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Austerity Measures to Proceed Regardless of Consensus: Greece PM

CNBC.com
Monday, 30 May 2011 | 6:56 PM ET

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

I'm Li Sixuan and you're watching "CNBC Business Daily".

In focus today - Greece...

A new deal expected this week from the EU and IMF on how to manage the country's budget deficit.

Over the weekend in Athens, public resentment is building.

Tens of thousands of Greek citizens took to the streets to protest the government's austerity measures...as EU leaders continue to negotiate the deal.

Some have suggested that more radical measures may be adopted...including that of international involvement in tax collection and privatization of Greek assets Prime Minister George Papandreou says - one way or another - the deficit cutting package WILL be put in place.

(Package starts)

Greek Prime Minister, George Papandreou:
Whether there is consensus or not we will take our decisions, we will move forward with constructively implementing a program, which is difficult and painful, but is a safe and sure road to exiting the debt crisis

Some fear though that any signs of a Greek default could mean another ratings downgrade for the country.

Stephen Davies, CEO, Javelin Wealth Management:
Clearly that's a big issue that Greece and ECB will have to overcome as they operate to come up with form of words which means Greek default but not really.

(Package ends)

Separately...With the top job at the IMF up for grabs, France's Christine Lagarde is now on her way to win the emerging economies vote.

The French finance minister already has the backing of G8 and the eurozone. Her next stop will be Brazil, followed by China, India and other African nations.

Member nations have until June 10 to nominate candidates for the IMF's top job. The fund will announce its decision at the end of June.

Over in the US, investors paying close attention to key economic data due out this week. May employment data out on Friday is expected to show less job creation economists are forecasting 185-thousand new jobs versus 244-thousand a month ago.

But unemployment rate is likely to edge down a touch, to 8.9 percent from 9-percent.

Weakness also expected from the US ISM national manufacturing survey...given the recent supply chain disruptions in Japan due to the tsunami disaster and slowing demand from china.

Analysts say any number below 60 means the strongest period of growth has passed.

Forecast is for a fall to 58 in May from 60.4 in April, and we may be able to figure out what kind of impact high gasoline prices have.

On car sales...May data is expected to show a drop for the first time in 9 months to 12.2 million, and if you're wondering what this all means - weak data is likely to weigh further on investor sentiment.

Remember, the US S&P index has been trying to break out of the 1330 range and already, we've seen 4 weeks of trading losses for the Dow index. So - possibly more volatility ahead for the US markets for the month of June.

Well that wraps up the latest "CNBC Business Daily". I'm Li Sixuan from CNBC, thanks for watching.

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