Spain’s economic woes took another hit when credit agency Moody’s cut the country’s bond rating three notches to Baa3. The rating is just one notch above classifying Spanish bonds as “junk bonds.”
The credit dip was attributed directly to the country’s 100 billion euro bailout from fellow euro zone countries that was approved over the weekend. Lenders have been stating concern for Spain’s future in the euro zone as a result of their continuing banking woes. Continue reading
Rumors a radical leftist party which favors a return to the drachma is running neck and neck for the lead in the elections scheduled for Sunday is driving a run on Greek banks. Bankers are reporting that up to 800 million euros, or around $1 billion US dollars, is being pulled from major banks every day.
Retailers are reporting that people are using the money to stock up on pasta and canned goods. Continue reading
Optimism about Spain’s banking bailout is fading fast after reports that Spain’s borrowing costs have risen to the highest point since the creation of the euro.
The benchmark 10-year bond yield peaked at 6.81%. The news created some ripples throughout the European Union as Italy’s 10-year bond yield hit 6.28%, the highest rate since January. Continue reading
Pastor Jim & Lori Bakker welcome John Shorey for as they discuss The Window of the Lord’s Return Day 4 on The Jim Bakker Show. Continue reading
Fears of a euro-zone collapse, an economic relapse in the United States and a slowdown in China combined to drive the Tokyo Stock Market to it’s lowest level in 28 years.
The FTSE CNBC Asia 100 Index fell over 111 points, a drop of 2.1 percent. The index measures markets across Asia. The individual Topix index hit a 28 year low as investors rushed to sell after U.S. jobs data disappointed analysts. Continue reading
The contraction rate of manufacturing in Spain ranked higher than Greece’s rate in the month of May. Spain’s rate declined at the highest rate since May 2009.
Spain’s figure of 42.0 was the worst in the eurozone below Greece’s level of 43.1.
The manufacturing decline in many of the endangered eurozone nations is beginning to impact the stronger nations like France and Germany. Continue reading
Amid concerns about looming bank failures in Spain, the European Commission is proposing providing bailout funds to banks directly rather than going through individual governments.
Commission head Jose Manuel Barroso cited the need for flexibility and speed in sending the funds directlyto banks. Also being placed on the table is a debate about creating a “banking union” similar to the Euro Zone.
The National Bank of Greece has issued a report ahead of the country’s June 17th elections that says if those elected choose to remove Greece from the euro it could have catastrophic impact upon the nation’s economy.
The bank stated the risk of the country exiting the euro has become more than a theoretical possibility. Continue reading
Three Spanish savings banks are considering a merger to try and strengthen themselves against the amplifying debt crisis in the country.
The three boards of each bank are meeting today to determine the fate of the merger.
The merger comes amid news that investors are fleeing the Spanish markets as the bond yields for Spanish bonds rose to an all time high. Investors appear to be running to Germany as an influx of investment capital drove the German bond yields significantly lower. Continue reading
The Greek government gave 18 billion euros to its four biggest banks in an attempt to allow the banks access to European Central Bank funds.
Two government officials told Reuters that the government is trying to revive the country’s falling tax revenue but that it has a 3 billion euro fund remaining from the country’s first bailout to pay bills should the tax revenue not recover. Continue reading