Greek talks still make no progress

•     Greek talks still make no progress

–    Same problems as yesterday

–    Finance ministers told to find some solution tomorrow – good luck!

–    Missing the 30 June IMF payment wouldn’t be considered “default,” technically – that would be 20 July EUR 3.5bn payment to ECB. That’s the real “drop deadline.”

•     Greek crisis could affect EUR/CHF

–    EUR/CHF is sensitive to Greek tensions – failure to pay IMF may send funds flowing out of EUR and into CHF

•     Japan inflation slows further in May

–    As impact of April 2014 hike in consumption tax fades further, inflation slows further

–    Headline inflation slows more than core, showing that it’s not just due to cheap oil

–    BoJ will eventually have to do more to push up inflation = JPY-negative

•     Today:

–    Eurozone: EU leaders end their two-day summit. Indicators:  Eurozone M3 for May, French consumer confidence for June

–    UK:  BoE Gov. Carney speaks

–    US: final U of M consumer sentiment for June