Tuesday, June 14, 2011 Greece EU officials will be holding an emergency meeting Tues in an effort to reach some kind

d of a consensus on a Greek bailout. A growing dispute between Berlin, the ECB, and the EU risks squashing a Greek rescue operation. Officials say its unlikely anything final will be agreed to at todays meeting but they hope differences can narrow. Germany wants Greek debt swaps for longer-maturing paper now while the ECB and Paris want Greek bondholders to voluntarily swap for the new paper over time as the current bonds mature. FT In China, the countrys highly anticipated May CPI reading was released and came in at +5.5%, inline w/St. estimates, and importantly no worse than feared. The PBOC also hiked banks' RRRs by half a percentage point, the sixth such hike this year; analysts had expected further tightening actions but most thought the an interest rate hike would be the next, not bank RRRs. The WSJ says that China eco data raises hopes of a soft landing and helped spur equities higher (i.e. the inline inflation, coupled w/decent IP and retail sales, has raised hopes that the country will avoid a sharp slowdown). Saudi Arabia spare capacity shrinks Reuters says S Arabias cushion of spare oil capacity is thinning far faster than widely believed. Concerns are growing over the Kingdoms ability to pump more oil beyond a planned summer increase. Reuters

Saudi Output & Capacity

12 11.5 Millions Barrels per Day 11 10.5 10 9.5 9 8.5 8 February May 8.4 8.925 Exports Capacity

Source: Bloomberg Bernanke agrees that Dodd-Frank rules not being written clearly according to C Gasparino on Fox Business, Ben Bernanke has told people that he agrees the Dodd-Frank rules being not clearly written..Bernanke believes that there is a lack of clarity on those rules and the other things the banks have to do is hindering economic growth" DJ MAN employment outlook survey MAN says YoY hiring outlooks have improved modestly across major countries w/ German employers reporting their most optimistic hiring expectations since the downturn. Japan and the US remain below pre-recession levels, although the survey was cautiously optimistic. US employers across all 13 industry sectors expect hiring to be stable or improve from three months ago. Reuters