- Luxembourg: Employment and Unemployment (Aug)
- Iceland: Wage Index (Aug)
- U.A.E.: CPI (Aug); Israel: Composite State of the Economy Index, LFS (Aug); Iran: CPI (Aug)
- Italy: Industrial Turnover Press Release (Jun-Jul)
- Japan: Government Bond Trading Volume by Category of Investor, Balance of the Fiscal Loan Fund, Chain Store Sales (Aug), Population Estimates (Sep)
- Estonia: PPI (Aug)
- more updates...
Economy in Brief
Japan's Sector Indices Lose Momentum Again
Japan's economy is losing momentum again...
U.S. Financial Accounts Show Overall Pickup in Credit Market Borrowing
The Federal Reserve's financial accounts data for Q2 show total credit market borrowing at $2.32 trillion annual rate...
U.S. Housing Starts and Building Permits Decline
Housing starts during August slumped 14.4% to 956,000 AR (+8.0% y/y) following a 22.9% July jump to 1,117,000...
Philadelphia Fed Business Conditions Index Slips but Remains Firm
The Philadelphia Fed reported that its General Business Conditions Index for September edged down to 22.5 from 28.0 in August...
U.S. Initial Unemployment Insurance Fall to July Low
Initial claims for jobless insurance fell to 280,000 during the week ended September 13 from 316,000 in the prior week...
U.K. Retail Sales Rebound
U.K. nominal retail sales growth bounced back in August, rising by 0.2% after a 0.3% July decline...
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|