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Friday, June 8

8th Jun - US Open: Bailando?

Looks like the official bailout request from Spain is coming this weekend. The 20bn has recently increased to 40bn. Those who can count and understand what is needed, put the final mark around 400bn. Good luck to the European project, and happy ‘summiteering’. As it is Friday, let me present you with a cheesy bailout song:

Daily US Opening – 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
  Spain could request a bailout for its banks this weekend; IMF expected to put Spanish bank recapitalisation needs at €40bn

Morning MarketBeat: Rally Loses Momentum – WSJ
Broker Note Briefing – WSJ
Morning Take-Out – NYT
AM Dear Dairy: TGIF – Macro and Cheese
US Open: Bernanke and Europe Boost Dollar – Marc to Market
The T Report TF Market Advisors

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

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EURO CRISIS
Spain To Officially Request Bank Bailout For The First Time... AgainZH
Four senior EU officials said finance ministers of the 17-nation single currency area would hold a conference call on Saturday to discuss a Spanish request for an aid package, although no figure had yet been set.

Spain to request EU bank aid on Saturday-sourcesReuters

More Thoughts on Spain-LiteMarc to Market
Spain has also hired private auditors to examine the banks' books.  Their report is due before the end of the month.   Fitch estimated Spain's banks need 60-100 bln euros.  S&P's estimate is 80-112 bln euros for 2012-2013.  The Center for European Policy Studies says Spanish banks need 270 bln euros to cover what it projects to be as much as 380 bln euro in losses.  Moody's estimate bank losses at 306 bln euros. 

Angela Merkel, swimming instructorThe Economist
When it comes to the euro, the German chancellor prefers self-help to help—but she can be more flexible than she seems

My big fat Greek divorceThe Economist
How and whether Greece might exit is the biggest and fattest uncertainty of all

Slouching towards a banking unionThe Economist
The prospects of big bank bail-outs are intensifying calls for a central fund

Chart of the week: Intra-euro rebalancing has startedbruegel
Since 2007 intra-euro trade balances have adjusted significantly: Spain’s deficit and Germany’s surplus with the rest of the euro-area have declined substantially toward zero. Yet Spain’s overall trade deficit remained sizeable, about 5 percent of GDP.

Blogs review: The bumpy road to a banking unionbruegel
The revival of the Spanish crisis and the chorus of support from academics have made the establishment of a EU-wide banking union – with euro-wide deposit insurance, bank oversight and joint means for the recapitalization or resolution of failing banks – a centerpiece of the upcoming European Summit on June 28-29.

USA
Monopoly Money vs. Bernanke Money, is there a Difference?Mish’s
For now, attitudes, deleveraging, demographics, and the destruction of the value of credit on the balance sheets of banks absolutely and without a doubt overwhelm Bernanke's ability to do anything meaningful about it.

US economic update. Everything that follows is a result of what you see here.Fabius Maximus
This cycle (a series of crisis, response, euphoria, repeat) has lasted so long that it’s easy to forget the larger dynamics at work.  The forest is more than the trees.  Here we briefly review what’s happened, what’s happening, what might happen — focusing on the US.

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