Down from +2.1 in April, but not quite as bad as median forecast of -8.0.

EUR/CHF remains steady at 1.2010.

Ex food, Energy, alcohol and tobacco +0.5% m/m, +1.6% y/y

• Necessary to continue withdrawing the current degree of monetary accomodation as the recovery progresses further and the margin of spare capacity diminishes

-Adds further detail on earnings to version transmitted at 0930BST

-Apr Claimant Count Unemployment -13,700 m/m; Rate 4.9%
-Mar Average Weekly Earnings total pay +0.6% vs +1.1% in Feb
-Jan-Mar ILO Unemployment -45,000; Rate 8.2%
-Mar Claimant Count revised to -5,400 from +3,600

LONDON (MNI) – Claimant count unemployment fell at the fastest pace
for nine months in April, seemingly at odds with recent economic data
which shows the economy has fallen back into recession, figures
released by National Statistics revealed Wednesday.

The data, which also report a healthy rise in the level of
employment and fall in ILO unemployment, shows that firms are hiring and
that the labour market remains remarkably unaffected by the slowdown in
growth.

The level of claimant count unemployment fell 13,700 on the month
in April against the median forecast for a rise of 4,500. The originally
estimated 3,600 rise in the measure in March was also revised to show a
drop of 5,400.

This was the first back-to-back monthly falls in the claimant count
since September and October 2010 and the largest monthly decline since
July 2011.

There was no anecdotal evidence that hiring for the olympics had
flattered the data. While London showed the largest decline in the
claimant count of all the regions, this was not surprising though as it
has the largest population.

The official measure of ILO unemployment fell 45,000 in
January-March compared with the previous three months, the largest drop
since the three months to April 2011. This took the level of
unemployment to its lowest since July-September 2011, in spite of the
economy showing negative growth in Q4 2011 and Q1 this year. The rate of
ILO unemployment fell to 8.2%, below the median of 8.4%.

Employment rose a healthy 105,00 on the quarter, the largest rise
since January-March 2011.

While the jobs market showed surprising resilience, earnings growth
remained very subdued with total pay headline average weekly earnings
falling to just 0.6% in March from 1.1% in February.

The latest fall was due to lower bonus payments across all sectors
but mainly in financial services and manufacturing. Financial services
bonus payments were down 13.02% on the year in March with overall total
pay growth falling to -1.5% in the three months to March compared with a
year earlier, down from unchanged in February.

Total pay in manufacturing fell to 0.5% in the three months to
March compared with the same period a year earlier, as bonus payments
fell 21.9% on the year to March and 9.4% in the three months to March
versus a year ago.

Regular average weekly earnings remained steady at 1.6% on a year
earlier in the three months to March.

-London bureau: 00 44 207 862 7491 e:mail: puglow@marketnews.com

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

• Asks EU for message to defend debt sustainability

Don’t hold ya breath matey. All sounding rather desperate.

EUR/USD back down at 1.2715 in increasingly choppy trade, having run into the aforementioned sell orders at 1.2740/50 (EBS session high 1.2742)

-Apr Claimant Count Unemployment -13,700 m/m; Rate 4.9%
-Mar Average Weekly Earnings total pay +0.6% vs +1.1% in Feb
-Jan-Mar ILO Unemployment -45,000; Rate 8.2%
-Mar Claimant Count revised to -5,400 from +3,600

LONDON (MNI) – Claimant count unemployment fell at the fastest pace
for nine months in April, seemingly at odds with recent economic data
which shows the economy has fallen back into recession, figures
released by National Statistics revealed Wednesday.

The data, which also report a healthy rise in the level of
employment and fall in ILO unemployment, shows that firms are hiring and
that the labour market remains remarkably unaffected by the slowdown in
growth.

The level of claimant count unemployment fell 13,700 on the month
in April against the median forecast for a rise of 4,500. The originally
estimated 3,600 rise in the measure in March was also revised to show a
drop of 5,400.

This was the first back-to-back fall on the month in the claimant
count since September and October 2010 and the largest monthly decline
since July 2011.

There was no anecdotal evidence that hiring for the olympics had
flattered the data. While London showed the largest decline in the
claimant count of all the regions, this was not surprising as it had the
largest population.

The official measure of ILO unemployment fell 45,000 in
January-March compared with the previous three months, the largest drop
since the three months to April 2011. This took the level of
unemployment to its lowest since July-September 2011, in spite of the
economy showing negative growth in Q4 2011 and Q1 this year. The rate of
ILO unemployment fell to 8.2%, below the median of 8.4%.

Employment rose a healthy 105,00 on the quarter, the largest rise
since January-March 2011.

In spite of the surprising resilience seen in the jobs market,
earnings growth remained very subdued with total pay average weekly
earnings falling to just 0.6% in March from 1.1% in February.

-London bureau: 00 44 207 862 7491 e:mail: puglow@marketnews.com

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

ILO Jobless -45k in  3mth to Mar, largest fall since Feb-Apr 2011.

April claimant count -13,700 (expected +5K) largest fall m/m since July 2010, Unemployment 4.9%

Take it for what you will.  EUR/USD up at 1.2735.

I know there’s an ECB monetary policy conference in Franfurt later today.

From my last report spread has narrowed back to 494 bps from 507.

Anyone would think ECB had started buying Spanish bonds, but I have absolutely no reports of such. Well not yet.

EUR/USD has recovered to 1.2722.

Sell orders, as aforementioned, clustered 1.2740/50, buy stops above there.

