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  HONG KONG - After months of Weakness in overseas demand, Especially In Europe, Chinese exports finally Seem To Be Recovering - but now the country's domestic economy is looking a little less robust.

Exports surged last month, Helping to Produce unexpected trade surplus year of $ 5.35 one billion in March, government data released According To Tuesday. Grew lethargically purpose imports, warning sign in a year economy Where government Policies are intended Rapidly Deliberately deflating real estate bubble and has got A Growing number of wealthy Chinese APPEAR To Be moving money out of the country.

Qu Hongbin, a China economist in the Hong Kong offices of HSBC, the trade figures Said That Were representative of a Broader trend. "The Message Is That excluding non-recurring domestic demand is still Slowing, 'he wrote in a research report.  

Slowing domestic demand is a concern in year economy, except When Deliberately engineered to slow inflation, as is the case in China to Some extents. Goal the Chinese government faces a particularly difficulty balancing act, have strong Economic Growth has-been icts hand to claim politique Legitimacy.

Chinese Officials Have Been uncertain about how much to Stimulate the economy in response to the weakening of demand, particularly as inflation restes a problem.

Consumer Prices Were Up 3.6 percent in March from a year Earlier, According To official data, and economists inside and outside China Say That Represents the official index as little as half of actual inflation Because Of Methodological problems, China's National Bureau of Statistics is Ways to Improve looking for ict data collection on prices.  

Real estate developers and Other Have Been corporate borrowers dry year for easing of government lending règlements, Complaining That the Economy Slowed HAS Already too much. Purpose Tang Min, a senior adviser to the Economic Policy State Council, the Chinese firm, Face value guarantee in a rare Tuesday column in People's Daily, the Communist Party's official newspaper.

"Due to the severe conditions of Rising Prices, Can not Be There still has substantial businesses easing of the Monetary Policy, 'he wrote. "At The Same Time, We Also See That There are inevitable rising behind factoring Prices, So There is No need to adopt overly tight year Monetary Policy."

A wide number of Economic statistics are due from China this week, most is notably the Economic Growth appears for the first quarter, released Friday To Be. The March trade figures mean That China posted a trade surplus of slight 670 USD one million in the first quarter of this year, $ 2.2 After a one billion deficit in the first quarter of last year has beens That HAD modest drag on growth. Private economists are Predicting That Will post growth of China Between 8 and 9 percent in the first quarter - great by international standards, goal Slower Than the double-digit growth the country enjoyed for HAS MOST of the past decade.

Purpose weak growth in imports Could Be Signal of a follow-term Difficulties in China's domestic economy.

Chinese leaders are Trying to deflate a real estate bubble by banning MOST Purchases of Third-and second homes, a policy HAS That Brought year abrupt Slowdown in residential housing construction, with the exception of public housing projects, a national priority to provide statement more affordable housing.  

Diana Choyleva, an economist in the Hong Kong office of Lombard Street Research, Said That "growth worries are Likely to Force Into easing policy makers, although politics REMAIN the wild card."

Many Chinese Exporters Have Been looking to the country's domestic market in response to tepid growth overseas for the past Several years, are finding purpose the Chinese market annually Even bigger challenge now air conditioners.

"The buyers are very aggressive in Asking for price discounts and the right to return unsold products," Said Peter Chen, the sales manager at the Hua Hai Toys Factory, Which Makes water pistols in Chenghai, China. "At least our overseas Customers Have Asked never to return products back to us."

The recovery in Chinese exports last month, up 8.9 percent from a year Earlier, Suggests That a long-Predicted shift in manufacturing to Other Asian nations HAS not yet taken place we Meaningful scale.

Blue-collar WAGES Have Nearly tripled in the past seven years or so in China, heavy object Investments in ports, highways, telecommunications infrastructure and Other Have Helped to offset the extra Labor Costs by making it less expensive and cutting easier to ship goods to Markets.

A study released last month by Panjiva, a New York consulting company Advises That 2.000 is mostly American Importers how to locate overseas suppliers, found That Slightly more Than half of the Importers Interviewed HAD Face value is desired to Increase Purchases From Other Asian nations, notably India , Vietnam and Thailand.  

That goal HAS not yet translated Into shifts in outsourcing.

"When it Comes to moving manufacturing Beyond China, there 's still more talk Than action," Josh Green, the chief executive of Panjiva, wrote in an e-mail on Monday.

One of the biggest mysteries in China now Involves the strength of domestic investment, for the government Which Will release figures late this week, and the extents of capital leaving the country. The People's Bank of China, the central bank, is Expected to release in the next week ict appears quarterly in exchange for the country's foreign exchange reserves, the best proxy for how much cash is flowing in or out of the country.  

Until last autumn, China WAS Struggling to limit speculative investment expectations drawn by the Beijing Authorities That Would allow the renminbi continues to Appreciating Against the dollar and the Chinese Economy That Would REMAIN a safe, stable place to invest.

There Have Been Many signs since then, most is anecdotal evidence of 'em, that' capital is now starting to flow out of China, although the foreign exchange reserves, at $ 3.18 trillion, give the country ample Ability to Counter Any run on the renminbi.

Bankers and lawyers Say That Chinese companies doing Initial Public Offerings increasingly want to keep the produit INSTEAD of repatriating offshore Them to China. Chinese Businesses Have Been more aggressive in making acquisitions offshore, particularly related to natural resources, although this has-been Partly driven by government policy.  

Also, wealthy Chinese pouring huge sums Have Been Into real estate in havens like Hong Kong and New York, Even As Prices tumble in real estate mainland China. They Have Become aussi very active users of a wide-range of offshore trusts and tax shelters in places like the Cayman Islands, far from the Chinese Authorities and anti-tax fraud investigators.

Michael Kim, founder and partner of Kobre & Kim, a London law firm Specializing in asset tracing, Said That Worked increasingly wealthy Chinese with wealthy Brazilians in hiding money offshore, Especially the Caribbean.

