Archive for the 'ECONOMY DAY'
| Date: October 21, 2010 | Source: AlertNet |
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Loading ... The rapid deterioration of the Spanish economy and the lack of liquidity conditions in the property market have forced banks to make a record number of foreclosures in Spain since 2007, according to a report by Moody "s Investors Service.
These foreclosures rising severity of losses and strangle the liquidity of residential mortgage-backed securities, says a report on litigation processes mortgages in Spain, signed by Vice President Moody 's Alberto Barbachano.
The volume of foreclosures in Spain brought to justice increased by 126% in 2008 and 59% in 2009 year on year. Only in the first quarter of 2010 we recorded the record of 27,561 foreclosures, says the firm.
In more benign economic times that the current Spanish borrowers struggling to meet their payment obligations have been able to sell their homes relatively easily to meet their debts, says the firm.
In this regard, Moody 's said that the weakness of the Spanish economy, the difficulties facing the housing market and high unemployment have forced banks to undertake the implementation of many mortgages.
Nevertheless, it requires extra-judicial proceedings that have now become a solution to the lenders who resort in Spain, especially in areas where the courts are saturated and the execution of the property may take longer.
More details of the story here .
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| Date: October 20, 2010 | Source: Europa Press |
Go ahead and rate this post Loading ... Businesses and the public sector will have to pay its suppliers as a general rule within 30 days, according to the new Community legislation to combat late payment in commercial transactions definitively approved Wednesday by the full life of the Parliament by 612 votes for, 12 against and 21 abstentions.
The directive, whose content has already been agreed with the twenty-seven, is to ensure that SMEs suffer no more financial problems due to late payment of bills by public authorities and large companies.
"We wanted to ensure that rights are respected small businesses to improve liquidity and create a better climate for investment in new jobs," explained the negotiation by the Parliament, the German Socialist Barbara Weiler.
The original proposal of the Commission stated that the payment terms should be fixed by agreement between the debtor and creditor. But Parliament's negotiators convinced the Belgian Presidency to accept the rule of 30 days for Europe.
For public authorities only in "exceptional circumstances" the payment period may be extended beyond 30 days. But in no case may spend 60 days and you must present a justification for any extension.
For hospitals, Member States may set different payment terms up to 60 days. This exception is contemplated by the specific nature of these centers, which are funded through reimbursements under social security systems.
In business to business payments, the general deadline is 30 days unless the contract says otherwise. If both parties agree, you can reach 60 days. The repayment period can be extended beyond 60 days only if there is an "express agreement" between the creditor and the debtor and if it is "extremely unfair" to the creditor.
Interest for late payment is in arrears is set at the reference rate plus 8%. In addition, the Parliament and the Twenty have agreed a fixed amount of 40 euros as compensation for recovery costs.
Member States now have two years to translate the directive into national legislation.
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| Date: October 19, 2010 | Source: AlertNet |
Go ahead and rate this post Loading ... China has moved in the currency war tab, although it was with a modest rise in interest rates (0.25 points to 5.56%) . The increase corresponds to an attempt by the Chinese authorities to control inflation and reorder their own economic growth. The move could weaken the dollar against the yuan and China decide to allow the most favorable exchange rate between the dollar and the euro.
The Chinese central bank has raised rates for the first time in nearly three years, a move that has surprised the market, at least in the fact of having done so quickly, since, as noted by Marian Fernandez, head of strategy Inversis Bank "I sensed the trend is going to produce, after having recorded the monetary aggregates and real estate prices higher than expected." After the surprise move could be some data on GDP and inflation to be known this week higher than expected.
The rate hike has caught markets by surprise, who have reacted to the floor. The bags, oil and gold fell after the announcement of China's central bank. At the same time, the dollar rose and acted as a refuge by the tightening of monetary policy of the Asian giant.
"Externally (is) a message clear to the international authorities on the relative stability of the yuan, "said a recent Citigroup report, adding that can accentuate the rising yuan. However, Citi also clarifies that the rate increase is too small for big changes and disturbances originate. Among other things, debt sales are "light" and the situation remains "unchanged in the European country risk." Meanwhile, Marian Fernandez is skeptical about an appreciation of the yuan, as the coin is tapped, "out of a free float."
By contrast, Alexis Ortega, Finagentes managing partner, says that "the yuan should be strengthened. This is a continuation of an ongoing process of "depreciation of the dollar, especially against the yuan." Thus, the Chinese authorities "accept" a weaker dollar against the yuan, but "decide" the exchange rate dollar / euro European currency, according to Ortega, it should not fall below $ 1.35.
