'stall', El Mundo reports that Catalan pro-independence party says not working on any scenario that delays declaratiuon of independence.

It's now very clear what the establishment's strategy is...

Good Cop...

World stocks eased back from record highs and fell for the first time in eight days, as jitters about Catalonia’s independence push returned while bets on higher U.S. interest rates sent the dollar to its highest since mid August; S&P 500 futures were modestly in the red - as they have been every day this week before levitating to record highs - ahead of hurricane-distorted nonfarm payrolls data (full preview here). U.S. jobs report will also be released Friday with a speech on monetary policy by the New York Fed chief.

Spanish (and European) stocks surged this afternoon as headlines crossed that Catalan separatists were hoping to 'stall' proceedings in hope of negotiating with Madrid. That hopeful headline appears to have been crushed now as Bloomberg reports the Catalan regional parliament intends to meet as planned Monday, defying a suspension by Spain’s Constitutional Court.

Via The Daily Bell

It’s all illegal! That’s Madrid’s position on the referendum in Catalonia. Of about 5.5 million eligible voters, about 2.4 million chose–or were able–to cast ballots. 90% of them voted in favor of independence from Spain.

Spanish courts have ruled, and leaders have repeated, that the country’s Constitution does not allow a region to separate. European Union courts have echoed this position.

Catalonia’s bid to separate from Spain had prompted investors to dump bonds issued by the region’s two biggest lenders, CaixaBank SA and Banco de Sabadell SA. Today, in a signal that the banks are taking thelikelihood of Catalonia independence very seriously, Sabadell has called a board meeting to approve a change of headquarters outside of the region.

The last few days' drop in Catalonia's biggest bank bonds has prompted an even more serious reaction by the banks themselves.