Italian March EU trade surplus Eur1.554 bln  from deficit of Eur 721 mln in February

Word on the street is that sovereigns are lining up bids towards $1520/25 as well as some physical demand from Asia at the same level, but the metal’s under pressure on the back of all the Greek failure to form a government, as well as a soaring USD Index and  collapsing crude oil prices.

Trader’s are also citing interest in the  100 week MA around $1515.30 as the  key level to hold  to avoid another move lower of around $200.

Not everyone’s that bearish though, with the Washington Post/ Bloomberg reporting this morning that Soros , Eton Park raised their Gold ETP Holdings before the recent price drop… More

Spot gold’s sitting around $1530 having been as low as 1527.15  recently

Speaking in parliament.

• Spain faces serious risk markets don’t lend to it

Spanish 10 year govt bond yield has risen this morning,  presently circa 6.50%

LONDON ((MNI) – The Bank Of England said Wednesday it was offering
an unlimited supply of U.S. dollars in a 7-day operation.

The settlement date on the 7-day op was May 17 maturing May 24 2012.
The Bank said the repo would be at a fixed-rate, with the rate to
be set at 0.66%.

–London Bureau; Tel: +442076341655; email: ukeditorial@marketnews.com

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

Germany to open 10 year benchmark 1.75% July 2022 bund issue

Target amount upto 5 bln euros

Results due soon after 09:30 GMT

France taps 2 year 0.75% September 2014 BTAN, 5 year 1.75% February 2017 BTAN and also off the run 3.50% April 2015 OAT and 3.25% April 2016 OAT

Combined target amount 7.0-8.0 bln euros

Results due around 09:00 GMT

France also selling linker issues 1.10% July 2022 OATei, 2.10% July 2023 OATei and 1.85% July 2027 OATei

Combined target amount 800 mln- 1.2 bln euros

Results due around 09:50 GMT

Dutch caretaker government has reached agreement with opposition on final details of 2013 budget.

FinMin Jager twittered early Wednesday ”We are done”

Package will now be sent to parliament before end of this month.

Presently at 507 bps from the 487 I jotted down first thing.

EUR/USD down through 1.2700. presently at 1.2692.

Italian/German 10 year govt bond yield spread out to 456 bps from 439.

French/German 10 year govt bond yield spread out to 149 bps from 142.

EUR/USD: Bids 1.2650/60 ahead of key tech support 1.2625 (Jan lows). Offers 1.2740/50 buy stops above ahead of more offers 1.2770/90, again with stops above

GBP/USD:  Bids 1.5950/60, 1.5900/10, sell stops below. Offers 1.5980/00

EUR/GBP: Bids 0.7950/55 (options) sell stops below ahead of more bids 0.7935/40 and 0.7900. Offers 0.7970/75 larger up at 0.8010/15

AUD/USD: Bids 0.9880/90 trailing down to 0.9850.  Offers from 0.9940/50 and layered up to 1.0000. Buy stops up through 1.0015

EUR/JPY:  Sell stops through 102.00 and 101.75. Offers sitting up at 102.40/50

USD/JPY:  Corporate offers 80.55/65, buy stops above.  Bids 80.15/25, 80.00/10

EUR/CHF:  Bids 1.2000/10 (SNB), offers 1.2015/25, tech res around 1.2050/55 (200 day MA at 1.2053)

USD/CHF:  Offers 0.9455/65. 0.9490/00 and 0.9515/25 tech res . Bids 0.9430/40

NZD/USD: Strong tech support 0.7640/50 with strong bids staggered down to 0.7625, tech res 0.7790/00

XAU/USD: Talk of sovereign bids 1525

Being told they’re through 102.00 and we’re almost there . More through 101.75 should this EUR/USD collapse continue..

Offers now sit up at 102.40/50

EUR/JPY’s at 102.05

FRANKFURT (MNI) – Eurozone new car registrations fell 19.3% in
April to 790,657 units, though the annual shortfall narrowed to 8.4%
from -10.4% in March, the Association of European Automobile Builders
(ACEA) reported on Wednesday.

Rising unemployment, jobless fears and squeezed household budgets
do not bode well for new car sales. A recent European Commission poll
showed the proportion of consumers looking to buy a car within the next
year barely above last spring’s record low.

In Germany, 247,066 new cars were registered, up 2.9% on the year.
While buying propensity remains resilient, inflation concerns are
starting to weigh on consumers’ willingness to spend, according to the
market research GfK. Moreover, with trust in stock markets improving,
“investment may once again be preferable to making large purchases,” it
argued.

New car registrations in France fell 1.9% over the same period to
166,552 units. Insee’s surveys show only a slight erosion in recent
months in consumer intentions to buy a new car. The problem is that the
earnings are barely keeping up with inflation. Still, high motor fuel
prices might persuade some consumers with resources to switch to new
low-consumption cars.

In Italy, registrations plummeted 18.0% on the year to 129,663.
Rising unemployment has driven consumer confidence to three-year lows,
according to Istat’s surveys, and consumers’ intention to buy a new car
is still probing record depths.

Spanish new car registrations were down 21.7% on the year to
56,250. A recovery in discretionary spending is unlikely, as consumers
suffer through an economic crisis and an unemployment rate topping 24%.

Outside of the four major economies, the sharpest annual decline
was in Finland (-64.5%), followed by Greece (-56.7%) and Portugal
(-41.7%). On the other end of the scale, Estonia (+15.5%) led the way in
gains. Figures for Malta were unavailable.

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

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