Today's Headlines

Bloomberg:     

• New Greek Budget Plan Falls Short of Last Week’s Pledge. (video) Greece pulled back on budget concessions to its creditors in new proposals Tuesday, as German Finance Minister Wolfgang Schaeuble said it would be “daft” to accept blame for Prime Minister Alexis Tsipras’s predicament. The latest plan falls short of the budget targets that Tsipras agreed on in a June 3 meeting with European Commission President Jean-Claude Juncker, a European Union official said. Greece didn’t dispute those objectives in any of its subsequent meetings with creditor institutions last week, according to the official.
• Greece Pretends to Negotiate.
• China Said to Weigh Margin Finance Rule Change Amid Stock Boom. China’s securities regulator is considering a change to its margin finance rules in a move that could quell volatility should the country’s world-beating stock-market rally falter. The China Securities Regulatory Commission may allow brokerages to roll over margin trading and short-selling contracts with clients one or two times for six months each, people with knowledge of the matter said. They asked not to be identified as the plans haven’t been finalized or made public. Record trading with borrowed money has pushed Chinese stocks to a seven-year high even as economic growth slows, sparking concerns that the market may overheat. Letting investors extend their contracts may help to limit the risk that margin calls would trigger a sharp selloff. “By allowing rollover, the CSRC may want to curb short-term speculation and ease volatility as investors don’t have to sell their holdings when the market is not in their favor,” said Zhang Jian, a Beijing-based strategist at BOC International Holdings Ltd.  
• Obama Musings Aside, Emerging Markets Suffering Strong Greenback. Whether or not President Barack Obama expressed concern about the strength of the dollar in private conversations at the Group of Seven summit, emerging markets are suffering the brunt of its strength in a trend that shows little sign of reversing. Rising bond yields in the U.S. and Germany are making dollar- and euro-denominated assets more attractive to international investors. A measure of developing-nation currencies fell against both the greenback and Europe’s common currency over the past two weeks for the first time since December.
• Europe Stocks Extend Longest Losing Streak of ’15 Amid DAX Rout. A slump in German equities helped send European stocks down for a sixth day. The Stoxx Europe 600 Index fell 0.4 percent to 383.87 at the close of trading in London, earlier losing as much as 1.4 percent. Germany’s DAX Index declined 0.6 percent after entering a correction on Monday. It’s dropped 11 percent from its April peak.
• Bond Market’s Storm Finally Hits Junk Debt as Buyers Flee ETFs. Suddenly, junk bonds have lost their luster. After providing a haven from the global bond-market selloff, speculative-grade securities have now joined the rout, tumbling almost 1 percent since the end of May. Investors are starting to flee, yanking $1.5 billion from the two biggest high-yield bond exchange-traded funds over the past week, according to data compiled by Bloomberg. This is a reversal in fate for bonds that had gained 4.8 percent in the first five months of 2015 and suggests that junk-bond investors will only tolerate rising benchmark yields for so long before they, too, bail.
• S&P 500 Rally Thins and It's Worrying Market Analysts. (graph) Trouble is brewing in an indicator measuring how many companies are keeping the stock market aloft in the U.S., just as the Standard & Poor’s 500 Index threatens to give up gains for the year. About 59 percent of stocks closed above their 200-day moving averages at the end of last week, the lowest percentage in eight months, according to data compiled by Bloomberg. Waning breadth is holding back a version of the equity gauge that strips out market-value biases, the S&P 500 Equal Weight Index, which is down 0.4 percent since March.

CNBC:

• White House press briefing room evacuated.

ZeroHedge:

• If Your BS Detector Is Not Screaming, It's Broken. That China's credit machine is now dependent on a stock market bubble for its very survival speaks volumes about the true health of China's economy.
• Meet China's New 'Investor' Class: "It's A Lot Easier To Make Money From Stocks Than Farmwork".
• "Reduce Risk, Boost Cash, Go Underweight Stocks" SocGen Warns.
•  European Stocks Plunge To 4 Month Lows, Suffers Worst Losing Streak Since 2014. (graph)
• Homebuilder Plunges 12% After CEO Admits They Were Over-Optimistic. (graph)
• Wholesale Inventory Ratio, Sales Stabilize At Recessionary Levels. (graph)
• The Warren Buffet Economy, Part 1: Why Its Days Are Numbered. (graph)
• "Not Credible" Is Europe's Response To Latest Greek 3-Page Proposals As Greek Islanders Threaten Referendum.

Business Insider:

• Top US military officer: Iran would likely use some sanctions relief to fuel wars.
• Crude oil is spiking. (graph)
• Record corporate profits? Actually, those are 'made-up, phony numbers'.
• The CEO of a $1 billion 'unicorn' startup admits we're in a bubble.