Trading Nymph's Stock Trading Diary

Like we thought Thrusday in the US Session, Bank of Japan would not be happy with the USD/JPY fading…at this point it is moving back up to 82.87…TOKYO (Reuters) – Japanese Prime Minister Yoshihiko Noda said on Friday he strongly hoped the Bank of Japan would continue to act boldly to beat deflation, keeping up pressure for further monetary stimulus to support a fragile economic recovery.
BOJ Governor Masaaki Shirakawa said the central bank will continue to pursue policy to overcome deflation but warned against expecting too much from the bank, saying it was already buying government bonds aggressively and that the effect of its monetary easing would take time to appear on the economy.
“Monetary stimulus and measures to boost Japan’s growth potential are both important to beat deflation. We will continue our monetary easing, but monetary easing alone cannot (end deflation),” Shirakawa told a parliament committee meeting.
Shirakawa also said it was inappropriate for the BOJ to adopt a policy similar to the Federal Reserve’s “Operation Twist,” under which the U.S. central bank rebalances its portfolio with longer-dated securities.
Noda, appearing at the same parliament meeting, welcomed the BOJ’s monetary easing in February and its decision in March to boost a loan scheme to encourage banks to fund prospective growth industries.
“The BOJ acted boldly, sharing the same view (of the need to beat deflation) with the government,” Noda said. “I strongly hope the BOJ continues to take appropriate action as needed.”
The BOJ surprised markets last month by boosting its asset buying programme and setting an inflation goal of 1 percent in the face of political pressure, signalling a more aggressive monetary policy to pull the economy out of deflation.
The central bank has signalled its readiness to act again if risks to Japan’s economy heighten. But it is hesitant of boosting purchases of long-term government bonds too much, arguing that in a country saddled with huge public debt like Japan, doing so could trigger a spike in bond yields if markets interpret the move as monetising debt.
Some politicians, however, want the BOJ to buy bonds more aggressively and expand its balance sheet to bolster an ailing economy.
Shirakawa said the BOJ was already buying government bonds at a rapid pace. He also countered calls in parliament for the BOJ to adopt a Fed-style “Operation Twist,” arguing that doing so in Japan could push up short-term interest rates as it would involve selling short-term debt while buying long-term ones.
Japan on Thursday reported its first trade surplus in five months, and a revival of confidence among manufacturers has added to evidence the economy was growing again as the yen weakens and external demand picks up, reducing the need for further monetary policy easing.
Progress has been frustratingly slow in rebuilding areas of the northeast coast devastated by last year’s massive earthquake and tsunami. But there are signs of recovery in the area and the broader economy, albeit uneven.

