Citigroup economists with a note out in response to the weekend nuclear test

via Bloomberg


  • Says the latest nuclear test ins crossing a 'red line'
  • Citi says use past reactions as guide - i.e. reaction likely to prove transitory
  • Expect tensions tod diffuse quickly
  • "Unless the global response to this test raises the probability of a military strike or North Korea regime collapse (both unlikely), this time may play out similarly"