Many of Being The New Financial structures created are so aggressive and creative in hiding assets from the Chinese government That "10 years ago, Have they'd gotten shot for it," Said James Corbett, Mr. Kim's partner.

Hilda Wang Contributed reporting.  

Trade Surplus in China Comes as Surprise

  After broadcasting an audio clip on the "Today" show about George Zimmerman last month hit the trifecta That of Being misleading, incendiary and dead-bang wrong, NBC News management Took serious action: it fired the producer responsible in a statement apologizing and Issued for making it APPEAR as if Mr. Zimmerman made overtly racist statements HAD.

The only thing NBC did not do the proper WAS carry on the "Today" show.

What is it with television news and corrections? When the rest of the journalism world gets something wrong, They Generally okay for themselves. Purpose network news acts as if an on-air admission of error might due to a meteor land on the noggin of one of ict precious talking heads. NBC Used all of the Powers at ict élimination avis to the mistake, except the high-visibility airtime Where the clip ran bad in the first place.  

Here is how NBC edited the clip of Mr. Zimmerman, who is now charged with second-degree murder in the box Trayvon Martin:

"This guy looks like he's up to no good. … ET looks black. "

Here is what Mr. Zimmerman Actually said:

"This guy looks like he's up to no good. Now he's on drugs or something. It's raining and he's just walking around, looking about. "The dispatcher then Asks," OK, and this guy - is he white, black or Hispanic? "Mr. Zimmerman pauses and replies," He looks black. "

The clip WAS first broadcast on March 22, but no one Noticed Until It Was rebroadcast on March 27. Later, When word of the misleading edit got out, everyone from Sean Hannity to Jon Stewart reacted with disbelief, with Good Reason.  

Some Went on to draw a line from MSNBC to NBC and Its aggressive coverage of the incident and then one to the Rev.. Al Sharpton, Who has Tried - awkwardly and unsuccessfully - to tread the Line Between talk show host and advocate.

I TALKED to people in and around NBC Say It Was Idiocy, not Ideology, that 'led to the edit, and That Seems Like a' reasonable explanation, so I'm not buying it That hand about Being One more example of the liberal plot to subvert America.

Even away goal motivates, It Was a Remarkable lapse in editorial process That has inflamed Highly emotional issue, and it created suspicion That Journalists and media outlets Were picking sides. Erik Wemple of the Washington Post Called the incident "high editorial malpractice" Because it Took The tape of the 911 call - the only hard and fast piece of evidence in year Otherwise murky box - Beyond Recognition and mangled it.

Clearly, broadcast news time is precious and it Would Be impractical to proper Every small error. Purpose This Was No misdemeanor. This was a deeply misleading compression in about a year editing event That HAS taken on national significance.

Somewhere in the oven expansive hours of "Today" - Perhaps Between the segment about a loud peacock That Was bothering neighbors and the preview of Eva Longoria's show about "hunky bachelors" - somebody Could have Looked Into the camera and set the story straight.  

I Called Steve Capus, the president of NBC News, Prepared to do battle over the Lack of on-air remediation. Even though Mr. Capus HAD Personally investigated the error, Issued Two statements on the matter, taken Disciplinary Action Against employed six and led a series of meetings to remind people of best practices, nobody on the "Today" show HAD Explained What Happened, Gold apologized for it, to the hearing business cards.

That Seemed wrong to me. A network's primary contract is with the viewers tune in to Who icts shows Every Day, One That is more significant Than Any obligation it feels to Journalistic Beltway pundits or politicos.

"You're Probably right," Mr. Capus Said right away.

Gee, I hate When That Happens. All of the arguments rehearsed Were Suddenly I Had Defused. We TALKED some more anyway.  

"The Reality Is That We Did not try to hide from it, 'he said. "We About did an awful lot of work After it Happened. We Did year exhaustive investigation, i did a lot of interviews with publications to get the message out, we aim Probably Should Have done it air On Our Own. "

Mr. Capus Said That They Were so busy cleaning up the mess "inside halls Our Own," that THEY neglected to loop in the hearing. I'm his sense, the process WAS Probably too "self-reflective, 'he added.

Part of the Reason it Did not Occur to television news Them Is That Almost never correct soi on air Called When It gets out. Is not it just done Generally, UNLESS it's needed to make a lawsuit go away.

Nobody likes to eat crow in plain sight, Especially In front of millions of viewers, There are Other mandatory goal at work. Lowell Bergman, Who works for PBS and HAS done work for The New York Times Spent Many Years at ABC and then at "60 Minutes." He Said That part of the problem with corrective reporting on TV Is That it back the sweaters blankets on the apparatus. The omniscient anchor, dashing the match - most of 'em are just the spigot for a news product Manufactured By Many Others.

"Television is year industrial process," Said Mr. Bergman, pointing to the Fact That There are Many hands on EACH Even As only one story it tells. "It is built on a fiction, and They Do not Want to get into the business of deconstructing how news horns together."

Correcting a broadcast news report Other presents challenges. Any corrections Would Have to come out of the mouths of personalities Whom Promote networks lavishly as trusted sources of information. At newspapers like this one, corrections are not Usually Placed in Highly visible space news, goal consists in Where They Are THEY APPEAR, Canon and readers go there or not As They wish.

One television, everything is equal. There Is No, "By the way, …" - there are only precious seconds of airtime. It Makes for a very high bar When It Comes to setting the record straight.

"Unless it is more embarrassing to keep it off the air Than to put it on, They Will draw the wagons and hope it goes away," Said Aaron Brown, a professor of journalism at Arizona State University and is a CNN anchor form . "Given how Goal That this high-profile screw-up was And The Fact That It Became a news story soi, I'm shocked That They Did not it right on the 'Today' show." …. …. Give NBC credit for dealing with a big error as threatened to sow further Top That mayhem was very delicate story. It's just too bad it failed to Remember That the fix for bad journalism Generally includes more journalism. The kind That goes on the air.

carr@nytimes.com; Twitter: @ carr2n

The Media Equation: Correct Itself TV News, Just Not on the Air

  BRUSSELS - A European summit meeting That HAD To Be Looked surprisingly routine After Two Years of crisis nevertheless ended with Another test for The Credibility of the euro zone Friday, When Spain Announced That a deepening recession Meant It Would Have to abandon deficit-reduction icts targets for this year.