No sign of weakness in job numbers (esp re auto makers)..yesterdays report, UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
SEASONALLY ADJUSTED DATAIn the week ending March 17, the advance figure for seasonally adjusted initial claims was 348,000, a decrease of 5,000 from the previous week’s revised figure of 353,000. The 4-week moving average was 355,000, a decrease of 1,250 from the previous week’s revised average of 356,250.
The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending March 10, a decrease of 0.1 percentage point from the prior week’s revised rate of 2.7 percent.
The advance number for seasonally adjusted insured unemployment during the week ending March 10 was 3,352,000, a decrease of 9,000 from the preceding week’s revised level of 3,361,000. The 4-week moving average was 3,385,750, a decrease of 13,000 from the preceding week’s revised average of 3,398,750.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 315,636 in the week ending March 17, a decrease of 24,441 from the previous week. There were 354,457 initial claims in the comparable week in 2011.
The advance unadjusted insured unemployment rate was 3.0 percent during the week ending March 10, a decrease of 0.1 percentage point from the prior week’s revised rate of 3.1 percent. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,804,840, a decrease of 57,489 from the preceding week. A year earlier, the rate was 3.4 percent and the volume was 4,277,092.
The total number of people claiming benefits in all programs for the week ending March 3 was 7,281,541, a decrease of 142,499 from the previous week.
Extended benefits were available in Alabama, Alaska, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Washington, West Virginia, and Wisconsin during the week ending March 3.
Initial claims for UI benefits by former Federal civilian employees totaled 1,216 in the week ending March 10, a decrease of 86 from the prior week. There were 2,508 initial claims by newly discharged veterans, a decrease of 205 from the preceding week.
There were 25,114 former Federal civilian employees claiming UI benefits for the week ending March 3, a decrease of 2,343 from the previous week. Newly discharged veterans claiming benefits totaled 39,671, a decrease of 2,378 from the prior week.
States reported 2,851,483 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending March 3, a decrease of 24,312 from the prior week. There were 3,627,654 claimants in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending March 3 were in Alaska (6.1), Rhode Island (4.5), Oregon (4.4), Wisconsin (4.4), Idaho (4.3), Montana (4.3), New Jersey (4.3), Pennsylvania (4.3), Puerto Rico (4.2), California (4.1), and Connecticut (4.1).
The largest increases in initial claims for the week ending March 10 were in Kentucky (+742), Puerto Rico (+643), Alabama (+475), North Carolina (+471), and Tennessee (+457), while the largest decreases were in New York (-14,222), California (-4,696), Illinois (-1,290), Florida (-1,215), and Pennsylvania (-1,129).

UNEMPLOYMENT INSURANCE DATA FOR REGULAR STATE PROGRAMS

WEEK ENDINGAdvance March 17March 10ChangeMarch 3Prior Year1Initial Claims (SA)348,000353,000-5,000365,000394,000Initial Claims (NSA)315,636340,077-24,441368,433354,4574-Wk Moving Average (SA)355,000356,250-1,250355,750391,000WEEK ENDINGAdvance March 10March 3ChangeFeb. 25Prior Year1Ins. Unemployment (SA)3,352,0003,361,000-9,0003,424,0003,765,000Ins. Unemployment (NSA)3,804,8403,862,329-57,4893,988,8904,277,0924-Wk Moving Average (SA)3,385,7503,398,750-13,0003,419,5003,798,000
Ins. Unemployment Rate (SA)22.6%2.7%-0.12.7%3.0%Ins. Unemployment Rate (NSA)23.0%3.1%-0.13.2%3.4%
INITIAL CLAIMS FILED IN FEDERAL PROGRAMS (UNADJUSTED)

WEEK ENDINGMarch 10March 3ChangePrior Year1Federal Employees1,2161,302-861,630Newly Discharged Veterans2,5082,713-2052,316
PERSONS CLAIMING UI BENEFITS IN ALL PROGRAMS (UNADJUSTED)

WEEK ENDINGMarch 3Feb. 25ChangePrior Year1Regular State 3,850,0023,977,892-127,8904,284,468Federal Employees (UCFE) 25,11427,457-2,34339,439Newly Discharged Veterans (UCX) 39,67142,049-2,37839,128EUC 200832,851,4832,875,795-24,3123,627,654Extended Benefits4461,625453,300+8,325716,951State Additional Benefits 54,8954,770+1258,160STC / Workshare 648,75142,777+5,97450,271TOTAL7,281,5417,424,040-142,4998,766,071

FOOTNOTES SA – Seasonally Adjusted Data, NSA – Not Seasonally Adjusted Data 1 – Prior year is comparable to most recent data.2 – Most recent week used covered employment of 126,579,970 as denominator. 3 – EUC weekly claims include first, second, third, and fourth tier activity. Tier-specific EUC data can be found here: http://ows.doleta.gov/unemploy/docs/persons.xls4 – Information on the EB program can be found here: http://www.ows.doleta.gov/unemploy/extenben.asp 5 – Some states maintain additional benefit programs for those claimants who exhaust regular, extended and emergency benefits. Information on states that participate, and the extent of benefits paid, can be found starting on page 4-5 of this link: http://ows.doleta.gov/unemploy/pdf/uilawcompar/2010/special.pdf 6 – Information on STC/Worksharing can be found starting on page 4-9 of the following link: http://ows.doleta.gov/unemploy/pdf/uilawcompar/2010/special.pdf
UNADJUSTED INITIAL CLAIMS FOR WEEK ENDED 03/10/2012

