Today's Headlines

Bloomberg:

• Euro-Region Unemployment Surges to 14-Year High, Nears Record. Euro-region unemployment rose to the highest in more than 14 years and manufacturing contracted for an eighth month, adding to signs the economy probably slipped into a recession in the first quarter. The jobless rate in the 17-nation euro area rose to 10.8 percent in February from 10.7 percent a month earlier, the European Union’s statistics office in Luxembourg said today. That’s the highest since June 1997 and close to the record of 10.9 percent. A manufacturing gauge, based on a survey of purchasing managers, fell to 47.7 in March from 49, Markit Economics said. “Unemployment is lagging economic developments and the situation on the labor market will likely remain difficult through 2012,” said Jens Kramer, an economist at NordLB in Hanover, Germany. “Domestic demand is hurt by the difficult labor market and tougher austerity measures. The first and second quarters will show a contraction followed by a slight recovery.” In Italy, the jobless rate rose to 9.3 percent from 9.1 percent based on provisional data. Spain had the highest rate at 23.6 percent. Markit’s euro-area manufacturing gauge dropped to a three- month low in March. A German indicator fell to 48.4 from 50.2 the previous month, while in France the number slipped to 46.7 from 50. “There were further signs that the manufacturing malaise already exhibited at the periphery of the currency bloc was spreading to the core,” Markit said in today’s report. “Demand was weaker in both domestic and export markets.”
• Sovereign, Corporate Bond Risk Falls, Credit-Default Swap Show. The cost of insuring against default on European sovereign and corporate debt fell, according to BNP Paribas SA. The Markit iTraxx SovX Western Europe Index of credit- default swaps on 15 governments fell 7.5 basis points to 262.5 at 8:39 a.m. in London, the lowest in almost two weeks. Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings dropped 10.5 basis points to 601.5. The Markit iTraxx Europe Index of 125 companies with investment-grade ratings fell 2.75 basis points to 122.25 basis points. The Markit iTraxx Financial Index linked to senior debt of 25 banks and insurers fell four basis points to 216 and the subordinated index declined 4.5 to 355.5.
• Fed's Pianalto Sees 2.5% Economic Growth in 2012, 3% Next Year. Federal Reserve Bank of Cleveland President Sandra Pianalto said that the economic expansion is continuing and that she expects growth of 2.5 percent this year and around 3 percent next year.
• Construction Spending in U.S. Unexpectedly Drops in February. Construction spending in the U.S. unexpectedly fell in February, reflecting broad-based declines that indicate the building industry will take time to stabilize. The 1.1 percent decrease, the biggest in seven months, followed a revised 0.8 percent retreat in January that was larger than previously estimated, Commerce Department figures showed today in Washington. The median estimate of 45 economists surveyed by Bloomberg News called for a 0.6 percent increase.
• Manufacturing in U.S. Grew at Faster Pace in March: Economy. Manufacturing in the U.S. expanded at a faster pace in March, driven by gains in employment and production that signal the world’s biggest economy is underpinning global growth. The Institute for Supply Management’s factory index climbed to 53.4 last month from 52.4 in February, the Tempe, Arizona- based group’s report showed today. Readings greater than 50 signal growth. The median forecast in a Bloomberg News survey called for a gain to 53.

Wall Street Journal:

• The Endless Spending Spree. America's debt is $15.6 trillion and growing. Instead of raising taxes, here's an idea: Let's try capitalism.

CNBC.com:

• No More Easing, But No Rate Hikes Either: Fed's Fisher. While saying "it's a little bit premature to talk about tightening," Dallas Fed President Richard Fisher also believes it's time for the central bank to stand down on any more stimulus.
• Apple's(AAPL) Stock Gets First $1,000-Plus Price Target.
• As Foreclosure Problems Persist, Fed Seeks More Fines. Federal regulators are poised to crack down on eight financial firms that are not part of the recent government settlement over home foreclosure practices involving sloppy, inaccurate or forged documents.
• Greek Economy to Slump 5% This Year: Think Tank.
  

Business Insider:

• OECD: The US Officially Has The Highest Corporate Tax Rate In The World.
• Are You Sitting Down? Check Out The Latest Youth Unemployment Number In Spain.
• CHART OF THE DAY: THE TRUTH ABOUT EUROPE.

Zero Hedge:

• Italian Banks Underwater On LTRO2 After Just One Month.
  
• From All-In To All-Out: Are Macro Hedge Funds The Canary In The Stockmine? (graph)
• Meet The Uber-Kommissar: Germany Expands European Domination Plan; Will Enact European Budget Supervision Panel.

AppleInsider:

• Apple(AAPL) Working on Physical Game Controller for iPads and Other iOS Devices.

Reuters:

• US EPA Delays Rule On Natgas Drilling Emissions. The U.S. environmentregulator and conservation groups have agreed to a two-weekextension on finalizing rules that aim to slash smog-formingemissions from hydraulic fracturing, or fracking, operationswhere natural gas and oil are drilled, an agency spokeswomansaid. The rules, which have now been delayed for the fourth timesince September, are now expected to be finished on April 17instead of April 3.

Guardian:

• Muppets Strike Back at Goldman Sachs. In a new Funny or Die video, the puppets lash back at the banking giant in the wake of Greg Smith's infamous op-ed.