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Thursday, June 16, 2011 Housing Starts: Survey 545 Actual 560 Prior 523 Revised 541

Initial Jobless Claims:

Survey 420

Actual 414

Prior 427

Revised 430

Two modestly good economic data pointsits been a while since data came in better than expected (even if just barely).

Banks in last minute campaign to head off tough Sifi buffers; US banks argue they shouldnt be subject to a Sifi buffer given they are better capitalized than their global peers and are warning regulators that tough new rules could hamper their ability to lend. If US regulators do adopt a Sifi buffer, US banks argue it should be a small one. Global regulators are forming a consensus around 22.5% as a buffer (the Treasury is advocating for 2% while the Fed would like to see 3% and the FDIC has talked about 4%). WSJ Deficit Deal Near? Steve Liesman article on there appears to be a consensus forming around a structure for a debt ceiling/deficit deal. The ratio of $3 of spending cuts for every $1 of revenue increases came up repeatedly at a roundtable of lawmakers and budget experts yesterday sponsored by the Center for a Responsible Federal Budget CNBC Feds hands tied says FT due to rising inflation; there has been an upward trend in core inflation in the US. The data suggests the US is suffering a mini bout of stagflation. FT Germany softens stance on Greece somewhat? The FT is reporting that while Germany remains determined to have private sector participation in any Greek bailout, it isnt insisting on a single model to achieve this aim. This marks the first sign of softening in the German attitude re Greece. FT Greece investors bet on the prospect for a Greek accident - There is a meaningful chance of a Greek accident this summer. That involves a hard default and big losses for investors, which could have very worrying repercussions for the eurozone. FT