STATES WITH A DECREASE OF MORE THAN 1,000

StateChange State Supplied CommentNY-14,222 Fewer layoffs in the transportation, educational services, and food service industries.CA-4,696 Fewer layoffs in the service industry. IL-1,290 No comment. FL-1,215 Fewer layoffs in the construction, manufacturing, trade, retail, and service industries. PA-1,129 Fewer layoffs in the construction, professional, scientific and technology service, transportation, and healthcare and social service industries.
STATES WITH AN INCREASE OF MORE THAN 1,000

StateChange State Supplied CommentNone

Motor Vehicles at same level as last week YoY, so our econ data should continue to be good, but it is mixed data, from the American Asso of Railroads..AAR Reports Mixed Weekly Rail Traffic
WASHINGTON, D.C. – March 22, 2012 – The Association of American Railroads (AAR) today reported mixed weekly rail traffic for the week ending March 17, 2012, with U.S. railroads originating 278,420 carloads, down 5.3 percent compared with the same week last year. Intermodal volume for the week totaled 227,138 trailers and containers, up 2 percent compared with the same week last year.
Eleven of the 20 carload commodity groups posted increases compared with the same week in 2011, with petroleum products, up 32 percent; motor vehicles and equipment, up 15.5 percent, and stone, clay and glass products, up 11.3 percent. The groups showing a significant decrease in weekly traffic included farm products excluding grain, down 21.9 percent, and coal, down 14.7 percent.
Weekly carload volume on Eastern railroads was down 4.9 percent compared with the same week last year. In the West, weekly carload volume was down 5.5 percent compared with the same week in 2011.
For the first eleven weeks of 2012, U.S. railroads reported cumulative volume of 3,112,940 carloads, down 1.8 percent from last year, and 2,453,272 trailers and containers, up 2.3 percent from last year.
Canadian railroads reported 77,876 carloads for the week, up 3.2 percent compared with the same week last year, and 46,200 trailers and containers, down 1.4 percent compared with 2011. For the first eleven weeks of 2012, Canadian railroads reported cumulative volume of 828,787 carloads, up 6.4 percent from the same point last year, and 528,452 trailers and containers, up 6.1 percent from last year.
Mexican railroads reported 14,607 carloads for the week, down 1.3 percent compared with the same week last year, and 9,481 trailers and containers, up 36.5 percent. Cumulative volume on Mexican railroads for the first eleven weeks of 2012 is 147,311 carloads, down 6.7 percent compared with last year, and 97,006 trailers and containers, up 21.5 percent.
Combined North American rail volume for the first eleven weeks of 2012 on 13 reporting U.S., Canadian and Mexican railroads totaled 4,089,038 carloads, down 0.4 percent compared with last year, and 3,078,730 trailers and containers, up 3.4 percent compared with last year

And China Continues to tighten..from Shanghai Daily tonight, CHINA will extend a property tax trial to more cities at an “appropriate time” this year and deepen resource tax reform, its top planning body said yesterday as the nation moves toward a more market-based economy.

The property tax, currently in operation in Shanghai and Chongqing, is aimed at curbing soaring housing prices.

When it rolled out the levy early last year, the Ministry of Finance said all provinces would adopt the tax “when conditions are ripe.”

The National Development and Reform Commission announcement underscores China’s push for further reform of taxes, prices, currency, the financial industry and income distribution, among others.

Vice Premier Li Keqiang said at the weekend that China could not delay tough economic reforms as the nation had reached a crucial point in changing its growth mode, with the aim of keeping economic growth relatively fast and prices basically stable.

