Week of July 1, 2012 thru July 7, 2012

China Economic Data Calendar


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

Date Time For Event Previous Local/GMT

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02 Jul 1030/0230 Jun Purchasing Manager's Index (HSBC) +48.4 03 Jul 0935/0135 Jun MNI China Consumer Sentiment Indicator +90.4 09 Jul 0930/0130 Jun CPI (% y/y, % ytd y/y) +3.0/+3.5 09 Jul 0930/0130 Jun PPI (% y/y, % ytd y/y) -1.4/-0.3 10 Jul -- / -- Jun Trade Balance ($ bln mth, ytd) +18.70/+37.9 10 Jul -- / -- Jun Exports (% y/y, % ytd y/y) +15.3/+8.7 10 Jul -- / -- Jun Imports (% y/y, % ytd y/y) +12.7/+6.7 11 Jul -- / -- Jun Money Supply (M2)

China June CFLP PMI Beats Expectations But At Seven-Month Low


BEIJING (MNI) - Conditions in China's manufacturing sector in June improved at their slowest pace since last November as production and new orders fell further on the back of a slowdown in domestic activity, the latest results of the purchasing managers index prepared by the China Federation of Logistics and Purchasing (CFLP) suggested.

The headline PMI fell to 50.2 in June from May's 50.4. That beat the expected 49.7 -- which would have indicated that the manufacturing sector is again contracting -- but still marked the lowest reading for the headline index since last November's 49.0.

The June's reading also compares with April's 53.3, 53.1 in March, February's 51.0 and 50.5 in January.

G20 Finance Ministers Welcome Action in Europe - Text


MEXICO CITY (MNI) - The Group of 20 finance ministers late Friday issued a statement welcoming the policy actions in Europe to address the financial crisis. The complete text of the statement, released by Mexico's Finance Ministry, follows:

The G20 welcomes major policy actions in Europe

As noted in the Leaders' Declaration of Los Cabos, Euro area members of the G20 committed to take all the necessary measures to safeguard the integrity and stability of the area, improve the functioning of financial markets and break the feedback loop between sovereigns and banks. In addition, European members committed to move forward expeditiously on measures to support growth.

US Credit Default Swaps: EU Summit Whets Risk Appetite


NEW YORK, June 29 (MNI) - While bond investors generally digested the news from the EU leaders' summit Friday, and despite a relatively long-list of questions that began to arise, a larger appetite for risk pervaded the domestic credit market.

At the time of writing, the North American index for 5-year investment-grade credits, or IG.18, was tighter by 5.25 basis points on the day to 112.50 bps, an improvement of nearly 8 bps from the week's wide set on Tuesday.

"It's been a roller coaster week as far as expectations for concrete solutions at the EU leaders' summit were concerned," noted Otis Casey, director of credit research at Markit.

US Credit Default Swaps: EU Summit Whets Risk Appetite


NEW YORK, June 29 (MNI) - While bond investors generally digested the news from the EU leaders' summit Friday, and despite a relatively long-list of questions that began to arise, a larger appetite for risk pervaded the domestic credit market.

Ex-US CBO Director: Must Avoid 'Fiscal Cliff, Pass Tax Reform


WASHINGTON (MNI)- Keeping the United States from reaching the so-called fiscal cliff at the beginning of 2013 was a rare area of agreement for former Congressional Budget Office director Douglas Holtz-Eakin and Jared Bernstein, former chief economist for Vice President Joseph Biden, at a discussion Friday.

Speaking to a meeting of the National Economists Club, Holtz-Eakin said he the Bush tax cuts currently set to expire at the beginning of 2013 should extended for one year, pending a connection to a broader reform of the overhaul tax code.

Germany's Bundestag Approves ESM, Fiscal Compact Bills


BERLIN (MNI) - Germany's lower house of parliament, the Bundestag, Friday approved with a large majority the bills on the European permanent bailout fund ESM and the EU fiscal compact.

The bills reached the two-thirds majority necessary for ratification. All parliamentary groups voted for the bills, with only the post-communist Left party voting against.

Later this evening, the upper house, the Bundesrat, representing the 16 states, will vote on the bills. A broad majority is assured there as well.

Yet it likely will still take several weeks before the bills become law.

US Tsy Publishes Financial Research Assessment Fees


WASHINGTON (MNI) - The Office of Financial Research Friday published the assessments it will charge banks and certain large nonbank companies to cover the costs to monitor them and potential risks to the financial system.

The U.S. Treasury Department which houses the OFR said Friday the first assessment will be due July 20, and will total $137 million, coming out to be about $7,700 per $1 billion of assets.

Treasury said 49 companies will pay the initial assessment in July, including 25 U.S. bank holding companies and 24 foreign banking organizations. The total assets of the 49 companies is $17.9 trillion.

** MNI Washington Bureau (202) 371-2121 **

[TOPICS: M$U$$$,MK$$$$,MGU$$$]

FXWRAP: Euro Surges As Summit Surpasses Minimal Expectations


NEW YORK, June 29 (MNI) - The dollar was nursing steep losses against the euro and modest gains against the yen Friday, as the single currency enjoyed a sharp rally after a Eurozone Summit yielded results that were in line with those promised.

Euro-dollar was changing hands at $1.2655 in quiet afternoon dealings Friday, the euro up modestly from its early $1.2578 early level of the session and the euro in the middle of its $1.2570-1.2693 range, though the single was up substantially from its late Thursday level of $1.2427.

Dollar-yen meantime was holding at Y79.86, the greenback holding in the upper reaches of the day's Y79.37-98 range of the day after beginning the session around Y79.47.

Reality Check: June US Auto Sales Tempered, Dealers Say


NEW YORK, June 29 (MNI) - U.S. new-vehicle sales are showing signs of a moderating rebound, as renewed economic uncertainty pressures some would-be buyers back to the sidelines, according to auto dealers around the country.