mulberry sale Spain buckling under bond pres

Spain buckling under bond pressure

MADRID Spain’s borrowing costs shot up at a bond auction on Thursday, after economic data confirmed the country is back in recession and reports of an outflow of deposits from nationalized Bankia hammered its share price.

The Spanish Treasury had to pay around 5% to attract buyers of three and four year bonds. The longer dated paper sold with a yield of 5.106%, way above the 3.374% the last time it was auctioned.

“This fits the pattern of recent sales, with the Spanish treasury successfully getting its supply away but at ever higher yields,” said Richard McGuire, rate strategist at Rabobank in London.

“This unfavourable trend looks set to remain firmly in place Ultimately, this ratcheting up of yields will likely require some form of outside intervention,” McGuire said.

Spanish Prime Minister Mariano Rajoy said on Wednesday his government, struggling to reduce its budget deficit, could soon find it difficult to fund itself affordably on the bond market unless the pressure eases.

His finance minister, Cristobal Montoro, meets heads of finance of all 17 regions later to review their budget plans which are a crucial plank of the drive to lower public debt.

RelatedEurozone exit by Greece would be ‘extremely expensive’, IMF chief warns

Spain’s lack of cash in bank reforms falls short of investors’ expectations

The European Commission warned last week that stubbornly high debts in the regions and the welfare system would prevent Spain meeting its deficit goal of 5.3% of GDP this year.

Spain’s 10 year yields have spiked back above 6 mulberry sale percent, which investors view as a pivot point that could accelerate a climb to 7 percent, a cost of borrowing widely seen as unsustainable even though Madrid has sold well over half its debt needs for the year.

Top of the heavil mulberry sale y indebted country’s worry list is a banking sector beset by bad loans, the result of a property boom that bust in spectacular fashion.

El Mundo newspaper reported that customers at troubled Bankia SA had taken out more than 1 billion euros (US$1.3 billion), equivalent to around 1% of the lender’s retail and corporate deposits, over the past week.

“It’s not true that there is an exit of deposits at this moment from Bankia,” said Economy Secretary Fernando Jimenez Latorre.

The government last week took over Bankia, the country’s fou mulberry sale rth largest lender which holds around 10% of Spanish deposits, in an attempt to dispel concerns over its ability to deal with losses related to the 2008 property crash.

“The majority of outflows came after the chairman resigned last week, but I think once the bank was taken over by the government, depositors calmed down a bit,” said one Madrid based trader. “The share price fall has to do with disappointed retail investors dumping the stock.”

Spain’s deposit guarantee fund guarantees 100,000 euros per customer.

“I have two accounts with Bankia and up to now I have not c mulberry sale losed them. I’m not even considering it,” said Jose Ignacio Gonzalez, 42. “It must be more secure with the backing of the state, it has a guarantee.”

The problem for Madrid is that property losses facing banks are not yet quantifiable, given prices are likely to fall further.

The government told the sector last week to set aside another 30 billion euros in provisions, prompting some analysts to say much more would need to be done.

A government spokeswoman said the bidding to select an external auditor to value real estate assets across the banking sector was still open, denying Oliver Wyman and BlackRock had been chosen as sources previously told Reuters.

While Greece, facing fresh elections which could hasten its exit from the eurozone, has dominated headlines, uncertainty over the final cost of Spain’s banking reform has raised the prospect that it could require an expensive international bailout, a bill the eurozone would be stretched to cover.

Stuart Gulliver, head of Europe’s biggest bank HSBC , reflected on his biggest external concerns.

not Greece leaving the euro that is the major issue. It’s the domino effect absolutely how the eurozone plays out and whether Greece stays in, and/or whether firewalls are high enough to protect Spain and frankly whether markets take things into their own hands before (Greek elections on) June 17,” he said.

Official data confirmed the Spanish economy shrank by 0.3% in the first quarter, putting it back into recession and facing a prolonged downturn as the government cuts spending in an attempt to wrestle down its budget deficit.

Unemployment is already running close to 25%, rising to around 50% among the young.

The government will publicize budget plans from 17 powerful autonomous regions later on Thursday, possibly rejecting some of them if they do not make deep enough spending cuts and giving local officials 10 to 15 days to redo them.

If the regional budgets are not approved by the end of the month, the central government can invoke a new law and take control of spending. The regions must cut 15 billion euros out of their budgets, after their overspending last year caused Spain to miss its deficit reduction target badly.

Even if it puts its house in order, Madrid faces the threat of contagion from Greece if it elects an anti bailout government next month, a move which could hasten a hard default and exit from the eurozone.

“It’s not Greece leaving the euro that is the major issue,” said John Bearman, chief investment officer at Thomas Miller Investment, which manages roughly 3 billion pounds (US$4.8 billion) of assets. “It’s the domino effect.”

mulberry sale Spain arrests woman with cocai

Spain arrests woman with cocaine breast implants at Barcelona’s El Prat airport

A drugs mule has been busted trying to smuggle almost two kilos of cocaine into Spain in her breasts.

Cruel traffickers forced the 28 year old P mulberry sale anamanian woman to undergo surgery where several bags of the Class A drug were inserted beneath her skin much like a breast implant.

She was stopped earlier this month at Barcelona’s El Prat airport, following a flight on Colombia’s Avianca airline, after police thought she was ‘acting funny’.

Removed: The burst bags of cocaine after they were removed from the 28 year old woman’s breasts. She had been forced to carry the drugs by traffickers

During a search, they found a blood soaked bandage covering her chest which she admitt mulberry sale ed resulted from the operation to introduce the packets of drugs into her body.

She was rushed to a medical centre in the city, where doctors removed 1.8 kilos of cocaine worth about 240,000 in a number of sealed bags.

A police source told the Vozppuli news website that her arrest most likely saved her life, as she may not have survived much longer with such quantities of the substance in her body.

Caught out: She was stopped earlier this month at Barcelona’s El Prat airport, pictured, following a flight on Colombia’s Avianca airline, after police thought she was ‘acting funny’

He said: ‘She was in a very bad state when she arrived. She said she was not in any pain but the wounds looked very bad.’

It was, he added, the first time officers had ever seen drugs hidden inside the breasts of a woman.

It is the second time in recent years that a woman has been caught smuggling in such a way.

in 2011, a model was arrested by Italian police trying to smuggle more tha mulberry sale n 250 mulberry sale ,000 of cocaine into the country inside breast and buttock implants.

The 33 year old woman, identified only by the initials MFM, was held by officers as she tried to distract them with her plunging neckline and tight fitting outfit at Rome’s Fiumicino airport.

But her plan backfired as they were so captivated by her looks they pulled her over for questioning and discovered the drugs when she failed to explain why she had been to South America.

The woman had flown to Rome from Sao Paolo in Brazil and a search by female officers revealed the fake breast and buttock implants she was wearing had also been used to hide 5.5lbs of cocaine.

mulberry sale Spain arrest over baby trapped

Spain arrest over baby trapped in the drains

The baby was found after a neighbour had heard what he thought was a meowing cat trapped in the drains and decided to alert firefighters at abou mulberry sale t 02:00 local time (01:00 GMT) on Sunday.

In a statement, Spanish police said investigators later found the woman who had lived in the building and was taken to hospital on 21 June claiming she had had a miscarriage.

She confessed she had tried to get rid of the baby, but did not have enough money for abortion, police said.

The investigators are trying to determine whether the mother acted alone or had any assistance from a third party.

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