The commission also said that China would advance reform in resource tax in more areas and on more products.

This will include a change in the tax mode from a volume-based levy to a tax based on sales price, which will increase the burden on mining companies as commodity prices have soared over the past few years.

The commission also said it will study levying a consumption tax on certain products which consume large amounts of resources and pollute the environment during production.

It also reiterated plans to deepen pricing reform on energy and utility products so they better reflect the scarcity of resources and curb excess demand.

The commission’s wide-ranging statement was posted on the central government’s website after being approved by the State Council, China’s Cabinet.

It said China would continue to work out preferential policies to support the private sector to invest in industries ranging from railways, energy and telecoms to education and medical care.

Private companies will be encouraged to take part in the restructuring of state-owned enterprises.

The government will also improve fiscal policies to help small and micro-sized companies .

The nation will also amend its rules on loans to regulate private lending practices which were highlighted by the death sentence on a Zhejiang businesswoman for illegal fundraising early this year.

China will also release a reform plan on the use of government cars, the document said.

One of China’s four big banks missed, from bloomberg..Earnings Miss
AgriBank (601288) fell 0.4 percent to 2.64 yuan after the bank unexpectedly said its quarterly profit dropped for the first time since listing two years ago due to lending restrictions and higher bad-loan costs.
Net income declined 14 percent to 21.2 billion yuan ($3.4 billion) for the fourth quarter, according to data compiled by Bloomberg based on full-year figures reported by the lender yesterday. That fell short of the 28.84 billion-yuan average estimate of 20 analysts in a Bloomberg survey.
Industrial & Commercial Bank of China Ltd., the nation’s biggest lender, fell 0.2 percent to 4.33 yuan. Bank of China Ltd., the fourth largest, lost 0.3 percent to 2.97 yuan.
China United slid 1.1 percent to 4.49 yuan after saying 2011 net income rose 14 percent to 1.4 billion yuan. That compared with the average profit estimate of 13 analysts for 2.2 billion yuan.

good morning/afternoon guys

USD/JPY 82.39..ouch…have to hold that too.

and SPX is under its key support intraday at 1395.15 and that usd/jpy has to hold guys…

TLT up, JNK Down..time for F/X daily training for me
USD/JPY is down which means a Up Market 82.41 (but close where support came in last night..where is that PM Noda, lol)
Eur/JPY is 109.25 is down from last night which means a down market
Eur/USD the tie breaker is up so it means a Up Market 1.3264
Aud/USD is up so global growth names are the play.

SPX broke thru the 89/55MA intraday cross and is hitting the HOD.

We have 115,000,000 on the NYSE advance-decline volume, so above the first resistance test, we can go to the second resistance level is we want to, but it will need a lot of buying of the eur/usd and selling of the USD/JPY and looking at Spain/Italy bond yields today I don’t see it in the cards.

Yep, it missed estimates..NEW RESIDENTIAL SALES IN FEBRUARY 2012
Sales of new single-family houses in February 2012 were at a seasonally adjusted annual rate of 313,000, according to
estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
This is 1.6 percent (±23.9%)* below the revised January rate of 318,000, but is 11.4 percent (±17.8%)* above the
February 2011 estimate of 281,000.
The median sales price of new houses sold in February 2012 was $233,700; the average sales price was $267,700. The
seasonally adjusted estimate of new houses for sale at the end of February was 150,000. This represents a supply of 5.8
months at the current sales rate.
New

anyone around? it’s hard being a bear…even eating lunch alone today.

With USD/JPY at 82.51 and Eur/USD 1.3260 it all seems strange why we just had this pop in the market?

VXX, which has been soooo beaten up off that TVIX is attempting a move up, 17.56 is the first test

Eur/USD at 1.3265 and USD/JPY at 82.45…I asked adam at live what this firewall money will do and how it is raised.

