Europe etc

[nowtelse2do]

The tab will be that the new Aircraft Carriers being built in France may probably cost another 3.3 billion on top of the billions already over budget. Seems like we are unable to build ships anymore or tanks. *-)

 

Dave

[Guest pelmetman]

nowtelse2do - 2012-06-08 8:30 PM

 

The tab will be that the new Aircraft Carriers being built in France may probably cost another 3.3 billion on top of the billions already over budget. Seems like we are unable to build ships anymore or tanks. *-)

 

Dave

 

Well maybe it'll be a good thing if we don't stick our noses into other peoples business ;-).........as the West is to stretched at the moment to get involved with Syria.............yet when it comes to the middle East they have most of the oil and course most of the problems....................funny that ;-)

[Guest pelmetman]

100 billion euro sticking plaster for Spain :D...............Italy next? :-S.......

[nightrider]

pelmetman - 2012-06-08 9:36 PM

 

nowtelse2do - 2012-06-08 8:30 PM

 

The tab will be that the new Aircraft Carriers being built in France may probably cost another 3.3 billion on top of the billions already over budget. Seems like we are unable to build ships anymore or tanks. *-)

 

Dave

 

Well maybe it'll be a good thing if we don't stick our noses into other peoples business ;-).........as the West is to stretched at the moment to get involved with Syria.............yet when it comes to the middle East they have most of the oil and course most of the problems....................funny that ;-)

The Arabs got the oil and the Jews got the oranges, thats even funnier.

[Guest pelmetman]

Well that sticking plaster didn't last long 8-)

 

Investor sentiment over the Spanish bank bailout has soured, just hours after European and Asian stock markets were buoyed by a massive 100bn euro debt deal.

In early trading London's FTSE 100 (Euronext: VFTSE.NX - news) index had jumped 1.80%, Frankfurt's DAX 30 (Xetra: ^GDAXI - news) hit 2.04% and in Paris the CAC 40 (Paris: ^FCHI - news) rose 1.98%.

But by mid-afternoon gains had been reduced to 0.1% for the FTSE, 0.5% on the DAX and 0.13% in Paris.

Spanish 10-year bond yields had also initially dropped below the psychologically important 6%, making it easier for Spain's government to borrow, but later rose to 6.44% as the euphoria subsided.

Madrid's IBEX 35 (Madrid: IBEX.MC - news) benchmark index initially soared 5.77% higher shortly after the open, with Spanish bank shares leaping 6% on their first day of trade following the aid deal to recapitalise the country's weaker lenders.

Encouraged by the bailout, oil prices had also topped $102 a barrel for a time.

The initial positive mood was sparked after Spain asked finance ministers from the 17 eurozone countries to rescue its banks, which have been crushed by bad land and property loans.

They responded by offering up to 100bn euro (£81bn) in credit that the Spanish government could funnel to banks.

European Commission spokesman Amadeu Altafaj said it would be "reasonable" to charge a modest rate of interest on rescue loans for the banks.

"It is premature to talk about interest rates, you cannot talk about a definite rate since it will depend on market conditions but, yes, percentages of 3% or 4% are reasonable for these operations," he said.

In Asia, the Hang Seng (HKSE: ^HSI - news) had earlier climbed up 2.4%, the Nikkei (Osaka: ^N225 - news) 1.9% higher and the Shanghai Composite some 1.1% as the trading day closed.

But China quickly warned that more significant structural changes are still required to safeguard longer term stability.

"In the interests of mid or long-term stability, we hope the eurozone will improve consensus and take more decisive action," China's vice finance minister Zhu Guangyao said.

The rescue for Spain's banks follows bailouts for Greece, Ireland (Xetra: A0Q8L3 - news) and Portugal since 2010.

Angela Merkel's government was forced to defend the EU rescue for Spain, with many Germans convinced their generosity is being abused and sceptics warning that promising aid without tough conditions sets a risky precedent.

Aides to the German Chancellor justified the huge bailout on the grounds that the Spanish economy was not in such dire shape that it required the kind of terms imposed on Greece, and the aid would not be paid directly to Spanish banks.

"The Spanish application comes from the state, the money will go to the state, the state is liable and the state takes on the responsibility for the stipulated conditions," Mrs Merkel's spokesman Steffen Seibert said.

Spain is the eurozone's fourth-biggest economy - twice the size combined of those countries which have been bailed out so far - and therefore critical to the wider eurozone health.

Sky News economic editor Ed Conway said: "What we've seen earlier with the bailouts is a rise in the markets as they react positively at first.

