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Dear bloggers
Due the popular demand, between today and tomorrow we are going to be running a “open day” around our office in Mojacar together with our partner Spanish Property Choice… if you’re around join us for a great day of fun!
Lots of positives in the global markets this morning and for sterling. Firstly we have seen the Nationwide House price index survey show a surprise bounce as the average house price rose 1.2% in May- this is the strongest monthly gain for 19 months. Although this is a good indicator that the severe downturn in the property market may be bottoming out- Nationwide noted that it is still too early to call as unemployment is still rising and credit conditions remain tight. Sterling was also buoyed by UK consumer confidence matching its highest level in 11 months reported market researcher GfK NOP…the CBI also reported that business sentiment rose to the highest level since 2007. Sterling is now pushing towards 1.61 against the dollar (a new 2009 high) and 155.00 against the Yen- we could see new yearly highs very soon on the EUR and for sterling on a trade weighted basis.
In the wider markets we have seen more leveraging into Oil and Gold which both rose sharply- Gold is closing in on $1,000/oz again and Oil has hit a new 6 month high above $65 a barrel. Commodity prices have leaped this month as a move out of the dollar and Yen mirrors the improved confidence and a move from safety to investments. We have seen major gains in commodity based currencies particularly against the USD- with the CAD, AUD and NZD all making gains this month.
This morning we also saw German retail sales rise unexpectedly in April by 0.5%- a hopeful sign for the German economy to curb the sharp contraction in recent GDP data witnessed in the Q1. This has helped the euro gain against the dollar back over 1.40 and also to remain firm against sterling for now under 1.15. Eurozone CPI inflation came in at 0.0%- the lowest on record- it seems concerns on deflation are not weighing on the euro.
For today again we will be largely US focused- the revised 1st Qtr US GDP figure market expects a small upward revision, it will still leave the annual drop at an alarming 5.4%. Should prove Dollar negative.
I cannot believe that we are already at the end of May and this Friday will be the last Dress Down Friday we are collecting for Leukaemia Research, Barnardo’s and Alzheimer’s Research. The CSR Team is poised to count the spoils after all activities this Friday so next week we will have a new co-operative wall total, and I will be able to communicate how much has been raised for each charity. I am very confidant that we will go beyond the £1000 mark – fingers crossed!
So, Barcelona beat Manchester United and we had a little sweep in the office for the 1st goal scorer organised by Phil McHugh which Phil McHugh was the lucky winner! Half the proceeds as usual being split equally between this month’s charities. Phil has assured me this is not a fix and he didn’t want me to say anything, but he has donated his winnings to charity as well – bless! That’s another £37 in total added to the pot!
The end of the football season is this Saturday, marked as always with the FA Cup Final and competing this year will be Chelsea and Everton! We will do another sweep tomorrow for the 1st goal scorer – can Phil make it two in a row??
The Wii made a sensational debut last Friday with some very big ego’s coming out of the woodwork! Hopefully, everyone will get a chance to practice over the next couple of weeks before we announce our bigger plans!!
Next month the charities we will be collecting for are Breast Cancer Research, The Children’s Trust and the RSPCA.
Thank you for reading and happy donating!
The pound has hit the $1.60 level for the first time in nearly seven months, the euro is also neatly poised just below 1.40 this morning as risk appetite improves as optimism through the equity markets improves. This has increased the demand for assets denominated in sterling which started the year suppressed as a flight to safety prevailed. Currently we are seeing optimism throughout global markets- recently driven by better than expected US consumer confidence numbers. The dollar is also not currently fulfilling its usual status as a safe haven currency- concerns expressed on its sovereign debt rating looming over the dollar. Technically the market needs to maintain a breach over 1.60 to target 1.64 as the next key level. Keep one eye on the situation in North Korea as escalation or saber rattling will undoubtedly cause a rush back into the dollar.
Not a great deal of market data of note today with US existing home sales due out this afternoon being the main focus. North Korea as mentioned earlier could be a market mover and the fate of General Motors will be closely watched- GM faced a deadline to report on their levels of debt and concerns are increasing that bankruptcy is looming.
In other news Japans export downturn eased in April- falling 39.1% compared to the same month last year- this following a 45.6% fall in March. This resulted in a surprise trade surplus and raises hopes that the economy is past the worst and is on the road to recovery. This should help the Yen remain firm against the USD.
OPEC ministers are meeting in Vienna this week and are expected to make no change to volumes of oil supply as higher prices ease their concerns about both fuel inventories and the deepest fall in demand for years. The Saudis have been on the news-wires this morning talking oil higher, stating that the global economy is ready for a $75-80 per barrel price.
Yesterday attention turned to Asia as the UK and US markets were closed. The Yen and the Dollar appreciated after reports that North Korea carried out a missile test drawing international condemnation. The Yen and the Dollar gained as cautiousness in the currency markets increased the demand for the currencies as a refuge- this space will be watched closely amid reports of further missiles being fired.
Looking at the currency markets we have seen EUR/USD retreat from hitting the 1.40 level as demand for dollar increased and the euro weakened with a worse than expected German IFO index coming in at 84.20 compared to forecasts at 85.0. Although analysts commented that a quick recovery for Germany was unlikely the data is still an improvement from last months figure and does follow last weeks better than expected leading indicators for the Eurozone. The Euros cause was further dampened through an article in the Telegraph which cited a German bank regulator raising concerns that the debt level may increase in the nation.
German GDP data came in exactly in line with expectations and the market will now focus on unemployment for May due for release on Thursday. An important week ahead also for the US housing market with existing home sales and new home sales figures due out on Wednesday and Thursday respectively. Later this afternoon we have the US consumer confidence index for May. Very little of note for the UK this week with Nationwide house price data being the most prevalent ahead of next weeks rate decision by the BoE and ECB.
Many British People come to Spain for a change in lifestyle as well as the obvious reasons such as the sun, sea and sangria, and an increasing number are deciding to start a new career or even set up their own business here.
One of the easiest ways to own a business here is to buy a company that is already trading, as that way you can avoid many of the set-up costs, particularly if you are buying a business that is already operating from a premises. Every business here in Spain has to be properly licensed and the set up costs, work and timescales involved in setting up a business from scratch can often make it easier and cheaper to buy an existing business.
However the accounting system here in Spain makes it difficult to assess the viability or track record of a business when compared to buying a business in the UK. Many small businesses do not file proper accounts or declare all their income, so it is often harder to assess the risks or the potential of an existing business in Spain but there are many things that the prospective buyer of a business can do to ensure their purchase is a sound investment rather than a leap of faith.
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