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EUROPE
Commentary: For euro reforms, growth is the
enemy – Reuters
The more the euro zone
economy thrives, the less pressure there will be on European politicians to
take steps to prevent future crises.
Editorial: Italian Politicians Need to Get Real – BB
With elections
approaching, the parties are debating how to spend money that isn't there.
Paola Subacchi: The Electoral Fate of Italy’s
Banks – Project
Syndicate
To fix Italy's banking
system, the government that emerges from the general election in March will
need a solid majority, a comprehensive strategy to boost economic growth, and a
willingness to confront vested interests. But none of the parties has shown any
indication that it can meet any of these criteria, much less all three.
Daniel Gros: Europe’s Doom Loop in Reverse – Project
Syndicate
Unlike before the
2011-2012 crisis, the eurozone seems to be locked in a benign credit cycle, in
which lower risk premia allow both banks and governments to refinance at lower
rates, more credit is available for the real economy, and the resulting
recovery increases government revenue. But how long can this cycle persist?
Euro-Area Economic Boom to Roll On After Strong
Start to '18 – BB
Economists raise
forecast, see growth of 2.2% this year * ECB has noted strength, but no rate
hike expected until 2019
GERMANY
German coalition displays timid vision of the future – FT
Everything but ambition
in deal where all parties win a bit
Senior SPD members cast doubt on German coalition deal – FT
Party leaders call for
tweaks to agreement with Merkel’s conservatives
The preliminary
agreement signals a shift to more agenda-driven EU politics
Berlin and Paris step up
push for euro zone reform deal – Reuters
Berlin and Paris now
face a race against time to reconcile differences over how to make the euro
zone crisis-proof…[Economists] will unveil new proposals on Wednesday that
attempt to bridge German demands for more discipline and France’s insistence on
more risk-sharing.
UNITED STATES
Jamie Dimon walks back Trump one-term prediction – CNBC
“Democrats do not have a
chance. They don't have a strong centrist, pro-business, pro-free enterprise
person”
Stiglitz Sees Risks in U.S. Politics as Spending
Deadline Nears – BB
Politicians are facing a
Jan. 19 deadline to agree a new spending bill and avert a shutdown.
MARKETS
/ OTHER
Citi Reveals The Reason
Behind The Market's Meltup – ZH
While risk assets on central bank balance sheets may indeed be shrinking,
other reserve managers are going in the other direction.
Goodbye to Bond-Trading
on the Telephone – BB
Electronic platforms are taking over and suddenly the SEC is very
interested.
Keeping It Simple...Bund
vs. UST Rates after the EUR rally – Macro
Man
REGULARS
FirstFT Daily Briefing – FT
Carillion’s crisis, the perfect age, hoopla in Detroit
WSJ City – WSJ
UK Construction Giant Carillion Collapses, Dollar Siege Intensifies
“Best of the web” daily
charts – Lukas
Daalder
Danske Daily – Danske
Bank
Brussels Playbook – Politico
Coming wars — German coalition wobbles — Davos showdown
US Open – ZH
Dollar Tumbles As Euro Soars To 3-Year High; US Markets Closed