Coming on The Day That 25 European leaders signed a new fiscal pact Designed to enshrine further Top Budgetary discipline, the unexpected announcement from the Spanish prime minister, Mariano Rajoy, illustrated How Many European economies Remained trapped Between the Need to repair and Their Financial year Opposing pressure Economic Growth to restore.  

Though Markets Have calmed in recent weeks, Largely thanks to the action of the European Central Bank, leaders Gave Differing verdicts on whether the crisis WAS behind 'em or whether the euro zone HAD just bought Valuable time to shore up the currency.

Spain's predicament is a reminder of how, in Several Countries, the austerity Measures that Evolved from the debt crisis Reduced Have Eroded confidence and growth, thereby making it harder to escape downward spiral has.

Without discussing in detail plans budget history with fellow European leaders, Mr. Rajoy Himself has set target for 2012 of a deficit equivalent to 5.8 percent of gross domestic product, arguing That This Was more realistic Than the original goal of 4.4 percent. Mr. Rajoy Said He Was acting Within guidelines Because Spain still Intended to hit the European Union's public deficit goal of 3 percent of GDP in 2013. On Monday, the Spanish government budget deficit icts Said That WAS 8.5 percent in 2011, well icts Above 6 percent goal.

"I'm backing austerity and Aim To Reduce the deficit from 8.5 percent to 5.8 percent; austerity that's significant," Mr. Rajoy Said After a two-day summit meeting in Brussels ended Friday, Adding That He Did not consult Other European leaders about a step ET Described as a "sovereign decision by Spain."

Though There Was Some Support for Mr. Rajoy, on the grounds That he still Intended to hit the 2013 target, the historical decision to make announcement year, Rather Than Negotiating with the first block's executive branch, the European Commission, WAS seen by Some as a politique misstep.  

In 2009, Spain WAS Given extra year to year icts Meet targets, and the unilateral move now Could Make it more difficulty for the Committee, Which fonts budget policy, to show leniency When further Top Countries like Germany are preaching strict adherence to the rules to preserve the euro.

"Rajoy is still a bit inexperienced," Said one official not authorized to Discuss the outcome. "He Thinks That MOST of the people around the table are allies politique Who Will Support Him. Here you could aim your politique considerations Away Because The dynamic counts That Is That of National Interests. "

In recent months, EU Governments Have Negotiated what at least on paper Amounts Even Tougher fiscal year to compact Promising to write Into Their national law A commitment to balanced budgets bad credit payday advance. They Have aussi rewritten the rule book to euro zone make it more difficulty for Countries That break the rules to Avoid Financial sanctions.

Since the old rules flouted Were Repeatedly, The Credibility of this new system is now very much Under Scrutiny.

So far, the board HAS Said it cannot rule on the Spanish box Until It Has more information about why the country will miss icts deficit targets, and Until It Has Seen icts next Budget Proposals. On Thursday, however, the Committee Took a tough line with the Netherlands, Which Announced That aussi ict budget shortfall next year Would Miss icts goal, at 4.5 percent of GDP That Would match the Expected outcome for this year, below is intended icts original target of 3 percent.  

The controversy over Spain's public finances has cast a shadow over meeting Tried That Some leaders HAD to have this a return to normality After a frenzied series of meetings over the past Two Years, Some Of Which ended around dawn.

This Time, Their leaders wrapped up discussions, Which Began with dinner, by 11 pm on Thursday and the Friday session Concluded by midday.

When She Was Asked whether relieved to Be at a summit meeting Where She Could Be in bed by midnight, Chancellor Angela Merkel of Germany joked That She Was "with you all until midnight," referring to her late-night, off-the -record discussions with German Journalists. "It Could have been Worse," she added.  

Somewhat different leaders struck a tone Which over-the extents to the Crisis Believed THEY HAD abated the after the injection of Some € 1 trillion, or $ 1.3 trillion, euro area banks Into in recent months by the ECB, and a provisional agreement was second package of loans for Greece worth € 130 billion, or $ 172 trillion.

"It is not a 100 percent guarantee," Said President Nicolas Sarkozy of France, "but we are in the process of coming out of the crisis." By contrast, Mrs.. Merkel struck a more cautious note. "We are not living in ordinary times. We are in a fragile situation, "she said. Much progress has-been made, she added, "but to say the situation is not to say All That Would Be Wrong."

Final agreement on the Greek bailout is still required and soi Germany is under pressure to AGREE to expand the euro zone bailout fund. PROPOSAL One, the temporary fund to run ALONGSIDE icts € 500 billion permanent replacement, scheduled for HAD beens discussion at the meeting purpose WAS postponed. This idea, Which Could generate a total fund of around € 700 billion, is Now Likely To Be Decided Before the spring meeting of the Group of 20 Finance Ministers, one senior official for according Who Requested anonymity Because of the sensitivity of the issue.

Paul Geitner Contributed reporting.

Spain Unable to Meet Deficit Goal for Cuts This Year

LONDON - Mounting tensions politique and frustration at a Lack of resolution over whether Greece Will Get a life bailout Thursday Rekindled Fears That Could Europe's debt crisis spread to Other countries.

As stocks and the euro Fell on Thursday, borrowing rates rose for Italy and Spain's government debt - a sign investors are worried That The Two Countries That Would Be crisis has dragged back Into That HAD Shown Some signs of easing.

Concern HAS crept Into the Markets That Greece Could Be Forced Into still a disorderly default was vital euro14.5 billion ($ 19 billion) bond repayment due next month. Despite answering Concerns over icts Commitment to tough austerity measures, the country HAS yet to clinch deals with ict International Creditors for a bailout worth euro130 billion ($ 170 billion) and year Accompanying euro100 billion ($ 131 billion) debt writedown Agreed with ict private bondholders.

