European morning wrap: Lack of London limits liabilities

Portuguese FinMin:  Country passes 4th bailout review by EU/IMF lenders Troika: Rising unemployment in Portugal a pressing concern.  Portugal implementing reforms as planned German govt spokesman:  Euro bonds will not be on agenda of Monday talks between Merkel, Barroso. For Spain to decide if wants to draw on EU-IMF bailout fund Merkel, Barroso to give press conference 7.00 pm in Berlin. EU says banking union on agenda for Barroso-Merkel meeting. EU says 'no secret plan' on saving the euro (really) Keidanren's Chairman Yonekura:  Yen too strong for companies to cope with EU's Van Rompuy: Hope to present results of work on deeper economic union in euro zone by end of the year Eurozone sentix index for June -28.9, down from -24.5 in May but slightly better than Reuter's median forecast of -29.5 Eurozone producer price index for April flat m/m, +2.6% y/y, slightly weaker than Reuter's median forecasts +0.2%, +2.7% respectively Spain May jobless falls -0.63% m/m, by 30,113 people EU's Barnier:  France has too much debt, labor charges Merkel proposed Spain bailout twice to Zapatero, Mundo says UAE EconMin says expects oil prices of $80-100/barrel in 2012, and could go above The week that Europe stopped pretending - AEP at The Telegraph Dull fare. London out on two-day bank holiday so inertia was always most likely outcome.  Very slight improvement in risk backdrop with European stocks improving during the morning, Spain's IBEX (up +2.6%) and Italy's FTSE MIB (up +1.3%) very much outperforming after recent heavy losses.  Spanish and Italian 10 year govt bond yields off marginally,  Spain down to 6.42% from 6.49% early, Italy down at 5.72% from 5.84%. EUR/USD up at 1.2435 from early 1.2410, having reached the dizzy heights of 1.2442 at one stage.   Sell orders seen clustered up at 1.2450/60 and more up at 1.2490/00. USD/JPY effectively unchanged at 78.10, well 8 pips lower to be precise from what greeted me first thing. Cable up at 1.5378 from early 1.5365, having been as high as 1.5389.  A 13 pip net change in cable sums up what sort of morning its been. Street party me up!!!!