Today's Headlines

Bloomberg:

• ECB Says Banks to Repay More Than Forecast of 3-Year Loan. The European Central Bank said banks will next week repay more of its emergency three-year loans than economists forecast in another sign the euro region’s debt crisis is abating. Some 278 financial institutions will return 137.2 billion euros ($184.4 billion) on Jan. 30, the first opportunity for early repayment of the initial three-year loan, the Frankfurt- based ECB said in a statement today. That compares with the median forecast of 84 billion euros in a Bloomberg News survey of economists. The ECB’s first loan totalled 489 billion euros and banks can continue to make early repayments in coming weeks.
• China Warns ‘Hot Money’ Inflows Possible on Easing From Abroad. China’s foreign-exchange regulator renewed concerns that the nation will see fresh speculative inflows of money after the U.S. and Japanese central banks said they would pump more funds into their financial systems. “The policies in major economies of monetary easing and low interest rates will boost global liquidity, increase risk preferences in the market and drive speculative funds into China,” the State Administration of Foreign Exchange said in a statement on its website today. A large amount of so-called “hot money” inflows is possible, “but there are many uncertain factors,” SAFE said.
• Assault Weapons Ban Lacks Democratic Votes to Pass Senate. A proposed ban on sales of assault weapons would be defeated in the U.S. Senate today unless some members changed their current views, based on a Bloomberg review of recent lawmaker statements and interviews. At least six of the 55 senators who caucus with Democrats have recently expressed skepticism or outright opposition to a ban, the review found. That means Democrats wouldn’t have a simple 51-vote majority to pass the measure, let alone the 60 votes needed to break a Republican filibuster to bring it to a floor vote.
• Illinois Credit Rating Lowered by S&P as Pension Burden Climbs. Illinois had its debt rating cut one level to A- by Standard & Poor’s, which threatened to downgrade the state again following lawmakers’ failure to bolster the nation’s worst-funded pension system.

Wall Street Journal: 

• Court Rules Obama Recess Appointments Unconstitutional. A federal appeals court on Friday ruled that President Barack Obama violated the Constitution when he bypassed the Senate to fill vacancies on the National Labor Relations Board.

CNBC:

• Whistleblower Says Dreamliner Batteries Could ‘Explode’. Michael Leon is adamant about his fear about the use of lithium-ion batteries on the Boeing(BA) 787 Dreamliner. "These lithium-ion batteries are heat intolerant. Too much heat on those things, they will go into a thermal runaway, they will explode, it will be a nightmare," he said.
• It's Personal! Ackman vs Icahn, Live on CNBC. (video)

Zero Hedge:

• As Euro Banks Return €137 Billion In Cash, Moody's Warns "European Banks Need More Cash". 
• The Case Against QE: "Zombie Banks, Companies, Households, And Governments". 
• The "Undisputed Housing Recovery" Is Unmissable On This New Home Sales Chart. 
• Exposing A Bifurcated Europe. 
• The Visible Hand Of The Fed.

Business Insider:

• Egypt Is Falling Apart On The Anniversary Of The Revolution [PHOTOS]. 
• POLL: More Than Half Of Republicans Think A Government Shutdown Is Fine If It Means More Spending Cuts. 
• SHILLER: All This Housing Optimism Is Way Too Premature.

Reuters:

• French jobless claims stabilise at 15-year high. The number of people out of work in France rose by just 300 in December, marking a pause after 19 straight months of larger jumps but still sticking close to its highest level in almost 15 years. Labour ministry data showed that the number of registered job seekers in mainland France stood at 3.133 million after the marginal increase, leaving the total at what is still the highest point since January 1998. The level versus a year ago is up 10 percent.
• Fitch cuts Cyprus sovereign rating to B citing banking sector. Fitch Ratings on Friday cut euro zone member Cyprus's sovereign credit rating to B from BB-minus, a two-notch downgrade, saying the government probably will have to put more financial support behind the ailing banking sector. 
• China tells U.S. to slow money printing presses. A senior Chinese official said on Friday that the United States should cut back on printing money to stimulate its economy if the world is to have confidence in the dollar. 
• Bank of Italy feels the heat over Monte Paschi scandal. The Bank of Italy scrambled on Friday to deflect charges that it failed to prevent risky derivatives trades by the country's third-largest lender, which took place when ECB chief Mario Draghi headed Italy's central bank.

Telegraph:

• Britain is experiencing 'worse slump than during Great Depression'. Britain's recent economic performance is the worst since records began in the pre-Victorian era, experts said today, apart from the two immediate post-war slumps.