Over the past few days, Fears That Have grown the bailout deal may Be on Wednesday and unraveling relationships Between Greece and Its partners in the eurozone hit a new low.

Greek Finance Minister Evangelos Venizolos Told the country's president, Karolos Papoulias, that 'There Were "many in the eurozone Who do not want us Any More". 

Meanwhile, Germany's finance minister, Wolfgang Schaueble Told German Suedwestrundfunk radio Wednesday: "They Must Understand That We in Greece want to do everything to help Greece - we see the great distress That people must bear in Greece Because The politique class in Greece Has Failed Decades years and over, and I am not sure even now whether all in the Political parties in Greece are aware of Their Responsibility for the difficulty situation of Their Country. "

Investors Thursday Appeared Less than impressed with the clash Between Greece and Its European neighbors.

"Yesterday's back and forth Between Greek Politicians and EU Policymakers HAD all the hallmarks of year unedifying playground spat, with insults and accusations flying thick and fast," Said Michael Hewson, markets analyst at CMC Markets. 

"Unfortunately There Will Be No winners or losers in this saga have little Particular Europe Gives the feeling of gearing up to cut loose Greece, UNLESS THEY DEMANDS to subjugate for New Measures to sate: various new related concerns."

Several Politicians - Especially In Rich Countries like Germany Euro, the Netherlands and Finland - have grown tired of Greece Repeatedly missing budget targets and failing to implement Implements Promised Cuts, Reforms and sales of state assets. There are aussi Concerns That the second, euro130 billion ($ 170 billion) bailout may not Be Enough to lift Greece out of ict steep recession - its economy shrank 7 percent in the final quarter of 2011 from a year Earlier.

Jean-Claude Juncker, the Luxembourg prime minister heads aussi Who eurozone finance meetings, Promised more clarity over Greece Has Another meeting of European Finance Ministers this Monday, When He Said Decisions Will Be Made.

As Uncertainty lingerie manufacturers, investors are Reassessing Their assumption That Greece Will Get the money, prompting big market nib Thursday. The Stoxx 50 index of leading European shares down 0.5 percent WAS while the euro slipped by the Sami spleen to below $ 1.30.

Meanwhile, the yield on Italy's ten-year bond by 0.18 Has Risen centage points to 5.81 percent while Spain's spleen 0.05 Another Has Risen centage points to 5.44 percent, down from a little Earlier. Italy is a worry Particular Because it is the eurozone's Third-largest economy and Its debt mountain stands at around euro1.9 trillion, way more Than anything HAS-committed to Europe icts bailout facilities.

Though the spleens of Both Countries are still down from the end of last year - when Lack of confidence in Italy's Ability to pay debt ict icts agricultural yields bust saw the 7 percent mark while Spain hovered around 6 bad credit personal loan lenders.67 per cent - the triggered Increases Have Concerns That Europe's debt crisis is a long way from Being solved.

The Pressure on the Two Countries in recent weeks HAD Eased, Primarily Because The European Central Bank Offered Unlimited Amounts of super-cheap long-term loans to banks.

Last week, Greece WAS Asked to Meet Three sets of Demands so It Could it get the bailout Needs to Avoid a chaotic default on debts icts on March 20. As well as insisting That the Greek Parliament Chartered to Another batch of austerity measures, the eurozone wanted clarity was further Top euro325 million ($ 425 million) in savings and Written agreements from the leaders of the Greek coalition to stick to the Measures After elections scheduled for april.

Even though all Three Conditions Appeared to Have Been on Wednesday put, the eurozone is still balking at Finalizing the bailout, with Some Suggestions That Money Should not Be Until handed over the after the elections.

On Wednesday evening, After a three-and-a-half-hour conference call Between the 17 Eurozone Finance Ministers, it Looked as though more hurdles put in front Have Been of Greece.  

Though Juncker Greece Said HAD made "substantial progress further Top, 'he added That" further considerations are Necessary Regarding the Specific Mechanisms to Strengthen the monitoring of program implementation and to Ensure That priority is Given to debt servicing. "

His statement suggests Greece's eurozone Creditors That Be may have been insisting recent PROPOSAL by France and Germany to set up an account, Separate from Greece's general budget, That Would Be dedicated to Paying off Greece's massive debt. It Was unclear whether this account only manage Would the government bailout money or whether aussi Could Be funneled back into it.

Such an account Would Give the eurozone more control over what Greece Does icts with money, the after the country HAS Repeatedly missed budget, reform and Privatization targets over the past Two Years. However, It Could Be aussi have seen year Unprecedented Interference Into the fiscal affairs of a sovereign state.  

The European Commission, Which is in charge of Economic Monitoring in the European Union, is now working on a Specific Proposal for year Such escrow account, Which Will Be present to the Ministers at a meeting on Monday.

In Athens, Venizelos Said a combination of the country's Written pledges, Parliament's passing of the austerity Measures with a two-Thirds Majority and Labor Reform legislation Were "a credible response to All Those in Europe Who Doubt o Ability to Implement the program and to continue icts implementation the after the coming election. "

There has-been anger in Greece to The Possibility of Further restrictions on the country.

"What is happening today with Greece is Unprecedented," Greek Citizens' Protection Minister Christos Papoutsis, forming a European Commissioner said. "The sacrifices of the Greek people are unbearable."

"Any Other new DEMANDS from our partners make a mockery of our country, 'he said. "It is raw blackmail of the Greek government and of the Political System in Greece. It is a direct insult of Parliament, the basic pillar of Greek democracy. It is a direct insult to the Dignity and the pride of the Greek people. Some in That Europe forget behind the numerical targets There are people. "

_____

Elena Becatoros in Athens and David Rising in Berlin Contributed to this story.

