Archives for May 2009

May 29th, 2009

The economist, John Maynard Keynes, once argued it would be preferable to pay workers to dig holes in the ground, and fill them in again, rather than allowing them to stand idle and deprive the economy of the multiplier effect of their wages.Moving a 17-meter monument to Christopher Columbus 100 ...

Continue reading Spanish Economy Plan E: Let Them Dig Holes

May 28th, 2009

The week's economic statistics had little effect on sterling. One rating agency warns that gilts might lose their AAA status; the other two agencies disagree. German investors and businessmen are optimistic but unhappy.It did look backwards several times but last Monday's €1.1250 starting point turned out to be the week's ...

Continue reading Moneycorp: Euro Weekly Update

May 28th, 2009

A slight improvement in the monthly number of new mortgages sold in March has prompted optimists to call the bottom of the Spanish property market. Though the number of new mortgages signed in March fell 25.5% compared to the same time last year, the rate of decline appeared to slow ...

Continue reading Spanish Mortgage Double Whammy

May 27th, 2009

According to the latest house price analysis from Knight Frank, the Spanish property market isn't faring too badly compared to some other countries.Just focusing on countries which have experienced a year-on-year decline in house values, Spain is far from the worse affected. At the bottom of the chart are Dubai and ...

Continue reading Knight Frank Q1 Report

May 27th, 2009

According to the latest house price analysis from Knight Frank, the Spanish property market isn't faring too badly compared to some other countries.Just focusing on countries which have experienced a year-on-year decline in house values, Spain is far from the worse affected. At the bottom of the chart are Dubai and ...

Continue reading Spanish Property: Not So Bad by Comparison

May 27th, 2009

In a series of recent gloomy economic forecasts by the European Commission, the European Central Bank, the Spanish Central Bank and government institutions, the Spanish unemployment rate could soar to a staggering 20 percent and possibly to one in four workers in 2010.“The momentum is clearly there for something well ...

Continue reading Spanish Unemployment Could Reach 1 in 4

May 26th, 2009

This week, the article concerning the relative optimism voiced by OCED chief, Angel Gurria, stands in stark contrast to the pessimistic forecast expressed by Moody's - which, in turn seems to conflict with the article entitled 'Spanish Bad Debt Abating'.In fact, all three stories describe the same picture - but ...

Continue reading Same Spanish Data – Different Stories

May 26th, 2009

Contraction in world economic output appears to be slowing and a recovery could begin at the end of this year, Organization for Economic Development and Cooperation (OECD) chief Angel Gurria said on Friday.Indicators ranging from U.S. house sales to Chinese exports are beginning to pick up and the global economy ...

Continue reading OECD: Global Recovery by Year-end

May 25th, 2009

Bad debt problems at Spanish banks and cajas, the regional savings and loans institutions, have triggered at least one skipped interest payment on a mortgage-backed bond this week and prompted new warnings of imminent downgrades by credit rating agencies.Caja Madrid, Spain’s fourth biggest financial institution, on Wednesday confirmed that a ...

Continue reading Spanish Building Society Downgrade Risk

May 22nd, 2009

The European Parliament has called on Spain to reform planning laws that have allowed developers to acquire private land below market rates and forced homeowners from their properties, with some even having their homes demolished. But the conflict raises questions about how much power MEPs actually have.When Len and Helen ...

Continue reading MEPs Wave Financial Stick at Spain

May 21st, 2009

UK data give no cause for new concern; Bank of England cautious about recovery; Euro torpedoed, eventually, by weak first quarter GDP data.It took a while to gain traction but the pound got its act together in the second half of the week. It came near to €1.1250 late on ...

Continue reading Moneycorp: Euro Weekly Update

May 20th, 2009

Spanish bad debt rose at the slowest rate in 15 months in March as savings banks reined in lending and cut defaults, Bank of Spain data showed on Monday in the latest sign the country's recession may be finding a floor.The volume of bad debt rose by 769 million euros ...

Continue reading Spanish Bad Debt Abating

May 19th, 2009

This week, a lot of economic data hit the news. If you have the time (and patience), I recommend reading the full article which we've summarised in ECB Buys into Spanish Property.The focus of this article is the ECB investment in €60B of cédulas hipotecarias - the covered bonds ...

Continue reading Euro Quantitatively Eased

May 19th, 2009

Last week, the ECB announced the purchase of 60 billion euros of covered bonds or cédulas hipotecarias. In doing so, the ECB is effectively buying into the Spanish property market. This is obviously very good news from a Spanish point of view. The Spanish economy is in the ...

Continue reading ECB Buys into Spanish Property

May 18th, 2009

Spanish Q1 GDP drops 1.8 pct, worst in half century; GDP down 1.8 pct qtr/qtr, 2.9 pct yr/yr; Steepest fall since 1959, according to economists; Reinforces expectations of Q1 euro zone contraction; Spain could be last EU country to exit recession; Spain approves 1 bln euro spending cutSpain's economy suffered ...

Continue reading Spanish Economy at 50 Year Low