Global Daily: EU and Whose Army?

Bonds and equities rallied on Friday and Brent crude prices fell by more than 1% as markets digested the details of a 28-point peace plan drafted by US and Russian officials. The most contentious elements of the plan are the recognition of Crimea, Donetsk and Luhansk as being de facto Russian, the requirement for Ukraine to reduce its armed forces to 600,000 personnel (from approximately 800-850,000 currently), a commitment from both NATO and Ukraine that the latter will never be admitted as a NATO member, and the provision for Russia to rejoin the G7 and have sanctions lifted in stages.