Week of June 5, 2011 thru June 11, 2011

China Economic Data Calendar

All figures year-over-year percent changes unless otherwise

Date Time For Event Previous
13-15 Jun -- / -- May Money Supply (M2) (% ytd y/y) +15.3
13-15 Jun -- / -- May New Loans (yuan bln mth, trln ytd) +739.6/+2.98
13-15 Jun -- / -- May Actual FDI +15.2/+26.0
14 Jun 1000/0200 May CPI (% y/y, % ytd y/y) +5.3/+5.1

FXWRAP: Dlr Lifts As Euro Skids, Greek Debt Impasse Continues

By Dennis Pettit

NEW YORK, June 10 (MNI) - The dollar was able to rack up solid
gains vs. the euro while lifting slightly vs. the yen as the euro ended
the week on a soft note, extending losses as markets continued to fret
the lack of progress in resolving the Greek debt situation.

Euro-dollar was changing hands at $1.4350 in afternoon dealings
Friday, the euro very close to the lower end of the day's $1.4322/1.4487
range of the U.S. session after beginning the day around $1.4471 and
seeing its high early in the proceedings.

US Budget: Biden Panel To Step Up Talks For Debt Ceiling Deal

--Vice President Biden Schedules Three Rounds of Budget Talks Next Week
--White House, Speaker Boehner Seek Budget Deal By Late June, Early July
--Senate's 'Gang of Six' Seeks Plan To Cut Deficit By $4.7T Over Decade

By John Shaw

WASHINGTON (MNI) - With the economy struggling, the stock market
plunging, and the debt limit deadline nearing, Vice President Joe Biden
is expected to sharply accelerate the pace of budget talks he has been
hosting since early in the spring.

Biden held the sixth round of budget talks Thursday and lawmakers

Eurozone Data: MNI Survey Of Economic Data Forecasts

April May inflation 1Q April
ind output HICP core payrolls sa trade
m/m y/y m/m y/y y/y q/q y/y bn euro
Median fcst* -0.2 5.0 0.0 2.7 na 0.2 0.5 na
High forecast 0.6 5.0 0.2 2.8 1.8 0.4 0.6 -2.0
Low forecast -0.5 4.5 0.0 2.7 1.4 0.1 0.2 -4.1
Previous -0.1 5.6 0.6 2.8 1.6 0.1 0.3 -0.9

New York Fed's Dudley Q&A: Broad Infl Indicators 'Reversing'

By Sheila Mullan

NEW YORK (MNI) - New York Federal Reserve Bank President William
Dudley Friday said that it is important to watch a broad variety of
inflation indications, noting some have "drifted upward" in the first
half of 2011 but have come down in recent weeks.

"We can allow some volatility ... month to month but we want to
keep inflation on an even keel," said Dudley, departing from the text of
his speech to the Brooklyn Chamber of Commerce. He addressed about 90
attendees in a Beaux Art former courtroom in the Brooklyn Borough Hall.

Fed Seeks Comment on Requiring Cap Plans From Top-Tier Banks

WASHINGTON (MNI) - The Federal Reserve announced Friday that it
will seek input on a proposal to require large finanancial institutions
to submit annual capital plans for review, which in some cases, if the
plans are rejected, would require Fed approval for capital distribution.

The text of the statement follows:

The Federal Reserve Board is seeking comment on a proposal to
require top-tier U.S. bank holding companies with total consolidated
assets of $50 billion or greater to submit annual capital plans for

Next Wk/US: First Tier Data In Wk Ahead; Retail,CPI,PPI,U-Mich

By Theresa Sheehan

PRINCETON (SMRA) - The week ahead is packed with first tier
economic data, and comes shortly in advance of the next meeting of the
Federal Open Market Committee. As a result, the Committee will have some
fresh information with which to gauge conditions at the mid-point of the
second quarter 2011.

The current batch of softer data is expected to give way to
stronger growth in the second half of the year, but policymakers are
still characterizing the recovery as sluggish or subpar. The mix of data

NY Fed's Dudley Excerpts: Still See 'Moderate' 2H Recovery

NEW YORK (MNI) - The following are excerpts from New York Federal
Reserve Bank President William Dudley's remarks prepared for the
Brooklyn Chamber of Commerce Friday, titled "The Road to Recovery:

Economic growth so far this year has been disappointing.
Real GDP in the first quarter of 2011 grew at a tepid 1.8 percent annual
rate, and the available data suggest that growth in the current quarter
will not be much better.

A major factor behind this slowdown is that real consumption growth

NY Fed's Dudley Excerpts: Still See 'Moderate' 2H Recovery -2

NEW YORK (MNI) - The following is the second and final section of
excerpts from New York Federal Reserve Bank President William Dudley's
remarks prepared for the Brooklyn Chamber of Commerce Friday, titled
"The Road to Recovery: Brooklyn":

Regional Economic Conditions

So, how is our region doing? As I mentioned a moment ago, the New
York Fed produces economic indicators to help monitor the performance of
the region. Based on these measures, the downturn in economic activity
in New York City ended in November of 2009. Since then, New York City's

Ldn FX: Euro-dollar Extends Post ECB Falls

LONDON, June 10 (MNI) - Euro-dollar extended falls hit following
the European Central Bank rate decision press conference, with reported
stops below $1.4450 becoming an early downside target.

Rate traded to $1.4445 before recovering, but remained below
$1.4500. Move lower, following Thursday's ECB 'signal' that rates likely
to be hiked at the July meeting, seen as a 'buy the rumour, sell the
fact' scenario as attention turns back toward eurozone peripheral
concerns, especially Greece, with traders looking to adjust positions