Two things to keep an eye on for further developments !

http://ftalphaville.ft.com/blog/2012/01/16/834631/eye-catching-ecb-liquidity-number-du-jour/

Note this comes from Credit Suisse’s equity strategists… but we think this is a forecast worth passing on all the same:

The stigma of borrowing from the ECB appears to have been removed as signalled by ING and Rabobank’s willingness to use the facility. The huge expansion in eligible collateral opens the possibility of €1trn+ for another LTRO in February. (The collateral requirements are set by national central banks not the ECB, according to our economists.) This is printing money and the increase in the ECB balance sheet from its recent 3 year LTRO in December and a likely €1trn in February would mean the expansion in the ECB’s balance sheet since the Lehman crisis would have been greater than the expansion by the Fed.

The last three-year operation tapped €489bn.

Debate the “printing money” point as you will, as well as the ultimate destination of all this LTRO cash. Still — any bigger LTRO predictions out there?

and.....

http://www.guardian.co.uk/business/2012/jan/16/eurozone-crisis-greece-default-francesandp

11.10am: News is breaking that the Italian-German-French summit that was scheduled for this Friday has just been postponed, until the end of February.

The surprise delay is being blamed on an 'internal French political issue' that prevents Nicolas Sarkozy from attending.....

The 20 January summit was billed as a chance for Sarkozy and Angela Merkel to agree the terms of the new EU fiscal compact with Mario Monti, ahead of the full European summit at the end of this month.

The cancellation may raise fears that the new fiscal rules will not be finalised in time.