The last EU summit was a change from the cul-de-sac policy responses we have had so far. Hopes of an exit to a US TARP-like solution to the European banking crisis were raised but details remain sketchy. The concessions that Ms. Merkel has made are unlikely to be a perpetual shakedown for Germany’s cash at every forthcoming summit meeting. Eventually she is likely to pull a Miss Havisham on peripheral Europe’s Great Expectations. There have been reports that Ms. Merkel does not expect the concept of Eurobonds to see the light of day during her lifetime. Perhaps then, the Euro is dead, but for the burying. One reason the crisis is dragging on is that there is no incentive (or penalty for that matter) for Germany to resolve the debt crisis quickly. The Euro helps Germany, so it will keep it as long as possible. The sub 50 reading of June US ISM manufacturing number is the clearest sign yet that the slowdown from weak economic activity in Europe is now hitting the US too. The Q2 earnings season is expected to be a weak one. I have a feeling it could be a tough July, like the one we had last summer. It is likely the US FOMC meeting on August 1 could be the point Equities find favor again. If I were on holiday now, I would not hurry back..