Speculators tightened the vise on Spain today, driving the interest rate on the country’s key 10-year bond to an unprecedented 7.45 per cent: here.
Exclusive: Spain discussed $366 billion bailout with Germany: here.
Newly published figures show unemployment at a record high in Spain: here.
A growing number of Spain’s regions are rebelling against government attempts to rein in their spending: here.
Last week 200 members of the Andalusian Workers Trade Union (Sindicato Andaluz de Trabajadores—SAT) entered a supermarket in Écija in the southern province of Seville, filled up nine trolleys with basic necessities such as oil, sugar, rice, pasta milk, biscuits and vegetables and walked out. The food was then donated to 26 families in La Corrala Utopía (Seville) and food banks in three towns in the province of Cádiz: here.
Global equity markets experienced a significant sell-off yesterday amid fears that the Spanish crisis is rapidly worsening and Greece may soon be forced out of the euro zone, setting off a new round of financial turmoil: here.
Italy‘s market watchdog banned the short-selling of shares for three months today as speculators pummelled the Milan stock exchange: here.
Greek Prime Minister Antonis Samaras admitted today that the country’s economy is expected to shrink by 7 per cent this year: here.
Finland is the last stable AAA eurozone nation standing, but Moody’s eurozone core downgrade makes no sense: here.
Britain:
Experts slam City for short-termism
BONUSES: Economic experts slammed the bonuses paid to City high fliers today for creating “a culture of short-termism” that is damaging the prospects of businesses.
A report commissioned by Business Secretary Vince Cable said the financial sector is too heavily geared towards rewarding traders and middle men and not focusing enough on long-term investment and providing returns to shareholders.
Author London School of Economics professor John Kay hit out at bonuses based on short-term performance.
http://www.morningstaronline.co.uk/index.php/news/content/view/full/121761
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Moody’s lowers Germany outlook
US: Ratings agency Moody’s has lowered its outlook for the credit ratings of Germany, the Netherlands and Luxembourg, citing the possibility that those countries would have to provide aid to Spain or Italy.
The outlook for the trio keeping their triple-A ratings has gone from “stable” to “negative.”
http://www.morningstaronline.co.uk/news/content/view/full/121808
Mayors protest in Rome against cuts
ITALY: Mayors from across the country gathered in fron of the senate in Rome today to protest against planned spending cuts.
President of the association of Italian cities Graziano Delrio said the cuts, totalling €26 billion (£20bn) over three years, would be “lethal.”
http://www.morningstaronline.co.uk/news/content/view/full/121808
Spanish recession getting worse
SPAIN: The National Statistics Institute said today that the Spanish economy remains mired in a deepening recession after contracting 0.4 per cent in the second quarter of the year from the previous three-month period.
It was the third consecutive contraction following the previous two 0.3 per cent quarterly declines.
http://morningstaronline.co.uk/news/content/view/full/122035
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