Greek euro bailout tensions hit Other Countries

NEW YORK (Reuters) - When it Comes to hiring top commodity traders, what goes around comes around. Wall Street specificities, after years of poaching the best and Brightest from Specialized commodity FIRMS, is losing the war to keep the essential Traders Who know how to arbitration copper gold store crude.

Financial Reforms After the death knell Sounded for the excessive use of bank money to trade Markets Two years ago, Such as banks Goldman Sachs (GS.N) and Morgan Stanley (MS.N) HAD resigned to watching Themselves Their proprietary trading Rainmakers to flee hedge funds with FEW limits on compensation or risk.

Now as banks make deep cuts and compensation Return of the oversight merchantsstricter forces em to take less risk and bolster balance sheets, the latest wave of talent migration Risks cutting deeper - Luring away the physical traders Who excel at arbitraging Markets copper, heating oil Importing Storing gold wheat. 

The dozen or so merchants buy and sell That a trillion dollars worth of commodities are finding it Every Year cutting easier to skim the cream of the crop trading, unfettered bonuses and a Promising Future In Their share Typically private FIRMS.

"The Mercurias, Trafiguras Glencores and are back to ruling the world commodities," says Wall Street headhunter Vikram Tandon. Those are aggressively hiring the MOST biggest energy, metals and trading and Agricultural Firms in Europe and Asia.

"We Have Experienced year Increase of very talented professionals at banks seeking behavior at potential roles shop FIRMS and commodity trading houses," Said Tandon, executive director at The Options Group, a New York-based global talent search agency.

It is not a particularly hard sell: After the deep cuts bonuses, deferred pay-outs or $ 125,000 cash this year Announced capes, horns exchange easy for traders accustomed to long-million-dollar bonuses were based centage of Their book profits.

It Is Yet Another sign of the Growing pressure on the world's investment banks, most is of Which Have Already throttled back Their high-risk, high-reward speculative dealings - leaving 'em Than ever more dependent on the Specialized Traders Who Can help translate hard- to-read market signals in opaque physical Into profitable trading positions. 

COMMODITIES MERCHANTS 'WORLD

Not too long ago, moving from a merchant trading firm to year investment bank WAS Regarded as the ultimate career step. Experienced traders are bank now happy to go the Other Way.

"There Have Been emails in the middle of the night from people," Said George Stein, managing director for Commodity Talent in New York. "We've Had a lot of candidates for going in first, second and Even Third-rounds of interviews."

Geneva-based Mercuria, one of the world's top five energy traders, HAS Recruited Ben Green and Liam Brown, Two London-based metals trader from Goldman Sachs, industry sources said last week. Mercuria HAD Hired a gas trading team from Barclays Capital (BARC.L) and Nordic power traders from Bank of America (BAC.N) last year.

Deutsche Bank's (DBKGn.DE) physical iron ore dealer Richard Shelley joined Trafigura, an independent energy and metals trader based in Lucerne, Switzerland, late last year. Refined oil product traders Verschoor Jan-Jaap and Chris Dorfman left Bank of America for New York-based Hetco Recently.

"There's always beens a two-way flow, it's purpose now much more to one directional trading houses," Said year analyst at a European bank Who has Worked with merchant trading FIRMS. "People at the big banks, Which Amounts huge turnover of cash and are only Paying $ 125,000 bonuses, are not happy."

The trend may continue-through from the first of the year as traders collect cash bonuses deferred.

Glencore (GLEN.L), the Switzerland-based commodities giant, Could ramp up search for ict professionals commodity as it bids to buy undermine Xstrata (XTA.L) to create a $ 200 one billion mining, agricultural and trading powerhouse, headhunters said.

THEY SAID Other major independent Dutch merchants Such as energy traders Vitol (VITOLV.UL) and Gunvor and Asia's Noble (NOBG.SI) may aussi Be looking for new talent to position for a market rebound the after the difficulties of trading terms in 2011.

A senior executive at a merchant trader Said It Was Wrong to assume historical peers Were simply "scavenging" for cheap talent.  

"Some people are seeing The Benefits of a private structure, where 'THEY Cdn get a piece of the action,' he said my credit score. Glencore's public listing last year made overnight billionaires of a handful of senior traders.

David Messer, chief of newly Launched Freepoint Commodities, is at the fore, re-hiring of history Many former colleagues from Sempra Commodities, the global merchant-trader ET ran for over a decade Before It Was sold to RBS and then to JP Morgan (JPM.N). Big swingers Who want to run a big prop book Need not apply.

"It's a business that's about hitting singles Consistently Rather Than going for the big swing," Messer Said last month.

Goldman Sachs and Citigroup (CN) Other banks while Declined how Contacted by Reuters corresponds fired, return not.

Privately though, bankers say holding on to the troops has-beens Their worst nightmare.  

"We try to keep 'em engaged, Give Them the space for entrepreneurial trading, it's hard goal," says one senior executive at investment bank year.

MONEY TALKS, TRADERS WALK

Latest compensation cuts at investment banks, Including Those in Europe, deep and wide Have Been After a tough year in profits Which Fell sharply, Especially In trading divisions.

Citigroup's bonus cut last year by about 30 percent. Morgan Stanley 2011 cash bonuses capped at $ 125,000 per person. Goldman Sachs snipped off by over 20 percent, and Bank of America Reduced the cash portion of bonuses by 75 percent icts.

In Europe, Barclays Capital (BARC.L) saw a 32 percent slash in bonuses. Deutsche Bank Said It Will defer Any employee's share of year bonus Above 200.000 euros (264.800 U.S. dollars) this year.  

The departures for now APPEAR To Be MOST obvious one commodity desks; Have Fewer Financial Alternatives dealers offer better pay or That Opportunity Than Wall Street, headhunters say.

Many equities traders, for instance, are happy Simply To Have Their jobs amid deep job cuts as banks implement Implements the Volcker and Dodd-Frank financial reform acts, groin to curb the kind of excesses That led to the 2008 Financial Crisis.

