Week of May 29, 2011 thru June 4, 2011

China Economic Data Calendar

All figures year-over-year percent changes unless otherwise

Date Time For Event Previous
10 Jun -- / -- May Trade Balance ($ bln mth, ytd) 11.42/10.28
10 Jun -- / -- May Exports (% y/y, % ytd y/y) +29.9/+27.4
10 Jun -- / -- May Imports (% y/y, % ytd y/y) +21.8/+29.6
10-15 Jun -- / -- May Money Supply (M2) (% ytd y/y) +15.3

ASIA FX: US Dollar Weaker on Data; Euro, Aussie Trade Firmer

SINGAPORE, June 1 (MNI) - The U.S. dollar traded weaker in the
Asian morning Wednesday, suppressed by a broad recovery in the euro and
after some soft U.S. data overnight, while the Australian dollar also
gained after Q1 GDP data came in as generally expected.

U.S. data releases last night included March S&P Case-Shiller
20-city home price index, which fell 3.6% y/y, showing the housing
recession is continuing. The Chicago Purchasing Managers survey showed
midwest manufacturing sector growth slowed sharply in May, with the
index falling to 56.6 vs. 67.6 in April.

China PBOC Sets Dlr-Yuan Parity At Record High For 5th Day

BEIJING (MNI) - The People's Bank of China set the yuan's central
parity rate against the U.S. dollar at a record high of 6.4837 on
Wednesday, the fifth record high in as many trading days, beating the
previous record high of 6.4845 set on Tuesday.


Today fixing 6.4837 9.3450 7.9662
Prev. fixing 6.4845 9.3215 8.0214
Prev. close 6.4791 -- --
%Chg since June 19* 5.30% -- --

China PBOC Researcher: Yuan Rise 3-5% Every Yr But No One-Off

BEIJING (MNI) - China's yuan will appreciate by 3% to 5% every year
in the near future but is unlikely there will be a large one-off
revaluation of the currency, Wang Yong, a central bank researcher, wrote
in an article published by the official Economic Information Daily on

"The yuan's exchange rate is expected to see more flexible moves
and to maintain a mild appreciation pace of 3% to 5% every year, with
continued two-way volatility, but it is unlikely there will be a large
one-off revaluation," wrote Wang, a professor at the People's Bank of

As Expected, US House Rejects $2.4 Trillion Debt Ceiling Bill

--House Ways and Means Chief Says His Debt Hike Bill 'Must Fail'
--Rep Camp: Debt Hike Must Be Linked To Spending Cuts, Budget Reforms
--House Minority Whip Hoyer: House GOP Designed Debt Hike Vote To Fail
--Rep. Hoyer: House GOP Debt Bill Is 'Not An Honest Proposal'

By John Shaw

WASHINGTON (MNI) - As expected, the House voted overwhelmingly
Tuesday evening to reject a bill that would have increased the statutory
debt ceiling by $2.4 trillion without any conditions placed on it.

The House voted to 97 to 318 for the debt increase bill, with seven

US Data Preview: Manufacturing Cools: Blip Or Trend?

By Chris Cermak

WASHINGTON (MNI) All signs point to a slowdown in U.S.
manufacturing ahead of the Institute for Supply Management's Wednesday
release of its May survey, leaving businesses wondering whether the
pullback is temporary or points to a more serious weakening of the U.S.

The May ISM purchasing managers index is forecast to drop to 57.5
in May from 60.4 a month earlier according to a survey of economists by
Market News International.

It would mark the first time this year that the closely-watched

US Hoyer: Urging House Dems Not To Support Debt Hike 'Charade'

--House Minority Whip: House GOP Setting Up Debt Hike Vote To Fail

By John Shaw

WASHINGTON (MNI) - House Minority Whip Steny Hoyer Tuesday blasted
House Republican leaders for setting up a vote this evening on debt
ceiling legislation that is designed to fail.

Hoyer said he is urging House Democrats to either oppose or vote
present on this version of the debt ceiling bill, charging that House
Republican leaders are "playing games" with a potentially explosive

The House will vote Tuesday after 6:30 p.m. on a bill that would

White House Confirms Obama to Name Bryson as Commerce Sect

WASHINGTON (MNI) - The White House confirmed Tuesday that President
Barack Obama intends to nominate John Bryson as Commerce secretary,
replacing Gary Locke who was named ambassador to China, replacing John

The text of the White House statement follows:

Today, President Obama will announce his intent to nominate John
Bryson as the Secretary of U.S. Department of Commerce. Mr. Bryson will
play a key role as a member of the President's economic team, bringing
decades of knowledge and experience in the public and private sectors,

US CongressWk: Hse Sets Debt Ceiling Demonstration Vote Tues PM

--House Republicans Set Up Debt Ceiling Vote To Fail Tuesday Night
--House GOP 'Proposes' Clean Debt Hike; Two-Third Majority Needed
--Treasury Secretary To Testify Wednesday On International Fin System
--House Ways & Means Panel To Hold Tax Reform Hearing Thursday

By John Shaw

WASHINGTON (MNI) - In a move that is not easy explain, House
Republican leaders have decided to force a vote Tuesday evening on a
bill to increase the statutory debt ceiling -- which is designed to

The House will vote Tuesday after 6:30 p.m. on a bill that would

Germany Govt Coalition MP Calls For Greece To Exit EMU: Press

FRANKFURT (MNI) - Greece should restructure its debt and leave the
Eurozone, German Free Democratic Party parliament member Frank
Schaeffler told German daily Handeslablatt on Tuesday.

"So long as Greece has not privatized a cent worth of assets,
additional aid would be an entirely wrong signal," Schaeffler, who is a
member of Chancellor Angela Merkel's junior coalition party, said.

Instead, Greece must restructure its debt and private investors
should take a hit, Schaeffler said. "At the same time, the Eurozone
should help with an orderly exit from the euro," he added.