Weaker than Reuter’s median forecast of -0.66. Sharply lower than -0.51 in April.

-UK Apr house purchase approvals 51,823 vs 51,067 Mar
-BOE: Non-residents sold net stg1.283bn gilts in Apr

LONDON (MNI) – A raft of Bank of England data published Wednesday
showed mortgage approvals ticked up in April, coming in stronger than
expected, but they remained at very low levels by historic standards and
UK consumers paid off credit card bills at the fastest rates since
August 2006.

The data also showed non-residents were net sellers of gilts for
the third month in a row in April and they painted a patchy picture of
broad money growth, with April’s yearly growth in M4 lending hitting an
all time low but other measure picking up from March.

Mortgage approvals rose to 51,823 in April from 51,067 in March,
hitting its highest level since the 58,610 recorded in January.

Gross mortgage lending, however, rose by only Stg11.534
billion, the smallest increase since the Stg11.367 billion recorded in
July last year.

Net mortgage lending in April rose by Stg1.139 billion, up from
Stg987 million in March and the largest increase since January.

While demand for mortgages increased, UK consumers ran down some
unsecured borrowing.

Net consumer credit in April rose by just Stg268 million, down from
Stg741 million in March and the lowest outturn since January.

The broad money data showed on the BOE’s favoured measure, M4
ex-IOFCs, which excludes economically irrelevant intra-financial sector
transactions, there was a rise of 0.7% on the month and 3.8% on both the
3 month annualised and four quarter/12 month rates.

The one month rise was the largest since January and the four
quarter/12 month increase was the largest since the first quarter of
2009.

–London newsroom: +44 207 862 7491 email: drobinson@marketnews.com

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

LONDON (MNI) – A euro zone break-up cannot be ruled out, says Bank
of England Executive Director Markets Paul Fisher.

“No one is trying to anticipate a euro break-up, but you just can’t
rule it out,” Fisher told the Leicester Mercury during a regional visit.

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

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

-UK Apr house purchase approvals 51,823 vs 51,067 Mar
-BOE: Non-residents sold net stg1.283bn gilts in Apr

LONDON (MNI) – A raft of Bank of England data published Wednesday
showed mortgage approvals ticked up in April, coming in stronger than
expected, but they remained at very low levels by historic standards and
UK consumers paid off credit card bills at the fastest rates since
August 2006.

The data also showed non-residents were net sellers of gilts for
the third month in a row in April and they painted a patchy picture of
broad money growth, with April’s yearly growth in M4 lending hitting an
all time low but other measure picking up from March.

Mortgage approvals rose to 51,823 in April from 51,067 in March.
Gross mortgage lending, however, grew by the smallest amount since July
last year.

–London newsroom: +44 207 862 7491 email: drobinson@marketnews.com

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

Highest since January 2012 but a long way off the 90k or so seen back  before the crisis hit

April Mortgage lending + £1.139 bln (exp +0.95bln) from +£1.0 bln in March, highest since Jan 2012

Consumer credit  £+0.3 bln (exp +£0.2 bln) from £0.7 bln in March, lowest since  Jan 2012

April sa M3: +2.5% y/y
M3 sa 3-mo avg: +2.7% y/y
SA private loans: +0.3% y/y

MNI survey median:
April sa M3: +3.3% y/y
M3 sa 3-mo avg: +3.1% y/y
SA private loans: +0.7% y/y

MNI survey range:
April sa M3: +3.0% to +3.5% y/y
M3 sa 3-mo avg: +2.8% to +3.4% y/y
SA private loans: +0.5% to +1.0% y/y

March sa M3: +3.1% y/y
M3 sa 3-mo avg: +2.8% y/y
SA private loans: +0.6% y/y
–

FRANKFURT (MNI) – Private sector lending in the Eurozone
unexpectedly slowed further in April, with credit growth grinding to a
halt, while M3 broad money supply growth also surprised to the downside,
the European Central Bank reported on Wednesday.

After rising 0.6% on the year in March, private sector loan growth
slowed by half to +0.3% on the year in April, leaving the overall
private sector credit level unchanged after +0.5%. After adjusting for
sales and securitisation, loans rose by 0.8% after holding firm at +1.2%
the month before.

Consumer loans increased by 0.5% on the year, down 0.1 percentage
point from March’s rate, with lending for house purchases, the most
important component, up by 1.0% over the same period compared to +1.1%
previously.

