Investors, get ready for what could be a very ugly situation. In a worrying sign of escalation in the ongoing struggle between Catalonia and Spain, Spain is reportedly preparing a team to arrest the leader of Catalonia. Madrid says that if Carlos Puigdemont declares independence for Catalonia, he will be arrested. He is due to speak tonight at 6pm Spanish time, and depending on the specific wording of his address, Madrid may decide to arrest him or back off. Puigdemont has already commented on the matter, saying it will be better to be in jail than stay Spanish.
FINSUM: This sovereignty debate has gotten very testy and personal. We are worried about Spain, especially given its history of internal strife. The situation seems like it could devolve quickly, and if it does, it may have brutal implications for markets.