This could be the explaination.. http://www.ft.com/intl/cms/81dd3226-7441-11e1-9e4d-00144feab49a.pdf

fx….FX EUR/USD: Things that make you go hmmm …
Fri, Mar 23 2012, 19:38 GMT | IFR Markets
Email Print Share Related NewsFX EUR/USD: Things that make you go hmmm … Europe looking at €700 billion firewall FX LATAM: Bourses nudge higher as US marts stabilize Some weird things are abroad today, commodities are up big, select EM equity marts too, but Spain’s equity mart was down big and Europe very mixed. US equity indexes regained their shape and are closing strong (ish) -0.03/+0.38%. Here’s some stuff we don’t like:- rumour ECB was buying Italian bonds earlier, encouraged profit-taking in Spanish bonds but just profit taking, nobody’s saying take ‘em. Germany’s government ready to buy shares of EADS from Daimler who hold a 7.5% stake – why should they have to buy them, can’t the market absorb it? Also ready to buy 4.5% stake held by Dedalus investor consortium. Why do both these investor groups want or need to sell EADS?Poland’s central bank chief says they can’t enter the EZ because the ECB’s current monetary policy would be too low for Poland’s economy (shame Greece didn’t come to that conclusion all those years ago) – another reason to doubt long term viability of EZ as it is currently constructed. Greece has extended deadline for foreign law bondholders to swap notes for a second time, giving investors until April 4 to sign up to PSI (Reuters News sources) Reuters says holdouts from the PSI are targeting several lines of bonds, including small issues by state-owned Hellenic Railways maturing this year. Any non-payment of the foreign law bonds would then spark a cross-default and provoke further actions by holders of larger issues, such as the EUR5.6bn 2016s. The latter have doubled in price since the first deadline on March 8, to 58 cents in the euro.EZ seeks middle ground on rescue fund (Reuters News) EU’s executive pushes to strengthen firewall to E940bn; Ministers meeting in Copenhagen likely to agree on E700bn. “Germany has refused to countenance any combination of the rescue funds but could raise its own contribution to provide a short-term boost to euro zone defences.” [ID:nL6E8EN61J] European Commission proposed E940bn, Germany rejected it, will consider upping and front-loading it’s own contribution by roughly E80bn until EFSF is wound down. Another proposal EFSF/ESM would have joint-lending capacity of E740bn but only until the EFSF is closed. Third alternative – disband EFSF ahead of 2013, make ESM responsible for all lending caps facility at E500bn. We’re surprised that Fin Mins are still this far away in approaches.Italy’s cabinet decides not to fast-track labour reform proposals, said it would be presented to parliament as an ordinary bill, rather than an emergency decree, meaning it will need more time for approval. Means it will not be approved before the summer, and it could take considerably longer … yet another country baulking at EZ’s austerity edicts.ALl is not well in the EZ and some cracks just can’t be plastered over … long term bears have reason to be bearish. Short term momentum says be patient.

End of US Session on Friday we had a eur/usd rally with it at 1.3270 and USD/JPY failed up trendline at 82.33, AUD/USD at 1.0461 and Eur/JPY at 110.00

