Versus -0.16 in February, weaker than Reuter’s median forecast of -0.16.

–BOE: UK Feb House Purchase Approvals 48,986 vs 57,899 Jan
–BOE: UK Feb House Purchase Approvals Lowest Since June 2011
–BOE: UK Feb Net Mortgage Lending Change m/m +stg1.2bn
–BOE: UK Feb Net Consumer Credit +stg0.4bn
–BOE: Feb M4 Ex-IOFCs -0.4% m/m; +2.5% 1Q/3m Ann.; +2.9% 4q/12m
–BOE: UK Feb M4 -1.9% m/m; -3.4% y/y; M4 Lending -3.2% y/y
–BOE Credit Svy Sees Secured Household Credit Broadly Unchanged
–BOE Credit Svy: Unsecured Hhold Credit Seen Broadly Unch Q1
–BOE Credit Svy: Credit Access Broadly Unch For SMES, Large Firms

LONDON (MNI) – UK mortgage approvals dropped to their lowest level
since June 2011 in February, the Bank of England data showed Thursday.

Approvals fell to 48,986 from 57,899 in January, following a
sustained period of approvals coming in well above the 50,000 mark. The
latter had tentatively reassured policymakers and economic commentators
that housing market activity might have bottomed out.

The fall may be linked to the ending of the holiday on stamp duty
for some house purchases, a major factor in the sharp drop seen in
the Nationwide house price index in March, which was released earlier
this morning.

The latest monetary and lending report from the BOE also showed
renewed weakness in the monetary aggregates, with M4 seeing its sharpest
fall ever on the month and on the year, at -1.9 m/m and -3.4% on the
year.

But the BOE advised looking at the M4 excluding IOFCs measure,
which was only down 0.4% on the month.

That said, the latest data adds to evidence that the moderate
recovery seen at the start of the year in the PMIs as well as in other
data, may be losing what little momentum it had.

Net lending secured on dwellings rose stg1.2bn on the month, weaker
than January’s stg1.6bn rise but still well above the levels seen in
December (stg1.0bn) and November (stg0.7bn).

In its Q1 Credit Conditions Survey released at the same time, the
Bank said that credit access across a range of categories, including
secured and unsecured household credit and corporate credit had remained
“broadly unchanged” through Q1.

“Lenders expect credit availability to decrease for households in
the coming quarter, but remain unchanged for firms of all sizes,” the
survey said.

The BOE said that demand for secured household lending was reported
to have increased and was expected to rise further, but household demand
for unsecured credit and demand from SMEs as well as large firms had
fallen.

Default rates fell on secured and unsecured household loans, and
were expected to stabilise in the next three months, the BOE said.
Defaults among large and medium-size firms had increase and were
expected to rise further.

More worrying still for the BOE’s Monetary Policy Committee, the
survey reports that “spreads on secured lending to households and
lending to large and medium-sized firms increased markedly over the
quarter, and lenders expected a further increase in the coming three
months”.

–London newsroom: +44 207 862 7492 email: dthomas@marketnews.com

[TOPICS: M$B$$$,M$$BE$,MABDS$]

–BOE: UK Feb House Purchase Approvals 48,986 vs 57,899 Jan
–BOE: UK Feb House Purchase Approvals Lowest Since June 2011
–BOE: UK Feb Net Mortgage Lending Change m/m +stg1.2bn
–BOE: UK Feb Net Consumer Credit +stg0.4bn
–BOE: Feb M4 Ex-IOFCs -0.4% m/m; +2.5% 1Q/3m Ann.; +2.9% 4q/12m
–BOE: UK Feb M4 -1.9% m/m; -3.4% y/y; M4 Lending -3.2% y/y
–BOE Credit Svy Sees Secured Household Credit Broadly Unchanged
–BOE Credit Svy: Unsecured Hhold Credit Seen Broadly Unch Q1
–BOE Credit Svy: Cred Access Broadly Unch For SMES, Large Firms

LONDON (MNI) – UK mortgage approvals dropped to their lowest level
since June 2011 in February, the Bank of England data showed Thursday.

Approvals fell to 48,986 from 57,899 in January, following a
sustained period of approvals coming in well above the 50,000 mark. The
latter had tentatively reassured policymakers and economic commentators
that housing market activity might have bottomed out.

The fall may be linked to the ending of the holiday on stamp duty
for some house purchases, a major factor in the sharp drop seen in
the Nationwide house price index in March, which was released earlier
this morning.

The latest monetary and lending report from the BOE also showed
renewed weakness in the monetary aggregates, with M4 seeing its sharpest
fall ever on the month and on the year, at -1.9 m/m and -3.4% on the
year.

But the BOE advised looking at the M4 excluding IOFCs measure,
which was only down 0.4% on the month.

Net lending secured on dwellings rose stg1.2bn on the month, weaker
than January’s stg1.6bn rise but still well above the levels seen in
December (stg1.0bn) and November (stg0.7bn).

