Today's Headlines

Bloomberg: 

• 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 previously.
• 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.
  

MarketWatch.com:

• This typical sign of a stock market bubble is misleading.

CNBC:

• Snapchat in process of raising new money, values company at up to $16B: Sources.
• US oil drillers pull 13 rigs, biggest drop in 4 weeks. (video)

ZeroHedge:

• "Welcome To The Contraction": Q1 GDP Drops By 0.7%, Corporate Profits Crash. (graph)
• Here We Go Again: Latest "Greece Will Make Payment" Headline Sends Stocks Surging. (graph)
• A Tale Of Two Bubbles: China vs Nasdaq. (graph)
• U.S. Households Under Pressure: Stagnant Incomes, Rising Basic Expenses. (graph)
• GDP Report Confirms Global Trade Is Crashing, And Why That Is Good News For Some. (graph)
• UMich Consumer Sentiment Slumps To 6-Month Lows, Current Conditions Tumble. (graph)
• Chicago PMI Bounce Is Dead, Crashes Back Near 6 Year Lows. (graph)
• Is The Oil Glut Real?
• Greece Slides Back Into Recession As Deposits Hit 11-Year Low. (graph)
• 3 Things: Oil Trouble. (graph)
• China Deploys Artillery On "Sand Castles" In South China Sea. (map)

Business Insider: 

• The latest Clinton cash intrigue involves a Czech model and a 'distasteful' $500,000 donation.
• Sepp Blatter reelected as FIFA president 2 days after bombshell arrests.
• Obama is defending Iranian anti-Semitism to spin his nuclear deal. 
• The amount of trading going on in China's stock markets is mind-boggling. (graph)
• CONFIRMED: Elite Russian soldiers are fighting in Ukraine right now.
• China's explosive stock market looks more and more like a bubble — while international cash surges in. (graph)
• Chinese shares fell more than 11% in under a day.

Financial Times:

• 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.

Telegraph:

• IMF warns of Grexit threat as judgment day approaches. Christine Lagarde admits "it's very unlikely that we'll reach a comprehensive solution in the next days", as talks take Athens to the edge of default. 
• ECB fears 'abrupt reversal' for global assets on Fed tightening. The ECB’s financial stability report describes a 'fragile equilibrium' in world markets, with a host of underlying risks.

Corriere della Sera:

• Political Will Missing on Greece Deal. Political will "on behalf of all parties" still missing to reach agreement, Greek Deputy Prime Minister Yannis Dragasakis says in interview.