Week of May 27, 2012 thru June 2, 2012

Canada's Flaherty on BNN: Europe Not in Full Blown Crisis Yet


OTTAWA (MNI) - Canada Finance Minister Jim Flaherty said Friday "Europe is not in full blown crisis" as yet but urged major European countries to respond massively to the banking and sovereign debt situation in Greece and other indebted countries.

A reporter for the national BNN-Business News Network asked Flaherty in Toronto, on a scale of 1-10, between stable and unstable, where he would place Europe. Flaherty responded, "Somewhere around five. We're not in a full blown crisis in Europe, but we've seen this movie before."

He repeated criticisms he has made often in recent weeks, that major European countries should come together with massive loans of liquidity rather than taking the incremental approach.

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / ET EVENT

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30-May 1700/1300 New York Federal Reserve Bank Pres. William Dudley press briefing on job polarization and rising inequality in the region.

30-May 1720/1320 Dallas Federal Reserve Bank Pres. Richard Fisher speaks to a community forum sponsored by the Bank on Federal Reserve Operations and Economic Update, in San Antonio. He will take questions from the audience and the media.

30-May 2030/1630 Boston Federal Reserve Pres.

Reality Check:US Home-Improvement Sales Up-Retailrs,Trade Grps


PHILADELPHIA (MNI) - Sales of hardware and home-improvement materials at U.S. retailers rose in recent months as unseasonably warm weather, a still-sluggish housing market, and signs of improving consumer confidence led more people to buy everything from n

Credit Default Swaps: Mostly Wider; European Banks In Focus


CHICAGO, May 25 (MNI) - Global credit default swaps were mixed, with most edging to slightly wider levels on Friday ahead of the U.S. three-day holiday weekend and amid ongoing concerns about the financial crisis in Greece and Spain.

Credit Default Swaps: Mostly Wider; European Banks In Focus


CHICAGO, May 25 (MNI) - Global credit default swaps were mixed, with most edging to slightly wider levels on Friday ahead of the U.S. three-day holiday weekend and amid ongoing concerns about the financial crisis in Greece and Spain.

U.S. Treasuries held firm Friday on safe-haven trades and German bunds also were higher as traders remained wary of weekend eurozone headlines.

In a bit of upbeat news, around midday Standard & Poor's Ratings Service said it has raised its issue rating on the Hellenic Republic's untendered bonds (governed by foreign law) to 'CCC' from 'D' following the timely payment of principal and interest on some untendered bonds due on May 15, 2012.

TheFXSpot: Mkt In Lock-down Mode; Eurozone, US Jobs Data Eyed


NEW YORK, May 25 (MNI) - Ahead of a long holiday weekend, there was no sign of larger profit-taking or paring back of positions, with market players clearly in lock-down mode.

FXWRAP: Euro Skids Again, Breaks $1.25 As Spain Adds Pain


NEW YORK, May 25 (MNI) - The dollar scored fresh gains vs. a defensive euro Friday, sending the European currency briefly below $1.2500, the greenback able to also notch small gains vs. the yen.

Euro-dollar was changing hands at $1.2515 in early afternoon dealings Friday, the euro in the lower reaches of its $1.2495/1.2580 U.S. hours range after beginning the day near the high.

Dollar-yen meantime was changing hands at Y79.65 in afternoon dealings, the dollar in the upper reaches of its Y79.50/66 U.S. hours range after beginning the day at the low.

Afternoon dealings were at a slow ebb but featured the euro very much on the defensive ahead of an early market close that preceded the Memorial Weekend holiday in the U.S.

US Debt Offering, Auction Calendar for Tsy and Agency Issues


May 25

Source: U.S. Treasury, Fannie Mae, Freddie Mac Amounts in billions of U.S.

US Swaptions:Steady To Lower Despite Risk-Off Fixed Income Bid


CHICAGO, May 25 (MNI) - Soon after a near steady open Friday, over-the-counter swaption volatility slipped lower at points despite the ever present concerns (not to mention pot stirring) over eurozone headline risk over the weekend.

Portfolios:Natixis AM Euro FI Head: Favors Italy Vs Long Spain


WASHINGTON (MNI) - Amid heightened uncertainties ahead of Greek elections next month and the implications for the future of the eurozone, many U.S. based money managers have been shedding EMU sovereign debt from their portfolios, or