Many banks while HAD viewed as a commodity Markets Likely source of growth FOLLOWING the Reforms, Some Are Reassessing the Merits of Maintaining Their trading presence. US banks made $ 5.5 one billion from trading commodities in 2010, According To the Office of the Comptroller of the Currency (OCC).

"With the dollar climbing Funding Costs and Reducing Risk appetites, it's a business banks are moving away from," Said Paul Sharp, head of metal forming dirty in New York for BNP Paribas (BNPP.PA), Which scaled back last ict desk november.  

BANKS HAVE LOST THEIR BEST

To be sure, Many traders are still Being Lured away by the siren song of a hedge fund.

Barclays' global head of macro trading Todd Edgar Pulled oven history of colleagues from the bank to begin trading later this year at hedge fund history, Atreaus, Which Will start with about $ 200 million of capital. Spokesman Declined how Atreaus year.

As a result, banks are counting more and more on the smaller gold traders who run more niche books to keep the lights on.

"Much of the best talent That You HAD on the sell-side banks Have Already Has beens picked over by the hedge funds," Said Ilana Weinstein, chief executive at the IDW Group, a New York-based executive search firm That Works with hedge funds.

"I'm disinclined to say there 's no one left behind Good, it's purpose FEW and far between. There are Some Folks Who Might Be Able left to find a better home, I think it's purpose slim pickings. "

Many security purpose it's too early to count out the banks yet.

While the Volcker Rule is Meant to curtail a Dramatically banks' Ability to make bets with money Its Own, Some Experts Say There may Be enough "gray area" between speculation and customer business - particularly in commodity markets - to keep Wall Street traders embrace engaged and incentivized.

"Banks Have Already Began blurring the lines Between trading flows and prop trading for customers," Said Dan Siliski, risk manager at Four Winds Capital Management, a London-based commodities fund with about $ 1.4 trillion Under Management.

"They Can Say 'oh, that's trading flows', When Actually they're making bets with proprietary proprietary money. You Can not Regulate That Away. "

(Additional reporting by Eric Onstad in London; Editing by Jonathan Leff and Alden Bentley)

Insight: Wall St commodity talent wars - Return of the merchants

  After months of painstaking talks, government Authorities and five of the nation's biggest banks Have Agreed to a $ 26 one billion settlement That Could Provide Relief to Nearly Two Million and current form American homeowners harmed by the bursting of the housing bubble, state and Federal Officials said.

It is a share of national settlement Broad Aimed at halting the housing market's downward slide and the banks holding Accountable for foreclosure are mistaken.  

Under the plan, federal officials said Thursday, about $ 5 billion Will Go in cash payments to states and Federal Authorities, $ 17 one billion Will Be earmarked for homeowner relief Roughly $ 3 one billion Will go for refinancing and a final $ 1 trillion Will Go To The Federal Housing administration. If Nine Other major servicers join the pact, That Is A Possibility Under discussion now with the government, the total package Could Rise to $ 30 trillion.

Because of the complicated formula Being Used To distribute the money, Federal Officials say the ultimate Benefits Provided to homeowners Could EQUAL larger sum - $ 45 one billion in the event all 14 major servicers participate way. There are additional incentives for banks to distribute the money in the next 12 months.

The Vast Majority of the writedowns to mortgages Will Be Held In The banks' Own Portfolios.  

Despite the billions earmarked in the agreement, the aid was Will help Relatively small portion of the millions of borrowers are delinquent and facing Who foreclosure. The success depends in Could you share how the program is Effectively Carried Out Because Earlier efforts by Washington Aimed at troubled borrowers Far Fewer Than Helped HAD beens expected.

Still, the agreement is the broadest effort yet to help borrowers owing more Than Their houses are worth, with one Roughly one million Expected To Have Their mortgage debt by lenders or Reduced Able to refinance at lower rates Their homes. Another 750.000 people Who lost Their homes to foreclosure from September 2008 to the end of 2011 Will receive checks for about $ 2,000. The aid is To Be Distributed over Three Years.  

The deal, To Be detailed in Washington on Thursday morning, Grew out of mortgage servicing Into year investigation by all 50 state attorneys general That Was Introduced in the Fall of 2010 amid uproar over revelations That year banks evicted people with false or incomplete documentation.

In the 14 months since then, the scope of the agreement HAS broadened from year to examination of foreclosure are mistaken in Broad effort to lift the housing market out of slump since icts biggest the Great Depression. Four one million Americans Have Been foreclosed upon since the Beginning of 2007, and the huge overhang of abandoned homes HAS swamped Many regions, like California, Florida and Arizona.  

In New York State, more borrowers Will receive 46.000 Than Some form of benefit, with 21.000 year Estimated Expected To See What They owe a Reduced-through primary reduction, According To Estimates by the Department of Housing and Urban Development.

The five mortgage servicers in the settlement - Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial - have set aside reserves Largely Expected for the cost of the Agreement and investors are Likely to cheer icts announcement Because it Removes one more legal worry for the industry, analysts said.

"I would not say it'sa panacea for the housing industry purpose it is good for the banks to get this behind 'em," Said Jason Goldberg, an analyst with Barclays.  

As more and more states signed it this week, the negotiations with the banks Became Especially intense Said one participant, Who Was not Publicly autorisée to speak. Two bank Officials, Frank Bisignano of JPMorgan Chase and Mike Heid of Wells Fargo, Played a critical role in the talks with Shaun Donovan, the secretary of Housing and Urban Development, and Thomas J. Perrelli, the associate attorney general at the Justice Department. Bank of America, Which Will make the Largest payout as the nation's biggest mortgage servicer, Moved more cautiously, the participant said quick payday loans.

The settlement money doled out Will Be Under a complicated formula That Gives banks varying degrees of credit for different Kinds of help. As a result, banks are incentivized to help harder-hit borrowers with homes worth far less Than What They owe.  