"The medium-term passes a falling dollar and a cast of his fall between major currencies (euro, yuan, yen)," said Ortega. "The euro will have to bear the cost." With less intervention of the authorities, "the market more flexible is the euro". In addition, China has been buying European debt, according to the expert Finagentes, which would explain the improvement of the bonds of some countries such as Ireland, despite having suffered cuts rating.
In this sense, the euro currency has been the most vulnerable among the major world currencies. In today's currency war scenario, the EU has remained on the sidelines. As a result, the euro has appreciated against other currencies, causing a detrimental effect on exports from the Old Continent.
Since the last few months, China keeps its currency artificially low, encouraging exports and trade balance hurting countries like the U.S. and Japan have launched a counter protectionist passing through the devaluation of their currencies. Pressure on China resulted in small revaluation of its currency this summer, something deemed insufficient by the United States.
Control of inflation and growth reordering
But the rise in rates has a more obvious interpretation internal key. While the Chinese authorities had declared their confidence in the control of inflation, the next data, which will be announced on Thursday, may yield a higher figure than expected. In August, China's inflation was 3.5%, and analysts expect an increase to 3.6% in September.
For its part, China's GDP grew by 10.3% in the second quarter. Data for the third quarter, which will also be published this week, may show signs of overheating of the economy that contribute to a rise in prices.
In this sense, the measure of the Chinese authorities would seek to "avoid asset bubbles," says Marian Fernandez. It would also be "adjusting their growth", up to now focused on external demand, with a very positive trade balance result of a relatively low yuan. In this sense, the rise in interest rates is also aimed at domestic demand and should encourage the return of investors to the country.
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| Date: October 18, 2010 | Source: REUTERS |
Votes: 1 Rating: 5.00 / 5) Loading ... A court in Seville has failed for the first time in favor of the nullity of the clause `ground 'in mortgage lending considered abusive practice, said Monday the association of users of banking services AUSBANC, citing the statement.
"The ground clause contracts variable rate loans, concluded with consumers or users, is void for having the nature of unfair," said AUSBANC in a statement citing a ruling that favors a case against BBVA, Caixa Galicia and Cajamar.
The Commercial Court No. 2 of Seville declared invalid the clauses soil "given the time lag appreciated the same in relation to unfair accompanying roof."
The court sentenced these financial institutions to eliminate such general condition of the contract and refrain from using it in the future, although the sentence can still be appealed.
BBVA A source told Reuters that the bank submitted an appeal against the sentence.
"It's a sentence in isolation, is not final and we will turn to," the source said.
The clause called `ground 'sets a minimum rate of interest on mortgage loans, regardless of the situation of monetary policy.
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| Date: October 16, 2010 | Source: Sources |
Votes: 1 Rating: 4.00 / 5) Loading ... Conclude that it's the right time to buy a home is not an easy process for people who want access to a residential property. In this long and grueling housing crisis, citizens have come to know details that speak of the collapse in demand, the price cut, but not all match statistics on the magnitude of the decreases, they do in the trend-and the dramatic decline in housing starts. In this sea of numbers we can add other information, not less important and that is partly a consequence of the above: the high inventory of unsold homes, which in turn influences the overall real estate activity.
Although this is the picture of the sector for more than two years, some aspects of the housing crisis have worsened over time, but others begin to moderate. Meanwhile, a new element has crept to push the potential buyer to decide sooner whether to buy now or wait for prices in coming months are possibly lower. This is the substantive tax changes introduced by the Government in the State Budget for 2011, eliminating tax breaks from next year homebuying taxpayers with incomes higher than 24,107 euros a year.
And it is a very important factor. The tax savings can be raised to 34,000 euros for a mortgage of 25 years, and explain why the sale of houses has soared in August, according to recent data from the National Statistics Institute (INE), which include both private housing as protected, and the first and second hand. In that month amounted to 43 817 operations, similar to July, but 29.6% higher than the same month last year. Also the accumulated data of the first half of 2010 the Ministry of Housing indicate a surge of transactions: 256,606 compared to 224,641 the same period in 2009.
Is it advisable for a house purchase and, if you are destined to residence, not to lose the deduction, as seems to point to the latest statistics? Experts say yes, provided it has been found that meets the objectives and needs. The idea, in that case it would speed up the process, not always easy, to get bank financing and close the sale before the end of 2010.
More details of the story here .
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