The proportion of consumers looking to purchase or build a home
within the next year had risen at the start of the second quarter to the
highest level in nearly three years, a European Commission survey
showed. But declining job security may scuttle the purchasing plans of
many prospective buyers.

Loans to non-financial corporations were also up by 0.5% y/y in
April, up 0.2 percentage point from March’s rate.

ECB President Mario Draghi reiterated last week that the central
bank’s recent three-year long-term refinancing operations should help
alleviate funding pressures on business, though the full impact would
take some time to be felt.

“Furthermore, this widespread distribution of liquidity is also of
advantage to small and medium-sized enterprises with which smaller banks
have closer relationships,” Draghi said. “We would wish for the
liquidity provided to end up as credit to the private sector. This is
the motivation behind the new non-standard monetary policy instrument.”

The broad money (M3) supply rose by 2.5% on the year in April, well
short of the +3.3% median forecast, bringing the three-month moving
average down to +2.7%, well below the ECB’s price-stability guideline of
+4.5%.

Narrow money (M1) was up by 1.8%, while short-term deposits other
than overnight deposits maintained a growth rate of +3.2%. Over the same
period, marketable instruments slowed to a rate of +2.9%.

–Frankfurt newsroom +49 69 720 142; e-mail:frankfurt@marketnews.com

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

Talking before Senate

• Euro crisis result of faulty crisis management tools
• Crucial for Spain to address deficit
• Meeting fiscal targets will be arduous
• 2011 shows difficult to cut deficit in recession
• Economic situation similar to start of 2008 crisis
• Slowing global growth weighing on exports
• Government GDP forecast is realistic
• Uncertainty remains very high
• Fiscal consolidation necessary for credibility
• There are downside risks to revenue forecasts
• Social security contributions may fall short
• Jobless spending, pension forecasts may fall short
• Spain may need more cuts or tax hikes to meet goal
• Main problem for Spain economy is confidence
• Confidence worsened due to handling of bank crisis

Happy Dayz

Out to 523 bps at writing 

Sells new 5 year 4.75%  June 2017 BTP

Target amount 2.5-3.5 bln euros

Also taps 10 year 5.50% September 2022 BTP

Target amount 2.0-2.75 bln euros

Results due around 09:10 GMT.

Hit 0.9760 on that last push down, triggered by the flushing of the 1.2450 EUR/USD barrier. Tech support lies down at 0.9725/30 (0.9726 last Fri low) and 0.9690 (23 May low). Initial resistance now seen up at 0.9790/00

AUD’s at 0.9774 just now

1.2450 barrier option interest is confined to the annuls of history. I got another poll wrong.  Drat

We’re at 1.2445 having been as low as 1.2437 after sell stops below 1.2450 tripped.

More sell stops reported now through 1.2435.

• When formalities complete
• Formalities in final phase

Bit of good news for Greece for a change.

Down through 1.5600 and UK bids in the 1.5580′s  to lows of 1.5578, but some demand now emerging  to stem the rout temporarily.  Tech support is noted down towards 1.5515/30 (Jan 23/25 lows)

GBP’s around 1.5583

• First option remains to tap markets to recapitalise the lender

Presently at 518 bps from 508 first thing.

Italian/German 10 year govt bond yield spread widens out to 451 bps from 440 first thing

EUR/USD has given back earlier gains, presently hovering just above 1.2450 barrier interest.

Up from revised 0.43 in April (prev 0.40), and better than Reuter’s median forecast of 0.48.

Bloomberg reporting.

FRANCE DATA: Feb-Apr sa housing starts -1.3% q/q; nsa -21.7% y/y
- 1Q sa housing permits -3.3% q/q, nsa -2.2% y/y
- Feb-Apr commercial starts -25.7% y/y, starts -3.4% y/y

“Reverting to the drachma would see per capita income fall 55 pct”…

A report published yesterday  saw Greece’s GDP  falling by at least 22%,  unemployment rising to 34% particularly amongst the young, inflation rising to  32% and lending rates to 37%, with a new drachma devalued by around 65%

More in ekathimerini.com

Russia seen buying cable in recent trade.  Not that we’re any firmer, presently at 1.5607, just above session low 1.5605.

While we’re on topic of sovereigns, didn’t the Reserve Bank of India do well offloading cable yesterday up around 1.5700.  I’ve always had a sneaking admiration for those chaps.