While the $ 26 one billion figure is the one Being Cited in the negotiations, federal officials said the hope THEY Contingent value for homeowners Reaches up to $ 39 trillion. However, mortgages owned by the government's housing finance Agencies, Fannie Mae and Freddie Mac, Will not Be Covered Under The deal, EXCLUDING about half the nation's mortgages.

About one in five Americans with mortgages are underwater, Which means clustering THEY owe more Than Their home is worth. Collectively, Their negative equity is Almost $ 700 billion. One average, homeowners are underwater thesis by $ 50,000 each.

A recent estimate from the settlement negotiations could the average aid for homeowners at $ 20,000.  

"I just do not think it's Going to be a life-changing event for borrowers," Said Gus Altuzarra, Whose company, the Vertical Capital Markets Group, buys loans from banks at a discount.

Several one billion dollars Would cover the direct cash payments to provide statement foreclosure Victims and money for states' attorneys general to services like counseling and mortgage future mortgage fraud investigations Into.

Though Many economists Identify the moribund housing market as the greatest drag on the recovery, it is not clear how much the settlement Will help.

Christopher J. Mayer, a housing expert at Columbia Business School, Said the agreement Could Give banks more certainty That THEY Cdn clear Their wide backloads of Seized homes, Restoring the flow Of Those homes Into the Market.  

"It may be good for Individual homeowners, goal if you do not do something to help the foreclosure process, it's not going to help the housing market, 'he said.

Mark Zandi, the chief economist for Moody's Analytics, Said That while the small settlement Looked Compared with the scope of the problem, It Was not Necessary to erase all, or Even most, of the nation's negative equity to turn the Market Around.

About a Third of houses on the market now are distressed, or Have Been-through foreclosure, He Said, That and Reducing centage by just a small Amount Could Be Enough to put a floor Under housing prices.

More than the dollar figures, the settlement HAD beens amid concern Held Up by New York's attorney general, Eric T. Schneiderman, that 'Provided it too Broad for banks of a release for past misdeeds, making future investigations much more difficult.

Mr. Schneiderman WAS Able to win significant concessions from the banks in recent days.

In the agreement's Expected final form, the releases are mostly limited to the foreclosure process, like the eviction of homeowners After only a cursory examination of documents, a practice Known As robo-signing.

The Prosecutors and Regulators Still Have The Right to Investigate Other Elements That Contributed to the housing bubble, like the assembly of risky mortgages Into That Were securities sold to investors soured and later, as well as insurance and tax fraud.

Officials Will Be Able to Pursue aussi Any allegations of criminal wrongdoing. In addition, a lawsuit Mr. Schneiderman filed Friday Against MERS, an electronic mortgage registry responsible for much of the robo-signing HAS That marred the foreclosure process nationwide, and Three banks, Bank of America, JPMorgan Chase and Wells Fargo, Will aussi go forward.

Along with how the releases Would Be Broad, California's attorney general, Kamala Harris, aussi state Pushed For Her To Be Able to use the state's False Claims Act. That Would enable huge state pension Officials and funds like Calpers to collect sizable Monetary damages from the banks if PROVE Could Officials Were Improperly packaged mortgages securities Into That later dropped in value.

Worth $ 26 Billion Settlement Reached for Homeowners

  ATHENS - The leaders of the two-party Remaining in Greece's shaky coalition government on Saturday urged lawmakers to Approve a deal to avert a debt default as protesters Took to the streets for a second day ahead of a crucial Parliamentary vote.

Echoing the comments of Prime Minister Lucas Papademos office address in history on Friday night, The Political leaders Acknowledged That the austerity Measures set out by Greece's lenders Were harsh, Warned That the alternative purpose - some near bankruptcy - would Be Far Worse .

Greece's So-Called troika of foreign lenders - the European Commission, European Central Bank and International Monetary Fund - HAS sweeping austerity Demanded Measures in exchange for about $ 170 one billion in bailout money That Needs Greece in order to avert default. The troika HAS aussi made passing of the Measures is provided for sealing a deal in private Creditors Which Will take voluntary Losses of up to 70 percent of Greek debt.

After a wave of defections from the firm, Mr. Papademos Told lawmakers on Friday THEY That Must Approve the austerity Measures Demanded by Greece's Creditors - Including a 22 percent cut in the benchmark minimum wage and public-sector layoffs - the gold Country Would Suffer a disorderly default with social dislocation and Would Eventually leave the euro zone. After a five-hour meeting, the Cabinet approuvé the package, Sending it on to Parliament for final Approval.

Antonis Samaras, leader of the conservative New Democracy who is Likely To Be the next prime minister of Greece, Said That Elections Should Be Called Immediately aussi the after the completion of a debt-swap deal Being Negotiated Between the government and private Creditors. And in a bid to Discourage would-be dissenters, Mr. Samaras HAS members Warned That anyone Refusing to back the Measures Would not Be a candidate in the coming elections.

Meanwhile George Papandreou, the prime minister and form of the Socialist party leader, Which Has Seen ict support plummet, appealed to history Deputies to put aside party intérêts For The Good Of The Nation. Compared to Greece He was parched traveler. "We've gone too far to turn back now, 'he said. "We Have Reached the source. The country must drink water. "

While Several members of Parliament from the coalition parties - the Socialists and the center-right New Democracy - have Indicated That They Will vote against-the deal, the dissent is far from the level needed to Prevent it from passing. Still at least six lawmakers from New Democracy Have Said They Will vote no and the number of dissenters Among the Socialists is Believed to be close to 20 though only a handful Have Expressed Their intentions. Three members of Parliament Have resigned from the Socialist party.

Outside Parliament, union leaders Held That Attracted a demonstration about 3.500 protesters, According To the police, Who Said There HAD beens and No Arrests Could not confirm media reports of Two minor injuries to demonstrators. Reported That local media at least 4.000 Officers Were on duty. Another protest WAS Expected on Sunday.

Ahead of Sunday's vote, Mr. Papademos is scheduled to address the nation on Saturday night, appealing to Greek Citizens to accept the New Measures.  

