- China: GDP (Q4)
- China: NCI Economic Activity Index (Jan)
- Spain: Import & Export Prices, International Trade Detail (Nov), Motor Vehicle Registrations (Dec)
- Canada: CPI (Dec), Retail Trade (Nov)
- Ireland: Wholesale and Producer Prices (Dec)
- Mexico: Employment (Dec)
- Estonia: PPI, Import & Export Prices (Dec), Agricultural Output Prices, Building Permits (Q4); Hungary: Wages, Employment (Nov);
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Economy in Brief
German PPI Takes Wing...Even Excluding Energy
Germany's PPI inflation excluding energy is pushing relentlessly higher...
U.S. Housing Starts Reach 2007 High
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U.S. Initial Unemployment Claims Fall Sharply
Initial unemployment insurance filings declined to 234,000 during the week ended January 14 from 249,000 in the prior week...
Philadelphia Fed Factory Business Outlook Survey Improves
The Philadelphia Fed reported that its General Factory Sector Business Conditions Index rose to 23.6 during January from December's 19.7...
EMU Current Account Surplus Trumps the Past...All of It
The euro area has set a new record high current account surplus at 36.1 billion euros in November...
U.S. CPI Registers Faster Growth in 2016
The Consumer Price Index during all of 2016 increased 2.1% from December-to-December...
by Louise Curley June 4, 2012
Spain is in trouble once again. Capital is leaving the country and interest rates are rising, as can be seen in the attached chart. The 10 year bond rate was 6.5% on June 1st and probably higher today. The European Central Bank, the European Commission and the International Monetary Fund together with the Spanish government are engaged in trying to find ways to ameliorate the situation while the foreign banks that have lent to Spanish banks in the past are worried about their exposure to these banks.
Some Information on foreign banks' exposure to Spanish banks, as well as to Greece, Ireland and Portugal, can be found in Haver. In The Bank of International Settlements (BIS) data base, there is a table "Foreign Exposure to Greece, Ireland, Portugal and Spain" under the section, Consolidated International Claims on BIS Reporting Banks. Data are quarterly and begin in 2010. Most data end in the fourth quarter of 2011. Countries covered are Germany, France, Italy, Other Euro Area, Japan. U. S. U. K. and Rest of the World. U. S. banks appear to have the largest exposure, $227.7 billion dollars, to Spanish banks followed by Germany and other European Countries. Japanese and Rest of the World banks have much smaller exposures to troubles in the Spanish Banks.
|Exposure of Banks to Claims from Greece, Ireland, Portugal and Spain, Q4 2011 (Billions USD)|
|U. K. Banks||137.5||33.3||192.1||22.3|
|Other Euro Area*||179.6||21.9||67.2||33.5|
|Rest of World Banks*||41.3||5.7||57.3||9.5|
|* Data are as of Third Quarter, 2010|