In the wake of yesterday’s attack by “students” on the British embassy in Iran, the British government has ordered the closure of the Iranian embassy in London. It has also given Iranian diplomats 48 hours to leave the UK.
In other news, the Fed and the central banks of the EU, Canada, the UK, Japan, and Switzerland have reduced the interest rate on dollar liquidity swap lines, which makes it easier for governments afflicted by the debt crisis to solve their liquidity problems. This action reassured the stock markets in the USA and Europe, which rose by more than 4%.
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