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In order to improve the status and reputation of Spain’s huge real estate industry three new qualifications (covered by the BOE. 276 Royal Decree 1550/2011 of 31 October) have been introduced that should improve the quality of professionals working in the industry.
Banks jumped at the chance of “Free Money” yesterday as the European Central Bank flooded the markets with low interest 3 year loans. A total of 523 banks borrowed €489.2bn in the ECB’s biggest ever funding exercise. The total surged over €100bn above the expectations as regulators encouraged lenders to take advantage of the cheap money on offer. The upswing in demand for funding comes as Europe descends into another credit crunch where banks have been refusing to lend to each other for fear that the borrowing bank could be insolvent. This comes as many banks have continued to write down the value of the sovereigns bonds they hold. Italian banks are believed to be the biggest borrowers as data came out revealing their economy shrinking by 0.2% over the 3rd quarter of this year.
Apart from this, there has been very little out in the way of news or data. With the year coming to a close, volatility on the markets has slowed and we’re expecting stable trading over the holidays. Euros fallen 5% over the last month looks set to go into 2012 on the back foot with the US Dollar remaining strong as the global favourite “Safe Haven”. Sterling has been in limbo over the past few weeks as it has strengthened against the weak currencies while losing ground to the strong ones.
European finance minsters are struggling to finalise a plan to give extra money to the IMF, with the plan then to lend the money European governments. The hope was for €200bn to be pledged by Euro Area governments plus money from those outside of the Euro including Britain and Sweden, but the amount committed so far is only €150bn. Britain, quite rightly, feels since the IMF is a global institution any increase in funding should be global in nature and not confined just to European countries. The constant disappointment the markets are showing over the lack of any clear resolution is keeping the Euro depressed and stock markets on the back foot. Traders hoping for a Santa Claus rally look set to be disappointed as the markets wind down into Christmas. Read the rest of this entry »
The US dollar has gained against the majority of its peers after confirmation came from North Korean state television that leader Kim Jong II had died. The USD gained due to its attraction as a safe haven currency as fear is now growing that instability may arise in the region. The Yen fell against the USD as concern rose for Japan’s economy and security as destabilization of the Korean peninsula will now be a concern. Read the rest of this entry »
The Euro debt crisis has taken a back seat today with no comments or figures coming from the Eurozone. Maybe it’s because the various European politicians are following the draw of their premier sporting event, the Champions League and have taken the day off. Or maybe it is down to there being no news or progress with sorting out the future of the single currency. The relationship between Britain and France took a hit yesterday as French Central Bank chief Christian Noyer lashed out at the UK’s economy saying “Britain should be downgraded before any cut to France’s credit rating”. Prime Minster David Cameron responded by pointing out the UK’s low bond yields and the credible plan in place to cut the mammoth annual deficit.
They seem to be coming thick and fast at the moment, but there are two more risk events to watch out for today that have the potential to significantly move the currency markets. Firstly and very importantly the Swiss National Bank has just finished its monthly meeting and will keep the EUR/CHF peg steady at 1.20. There was a lot of talk that the SNB would be raising the peg to 1.25 which would have seen significant moves across the board in the Swiss Franc pairs and also the Euro pairs as happened when the central bank first introduced the peg. The second risk event is a Spanish bond auction taking place at 9.30 this morning. The draining confidence in the Euro has seen large outflows from the single currency over the last week or so and it is very important to see if this leads to yields on Spanish bonds to increase once again.
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