- Canada: Retail Trade (Jun), CPI (Jul)
- Mexico: Semimonthly CPI, National Employment Survey (Jul)
- Croatia: Earnings (Jun), Unemployment Rate (Jul); Albania: Domestic Debt, Banking System Liabilities (Q2); Montenegro: Wages (Jul); Hungary: Wages (Jun), Balance Sheet of Insurance Companies (Q2)
- Ireland: WPI, PPI (Jul)
- Morocco: CPI (Jul)
- Spain: Construction Permits (Jun), Tourism (Jul)
- more updates...
Economy in Brief
Canada's Retail Sales Surge
Canada's retail sales are hopping...
U.S. Existing Home Sales Increase to Ten-Month High
Sales of existing single-family homes strengthened 2.4% to 5.150 million (AR) during July from 5.030 million in June...
U.S. LEI Begins to Accelerate
The index of leading economic indicators is beginning to accelerate...
Philadelphia Fed Business Conditions Index Improves; Expectations Surge
The Philadelphia Fed reported that its General Business Conditions Index for August jumped to 28.0 from 23.9 in July...
U.S. Initial Claims for Unemployment Insurance Slip
Initial claims for jobless insurance during the week ended August 16 eased to 298,000 from 312,000 in the prior week...
EMU PMIs Wither Again in August- It Isn't the Heat
The flash PMI for the European Monetary Union in August slipped once again to 52.8 from 54.0 in July...
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|