Today's Headlines

Bloomberg:

• Greece's Extension of Bond Maturities Would Amount to Default, Fitch Says. Greece’s credit rating was cut three levels by Fitch Ratings, which said that even a voluntary extension of its bond maturities being studied by European Union policy makers would be considered a default. Fitch cut its rating to B+, four levels below investment grade, from BB+ and said that the country could face a further reduction in its creditworthiness. The yield on Greek 10-year bonds rose 57 basis points to 16.6 percent, more than twice the level of a year ago when Greece accepted an EU-led bailout. “The rating downgrade reflects the scale of the challenge facing Greece in implementing a radical fiscal and structural reform program necessary to secure solvency of the state and the foundations for sustained economic recovery, Fitch said in an e- mailed statement.
• Payrolls Climb in 42 States, Led by NY, Texas. Payrolls grew in 42 U.S. states, while the unemployment rate fell in 39, indicating broad-based strengthening in the labor market. New York led the nation with a 45,700 increase in employment, followed by Texas with 32,900 more jobs. Joblessness decreased most in Nevada, even as it remained the state with the highest rate in the country at 12.5 percent, figures from the Labor Department showed today in Washington. The report signals the 244,000 workers added in April, as shown in the government’s May 6 report, were dispersed throughout the country. The data also suggest the unexpected increase in the unemployment rate nationally last month was limited in scope. “The job gains are now filtering through most sectors of the economy,” Eric Green, chief market economist at TD Securities Inc. in New York, said before the report. “You’re beginning to see small- and medium-sized businesses moving more firmly into hiring, which is driven by rising sales expectations and stronger domestic demand pulling consumption higher.
• Syrian Security Forces Kill Eight Protesters, Arabiya Says. Syrian security forces fired on anti- government protesters, killing eight people in cities including Homs, Daraa and al-Sanamin, Al Arabiya television said, citing witnesses.
  
• North Korean Leader Kim Jong Il, Not Son, in China, Chosun Says. North Korean leader Kim Jong Il visited China today, the Chosun Ilbo reported after saying earlier that it was his son and heir-apparent, Kim Jong Un, on the trip.
• Democrats who fail to back union positions may lose political support from the AFL-CIO, the nation's largest labor federation, President Richard Trumka said. "It doesn't matter if candidates and parties are controlling the wrecking ball or simply standing aside - the outcome is the same either way," Trumka said. Workers won't support lawmakers who aren't blocking efforts to roll back union rights, he said.
• LinkedIn(LNKD) Surges on Second Day After IPO. LinkedIn Corp. soared on its second trading day, after more than doubling yesterday in a show of strong demand for social-media stock and a comeback in venture- capital backed initial public offerings. LinkedIn, the largest professional-networking website, rose as much as 14 percent to $107 on the New York Stock Exchange, adding to a 109 percent surge yesterday.
  

Wall Street Journal:

• Obama: Differences With Israel Remain. President Barack Obama conceded that he has differences with Israeli Prime Minister Benjamin Netanyahu on a future state for Palestinians but that such disagreements happen "between friends."
  

MarketWatch:

• Salesforce.com(CRM) Shares Top New High on Results. Analysts remain bullish on cloud software maker despite valuation.

CNBC.com:

• Banks Are Winning the War Against Regulators. Europe’s banking regulator will unveil the results of a third round of stress tests of its banks in June, but analysts have little hope that the latest tests will calm investors’ nerves and believe banks are winning the battle with regulators over financial reforms.
• PBOC's Vicious Circle on Policy Means More RRR Hikes. China's central bank is caught in a vicious circle, one that means there will be no let up in its fight to keep sucking funds out of the banking system via further increases in already record high reserve requirements.
• Is Goldman's(GS) Lloyd Blankfein Being Investigated for Perjury?
  

Business Insider:

• Silicon Valley Guru Steve Blank Welcomes The New Bubble and Says Microsoft(MSFT) is Doomed.
• Netanyahu Officially Tells Obama That a Return to 1967 Borders Isn't Going to Happen.
• Chart of the Day: Netflix(NFLX) Now Has More Subscribers Than Comcast(CMCSA) and Every Other Cable Company.
• JPMorgan(JPM): Here's 3 Reasons Why Investors Should Relax About The End of QE2.
  

Zero Hedge:

• Goldman(GS) Warns That Spanish Bonds, EUR Poised for Technical Breakdown.

ABC News:

• On Arab Spring, Obama Spoke Too Soon.

AppleInsider:

• iPad 2 Constraints 'Significantly Improved' as Apple's(AAPL) Supply Woes Ease. Wu also increased his estimated iPhone sales to 17 million, up from 16 million. He said iPhone demand appears to be holding up better than expected, thanks to strong adoption of the white iPhone 4 and strong sales on Verizon. Wu also increased his projected Mac sales to 3.9 million from the quarter, up from 3.83 million. He is also assuming a new, higher gross margin of 39 percent, increased from 38.3 percent, due to improved iPad yields and higher iPhone sales. Finally, he's also increased Sterne Agee's 12-month price target for AAPL stock to $460, up from the previous prediction of $445.

Denver Post:

• U.S. Justice Department Weighs Investigation of Denver Law Enforcement. The U.S. Department of Justice is in the "threshold stage" of deciding whether to investigate Denver's law enforcement agencies for civil-rights violations.

Digital Journal:

• Enjoy The Crisp Taste of Soda Stream(SODA) Fountain Sodas at Home and Save.

Boy Genius Report:

• RIM's(RIMM) BlackBerry Playbook Sales Miss Targets by Over 90% at Major Retailer, 'Much Higher' Return Rate Than XOOM.

Politico:

• Republican 2012 Hopefuls Blast President Obama on Israel. Republican presidential hopefuls were quick to criticize President Barack Obama's speech on the Middle East Thursday, accusing him of betraying America's closest ally in the region with his call for a two-state solution to the Israeli-Palestinian conflict. Their condemnations came hot on the heels of Obama's late-morning speech, in which he advocated borders "on the 1967 lines with mutually agreed swaps."

Rasmussen Reports:

• 71% Say Middle East Peace Agreement Must Recognize Israel's Right to Exist. The latest Rasmussen Reports national telephone survey shows that 71% of Likely U.S. Voters believe that Palestinian leaders should be required to acknowledge Israel’s right to exist as a Jewish state. Just eight percent (8%) disagree and say this is not essential for a Middle Eastern peace agreement.

Reuters:

• SEC Taps Vanderbilt Professor for Top Economic Post. The U.S. Securities and Exchange Commission has tapped Vanderbilt University professor Craig Lewis as its new chief economist and head of the Risk, Strategy and Financial Innovation division.

Der Standard:

• French Finance Minister Christine Lagarde said Greece risks a default if it doesn't step up consolidation efforts. "Greece risks a sovereign default and finance ministers have expressed strong doubts about the sluggish progress," Lagarde said. Both issues "should be enough for now to stimulate the government in Athens to start privatizations." Lagarde said privatization efforts "too slow." At the same time there won't be a restructuring or a reprofiling of Greek debt.

Handelsblatt:

• Greece would recover more quickly from its debt crisis if it stopped using the euro and returned to its own currency, Hans-Werner Sinn, head of the Munich-based Ifo economic institute, was quoted as saying. Ditching the euro would open the way for Greece to have a devalued currency, and the European Union shou8ld let the Greek government take this step if it wants to, Sinn said.

China National Radio:

• China's inflation will remain at a high level in May on higher food prices, citing Yao Jingyuan, chief economist of the National Bureau of Statistics, in an interview. China needs to continue to take measures to curb inflation pressures, Yao said.