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Tuesday, August 7

7th Aug - EU Open: Italy's Offensive

The verbal war between Italy and Germany is in full swing. Spain and Italy do not want to apply for official bailouts, as they hate the idea of loss of sovereignty, but would still want to have the mun-uh. The attack on creditor countries is not limited to Germany. Also Finland is getting its fair (?) share. You really think Monti visited Finland for its beautiful nature and Prime Minister Katainen's fascinating personality? And met the heads of the most important parliamentary committees out of courtesy? As in many other countries, any legislative change is prepared by the committees before parliament votes on them. Something is again prepared in the background, and most likely it is unlimited firepower from ECB via ESM, without seniority or guarantees. Read: stealth bailout, stealth fiscal union, stealth confiscation.

Previously on MoreLiver’s:
Exit Special (collection of euro breakup/exit research)
EU Open: Curiosity (very nice euro-articles!)

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News roundup – Between The Hedges
The 6am Cut London – alphaville / FT
Emerging Markets Headlines – beyondbrics / FT

TV: Bloomberg, BBC
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

Market Preview: German factory orders on tapSaxo Bank
European markets are expected to open mixed Tuesday ahead of German factory orders data and Italian GDP due later today. Investors also await the next ECB step following the German government's support to its bond-buying plan.

Danske Daily Danske Bank (pdf)
Global equities continue to rally on eurozone optimism * Short-dated Spanish and Italian bonds continue to perform strongly * Bernanke argues that economic indicators might paint too rosy a picture * Market attention will continue to centre on when Spain could ask for assistance and details on how ECB could intervene.

Morning Briefing: Isn't it good? RevisitedBNY Mellon
The dilemma facing Norges Bank is becoming more acute

AamukatsausNordea (pdf)
Fedin Fisher ei kannata elvytystä ennen vaaleja – pankit keventämässä luottoehtoja * Euroalueella sijoittajien luottamus laski * Espanjan ja Italian valtionlainojen korkokäyrät jatkoivat jyrkentymistään
Aamukatsaus: Saksalta myönnytyksiä elvytyksen suuntaanTapiola (pdf)
Saksan Merkelin viestitti tiedottajan kautta, että Saksan hallitus tukee EKP:n ilmoittamaa velkakirjojen osto-ohjelmaa. Markkinoilla uutinen otettiin positiivisesti vastaan.

Markkinakalenteri Nordnet

Interview with Mario Monti: 'A Front Line Between North and South'Spiegel
Italian Prime Minister Mario Monti says Europe is showing traces of a "psychological dissolution" in the debt crisis and that leaders are doing too little to stop it. He also warns that governments cannot allow themselves to become "fully bound" to parliament in determining policies to save the euro.

'Attack on Democracy' Monti Comments Enrage German PoliticiansSpiegel
With his appeal in a SPIEGEL interview for national leaders to be given greater independence from parliaments in euro bailout decisions, Italian Prime Minister Mario Monti has sparked intense anger in Germany. Members of both Chancellor Angela Merkel's government and the opposition have labelled Monti's demands "undemocratic."

Germany and Italy near blows over euroThe Telegraph
German politicians from across the spectrum have reacted furiously to warnings by Italy’s Mario Monti that Bundestag control over EU debt policies threatens to bring about the “disintegration” of the European project.

Europe's Beggars: Bluffing Their Way To Unity And Propserity Via Hijacking And ExtortionZH

Buying Bonds against the Crisis: How the ECB Plans to Use Its BazookaSpiegel
The ECB has come up with a new plan to buy the bonds of debt-ridden countries in a bid to fight the euro crisis. Under the new approach, the ECB would only intervene if governments commit to reforms. But experts criticize the plan as dangerous and undemocratic.

Is the Election Holding Back the Fed?Tim Duy’s Fed Watch
Who is Rosengren talking to here?  It doesn't sound like he is making a case to the public when he says "[w]e should start talking about more aggressive policy."  It sounds like he is making a case to the rest of the FOMC.  Same with his comments on the election.  At a minimum, he is another voice for aggressive easing.  But such comments sound like he is frustrated with the path of policy, which would signal the strength of the resistance to further easing.  Overcoming that resistance is critical to clearing the path to that easing.

Eurokriisi vie puolueita – Suomenmaa
Eurokriisi avittaa Soinia – ESS
Eurokriisin jatkuminen sataa Soinin laariin – Kaleva
Eurokriisi ei ratkea ilman suurta rahakasaa - EKP:llä olisi kunnon potti – SK
Vanhanen ei käynnistäisi setelipainoja Euroopassa – MT
Suomen puoluetuet Henri Myllyniemi US Puheenvuoro
Haaveet paluusta menneisyyteen - pelkkä EU ole muuttunut, vaan myös muu maailma – Jaakko Iloniemi / SK
Suomen on varauduttava kaikkeen: Euro on myös turvallisuutta – Risto E.J. Penttilä / SK

Monti pelkää eurokriisin uhkaavan koko EU:n tulevaisuutta – HS
Mario Monti haukkuu Suomen: Hallitus aiheuttaa vakavaa haittaa – HS

Näin Mario Monti kiristi Euroopan keskuspankkia ja Saksaa - "viimeinen päivä ennen euron tuhoa" – TE