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Monday, January 21

21st Jan - US "Open": EU summit, Greece



Just could not resist posting, even though US is closed...


Previously on MoreLiver’s:

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US OPEN
Roundups & Commentary
Frontrunning – ZH
Overnight: US Markets Closed – ZH
The Lunch Wrap – alphaville / FT
Emerging N.Y. headlines – beyondbrics / FT
Daily press summary – Open Europe
Broker Note Briefing – WSJ
Eight FX Considerations for the New Week– Marc to Market

EUROPE
Eurozone liquidity and menacing strawsalphaville / FT
We've already opined on the chances that early-LTRO repayment will lead to a drain on excess-liquidity in the euro-area. But we argued that since it is unlikely to take more than about €200bn out of circulation, with consensus expecting about €130bn to be sent back, the effects should be muted. But what if another straw is soon to be inserted?

Davos Doom Loses to Merkel-Draghi as Euro Defies RoubiniBB
Dr. Doom got it wrong. The parade of economists and investors led by Nouriel Roubini predicting Greece’s ejection by now from the euro zone failed to appreciate the resolve of European policy makers to protect their union and the amount of pain Greeks are willing to stomach.

Euro zone surveys to offer hope as Japan easesReuters
The prospect of stronger European manufacturing surveys and decisive monetary easing in Japan this week ought to bolster confidence that the global economy can look forward to better days.

  SUMMIT
Europe and the danger of soft-pedallingMacroscope / Reuters
We’ve been here before. When the drumbeat of market pressure eases, euro zone policymakers have tended to lose their sense of urgency.

EU officials want governments to share bank bailout paineuobserver
National governments should pay their own contribution to recapitalize ailing banks alongside funding from the eurozone's bail-out fund, according to a paper by EU officials.

Euro Ministers Set to Clash Over Terms of Channeling Bank AidBB
European finance ministers gathering for the first time this year begin the long march to enacting policies they promised to subdue the debt crisis, beginning with how to channel firewall funds directly to banks.

  GERMANY
Regional elections spell trouble for Merkeleuobserver
Social Democrats and Greens narrowly won a vote in Lower Saxony, indicating a tougher-than-expected race for Merkel in upcoming general elections.

Contemplating a Euro Without Chancellor MerkelWSJ
The weekend defeat for Angela Merkel's ruling coalition in the Lower Saxony state election suggests that a victory in September's national election is far from assured

Drop in German Deposits Point to HopeWSJ
Funds parked by German banks at the Bundesbank fell for the fourth straight month in December, hitting €300 billion ($399 billion), about €62 billion less than the previous month. The figure is also well off its peak for the year in May of €464 billion and is at its lowest level since January 2012.

  PIIGS
Is Grexit dead? The IMF seems to think not.Brussels blog / FT

It’s Mostly Fiscal (Transfer), all over againalphaville / FT
We saw this coming from the IMF all the way back in March 2012 — when Greece’s PSI was just over, and vague notions of OSI were already in the air.

UNITED STATES
Lessons from the Fiscal CliffProject Syndicate
Robert J. Barro: The conventional view of America's fiscal problems is that a reasonable, balanced approach entails both spending cuts and tax increases. But the two methods should be considered polar opposites, because spending cuts reduce the size of government – and thus boost economic growth.

ASIA
China’s massive credit dependencyalphaville / FT
Societe Generale’s economists believe this is a step towards interest rate liberalisation, and that the PBoC will increasingly use its liquidity operations and repo rates to guide policy rates, rather than prescribed RRR and deposit and lending rates.

Nope, China still has the same old problemsalphaville / FT
The question is, as ever, how long
China’s economy can carry on with its investment-heavy, consumption-light, and heavily leveraged method of growth. And, how smoothly it can transition to whatever lies beyond that.

OTHER
Morning Briefing (EU/US): The Good, The Bad And The UglyBNY Mellon
GBP is back in the spotlight.

The Economic Fundamentals of 2013Project Syndicate
Nouriel Roubini: The global economy this year will exhibit some similarities with conditions prevailing in 2012 – no surprise there. But there will be some important differences, as fiscal austerity spreads to more advanced economies, the risk of a hard landing in China rises, and the threat of war in the Middle East grows.

Chart of the week: are EM interest rates stuck for 2013? beyondbrics / FT
Perhaps there will be some macro economic shock in 2013 that prompts policy makers to alter their view drastically. But a few exceptions aside, the next 12 months is currently set to be a pretty dull year in terms of rate movements.

The end of 200 years of expansion? alphaville / FT
Tim Morgan of Tullet Prebon has been threatening this tome for a while. And now it has actually appeared…click to read…

Pettis: Nine Things to Watch in 2013Mish’s
Unwarranted Outbreak of Optimism in China and Europe

IN FINNISH
Onko eläkeiän nosto keino työurien pidentämiseksi vai kyyninen keino eläkkeiden leikkaamiseksi?tyhmyri

Tätä laskelma on "kielletty" EU-pääkaupungeissa - IMF paljastaa pahimman Kreikka-skenaarionTE

Tapettu keskustelu: Suomessa ei osata puhua institutionaalisista ongelmistaSK

Oleskeluyhteiskunnassa voi oleskella myös kabineteissaHS

Vapaavuori sanoo Suomen pudonneen Ruotsin talousvauhdista ja Svensson puhuu kruunun arvon tiputtamisesta – mielenkiintoinen vertailutilannetyhmyri

Etla: Suomen tulevaisuus on pelättyä parempiYLE
Elinkeinoelämän tutkimuslaitoksen mukaan Suomen julkisen talouden kestävyysvaje ei ole niin paha kuin on luultu. Uudistustöihin pitää silti ryhtyä pian.

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