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Friday's Personal Income and........>

US DATA PREVIEW
US DATA PREVIEW: Friday's Personal Income and Spending holding US market's
attention. Morgan Stanley economists estimate the "0.3% month-over-month gain in
average hourly earnings alongside a robust 223,000 increase in payrolls suggest
a solid gain of 0.4% in nominal income." Regarding spending, MS said "after a
better-than-expected retail sales print for May, we look for a 0.5% gain.
Incorporating this month's CPI and PPI inputs, our forecast for May core PCE
inflation is 0.21%M, raising the year/year rate to 1.9% from 1.8% (1.94% vs.
1.80%). Headline PCE inflation should also rise 0.21%, raising the year/year
rate to 2.2% from 2.0%."

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