Tuesday, June 2, 2015

Economic News , Data and Views ( June 2 , 2015 ) - Greece Updates ( After a Monday full of rumor , innuendo , Emergency Meeting by Creditor Groups , Government Meetings to assess Negotiations and Creditor Talks - Tuesday finds the state of play still at - status unchanged , no deal , redlines still in place , both sides still far apart on critical details and major issues ) ...... For Broader Europe , rising yields one major item to keep an eye upon , data splash for various countries in EZ , keep eyes on the euro , yen and dollar today - as well !


Tweets....


IMF has softened its insistence for a Greek debt haircut (from the ECB), which Greece demands


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If deal can be reached on current bailout tranche, extension could "repurpose" €10.9bn HFSF funds over summer







's creditors hoping for political deal by Fri; staff-level agreement next wk. Also weighing bailout extension






Key point in report - €10bn bank recap aid to be repurposed so greece can give it to ECB.







COULD be. Still being considered, not agreed yet.



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Tsipras to face tough troika text, no explicit promise of debt relief. Elections in Greece?








Greece summary: no proposal emerged from Merkel-Lagarde-Draghi last night. Lenders at odds over whether/how much debt relief to give (1/2)





Greece (2/2)... absent proposal, argument within GR govt muted, with only Left Platform openly refuseniks. Scale of debt relief = critical.






EU SAYS GREECE DECISION TO BE TAKEN AT EUROGROUP LEVEL Dealing with colonies is difficult






IMF said to be pushing hard for more pension cuts




Reuters: Sources close to the Berlin talks said the latest Greek proposal did not contain major new concessions on issues holding up a deal







Reuters: EU officials close to the talks have said progress is very slow and they remain a long way from convergence





Greek government hints they may withhold IMF payment on Friday if no deal is struck




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Snap election rumors intensify in Athens. June 28 or July 5 seen as possible dates.




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| Scores of Syriza ministers & MPs this am talk of snap elections "if compromise goes beyond our election program".







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"We're not there yet," says on Greece talks.



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Sources: Greek proposal didn't contain major new concessions on key issues such as pension and labour issues





calls on lenders to accept 'realistic' plan sent on Monday via





It's worth noting tho that various MPs of the -led coalition have pointed towards elex today, if no honorable agreement, to media.



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says not waiting for proposal from creditors, Greece sent own 'comprehensive plan' ystdy. Seeks decision by EU political leaders





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PM Tsipras says decision now lies with the European leaders






SYRIZA Cabinet Members Say no to More Concessions, Talk of Elections




European Leaders and IMF to Offer Greece a Plan for Consideration



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May Manufacturing PMI +1.5 points to 48 from 46.5 in Apr (Markit).





The agreement must include low primary surpluses <1% of GDP for 2015 and <1.5% for 2016, Dep PM says.



Deputy PM says the agreement must contain a clear road map ensuring debt sustainability.





Dep PM says there's no point locked into an unnecessary blame game, the PM & the gov't focus on achieving a fair agreement.





Broader Europe....



German 10-year +7bps.











EURO-AREA MAY CONSUMER PRICES RISE 0.3%; ECONOMIST EST. 0.2%







Morning Note: 1 RBI cuts rates. RBA does nothing. 2 Late night talks in Berlin . 3 EZ inflation data est 0.2%








The return of the bond vigilantes? Spain's 10yr yield jumps to highest level since November





















SG Edwards: New round of currency turmoil begins as Yen broken 30y support.Yen weakness will reignite deflation fears













PORTUGUESE 10-YEAR GOVT BOND YIELDS RISE TO THEIR HIGHEST IN NEARLY 6 MONTHS OF 2.87 PCT - TRADEWEB





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| APR MORTGAGE APPROVALS: 68.1K V 63.5KE








German economy facing major slowdown, employment growth dropped to just 0.5% Y/Y in April, lowest rate since December 2013.









: Number of registered unemployed people fell by 117,985 in May. It's the largest decrease in this specific month since 1996.







returns to in May. Consumer prices up 0.3% (0.0% in April







Investec Manufacturing rose to 57.1 in May (April: 55.8). Production growth at 9-month high






German fell by 6k in May. Jobless rate unchanged at record low of 6.4% - Labour Office





Markit Manufacturing at 48.0 in May (46.5 in April), signalling further contraction in the sector