by Calculated Risk on 5/07/2010 07:56:00 PM

A break from our usual Friday afternoon custom ... there were three major stories today.

1) On Europe: there is a reasonable chance of a major announcement this weekend. Earlier today there were rumors of a €600 billion loan facility for European banks. One key analyst thinks the Fed might re-open the dollar swap lines for Europe - one, or both, or something else could be announced on Sunday.

Tonight, Bloomberg is reporting: EU to Craft Financial Backstop to Prevent Spread of Crisis

Leaders of the 16 countries sharing the currency said finance ministers will meet tomorrow to hash out the details of a “stabilization mechanism to preserve the financial stability in Europe.”

Krugman has the best line: O Nao!

I really really hope the ECB staff are huddling right now ... Otherwise Anno Domini 2010 is shaping up to be Anno Domino instead.

2) On the Stock Market: From the SEC: Statement of the Securities and Exchange Commission and the Commodity Futures Trading Commission

“We are continuing to review the unusual trading activity that took place briefly yesterday afternoon to pinpoint its cause and contributing factors.
...
“Our market oversight units are reviewing trading and market data from the exchanges, self regulatory organizations and market participants to examine yesterday's unusual trading activity. We are scrutinizing the extent to which disparate trading conventions and rules across various markets may have contributed to the spike in volatility.

“We are devoting significant resources and expertise to this effort.

“As we determine the cause and contributing factors, we will make our findings and any recommendations public. ...

The causes of the weird price changes still haven't been determined.

3) Employment Report: Usually the big story of the day would be the 290K (224K ex-Census) increase in payroll employment. Here were my earlier posts:

April Employment Report: 290K Jobs Added, 9.9% Unemployment Rate for graphs of unemployment rate and a comparison to previous recessions.

Employment-Population Ratio, Part Time Workers, Unemployed over 26 Weeks

Temporary Help and Diffusion Index