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Archive for the ‘Economic News’ category

Banks in Spain is required to reserve loan

February 5th, 2012

The banks in Spain is required to reserve as much as 50 billion euro loan. The background of this policy is to restore market doubts on the bank’s asset-based valuation of real estate. Issues about the real value of assets makes it difficult market access financial markets. This report from the Ministry of Economics and Business Competition, Spain.

This program is a one-time execution and will affect the level of bank profits for one year. Of the value of 323 billion euros of assets that rotates in the property sector, 175 billion in it are considered problematic. Barclays Capital believes that this new rule will reduce the level of income throughout the Spanish bank and upset the balance of capital respectively.

Luis de Guindos economy minister said on Thursday that the bank had a year to raise 50 billion euros ($ 66 billion) as a backup of the decline in quality real estate assets. Therefore, banks that do not have a healthy balance sheet is recommended for merger. If the merger is approved recommendations before the end of May, the bank will get an extra 12 months to adjust to the rules of banking restructuring. The banks were also given space to access the allocation of funding from the state bailout.

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Posted in Economic News

Tags: banks in spain barclays capital

America the next two years should be possible to sell bonds

February 4th, 2012

A survey shows, the United States at risk of “heart attack” due to failure to manage the country’s ratio of debt to gross domestic product (GDP) and the continuing political stalemate in Congress related to budget cuts. This was revealed by leading economists as well as professor of economic development and trade of the Universitat of St Gallen, Simon Evenett, in a conference in Zurich, as reported citywire.co.uk page.

According to him, the young Republican politicians are closely related to the Tea Party movement will be very difficult for a Democratic administration in power right now to implement the budget consolidation. This, he argued, would increase the burden of debt and the question of the overall economy remains insoluble.

“At a certain point increase in debt will begin to take economic growth and the United States will face a very serious problem. If someone is eating steak every day, we know that they are at risk of heart attack, we just do not know when it happened,” said Evenett .

Evenett, whose specialty is the politics and economy the United States, the United States argued that the debt is now equal 72 percent of the PDP.

In the next two years, the United States considered requiring the sale of bonds worth 30 percent of its debt at this time. It is, strictly Evenett, of course, is a serious problem for investors.

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Posted in Economic News

Tags: political stalemate republican politicians

Meeting of European leaders and China Becomes Attention Market In the next week

February 4th, 2012

Next week, it looks like Attention will be focused on European leaders meeting in China and one of Beijing’s biggest trading partner. Yet exports are not expected to grow too large, especially distressed by the decline in demand due to the situation in Europe.

Report next week’s trade balance will also be awaited, expected from a sharp decline due to Chinese New Year holiday, looking forward growth slowed during the month of December. Besides China’s inflation report will also be a burden, estimated the rate of inflation is still high at 4.5% level.

Further attention will be focused on the monetary policy meeting from Australia, Korea and Indonesia, there may be haunted by the fear of cutting interest rates the debt crisis of Europe. But South Korea’s central bank still is not expected to alter the level of interest rates.

Japanese corporate earnings reports, particularly the automotive manufacturers have contributed to the further attention, particularly affected by the latticework Thailand and appreciation of Japanese yen can hurt Toyota’s earnings during the third quarter.