Greece Vows to Hold Out Another Week as EU Aims to Wind Up Talks. The Greek government said it can survive another week without
defaulting on the International Monetary Fund as European officials
warned the window for accessing aid is closing. Greece will be able to scrape together enough cash to make a payment
of about 300 million euros ($329 million) due to the IMF on June 5,
Economy Minister George Stathakis said in an interview with Real News
newspaper published Friday.
Greece Creditors at G-7 Say Budget Is Red Line as Payment Looms. The euro area’s largest economies told Greece its efforts to get
more aid will come to nothing if the debt-swamped nation doesn’t
overhaul its finances. With the clock ticking on the country’s bailout arrangement, European
policy makers who gathered in the German city of Dresden for a Group of
Seven meeting warned a deal to unlock a further loan disbursement was
still not in sight after months of negotiations.
Credit Suisse Says Chinese Stocks are Overvalued by More Than 20 Percent.A market out of sync. Has the market departed from fundamentals? We believe so.
Our regression model suggests the market is 23% overbought and has
15% potential U.S. dollar downside to year-end 2015 based on Credit
Suisse macro forecasts ... Moreover, equity market price
momentum has decoupled away from earnings revisions which remain deeply
embedded in negative territory.
Canada’s GDP Contracts the Most Since 2009. Canada’s economy shrank between January and March, the first
contraction in four years and the largest since the 2009 recession as
collapsing energy prices prompted a plunge in business investment. Gross domestic product fell at a 0.6 percent annualized pace in the
first quarter, Statistics Canada said Friday in Ottawa. The drop
exceeded all 22 economist forecasts in a Bloomberg News survey, in which
the median call was for an expansion of 0.3 percent. The agency revised
its fourth-quarter growth estimate to 2.2 percent, from 2.4 percent
Emerging Stocks Drop as Asia Declines Offset U.S. Rate Outlook. Emerging-market stocks slumped for a fifth straight day as Asian
shares sank amid volatility in China’s equity market, offsetting
economic data that weakened the case for an increase in U.S. interest
rates. The MSCI Emerging Markets Index dropped 0.4 percent to 1,005.19 at
11:25 a.m. in New York, bringing its retreat in May to 4.1 percent.
Brazil’s real weakened 0.7 percent to a two-month low against the dollar
as a Bloomberg gauge tracking 20 developing-nation currencies headed
for a monthly decline.
Germany and France Lead European Stocks Lower Amid Greek Concern. German and French stocks dragged European shares to their biggest
decline in a month amid investor concern Greece won’t reach an agreement
with creditors in time for a debt repayment. The Stoxx Europe 600 Index tumbled 1.7 percent to 399.87 at the close
of trading, trimming its monthly gain to 1 percent. Benchmark gauges of
French and German stocks fell at least 2.3 percent as automakers led
declines among industry groups. Greece’s ASE Index slid 1.4 percent.
Foreigners pile into China stocks as red flags loom. Chinese
equity funds took in $4.6bn from overseas investors in the past week,
according to data from EPFR released on Friday, more than double the
previous high set in the second quarter of 2008. At that time, Chinese
stocks were in the middle of a long and painful downturn after the
popping of the 2007 stock market bubble. China allocations within pan-Asian and global emerging market funds have also risen to a record high, EPFR data show.