–London newsroom: +44 207 862 7492 email: dthomas@marketnews.com

[TOPICS: M$B$$$,M$$BE$,MABDS$]

Lowest since June 2011 (Reuters expected 50k)

Feb UK Mortgage lending +£1.2 bln m/m from +£1.6 bln in Jan

Feb M4  growth -1.9%, -3.4 y/y, lowest since series started

Cable takes another dip to 1.5904 on the weaker data

LONDON (MNI) – The Bank of England will remain a lender of last
resort to “solvent” commercial banks, Monetary Policy Committee member
and BOE executive director Paul Fisher said in a speech Thursday.

Explaining the framework of the Bank’s new sterling liquidity
measures, Fisher said: “The central bank needs to stand ready as lender
of last resort.”

However, he noted that the liquidity should be provided against
short-term buffer shocks to support the wider economy and should only be
provided to “solvent” institutions.

“The Bank of England will only lend to those commercial banks that
are, in its judgment, solvent and viable,” he said.

Fisher noted however, that the Bank expected banks to provide their
own liquidity insurance, with some steps already made in that direction.

“We expect banks to self-insure for most of their liquidity needs –
and while there has been encouraging progress to date, more is needed on
that front,” he said.

– London Bureau (+20 7862 7499), ukeditorial@marketnews.

[TOPICS: MT$$$$,M$$BE$]

Cue the Jaws music

SA Unemployment: -18k (pan-German), -9k (West), -9k (East)
–
FRANKFURT (MNI) – German unemployment resumed its downward path in
March, while job vacancies continued to fall, albeit at a significantly
slower pace, the Federal Labour Office reported on Thursday.

Some 18,000 persons left the ranks of the unemployed in March,
evenly split between the western and eastern states. With level coming
down to a seasonally adjusted 2.841 million, the jobless rate slipped
0.1 percentage point to 6.7%. Most analysts had forecast a more modest
monthly decline and no change in the rate.

In unadjusted terms, the unemployment rate fell 0.2 percentage
point to 7.2%, reflecting 3.028 million unemployed persons compared
to 3.11 million in February.

The number of job vacancies fell by 1,000 after plummeting by
11,000 last month. Payroll jobs, which lag by one month, rose by 40,000
in February following January’s 86,000 increase.

While high oil prices, austerity programs in Europe and a slowing
Chinese economy represent downside risks to demand for German goods,
firms remain upbeat and intent on hiring, surveys show.

The Ifo institute’s employment barometre rose again in February,
showing that the German companies “are still planning to increase their
staff numbers.” Ifo’s March business survey showed manufacturing and
service firms planning to build up their workforce.

The German labour market remains the envy of most of its Eurozone
partners, keeping consumers’ propensity to buy “at an extremely good
level,” according to the GfK Group. “The stable labour market in
Germany, in particular, is a major reason for this desire to spend.”

The latest forecasts issued by the German Labour Agency’s IAB
research institute see the ranks of the unemployed falling to 2.84
million on average this year.

Over the same period, average employment should climb to a
post-reunification high of 41.55 million, the institute projected. The
labour market as a whole is likely to grow by approximately 40,000
persons in 2012, due to rising immigration and labour participation.

– Frankfurt bureau: +49 69 720 142, email: frankfurt@marketnews.com –

[TOPICS: M$G$$$,MAGDS$,M$X$$$,M$XDS$,MT$$$$]

GERMANY DATA: February machine orders -16%; January -6% %, December
-10%: VDMA
– VDMA: February domestic machine orders -12% y/y;foreign orders -18%
– VDMA: December-February total orders -11% y/y;domestic -7%; foreign
-12%
– See MNI MainWire for details

Been told by a UK clearer he was seen in recent trade around the 1.5930 level and were presently down at 1.5918…,

GERMANY DATA: March sa unemployment -18k m/m vs MNI fcast -10.0k
– Germany March sa unemployment rate 6.7% vs February 6.8%
– Germany March sa unemployment 2.841 mln vs February 2.859 mln
– Germany March nsa unemployment rate 7.2% vs February 7.4%
– Germany March nsa unemployment 3.028 mln vs February 3.11 mln
– Germany March sa job vacancies -1k vs February -11k
– Germany February sa payroll jobs +40k vs January +86k
– See MNI MainWire for details

BERLIN (MNI) – Germany’s Finance Minister Wolfgang Schaeuble on
Thursday reaffirmed the government’s stance for increasing the European
firewall against the debt crisis to around E700 billion.

In a speech in the German parliament, Schaeuble said he will lobby
at the Eurogroup meeting in Copenhagen Friday for the German proposal,
which would allow the roughly E200 billion in funds already committed by
Europe’s temporary bailout fund, the EFSF, to run in tandem with the
E500 billion of the planned permanent rescue fund, the ESM.

This size will be sufficient “to permanently fight uncertainties in
markets,” the minister argued.

