• The Merkel and Sarkozy blueprint for greater fiscal integration across euro zone countries comes in the form of an ultimatum for the 27 European Union governments. The deal insists that governments decide that they are willing to cede some of their fiscal sovereignty by week’s end. From the Wall Street Journal.
  • John Corzine allegedly ignored warnings about his risky debt play from his chief risk manager, and threatened his board with his resignation if they didn’t back his bet. From the Wall Street Journal.
  • German and French bond yields are moving higher after S&P’s move yesterday to put most euro zone countries on down grade watch. Yields on French 10 year paper was up over 15 basis points today. The move by S&P ratchets up the pressure heading into Friday’s EU summit. From Bloomberg News.