- Spain: Electricity Consumption (Mar)
- Iceland: Consumer Confidence Indicator (Mar); Sweden: PMI (Mar)
- Estonia: Industrial Sales; Industrial Orders (Feb)
- Markit PMI: Manufacturing Survey - Japan, China, Taiwan, Indonesia, Vietnam, Ireland, Russia, Turkey, Poland, Netherland, Spain, Czech Republic, Italy, France, Germany, Euro Area, UK, Greece, European Union (Mar)
- Korea: CPI (Mar); China: Manufacturing PMI, Nonmanufacturing PMI, Guangdong Manufacturing PMI (Mar), Taiwan: Manufacturing
- more updates...
Economy in Brief
U.S. Gasoline Prices Under Pressure Due to Excess Supply
Gasoline prices dipped a penny last week to $2.45 cents per gallon and remained down by roughly one-third versus a year ago...
Chicago Purchasing Managers Index Stabilizes
Chicago purchasing managers reported that their March Business Barometer Index moved up to 46.3 this month following a sharp decline to an unrevised 45.8 in February...
Unemployment Rates Still Drop in Euro Area
Germany remains a world apart from the rest of the European Monetary Union members as its unemployment rate is less than half the average for the community...
U.S. Personal Income Increase Continues to Outpace Spending
Personal income rose 0.4% during February (4.5% y/y) following a revised 0.4% January increase...
Dallas Fed Factory Sector Activity Erodes Further
The Dallas Fed reported that its March Composite index of factory sector activity deteriorated to -17.4...
NABE Forecast Calls for Firm and Steady Economic Growth
The NABE forecast of 2.9% growth in U.S. real economic activity next year follows an expected 3.1% rise this year...
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|