Schaeuble asserted that the Eurozone is on track to overcome the
sovereign debt crisis. “The reform programs are working in Portugal and
Ireland,” he said. “And Spain and Italy have undertaken important
steps.”

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: MGX$$$,M$X$$$,M$$CR$,M$G$$$,MFX$$$,MT$$$$]

Better than Reuter’s median forecast of -10k.

Jobless rate down to 6.7% from 6.8% in February, better than median forecast of unchanged 6.8%.

EUR/USD marginally firmer at 1.3340 in listless trade.

If this is what it’s like now, what’s it gonna be like come the Summer doldrums

Reuter’s headline.

• Can’t boost Europe growth with more debt
• Confident IMF will boost its crisis backstop
• Italy and Spain have taken “important steps” to counter debt crisis
• Rescue programs for Portugal and Ireland “are working”
• Greece has the “foundation” to achieve sustainable debt and growth

EUR/USD back to where it was when I parked my bum, presently at 1.3320.

The Japanese yen is seeing some accelerated strength as we head into the Japanese financial year end.

USD/JPY is down at 82.30 from around 82.65 when I sat down, the move accelerating after sell stops tripped through 82.50.  Model funds notable sellers in recent trade.

Elsewhere EUR/JPY down at 109.75 from early 110.05, real money selling notable in recent trade.

Back with USD/JPY, talk of buy orders clustered down at 82.00/10.

• ECB says EFSF, ESM should be combined
• ECB welcomes EU commitment to review bailout funding

• “Don’t expect miracles” from using strategic stocks

Time for a whip-round….

Dow Jones article.

EUR/USD up marginally in early European trade, presently at 1.3340.

Yesterday we had reports of sell orders lined up from 1.3370 upto 1.3400 barrier interest. 

I haven’t got direct confirmation interest still in situ, but would certainly think it is.

– Feb +41k, Jan +94k, Dec +54k, Nov +76k, Oct +18k, Sep +30k, Aug +13k

FRANKFURT (MNI) – The number of gainfully employed in Germany
increased without fail for a full two years through February, even
though the jobless level rose for the second consecutive month, the
Federal Statistical Office reported on Thursday.

Employment expanded by 41,000 persons in February to 41.406
million, a new record high.

Although not enough to dislodge the jobless rate – currently at
5.7% – the number of persons unemployed rose by 20,000 to
2.42 million in International Labour Organisation terms, the statistics
office added.

The slowdown in job gains may well continue. The March PMI polls
showed employment growing at the weakest pace in two years (50.7), as
downsizing in industry offset most hiring in the services. Employers
cited concerns over the economic outlook and reduced workloads.

“Lower workloads in seven of the past eight months seem to be
catching up on private sector firms,” the PMI report said.

Nevertheless, while high oil prices, austerity programs in Europe
and a slowing Chinese economy represent downside risks to demand for
German goods, firms remain upbeat and intent on hiring, other surveys
show.

The Ifo institute’s employment barometre rose again in February,
showing that the German companies “are still planning to increase their
staff numbers.” Ifo’s March business survey showed manufacturing and
service firms planning to build up their workforce.

At 7:55 GMT today, the Labour Ministry is scheduled to release
jobless figures for March.

– Frankfurt bureau: +49 69 720 142: email: frankfurt@marketnews.com –

[TOPICS: M$G$$$,MAGDS$,M$X$$$,M$XDS$]

–Nationwide: UK Mar House Prices Down 1.0% m/m; Down 0.9% y/y
–Sharp m/m Price Slide Pushes y/y Rate Into Negative Territory
–Nationwide Cites Stamp Duty Holiday Expiry For Slump In Prices
–Challenging Econ Likely To Be Drag On Prices Over Next Year

LONDON (MNI) – UK house prices plummeted by a full percentage point
in March, pushing the year-on-year change into negative territory for
the first time in six months.

Prices were down 0.9% from March 2011.

In February prices had risen by 0.4% on the month to leave
prices up 0.9% on the year, underlining the volatility of house price
surveys as well as the likely impact of the expiry of the government’s
stamp duty holiday.

Commenting on the figures, Robert Gardner, Nationwide’s Chief
Economist, said in a statement:

“A slowdown was to be expected, given the imminent expiry of the
stamp duty holiday, which had provided a temporary boost to house prices
in early 2012 as buyers brought forward purchases that would otherwise
have taken place later in the year.

“This dampening effect on housing market activity and prices may
fade over the course of the summer, especially if the wider economic
outlook begins to improve and other policy measures, such as the
Government’s NewBuy scheme are successful in supporting buyer demand.

“However, in our view the challenging economic backdrop is likely
to continue to act as a drag, with house prices moving sideways or
modestly lower over the next twelve months.”

–London newsroom: 4420 7862 7492; email: dthomas@marketnews.com

[TOPICS: M$B$$$,MABDS$]