- Croatia: Earnings (Aug), Unemployment Rate (Sep)
- Jordan: Foreign Trade (Prelim-Aug); U.A.E.: CPI (Sep); South Africa: CPI (Sep); Morocco: CPI (Sep)
- Japan: International Trade, Real Trade Indexes (Prelim-Sep), Domestic Shipments of Electronic Equipment (Sep)
- Taiwan: Labor Market (Sep); Korea: International Trade Settlements (Sep)
- Australia: Internet Vacancy Index (Sep), CPI (Q3)
- more updates...
Economy in Brief
U.S. Chain Store Sales Fall Hard
The International Council of Shopping Centers and Goldman Sachs reported that chain store sales declined 0.3% last week...
U.S. Gasoline Prices Reach 2011 Low
The cost of a gallon of regular gasoline continued to fall sharply last week...
Japan's All Industry Index Erodes
Japan's economy continues to be weak...
U.S. Business Economists Survey Shows Easing Economic Conditions
The NABE reported in its Survey of Business Conditions that the unit demand figure declined to 42.3 last quarter from 52.4 in Q2...
Italian Orders Rebound but Go Nowhere
Italian industrial orders in August rose by 1.5% after a 1.5% decline in July...
U.S. Housing Starts Rebound Led By Multi-Family
Housing starts during September recovered 6.3% to 1.017 million (AR, 17.8% y/y) after a 12.8% decline to 957,000 during August...
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|