A Quick Glance at News

v  Federal Reserve Vice Chairman Janet Yellen said “stalled” improvement in the labor market and weakening financial conditions may call for the central bank to boost its record monetary easing.

v  The euro moved in a tight range against the U.S. dollar ahead of a much-anticipated Spanish debt auction on Thursday, while the British pound declined amid expectations the Bank of England will leave its monetary policy unchanged.

v  Two days after a senior government official said Spain’s access to debt markets was closed; the country will try to sell as much as 2 billion euros ($2.5 billion) of bonds at interest rates that will probably be higher than at its last auction of similar maturities

v  European stock futures and Asian shares advanced on speculation policy makers around the world will take steps to revive the slowing economy. The Australian currency climbed toward parity with the dollar after employers unexpectedly added jobs in May.

v  Spain has made its most explicit call to date for European institutions to recapitalize the country’s banks as concerns increase about its own ability to raise the billions of Euros needed on bond markets.

v  The parliamentary leadership of Germany’s ruling Christian Democrats – the majority party in Angela Merkel’s centre-right coalition government – has flatly rejected the use of euro zone rescue funds to recapitalize Spanish banks directly.

v  The presidents of Russia and China laid out ambitious plans on Tuesday to tie their countries into a closer strategic and economic partnership as both Beijing and Moscow seek to use each other to balance their relationship with the U.S

v  Financial chiefs from the Group of Seven leading nations pressed Europe on Tuesday in a teleconference to act more aggressively to tame its escalating debt crisis, expecting euro-zone leaders to bolster their banking system in the coming weeks.

v  Iran's president will attempt to shore up support from Russia and China during a closely watched summit of Central Asia leaders beginning Wednesday in Beijing, just as concerns rise over Tehran's nuclear program

v  Under pressure from regulators last summer to increase its capital cushion, MF Global moved some of its risky European debt holdings to an unregulated entity in an effort to avoid having to raise extra money, according to a new report.

Asad Khan
Financial Analyst  (CFB)
050-8774861
asad@cfb.ae