New York morning espresso

** FT News **

* Al Jazeera journalists jailed in Egypt | Cairo trial delivers guilty verdict to three journalists working for the Qatar-owned TV channel including award-winning correspondent Peter Greste

* Kerry in Iraq to discuss US assistance | US secretary of state is expected to seek political support in the Gulf for possible US military action against Sunni militants

* From ‘Game of Thrones’ to Iraq for FireChat | Iraq, where fighting continued over the weekend with security forces claiming to have killed dozens of insurgents, is now the second-largest user of the app after the US

* World Cup watchers warm to Chile | Chileans of all political shades are proud of their attacking team which has acquired the status of the loveable small boys of international football

* Ashish Thakkar: Bob Diamond’s partner | The 32-year-old founder of the Mara Group conglomerate is not keen on being called Africa’s youngest billionaire as he pushes into banking

* Putin balances patriotism with politics | On one hand, Mr Putin has been involved in negotiations with leaders. On the other hand, Ukraine says Russia is still providing insurgents with weapons

* Illicit economy engulfs Myanmar state | The resource-rich Kachin state is at the heart of a power struggle between China’s encroaching economic interests and ethnic militias

* Beijing hits out at property market bears | People’s Daily says the sector is in a ‘normal adjustment period’ and accuses developers, speculators and foreign banks of exaggerating the slowdown

* Argentina turns to talks to avoid default | Cristina Fernández says negotiations with holdouts in New York, led by NML Capital, had to be “fair” but this could prove a sticking point

* UK accused of failure on HK democracy | Anson Chan says Britain is caving in to pressure from China over voters’ rights because of concerns about potential damage to trade relations

** FT Opinion **

- Saddam’s exit did not cause this crisis | The origin of the Middle East’s problems lies in the toxic mix of bad politics and bad religion that is not confined to just Iraq or Syria

- ‘The Consolations of Economics’, by Gerard Lyons | A riposte to those who argue the rise of emerging economies will cost the west dear underestimates the challenges ahead

- Middle East: Falling to pieces | It is imperative that rivals unite in the face of an Isis threat. Failure to do so could spell the end of Iraq

** BB recent & required reading **

- Colombia raises rates (again) amid faster growth | The monetary policy committee of Colombia’s central bank on Friday raised the benchmark interest rate a quarter percentage point to 4 per cent. This is the third hike in three months. Colombia’s economy has been performing strongly and inflation has been accelerating, leading to a monetary tightening, say analysts.

- Bulgarian bank seized by central bank as political tensions rise | Bulgaria’s central bank on Friday froze the operations of the Corporate Commercial Bank (KTB), suspended its directors and put the country’s fourth largest lender under special supervision following a bank run. Tsvetan Vassilev, KTB’s largest shareholder and one of Bulgaria’s most influential figures, said the event were “the visible part of a carefully prepared and planned scenario aimed at destabilizing Corporate Commercial Bank”.

- EM liquidity: going, going… | Can it really be true that liquidity on EM secondary markets is more constrained today than it was in the crisis of 2008-09? That’s what beyondbrics reported recently, to the surprise of some readers. Our report was based on anecdotal and empirical evidence, mostly concerning local currency bond markets. We’ve had another look and found not only that liquidity on those markets is indeed tighter than it was, but also that tight conditions on EM bond markets pose a serious threat to stability on currency and other markets.

** From elsewhere **

A great new way for the IMF to help debt-laden countries without forcing them to default (Quartz)

Hosting mega-events not as valuable as thought (Business Day)

** Markets: mixed **

Emerging Markets
MSCI Emerging Market Index down -0.19% at 1,042

Europe
FTSE up -0.27% at 6,807
RTS up +0.35% at 1,364
Warsaw Wig up +0.03% at 52,937
FTSE 300 Eurotop down -0.25% at 1,392

Americas
DJIA up +0.15% at 16,947
S&P 500 up +0.17% at 1,963
Bovespa down -1.02% at 54,638

Asia
Nikkei 225 up +0.13% at 15,369
Topix down -0.11% at 1,267
Hang Seng down -1.68% at 22,805
Shanghai Composite down -0.11% at 2,024
MSCI Asia ex-Japan down -0.44% at 488.15
CNX Nifty down -0.24% at 7,493

Currencies
€/$ 1.36 (1.36)
$/¥ 101.85 (102.06)

Commodities
Brent Crude (ICE) down -0.05 at 114.76
Light Crude (Nymex) up +0.16 at 106.99
100 Oz Gold (Comex) down -0.60 at 1,316