"The problem is that after a little while the markets start looking for question marks and they have then fallen back as time has gone by."

Wider issues of eurozone health also remain, with confirmation of Italy being in deep recession with a 0.8% quarterly rate contraction - the worst in three years.

Meanwhile, Portuguese banks' borrowing from the European Central Bank rose 6% in May from the previous month to hit a new record, and consumer sentiment has plunged in Ireland, according to a new poll.

The next key date for the struggling eurozone area comes on Sunday, when Greek voters head to the polls and the election is likely to determine whether the debt-mired country will stick with the euro.

A financial crisis has gripped Spain since 2008, when its property bubble bust and caused big losses for many banks.

A Spanish bank rescue fund set up in 2009 was running out of money, and the government has already nationalised Bankia, a major bank.

[CliveH]

It's not like various individuals/countries/companies from around the world have not told the Eurozone to get it "sorted". The problem is that those in charge (mainly the Germans) know what needs to be sorted but they also know that it will be they themselves that will suffer if the proper action is taken. I really do dispair at what is going on. Spain is not Greece. It did not fiddle the books. It does have a property bubble that burst DUE to the Euro - but Germany seems prepared to overthrow democracies and allow the citizens of other countries to lose jobs/homes/savings etc and not give a damn!

 

Germany NEEDS the Euro as it is set up know or else it will have the same problem that Switzerland has - i.e. a currency rated too highly for effective trade.

 

Germany has been riding its own "bubble" of an artificialy kept low (for them) currency (that allows German exports to be cheap) in the same way as the Property bubbles in Ireland and Spain artificially boosted thier economies.

 

It will end one way or the other.

 

The issue is do it now and have some control or let the fuse of dispair and anarchy burn until the eurozone as an economic unit implodes.

 

 

[nowtelse2do]

Top share tip for today...............invest in sticking plasters.....short term.

 

Then any company that deals in Morphine. Long term investment *-) (lol) (lol)

 

Dave

[Guest pelmetman]

I reckon we should invade :D...................where's me tank (lol) (lol) (lol)

[Guest pelmetman]

Oooooh it gets better 8-)

 

Spain's borrowing rates have shot to their highest since it joined the euro after 18 banks had their credit ratings downgraded by the Fitch ratings agency.

Spain's 10-year bond yield rose to hit 6.81% in late afternoon trading according to data provider FactSet, while stocks began to dip just before markets closed, indicating that investors continued to be unconvinced by Spain's decision to seek help for its ailing bank sector.

Spain agreed last weekend to take a European bailout for its domestic banks, tapping into a ???100bn (£80bn) euro area bailout fund, but investors are worried it will not solve the country's problem as the government may have trouble paying the money back.

Fitch said in a statement that its downgrade of the banks was a result of a previous downgrade of the Spanish sovereign debt on June 7.

Fitch said it had conducted stress tests, both on the Spanish banking sector as a whole and on individual banks, updating results from tests done in 2011.

The ratings agency said the weakness of the Spanish economy would continue to have a negative effect on business volumes "which, together with low interest rates, will place pressure on revenues".

The rescue package for Spain's crippled lenders was announced on Saturday by finance ministers from the 17-country euro area, but the exact amount the country's banks will receive has not yet been revealed.

Meanwhile, the World Bank, the body responsible for international economic development, has warned that the events unfolding in Greece and Spain are affecting the entire global economy.

There has been a staggering drop in financial activity, as flows from rich countries to the developing world dropped by 44% between April and May.

However, it still expects global GDP to rise by 2.5% this year and growth in developing countries should expand by more than 5%.

Speaking on Jeff Randall Live, Andrew Burns, lead author of the World Bank's Global Economic Prospects report, said: "If there is a significant deterioration in Europe (Chicago Options: ^REURUSD - news) , then we could see all developing countries get hit hard, and growth declining by as much as 4%."

But he added: "They are more resilient and aren't burdened by some of the structuring difficulties which we see in high income Europe, so we would expect them to respond more quickly."

 

Time to sod of on holiday then ;-)

 

I read this bit as the poor sods at bottom of the poo pile are going to get dumped on.......dontcha just love globalisation *-)

 

"If there is a significant deterioration in Europe, then we could see all developing countries get hit hard, and growth declining by as much as 4%."

But he added: "They are more resilient and aren't burdened by some of the structuring difficulties which we see in high income Europe, so we would expect them to respond more quickly."

 

"Structuring difficulties".......................?...........b*****ks speak for sacking people *-)