Week of April 22, 2012 thru April 28, 2012

US CBO Text: 2nd Part Of Analysis Of President's FY'13 Budget


WASHINGTON (MNI) - The following are highlights from the Congressional Budget Office Friday of the second part of its analysis of President Obama's 2013 budget, this time focusing on its economic effects:

Each year, after the President releases his annual budget request, the Congressional Budget Office (CBO) analyzes the proposals and, using its own estimating procedures and assumptions, projects what the federal budget would look like over the next 10 years if those proposals were adopted. CBO usually provides those results in two parts: The first part presents an examination of the proposals' budgetary impact without considering their effects on the U.S. economy.

Battle of the Economic Models: Mexico vs Argentina


--Finance Ministers of Mexico, Argentina De Facto Debate on Policy

WASHINGTON (MNI) - With the number of international meetings held in the world each year there is a statistical probability that they will occasionally coincide with conflict or controversy, and coincidentally bring some of the main players face to face.

Just days after Argentina's President Cristina Fernandez de Kirchner seized control of the YPF oil company, majority owned by Spain's Repsol in which Mexico's Pemex has a stake, Argentine Economy Minister Hernan Lorenzino appeared on a panel with Mexico Finance Secretary Jose Antonio Meade at an event sponsored by Spain's leading daily newspaper El Pais.

ECB Nowotny: No Grounds For Discussing Any Int Rates Change


WASHINGTON (MNI) - There is no basis at the moment for the European Central Bank to contemplate either a hike or a cut in its interest rates, Governing Council member Ewald Nowotny told MNI Friday.

ECB's Coeure Urges 'Financial Compact' For Europe


FRANKFURT (MNI) - Financial integration is essential for Eurozone competitiveness and efficiency, European Central Bank Executive Board member Benoit Coeure said Friday.

"However, we cannot simply return to the kind of financial integration we had in the pre-crisis era," Coeure said in a text for delivery at a Princeton University conference.

Next Week/US: FOMC Statement, Bernanke News Conf., Q1 GDP


WASHINGTON (MNI) - The advanced report on U.S. first quarter GDP and Federal Reserve Chairman Ben Bernanke's news conference will dominate economic news in the week ahead, alongside a string of releases on housing and consumer confidence.

First quarter GDP is expected to have climbed a healthy 2.5%, although the advanced report could swing pretty far in either direction. Any surprises to the downside would likely come as a shock to markets, however, as consumption and payrolls data throughout the quarter have suggested fairly robust growth.

Economic data from the past week -- weaker existing home sales, rising initial jobless claims -- have suggested the possibility of a slowdown, and could also make for a volatile market environment.

German Fin Min: G7 'Fully Agree' Eurozone Has Done Enough


--ECB Weidmann: 'Reflexive' Call for ECB Intervention Worrying
--Weidmann: Eurozone Situation Remains Fragile; Crisis Not Overcome

WASHINGTON (MNI) - German Finance Minister Wolfgang Schaeuble Friday said finance ministers the Group of Seven "fully agree" the Eurozone has undertaken the necessary actions to tackle its sovereign debt crisis.

Speaking at a press conference in Washington, Schaeuble declared the Eurozone's own actions were therefore no longer the "focus" of this week's IMF Spring Meetings, and he rejected as "nonsense" calls for Germany to do more to boost European economic activity.

US API Text: Gasoline Demand Rises Depite Higher Gas Prices


WASHINGTON (MNI) - The following text is the summary of the American Petroleum Institute's monthly report on domestic petroleum deliveries, gasoline deliveries and crude oil production for February released Friday:

Total domestic petroleum deliveries, a measure of U.S. petroleum demand, dropped 1.3 percent in March as compared with the same month in 2011. Gasoline deliveries, a measure of consumer gasoline demand, increased 3.0 percent to 9.0 million barrels per day, the second monthly increase in demand since February 2011. For the first quarter of 2012, gasoline demand increased only slightly by 0.4 percent over the first quarter of 2011. This weak demand change is reflective of relatively weak employment conditions.

UPDATE: US News Events Calendar


--Meetings & Events of Interest to Subscribers
--Updating With Treasury Quarterly Refunding Announcement Schedule

DATE GMT / EST EVENT

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20-22 Apr -- IMF/World Bank Spring Meetings, in Washington

20-Apr 1300/0900 Press briefing by IMF Director of Middle East and Central Asia Department Masood Ahmed.

20-Apr 1345/0945 Treasury Secretary Tim Geithner attends G-20 Finance Ministers and Central Bank Governors Meeting at the IMF headquarters. Hosted by Mexico Minister of

Transcript: BOE Posen Q and A On Economy, Policy: Part 2


EDINBURGH (MNI) - The following is the second part of a transcript of Bank of England Monetary Policy Committee member Adam Posen's question and answer session with reporters on the economy and monetary policy. It followed his appearance at the Just Banking conference in the evening of April 19.

The questions have been paraphrased while Posen's answers are direct quotes.

Q: Factory output data has been weak as well.

Transcript: BOE Posen Q and A On Economy, Policy: Part 1


EDINBURGH (MNI) - The following is a transcript of Bank of England Monetary Policy Committee member Adam Posen's question and answer session with reporters on the economy and monetary policy. It followed his appearance at the Just Banking conference in the evening of April 19.

The questions have been paraphrased while Posen's answers are direct quotes.

Q: The minutes made a reference the possibility of three consecutive quarters of negative growth. How concerned are you about this ?