• EU leaders inched closer to a comprehensive plan to control the debt crisis in Europe. Progress was made on bank recapitalization and leveraging the EFSF. Sarkozy’s proposal to increase the role of the ECB was abandoned. From Reuters News.
• Berlusconi called an emergency cabinet meeting tonight after a difficult weekend at the EU summit. The country faces demands to produce structural reforms from its EU counterparts. From the Financial Times.
• Even as corporate profitability continues to impress markets, many manufacturers are looking to continue cost-cutting and restructuring in 2012. Already lean corporations remain defensive as the U.S. consumer struggles and concerns over a further global slowdown dampen forecasts. From the Wall Street Journal.
• China released their flash PMI report lending credence to a soft-landing scenario there. The early factory activity measure rose to 51.1 from 49.9, breaking a 3 month slide. From Reuters News.
• U.S. regulators are looking to overhaul a mortgage-refinance program that will help borrowers in good standing refinance underwater mortgages. This could add some much needed cost reduction to stressed home owners. From the Wall Street Journal.