A Monday when politics is likely to see equities under pressure

Australia:

Abbott is being challenged. The Reserve Bank of Australia has scaled down its growth expectations. For the Australians , tired of hearing that growth is slowing and jobs are fewer, the RBA statistics last week may well be an accelerator for political change. The transition paralysis in governance  will keep the pressure on the Aussie dollar  

India:

India's Government, already under pressure for delayed reforms, stares at a defeat in Delhi provincial elections.  There is a leadership challenge from a small time politician who might well be a focal point for re-arraying the opposition.  The Modi Government  is being challenged by a left of centre. The likely winner party is quite likely to become a focal point for resistance o structural reforms when India might prove yet again that pluralism might restrain growth.  For India's sentiment driven stock exchange which seems to care less for economic fundamentals than feelings and herd instinct , the rise of a political market challenger may well be trigger to sell. With the banks' NPA levels already abetted by stressed assets, even fundamentals might be just about worrying. 

Greece :

The Germans and the French rushed to Ukraine and Russia to negotiate ; yet they scaled down the tier of talking to  the left of centre, Tsipras. With junk level ratings, Greeks are faced with fewer options; they can flee or fight to martyrdom.  Greece just about seems to have nowhere to go but to the lecture hall. 

For Greece one would sadly read out Pablo Neruda's poem 'I am explaining a few things'

"Treacherous
generals:
see my dead house,
look at broken Spain :
from every house burning metal flows
instead of flowers,...

...

Come and see the blood in the streets.
Come and see
The blood in the streets.
Come and see the blood
In the streets!"

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