Trying to understand the Liquidity Analysis…from DM, German Press, one side of it..German resistance to a larger bailout fund for the eurozone might be weakening, but forces within Berlin’s coalition government are still resisting a planned boost to the European Stability Mechanism. The European Stability Mechanism (ESM), the permanent rescue fund meant to stop the spread of the debt crisis, is to take effect in the summer. But just how high this “firewall” will be has been a topic of discussion in the European Union for months. German Chancellor Angela Merkel at first insisted that the upper limit should not exceed 500 billion euros ($663.2 billion). But at the last EU summit in early March, it emerged that the final decision on the ESM’s limit would only be reached in time for the meeting of EU finance ministers in Copenhagen at the end of the month.Double the rescue fund?Rehn has suggested combining the EFSF and the ESM to boost the firewallNearly all the finance ministers in the 17 eurozone member states now think that the 500-billion-euro limit is insufficient. Olli Rehn, EU Commissioner for Monetary Affairs, has recently suggested that the fund be increased to nearly twice that amount. Rehn has suggested combining the current temporary rescue fund, the 440-billion-euro European Financial Stability Facility, with the permanent ESM, amounting to a potential financial heft of 940 billion euros. According to the European Commission, this is the only way to protect the financial markets from speculation against Spain and other ailing eurozone economies. But Rehn’s scenario means that Germany would need to increase its contribution beyond its current threshold of 211 billion euros, a step the chancellor had hoped to steer clear of to avoid blowback from her own governing coalition. Her governing partner, the Free Democrats, and parts of her own conservative Christian Democratic Union, have openly opposed such an increase.Berlin changes course Meanwhile, Finance Minister Wolfgang Schäuble has developed a tentative plan to increase the rescue fund. Schäuble, who in November abruptly dismissed any talk of an increase, now favors a model in which the old EFSF and the new ESM would run in parallel for a time. This would allow the lending volume to increase to 600 billion euros, without drastically increasing the German share of the bailout risk. Schäuble’s plan seems to have made the idea of an increase more palatable to the coalition partners. Michael Meister, deputy chief of Merkel’s CDU, has said it’s clear that the rescue fund must be increased; now it’s just a question of what form it will take. The German parliament is to consider the new laws concerning the ESM in May. Already, the opposition Social Democrats have accused Merkel of being in “breach of promise.”Schäuble has been working on a new variation for the rescue fundInternational pressure Meanwhile, the International Monetary Fund is to decide mid-April whether to establish a special fund for Europe. IMF head Christine Lagarde has emphasized repeatedly that this would only be done if the Europeans make more of a contribution. And at the last meeting of the G20 finance ministers, US Treasury Secretary Timothy Geithner said Europe couldn’t count on more IMF money as long as their firewall protection was too low. EU heads of state decided in December to provide 300 billion euros in fresh loans to the IMF, intended for Europe, but this plan has not been pursued further.Fire chief Draghi The largest European firewall so far was set up by Mario Draghi, the head of the European Central Bank. He lent European banks around 1 trillion euros at the lowest interest rates to prevent a credit crunch and boost the purchase of government bonds. “We had to act,” said Draghi in an interview with German tabloid Bild. “The worst is over, but risks still remain.” Draghi, given a Prussian spiked helmet by Bild’s picture editors, said Germany’s economic growth and stability served as a “role model” for the rest of the eurozone. But Jens Weidmann, head of Germany’s Federal Bank, has criticized the move to flood banks with cheap money, calling it a secret financing of government debt by printing money. He said that could lead to inflation, the opposite of stability. “There can be no compromises in achieving the goal of price stability,” Weidmann said at a recent conference in Frankfurt. The Organization for Economic Cooperation and Development (OECD) has warned Europe to bolster its defenses against possible speculation on the financial markets. “We must build the mother of all firewalls,” OECD Secretary-General Angel Gurria told the business daily Handelsblatt. “The thicker and more impressive it is, the less likely it is that we will need it.” The risk that Spain and Portugal could become the next victims of the financial crisis has by no means been averted, added Gurria. Author: Bernd Riegert / cmk Editor: Ben Knight

