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Wednesday, May 23

23rd May - US Open: Summit Wait

Here are the regulars + select articles. Follow ‘MoreLiver’on Twitter or Facebook.  

Daily US Opening News And Market Re-Cap – RanSquawk / ZH
Frontrunning – ZH
The Lunch Wrap – FT
EM New York headlines – FT
Overnight Summary – Bank of America / ZH
Today’s Front Pages – presseurop
Daily Press Summary – Open Europe
  Calls for Eurobonds intensify ahead of EU summit; Opinion on Eurobonds split in Germany and Austria

Morning MarketBeat: Europe Rocks Stocks, Again – WSJ
Broker Note Briefing – WSJ
Morning Take-Out – NYT
AM Dear Dairy: Back in the Pool  – Macro and Cheese
US Open: Dollar Snaps Back – Marc to Market
The T Report: Central Bank Policy Remains KeyTF Market Advisors
Morning Briefing: ChangesBNYMellon

Pre-market Commentary – Marketwatch
Pre-Market Trading – CNNMoney          
Pre-Market – NASDAQ
US Equity Preview – Bloomberg
Earnings & Events – The Street
MarketCurrents – Seeking Alpha

Debt crisis: live – The Telegraph
The Euro Crisis Blog – WSJ
Tracking Europe’s Debt Crisis – NYT
FX Options Analytics – Saxo Bank
European 10yr Yields and Spreads – MTS indices

Some euros are more equal than othersJohn Kay
The issue is not whether the euro coins in your pocket carry an Athenian owl or German imperial eagle. The issue is the status of bank deposits and loans, residential mortgages and commercial contracts, as well as wages and prices. The drain of funds from Greek banks is an indication that ordinary people are now thinking in these terms.

Hour of truth has come for EuropeEl Pais
Let Greece leave the euro? Save Spain’s banks? Continue to stand fast on austerity, or give growth a chance? Plenty of questions that the leaders of the eurozone, meeting at the extraordinary summit on May 23, will have to find answers to if they want to preserve Europeans’ faith in the common project.

EU ChecklistThe Big Picture
Doug Kass points out this “comprehensive checklist of the eurozone challenges” from Omega Advisors (and former Goldman Sachs strategist) Steve Einhorn.

Shifting euro zone sandsMacroScope / Reuters
A telling moment. Before pretty much every showdown EU summit since the debt crisis exploded into life, the leaders of France and Germany have got together beforehand to agree a common strategy. It is a truism that the European motor only works efficiently when its two biggest powers are in accord.

Not such dramatic outflows from Italy, after all?alphaville / FT
Italy’s March balance of payments data showed a big net outflow for investment. This was something picked up by Deutsche Bank’s Alan Ruskin (and us, here) as suggesting an accelerating outflow of foreign capital from Italy, now that the LTRO glow had worn off.

Euro crisis, balance-of-payment, and TARGET2ASA
The euro crisis is probably viewed primarily as a debt crisis. While it is a debt crisis in a certain extent, it is clearly more than simply a debt crisis.

An informal Europe to tackle the crisis?EURintelligence
The economic and financial crisis which hit hardly the Eurozone has revealed how a more integrated EU and efficient institutions are needed.

Merkel and Hollande to 'let off steam' at EU summiteuobserver

A literary awakening in MontenegroThe Economist
In the accompanying video “peasant” Amadeus comes down from the hills with his donkey to make some money from snobby northern Europeans, nubile bikini-clad girls and other holidaymakers. He and the donkey have a massage.

War-Gaming Greek Euro Exit Shows Hazards in 46-Hour WeekendBB
That’s how much time the country’s leaders would probably have to enact any departure from the single currency while global markets are largely closed, from the end of trading in New York on a Friday to Monday’s market opening in Wellington, New Zealand, based on a synthesis of euro-exit scenarios from 21 economists, analysts and academics.

New Greek Bonds Crash To All Time Lows As "Negative Pledge" Fears EmergeZH
Bonds trade at 14.6% of the nominal price.

Tsipras Says Berlin Must Back Down on AusteritySpiegel
Charismatic, eloquent and defiant, the leader of Greece's Radical Left party, Alexis Tsipras, visited Berlin on Tuesday to ram home the message that he will scrap austerity if he wins the June election, and that no one, not even mighty Germany, has the right to evict Greece from the currency.

On Growing Tensions Gluskin Sheff /  ZH
What was considered unthinkable just a few months ago is apparently an event that now seems inevitable…There are no clear winners from a Greek exit unless you are long confusion, turmoil and uncertainty.

Beware the quant modelsalphaville / FT
SocGen: our Sentiment Indicator almost dropped to almost zero one week ago, and has failed to pick up. The extent and consistency of this move suggest taking this signal seriously, and staying away from long risk positions for the moment.

Valuation & Risk On/Off Dr Ed’s Blog
There must be a huge Risk On/Off track switch out there. Whenever it is flipped on, the S&P 500’s P/E moves higher along with commodity prices and most foreign currencies. When it is in the off position, money stops steaming down the fast track. Instead, it gets diverted into safe assets like the government bonds of the US, Germany, and Sweden.

BizDaily: China slowdownBBC (mp3)
With Europe hogging the headlines, we look at another major risk to the global economy - a slowdown in China. Wang Xiaobing, from the University of Manchester and Mark Williams from Capital Economics disuss the latest warning signs emerging from the world's second largest economy. Mark Anderson, the founder of the Future in Review Conference in California tells us how lateral thinking can turn new innovations into technological gold.