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Spain Given Advance Warning Of A Downgrade

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Financial Crisis
Spain faces threat of debt downgrade
Spain suffered a further blow after Moody's, the credit rating agency, warned it could downgrade the country's debt on worries over its high funding needs, public finances and banks.
The move by Moody's to put the country's Aa1 rating on review on Wednesday, comes a day after investors demanded higher interest rates to hold Spanish debt in €2.5bn bond auction and Standard & Poor's threatened to downgrade Belgium.
The euro fell on the announcement.

Looks like the poisons might all start hatching out again this side of CRIMBO?

Euro is doing very well on all this news. Up vs. £ and a cent up vs. the $ (now 1.33235.

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Goodbye Spain:


12:16, Wednesday 15 December 2010
Spain's economy, the fifth largest in Europe (news) , is struggling hampered by a property crash, large debts and high unemployment. Here is a snapshot of the economy
€560.5bn - The amount of Spanish government debt.
53.2pc - Government debt as a percentage of GDP.
78.7pc - Eurozone government debt average.
€117.3bn - Government deficit.
11.1pc - Deficit as a proportion of GDP in 2009. Spain wants to reduce this to 9.3pc in 2010, and eventually to 3pc in 2013.
-3.6pc - Real GDP growth in 2009.
€6bn - The amount Jose Luis Rodriguez Zapatero, Spain's prime minister, said Spain would slash its public spending by to avoid sliding into a debt crisis.
13,000 - The amount of civil service jobs to be axed this year, with public sector wages frozen in 2011.
5pc - The pay cut to be taken by remaining civil servants under these measures.
19.7pc Spain’s unemployment rate, the highest in Europe.
12.8pc The amount Spanish house prices have fallen from the market’s peak in 2008.
1.2pc Spain’s underlying inflation rate, excluding energy and food costs.
0.3pc Amount Spanish economy will contract in 2010, according to IMF (Berlin: MXG1.BE - news) . It has forcast growth of 0.7pc in 2011.
Source: Bloomberg, IMF, Eurostat

Almost as deep in it as we are. :o

Euro flying up vs. £ now: 1.17134

Edited by Realistbear

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Spanish bond yields rose again,
close to their highest level in a decade
, as did the cost of borrowing for most other European nations.
The move by Moody's to put Spain's Aa1 rating on review, comes a day after Standard & Poor's threatened to downgrade Belgium.

The bond market can bring them down in 48 hours.

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  • 312 Brexit, House prices and Summer 2020

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      • down 5% +
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