(Reuters) – Euro zone finance ministers are moving closer to agreeing a combined rescue fund of around 700 billion euros (582 billion pounds) in Copenhagen next week and anything higher would probably be too ambitious, euro zone diplomats said on Friday.The EU’s top economic official, Olli Rehn, is pushing for a big fund capable of bailing out indebted euro zone countries such as Italy and Spain, should they be cut off from the markets, despite resistance in Germany, the bloc’s paymaster.
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Germany has refused to countenance any combination of the rescue funds but could raise its own contribution to provide a short-term boost to euro zone defences.
In a final push to press Berlin and others to go further, the European Commission circulated a document to member states this week in Brussels, proposing an increase to as much as 940 billion euros.
But three diplomats said that was unrealistic, as the European Central Bank has already injected 1 trillion euros in stimulus to banks, and EU governments have committed to tough economic reform and fiscal discipline to calm financial markets.
“Officials are moving towards the middle ground of giving the combined fund a lending capacity of 700 billion,” said one euro zone diplomat who had seen the Commission report that was also obtained by Reuters.
Finance ministers and central bankers will discuss the size of a bailout firewall in Copenhagen next Friday. That would likely be made up of the European Financial Stability Facility (EFSF) that had been due to be wound up next year, and the European Stability Mechanism (ESM) permanent fund that was set to replace it.
The 440 billion euro EFSF and the 500 billion euro ESM now have a combined lending ceiling of 500 billion euros, which means that in the 12 months from July, when they will co-exist, they would not be able to lend beyond that limit.
Last week, senior euro zone officials told Reuters that the 17-nation currency area is likely to agree on a combined fund of almost 700 billion euros in a trade-off between German opposition to more funds and the need to reassure investors.
“The signals we are getting is that Germans are going to come on board,” said another diplomat.
The Commission hopes that a deal would help motivate other major global powers such as the United States and China to give more funds to the International Monetary Fund to handle any further fallout from the debt crisis.
In a document prepared by officials ahead of the Copenhagen meeting and obtained by Reuters, the EU suggested the time was right to agree the firewall and pave the way for an IMF funding boost.
“The conditions may be in place for EU member states to advocate a decision among all IMF members on an increase in IMF resources,” the document said.
The IMF holds its spring meetings on April 20-22 in Washington and finance chiefs from the world’s biggest economies are expected to decide on whether to boost the fund’s resources.
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For full multimedia coverage: r.reuters.com/xyt94s
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WHAT BERLIN WANTS
Under the Commission’s central proposal, the two funds would be allowed to add up to 940 billion euros, transferring the EFSF’s remaining firepower into the ESM.
That means the lending capacity of the ESM would be 740 billion euros, taking out existing emergency loans to Portugal, Greece and Ireland.
“The markets would be most likely to consider the new lending capacity sufficient and the brunt of the stabilisation effort would no longer fall on the ECB,” the report said.
Two other proposals sketched out by the EU’s executive include one that would allow the EFSF and ESM to operate independently of one another until the EFSF is wound down next year. That would also equate to a joint-lending capacity of 740 billion euros but only until the EFSF is closed.
A third alternative would be to disband the EFSF ahead of 2013, making the ESM responsible for all lending. This model would see total lending capacity at 500 billion euros.
“The question is what Germany might want in return to agreeing to a bigger firewall, be it more austerity from member states, or a German in one of the top posts soon to be vacant in the EU,” said a third diplomat.
European governments are jostling for four coveted jobs, including the post of coordinating policy between euro zone finance ministers, known as the president of the Eurogroup.
Germany has put forward its finance minister, Wolfgang Schaeuble, for the influential post, sources told Reuters this month, although that move may also be a negotiating ploy.
(Additional reporting by John O’Donnell Editing by Maria Golovnina

