Archives for June 2009

June 30th, 2009

Sterling wobbles after hitting seven-month trade-weighted high. Bundesbank's Weber sees no room for further euro rate cuts. A three cent range kept sterling comfortably between €1.16 and €1.19. It opened in London this morning at €1.1750, a cent down on the week. The week began with another line-up of international bodies moping ...

Continue reading Euro Weekly Update: June 30th 2009

June 30th, 2009

This week, the Spanish government approved almost €100B in funding to prop up their banking system - should it be necessary. The reason for this provision is due to the sharp increase in bad debt that Spanish banks and building societies are now exposed to. Strict legislation prevented Spanish financial ...

Continue reading Spanish Property News Roundup

June 30th, 2009

Spain's government approved the creation of the Fund for Ordered Bank Restructuring (FROB) to ward off possible systemic risk. Here are the main details of the fund and Spain's banking system: -The fund will have initial capital of 9 billion euros -Of this, 2.25 billion euros will come from the privately-run Deposit Guarantee ...

Continue reading Spain: Fund for Ordered Bank Restructuring

June 29th, 2009

A €99 billion bailout fund for healthy as well as struggling Spanish financial institutions is to be approved by the Spanish Cabinet at one of its regular meetings. Cadena Ser radio, which cited a copy of the proposal, said that banks without capital shortages may have access to the fund if ...

Continue reading Spanish Banks Gain €99B Support

June 26th, 2009

House prices will stabilise in the last quarter of this year as the low number of homes for sale more than compensates for the fact that houses still aren't affordable, forecasts Standard & Poor's. 'UK house prices will stabilize in the final quarter of this year about 7% lower than in ...

Continue reading S&P: House Price Forecasts

June 25th, 2009

Treasury secretary: will review all taxes for 2010 budget - Labour minister sees new benefit payment deal before Aug - Govt to cut emergency spending to pay for new measure - ECB's Trichet says Spain needs labour reform Spain will review all taxes for the 2010 budget as it confronts a ...

Continue reading Spain: Tax Increases to Boost Unemployment Benefits

June 24th, 2009

The pound managed to add a cent over the week but made heavy weather of it. Having risen to €1.1850 on Tuesday it was down almost to €1.16 by Thursday. It recovered quite easily and when London opened this morning it was back up to €1.1850. Underlying sterling's resilience last week ...

Continue reading Euro Weekly Update: June 24th 2009

June 23rd, 2009

This week, the IMF is counselling prudence and continued financial vigilance because it, unlike the Spanish PM, believes that the global economy is a long way from recovery. Meanwhile, Mr Zapatero simply has to promote the notion that the worst of the credit crisis in Spain is over - because the ...

Continue reading Spanish Property: 20% Net Profit in 4 Years?

June 23rd, 2009

Spain will decide whether to hike income tax for high earners and reduce tax breaks in 2010 after the summer, Economy Minister Elena Salgado said in an interview on Sunday. 'In September we will have better information and that will be the moment to take decisions,' Salgado said in an interview ...

Continue reading Spain Considers 2010 Tax Changes

June 22nd, 2009

Spanish PM says worst of crisis over, economy recovering - PM sees return to growth in 2010 - PM defends tax hikes after Bank of Spain criticism - Opposition says voters deceived by talk of green shoots Spanish Prime Minister Jose Luis Rodriguez Zapatero on Wednesday said Spain should return to ...

Continue reading Spanish PM: The Worst is Over

June 19th, 2009

The governor of the Bank of Spain bluntly told the government there was no room for deficit spending beyond the plans already announced to try to revive the economy. In his sternest policy warning since the economic crisis began last year, Miguel Angel Fernández Ordóñez said Spain’s budget deficit could reach ...

Continue reading Bank of Spain: A Drastic Change of Outlook

June 18th, 2009

The head of the International Monetary Fund has dismissed reports of an economic recovery, warning that the worst of the slump is yet to come. Dominique Strauss-Kahn, managing director of the IMF, has told politicians that recent more optimistic messages on the economy may have come too soon. He told policymakers to ...

Continue reading IMF: Hold Your Optimistic Horses

June 17th, 2009

Strong performance by Sterling - UK industrial production rises in April - G8 endorses dollar as reserve currency - Euroland industrial production continues to fall. The pound powered ahead from last Monday's €1.14 opening. It paused at €1.16 on Tuesday before proceeding up to €1.1750, where it opened in London this ...

Continue reading Moneycorp: Euro Weekly Update

June 16th, 2009

After last week's flurry of positivity, I was half-expecting to produce a newsletter from the flip-side this week - one full of doom and gloom. While there are some somber articles, yet again we find more reasons to be cheerful about Spain and its property market.First off, the Moneycorp Euro ...

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June 16th, 2009

614,000 completed new homes left unsold, Analysts say number less than forecast, Another 627,000 still in constructionSpain had 614,000 new homes sitting unsold at the end of 2008 -- lower than most analysts' estimates -- according to the first major survey of Europe's most over-stocked home market. Almost half of ...

Continue reading Spanish Property Overhang Shrinks