The prime minister's comments kicked off Friday What Was Expected To Be a long and chaotic weekend of brinkmanship, with Greek Politicians fighting for survival in the face Their unpopular austerity of Measures and European leaders demanding work more concessions in a climate of Growing Urgency - and mistrust - between Greece and Its foreign lenders.

On Saturday, the Greek finance minister Evangelos Venizelos Said the troika of foreign lenders HAD Proposed allotting additional $ 20 one billion year to prop up Greek banks. "Their Aim is to Ensure There Is Funding 2015-through to allow a smoother adjustment," Mr. Venizelos Told a meeting of Socialist Deputies.

Nearly Two Years After Greece's first bailout, Athens and Its lenders are at a dangerous impasse free instant credit score. Europe HAS lost confidence That the Greek government Has the capacity to gold Will you follow through icts Commitments to structural exchange. Greeks, Whose standard of living is dropping precipitously with no end in sight, Have lost confidence That Will Actually the bailout save the country from default.

With So Many variables and so little time, Some Experts Said That Almost Any outcome WAS possible, from disorderly default and chaos to a new agreement and at least temporary calm. "Greece is defaulting Probably just as Likely to happen as a result of accident year as year act of goodwill," Said Plato Tinios, an economist at the University of Piraeus. "If you are skating at the edge of a precipice, the Slightest Could Push push you over."

For now, both, sides APPEAR to LACK has viable Plan B. Behind closed doors in Brussels at a meeting of euro zone Finance Ministers on Thursday, the LACK of trust WAS obvious - and may put Have The Entire bailout at risk.

The Ministers Expected to Approve HAD beens with little fuss Among the austerity package Negotiated Greek Politicians. Instead, the European Ministers made it plain That THEY fired, return not Believe the figures provided by Greece. THEY jolted Athens by insisting it find That year one million additional $ 428 in savings - to make up for a shortfall created by the leaders of Political Refusal to slash supplemental pensions - Before Their next meeting, Expected on Wednesday.

There are tensions aussi Within The troika. Because of Greece's failure to Meet budget targets amid a recession aggravated by the troika-imposed austerity regimen, ict Believe lenders no longer the one billion bailout $ 170 Will Be Enough. The purpose I.M.F. Does not want to provide statement extra financing, Because analysts do not Believe icts Greece's debt load is sustainable.

European leaders reluctant to Have Been come up with more money, are intended to do so Expected in the end - but not Before pushing Greece to the edge, people familiar with the talks said.

The Measures are understandably unpopular in Greece, where 'Politicians are positioning for Themselves Elections That Could Be Held as soon as April, although Two of the Three parties in the coalition Have Said They Want Them to Delay Until 2013.

Adding to the anxiety Surrounding the negotiations, the leader of the Friday the Smallest of the Three parties in the coalition Said ET Would vote against-the Greek austerity package leaders Agreed to Thursday After marathon negotiations. "The Creditors are Asking for 40 years of submission," Said Georgios Karatzaferis, Who heads the right-wing Popular Orthodox Rally. "Greece Will Not Give up soi."

Mr. Karatzaferis's party, however, controls only 16 seats in Parliament, not enough to scuttle the deal if MOST members of the coalition, the Socialist and Legislators in New Democracy party, support it. Several coalition Legislators Have Indicated That THEY object to some measures - chiefly wage cuts - and may vote aim Against Them It Would Take A huge Backbench rebellion for the vote to fail as The Two Largest Parties Have 236 seats in the 300-member house .

Mr. Karatzaferis CALLED ON Mr. Papademos history to reshuffle cabinet and replace with Technocrats Socialist Ministers. He aussi accusé Creditors of Trying to "deprive Greece of the last trace of National Sovereignty" Face value and frustration with German Officials, Who Have taken a hard line in the negotiations.

"Greece cannot survive outside the EU," He Said, "but it can do without a German jackboot."

Niki Kitsantonis Reported from Athens, and Rachel Donadio from Rome. Stephen Castle from Brussels Contributed reporting and Matt Flegenheimer from New York.

As Protests Continue in Greece, Party Leaders Urge Lawmakers to Approve Debt Deal

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(Reuters) - A US Appeal Court on Wednesday sped up the review of a ruling That Moved consideration of Bank of America Corp's (BAC.N) $ 8.5 one billion settlement over mortgage debt to federal court from a New York state court.

The decision by the 2nd US Circuit Court of Appeals in New York Could help Bank of America, Which Intended to address the agreement Much of Remaining legal liability from ITS ITS 2008 purchase of the mortgage lender Countrywide Financial Corp free credit report and score..

Bank of New York Mellon Corp (BK.N), Which as trustee Negotiated the agreement, and investors Such as BlackRock Inc (BLK.N) and MetLife Inc (MET.N) are Hoping to reverse year October 19 ruling by US

TOKYO (Reuters) - Japan's securities watchdog May recommend That a levy Be Imposed on Olympus Corp. for False Financial Report, a source familiar with the case said on Sunday, a move Which Could Prevent a delisting of the company's shares over one of the country's biggest corporate scandals.

The Securities Exchange and Surveillance Commission (SESC) May, however, urge criminal charges That Be Sought Against train executives and others Involved in M ​​& A deals dubious Used To hide big investment loss, the source added.

Japanese Authorities Investigating Olympus are the after the 92-year-old maker of endoscopes and camera last week Admitted That It Hid Decades Investment Losses for using M & A fund from payments personal humidifier.Media reports Have Said Police, Prosecutors and Regulators Were joining forces in a rare collaborative effort to examine the cover-up.

The Olympus scandal HAS Rekindled concern about corporate governance in Japan and worries FIRMS May Have That Other Engaged in similar misdeeds. Politicians Have Begun considering legal revisions to tighten controls.

Purpose Authorities aussi APPEAR Concerned about the fallout for investors and the market if Olympus IS delisted. Hot News: