Week of July 3, 2011 thru July 9, 2011

China Economic Data Calendar

All figures year-over-year percent changes unless otherwise
specified.

Date Time For Event Previous
Local/GMT
------------------------------------------------------------------------
11-15 Jul -- / -- Q2 Forex Reserves*($trln,q/q chg $bln) 3.04/+197.3
11-15 Jul -- / -- Jun Money Supply (M2) (% ytd y/y) +15.1
11-15 Jul -- / -- Jun New Loans (yuan bln mth, trln ytd) +551.6/+3.53
11-15 Jul -- / -- Jun Actual FDI +13.4/+23.4

ECB's Trichet: EMU Crisis Shows Need For Stronger Governance

AIX-EN-PROVENCE, France (MNI) - The Eurozone has the capacity not
only to overcome the current crisis but also to prosper, if it learns
from its past errors and draws on the creativity of its entrepreneurs,
ECB President Jean-Claude Trichet said Saturday.

The "evident" lesson of the crisis is "certainly the need to
reinforce governance," Trichet told a conference here.

The problems of the Eurozone economy are no greater today than
those of many other advanced nations and in some ways smaller, he
argued, noting that its current account is in balance and its public

China Economic Data Calendar

All figures year-over-year percent changes unless otherwise
specified.

Date Time For Event Previous
Local/GMT
------------------------------------------------------------------------
10 Jul -- / -- Jun Trade Balance ($ bln mth, ytd) 13.05/22.97
10 Jul -- / -- Jun Exports (% y/y, % ytd y/y) +19.4/+25.5
10 Jul -- / -- Jun Imports (% y/y, % ytd y/y) +28.4/+29.4
11-15 Jul -- / -- Q2 Forex Reserves*($trln,q/q chg $bln) 3.04/+197.3

Repeat: US BLS: On 2nd Recov Anniv, Still 6.98 Mln Jobs Shy

--Retransmitting Story Headlined 8:30 ET Friday
--June Payrolls +18,000; Unemp Rate Up a Tenth to 9.2% (9.182%)
--'Big Swing' Over the Past Five Months

By Denny Gulino

WASHINGTON (MNI) - The new unemployment numbers defied
expectations, underlining the slowdown instead of signaling an uptick,
as vacation jobs outdistanced the other major categories and government
jobs losses took a bigger bite.

The Bureau of Labor Statistics Friday reported only 18,000 payroll
slots were created in June while April and May's results were revised

FXWRAP: Dollar Mixed As Sentiment Hit By Weak Jobs Data

--Retransmitting 15:19 ET Story, Clarifying Headline

By Dennis Pettit

NEW YORK, July 8 (MNI) - The dollar was holding a mixed tone in
afternoon dealings Friday, though trader nerves were frazzled, the
greenback lifting vs, the euro but lower vs. the yen as the U.S.
employment report dazzled with disappointment.

Euro-dollar was changing hands at $1.4250 in afternoon dealings
Friday, the euro slightly below its $1.4273 early level of the session
and in the lower reaches of the day's $1.4205/1.4350 U.S. hours range.

FXWRAP: Dollar Mixed As Sentiment Hit By Weaks Jobs Data

By Dennis Pettit

NEW YORK, July 8 (MNI) - The dollar was holding a mixed tone in
afternoon dealings Friday, though trader nerves were frazzled, the
greenback lifting vs, the euro but lower vs. the yen as the U.S.
employment report dazzled with disappointment.

Euro-dollar was changing hands at $1.4250 in afternoon dealings
Friday, the euro slightly below its $1.4273 early level of the session
and in the lower reaches of the day's $1.4205/1.4350 U.S. hours range.

Dollar-yen meantime was changing hands at Y80.62 in afternoon

US Swaps: Short-End, Intermediate Spreads Resume Widening

By Alyce Andres-Frantz

CHICAGO, July 8 (MNI) - Shorter dated and intermediate U.S.
interest rate swaps spreads resumed widening Friday after a weak jobs
report and as risk returns to the market place.

Weak U.S. Payrolls Sparks Rethink Among Economists

By Chris Cermak

WASHINGTON (MNI) - June's surprisingly weak U.S. payrolls numbers,
following on the heels of a depressing May, are turning talk of a soft
patch for some economists into fears of a more prolonged labor market
slump.

"One point does not make a trend, but two points do make a line,"
Guy Lebas, chief fixed income strategist for Janney Montgomery Scott
PLC, said in an interview with Market News International. "The line is
pointing towards fairly depressed labor markets. There's no reason to
expect after the last two months that jobs growth will pick up."

US's Pelosi: 'Grand' Budget Deal Must Not Cut Soc Sec, M-Care

--House Minority Leader: Budget Deal Shouldn't Impose 'Slash and Burn'
--Doesn't Rule Out Shift To Chained CPI To Fix Programs
--Budget Deal Should Not 'Harm' Economic Growth

By John Shaw

WASHINGTON (MNI) - House Minority Leader Nancy Pelosi said Friday
she believes a "grand" budget agreement can be crafted, but added that
such a deal should not impose "austerity" on a struggling economy and
should not reduce benefits for Social Security and Medicare recipients.

In comments to reporters at a briefing, Pelosi said she is hopeful

US CBO Estimates -$45b June US Gov't Deficit Vs -$68b Yr Ago

--Estimates Treasury To Record -$973b Defct 1st 9 Months Of FY'2011

WASHINGTON (MNI) - The following is a summary of the U.S.
Congressional Budget Office's July Budget Review published Friday with
it's estimate for last month's deficit. The U.S. Treasury Department is
scheduled to release its monthly statement July 13:

CBO estimates that the Treasury Department will report a deficit of
$973 billion for the first nine months of fiscal year 2011, $31 billion
less than the $1,004 billion deficit incurred through June 2010. Outlays