Archive for the 'Economy'
| 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 taken to court increased by 126% in 2008 and 59% in 2009 year on year. Only in the first quarter of 2010 there was record of 27,561 foreclosures, says the firm.
In more benign economic times than today, 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 problems facing the housing market and high unemployment have forced banks to undertake implementation of many mortgages.
Nevertheless, it requires that extra-judicial proceedings have now become a solution to the lenders who resort in Spain, especially in areas where the courts are saturated and enforcement of property may take longer.
More details of the story here .
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| Date: October 19, 2010 | Source: AlertNet |
Go ahead and rate this post Loading ... China has moved tab in the currency war, even if it was with a modest rise in interest rates (0.25 points to 5.56%) . The increase represents 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 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 "the tendency was suspected that it would produce, after having recorded the monetary aggregates and real estate prices over the schedule." After the surprise move could be some data on GDP and inflation will be announced this week that higher than expected.
The rate hike has been taken by surprise to the markets, which have reacted to the floor. The bags, oil and gold fell after the announcement by the Chinese 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, "says a recent Citigroup report, adding that can accentuate the rise of the yuan. However, Citi also clarifies that the rate increase is too small to rise to great changes and disturbances. Among other things, debt sales are "light" and the situation remains "unchanged in the European country risk." Meanwhile, Marian Fernandez is skeptical about the yuan as the currency is tapped, "out of a free float."
By contrast, Alexis Ortega, managing partner of Finagentes 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 downgrades.
In this sense, the euro currency has been the most vulnerable among the major world currencies. In the current scenario of currency war, 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.
From recent months, China keeps its currency artificially low, encouraging exports and hurting the trade balance of countries like the U.S. and Japan have launched a counter protectionist passing through the devaluation of their currencies. Pressures on China resulted in small revaluation of its currency this summer, something judged as insufficient by the United States.
Control of inflation and growth reordering
But the rise in rates has an obvious interpretation in internal key. Although the Chinese authorities had declared their confidence in controlling inflation, the next data, which will be known on Thursday, may yield a figure higher than expected. In August, China's annual inflation was 3.5% and analysts expect an increase to 3.6% in September.
Meanwhile, China's GDP grew by 10.3% in the second quarter. Data for the third quarter, also 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," so far 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 terms 'soil' in mortgage lending considered abusive practice, said Monday the association of users of banking services AUSBANC, citing the judgment.
"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 is favorable as the plaintiff against BBVA, Caixa Galicia and Cajamar.
The Commercial Court No. 2 of Seville declared invalid the clauses soil "as the gap appreciated the same in relation to unfair accompanying roof."
The court ordered these financial institutions to eliminate such general condition of the contract and to refrain from using it in the future, although the judgment may still be appealed.
BBVA source told Reuters that the bank submitted an appeal against the judgment.
"It's an isolated judgment is not final and we will appeal," said the source.
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 is 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 statistics agree on the magnitude of the decreases, they do in the trend-and the dramatic decline in housing starts. This tide of figures we must 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.
While this is the picture of the sector for over 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 in excess of 24,107 euros per year.
It is a very important factor. The tax savings could increase to about 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, the transactions amounted to 43,817, a figure similar to that of 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 an upturn in 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, to keep the tariff, 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 this case, it would speed up procedures, not always easy-to secure bank financing and close the sale before the end of 2010.
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| Date: October 16, 2010 | Source: Reuters |
Go ahead and rate this post Loading ... The price of private housing fell by 3.4%% in the third quarter of 2010 compared to the same period last year to an average of 1,832 euros per square meter, which accumulates two years down in terms interannual.
Furthermore, according to data provided today by the Ministry of Housing, compared with the second quarter of 2010, housing prices fall back 0.9% after rising this parameter in the previous statistics.
During the third quarter, the price of new homes (up to two years old) stood at 1846.7 euros per square meter, like the previous quarter and 3.4% less than the same period of 2009, as that used with 1827.7 euros, down 1.5% quarter on quarter and 3.3 in year.
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