- Czech Republic: Business Cycle Survey (May)
- Jordan: Foreign Trade (Mar-Prelim); Oman: CPI (Apr); Turkey: House Sales (Apr); Saudi Arabia: WPI (Apr)
- France: Construction Survey (May)
- Switzerland: Foreign Trade, Trade Indexes (Apr)
- Finland: PPI, Employment and Unemployment, Import Export Price Index (Apr); Sweden: LFS, Average Hours Worked per Week by Age and Sex (Apr); Iceland: Wage Index (Apr)
- China: Crude Steel Output (Apr), ANZ-Roy Morgan Consumer
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Economy in Brief
Euro Area PMI Weakens As the Fed Rattles Its Policy Saber
Conditions and patterns vary across EMU-somewhat by size...
U.S. Existing Home Sales and Prices Near Recovery High
Sales of existing homes increased 1.7% (6.0% y/y) to 5.450 million (SAAR) during April from 5.360 million in March...
German PPI Drops with Upward Pressure Mounting and a Mixed Future
The German PPI (ex-construction) fell by 0.2% in April, returning to its declining ways after a flat performance in March...
U.S. Leading Economic Indicators Firm
The Conference Board's Composite Index of Leading Economic Indicators increased 0.6% during April (1.9% y/y)...
Philadelphia Fed Business Conditions Index Remains Negative
The Philadelphia Fed reported that its General Factory Sector Business Conditions Index eased during May to -1.8...
U.S. Initial Claims for Unemployment Insurance Decline
Initial unemployment jobless claims fell to 278,000 (+0.7% y/y) during the week ended May 14...
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|