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Thursday, June 13

13th Jun - US Open

Thought of the Day: Head of the Ifo Institute Hans-Werner Sinn also gave evidence and suggested the OMT could eventually total €3.5trn. He also argued that the ECB engages in “regional fiscal policy” and that the Central Bank’s OMT programme is basically “a free insurance for investors when a state goes bankrupt”.

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Roundups & Commentary
Frontrunning – ZH
Overnight: Sea of RedZH
The Lunch Wrap – alphaville / FT
Emerging N.Y. headlines – beyondbrics / FT
Daily press summary – Open Europe
  German Constitutional Court raises concerns over conditions on ECB bond-buying; Bundesbank backs limiting ECB mandate

Morning MoneyBeat: The First Domino to Drop Will Be… – WSJ
Morning Bond Update – TradingFloor
Yen Soars, while Dollar Stabilizes – Marc to Market
Morning Briefing (EU/US): – BNY Mellon
  One of the most unnerving spectacles right now is the Chinese economy’s sustained slowing into an uncertain future for all and sundry

Lessons of a Greek TragedyProject Syndicate
Barry Eichengreen: It was already clear in the first half of 2010, when Greece lost access to financial markets, that the country's public debt was unsustainable. If other countries draw the right lessons, Greece’s brave, beleaguered citizens can at least take comfort in knowing that many people elsewhere will be spared the same unnecessary sacrifices.

A deeper look at Euro-area deflation risks: small but rising Nordea (pdf)
We believe deflation risks in the Euro area will be a major theme during the second half of this year. Deflation risks are a question of how much slack there is in the economy or, in academic terms, a question of the size of the output gap. The problem with the output gap is that it cannot be observed (summary here).

Latvia in the Eurozone: A Bet with No UpsideBruegel

For Emerging Markets, Greece Sticks Out as ‘Sore Thumb’WSJ
Emerging-market investors are on the lookout for countries with fast growth rates, modest debt burdens and other signs of a promising future. Greece, some say, is not it.

Next EU summit risks being waste of time, MEPs sayeuobserver

Over 60% of FDI into the EU27 came from the USA in 2012Europa

Statistics Pocket Book, June 2013ECB (pdf)

Monthly Bulletin, June 2013ECB (pdf)

Should Japan default?Noahpinion

Doubling down on the Nikkeialphaville / FT

Just how bad is the EM sell-off?alphaville / FT
Bloomberg reports on Thursday that this is probably the biggest drop in creditworthiness for emerging-market borrowers since the credit crisis started. Worse still, it is deepening.

Unproductive FinanceKrugman / NYT

Kevlar gloves in AUD/JPYMacro Man

Kansantaloudellinen aikakauskirja 2/2013Taloustieteellinen Yhdistys

Euroopan keskuspankin kuukausikatsausSuomen Pankki (pdf)

Suomi ei näe tarvetta muuttaa EU:n rakenteitaverkkouutiset

Ulkomaisten matkailijoiden yöpymiset -7,3% huhtikuussa – Tilastokeskus
Teollisuuden liikevaihto -6% Q12013 YoYTilastokeskus
Palvelualojen liikevaihto +0,8% Q12013 YoY – Tilastokeskus
Kotimaisten pankkien rahoituskate supistui Q12013 YoY – Tilastokeskus