For Current EU problems..LONDON (Dow Jones)—Euro-zone governments are looking to tackle the issue of reinforcing Europe’s firewall to prevent the sovereign debt crisis from spreading further. But member nations appear divided on the matter, with a paper drafted by the European Union’s executive arm indicating that folding the euro-zone’s temporary bailout fund into its permanent fund would be the most effective way to boost the anti-crisis firewall, an option Germany has so far firmly opposed.
Euro-zone finance ministers plan to discuss the size of the region’s rescue fund when they meet in Copenhagen next week. A decision to boost the size of the funds could open the way for the IMF to also push ahead with an increase of its own anti-crisis firewall during a spring meeting next month.
Meanwhile, Greece’s debt restructuring process may be prolonged amid signs that a tender for Greek bonds under foreign law expiring Friday may be extended for a few more days. Attention has also shifted to Spain, which is under pressure to meet strict budget commitments. Spain said it would agree to extra budget cuts demanded by other euro-zone countries this year, meet a revised budget deficit target for this year and bring its deficit below 3% next year after missing fiscal goals in 2011. A regional election in the province of Andalusia Sunday will provide the first critical test of the government’s austerity measures while major labor unions have called a general strike ahead of the announcement of the 2012 budget next week.
This is the known worry list:
–Friday, March 23: New deadline for exchange offer of Greek bonds under foreign law and bonds issued by state-owned companies. ECB may issue announcement of its approval of Ireland’s deferral of EUR3.1B in scheduled payment by this date.
–Sunday, March 25: Regional elections in Andalusia, Spain
–Monday, March 26: German March Ifo business climate index. Belgian bond auction.
–Tuesday, March 27: Spanish T-bill auction. Italian bond auction.
–Wednesday, March 28: Allotment of ECB three-month long-term refinancing operation. Italian T-bill auction. Euro-area February M3/private sector loan data.
–Thursday, March 29: Italian bond auction. Spain’s main labor union to hold general strike. Eurofi conference in Copenhagen.
–Friday, March 30: Euro-zone finance ministers meet. Euro-area March inflation data. Spanish government due to present 2012 budget.
–Saturday, March 31: Deadline for Irish government to repay EUR3.1 billion in promissory notes
–Monday, April 2: Euro-zone March manufacturing PMI data.
–Wednesday, April 4: Euro-zone March services PMI data. ECB interest rate decision and press conference. Spanish bond auction.
–Thursday, April 5: French bond auction.
–Tuesday, April 10: Greek T-bill auction.
–Wednesday, April 11: Italian T-bill auction. Settlement of foreign-law Greek bonds under PSI.
–Thursday, April 12: Italian bond (BTP) auction.
–Tuesday, April 17: Spanish, Greek T-bill auctions. German April ZEW economic sentiment indicator.
–Thursday, April 19: Spanish, French bond auctions.
–Friday, April 20: German April Ifo business climate index. Annual spring meeting of IMF/World Bank (through April 22).
–Sunday, April 22: French presidential election, first round.
–Monday, April 23: Belgian bond auction.
–Tuesday, April 24: Spanish T-bill auction.
–Wednesday, April 25: Allotment of ECB three-month long-term refinancing operation.
–Thursday, April 26: Italian T-bill auction.
–Friday, April 27: Italian bond (BTP) auction.
–Sunday, April 29: Possible general elections in Greece
–Monday, April 30: Euro-area March M3/private sector loan data. Euro-area April inflation data.
–Wednesday, May 2: Euro-zone April manufacturing PMI data
–Thursday, May 3: Spanish, French bond auctions. ECB rate decision and press conference in Barcelona.
–Friday, May 4: Euro-zone April services PMI data.
–Monday, May 7: German March manufacturing orders data.
–Tuesday, May 8: German March industrial production data.
–Friday, May 11: Italian T-bill auction.
–Monday, May 14: Spanish, Italian bond auctions.
–Tuesday, May 15: Euro-zone flash 1Q GDP data. German May ZEW economic sentiment indicator.
–Wednesday, May 16: French bond auction.
–Thursday, May 17: Spanish bond auction.
–Monday, May 21: Belgian bond auction.
–Tuesday, May 22: Spanish T-bill auction.
–Thursday, May 24: German April Ifo business climate index.
–Monday, May 28: Italian bond auction (zero coupon/linker).
–Tuesday, May 29: Italian T-bill auction.
–Wednesday, May 30: Italian bond auction (BTP). Euro-area April M3/private sector loan data. Allotment of ECB three-month long-term refinancing operation.
–Thursday, May 31: Euro-area May inflation data.

Spain is also trying to bring in Centerist Economic People that will focus on deficit cutting and getting rid of Govt Programs. . http://www.reuters.com/article/2012/03/25/spain-election-idUSL6E8EN3Q520120325