• Tag Archives Spain
  • ECB Worried Who Will Buy Government Debt if they Stop?

    According to RELIABLE sources behind the curtain, the crisis in Spain led to a significant amount of selling Spanish debt to the European Central Bank (ECB) which has meanwhile swelled to 2.3 trillion Euro. There are problems now emerging in Italy and the appetite for government debt at low rates is not as strong as being portrayed. The ECB’s expansive economic stimulus package of buying government debt is NOT going to be stopped so easily. At the next ECB meeting on October 26th, the bond-buying program is most likely going to continue and at best they might claim to extend the bond purchase program with a modest reduction in volume. The ECB has not commented on this position, but there are rising concerns that member states will be unable to fund their spending without the ECB or a dramatic rise in interest rates demanded from the private sector.

    This post was published at Armstrong Economics on Oct 18, 2017.


  • Finally Belgium Speaks Out Against Spanish Oppression

    The Belgium Prime minister Charles Michel has come out against Spain and now other European leaders applaud him for taking a position against the repressive action by Spain’s Civil Guard and National Police despite the fact that those in Brussels remain silent because they care only about their own jobs. Brussels has been silent fearing others will rise up as separatists against their rule. So Brussels has demonstrated to the world that human rights come second to self-interest. This oppression in Spain has done far more damage to the EU than most people realize. Their silence has been taken as proof that they too would resort to violence to protect their jobs as well.

    This post was published at Armstrong Economics on Oct 16, 2017.


  • Bill Blain: “This Time It Really Is Different! The Machines Have Taken Over And They Will Never Sell”

    Submitted by Bill Blain of Mint Partners
    Forget the Known Unknows, its the shocking surprises that are going to get us

    ‘Bubbles don’t grow out of thin air, they have a solid basis in reality. But, reality is distorted by misconception..’ And it’s a bad start to the week as my Bloomberg obliquely gave the finger by refusing to log me on.
    Markets don’t care about my travails. They continue on their unstoppable upward trajectory. (Remember that word – trajectory, often parabolic. Look it up.) Lots of folks warning about complacency, but markets pay no heed. They prefer the global unlimited growth vibe..
    Now, I know I sound like a broken record with my boring repeated warnings the market has gone overly frothy. I could counter with arguments about low volatility and short-tops painting a weakening technical picture. I could make arguments about how the short-term and long term business cycles all converge on weak indicators – I could even give you a lengthy discussion on how the Kondratieff ultra-long cycle says ‘run-away!’ I could refer to volume of money issues, or QE concerns. I could even point you to some astrological stuff…
    Or I could point out what a worrying place the markets are. After reading through all the news this morning it strikes me we’re in thrall to a host of known unknowns.
    If you want to worry, then pick your choice: it’s a delightful smorgasbord of things to go bump from the anniversary of the Hurricane and Crash of 87, the right-wing in Austria, noise about Tax reform in the US, Norte Korea, Kurds vs Iraq/Turkey, Catalunya vs Spain, UK vs Everyone, Trump vs the Universe, and everything in between. (In my own case, tomorrow is exactly a year since the unpleasantness with my primary pump – just doesn’t feel like it’s going to be a lucky week!).

    This post was published at Zero Hedge on Oct 16, 2017.


  • Italy’s Solution for Unemployment = Pension Crisis

    The high taxation in Europe has crippled the economy. Those in power have not yet figured out that 70% of employment is created by the small business owner who they consider the rich and thus the enemy. Nowhere has this been more the case in Italy, Greece, and Spain. Italy is the next on the list of this Year From Political Hell come May 2018 and with youth unemployment above 30% for the past six years, the solution is not to lower taxes, but to steal from pensions to pay benefits to the youth.
    In 2015 alone, some 50,000 Italians under 40 years of age migrated elsewhere to find jobs. Nearly half of them had gone to university to get degrees to no avail. All the fancy papers to frame and hang on the wall are not worth the cost of a frame. Italy and Greece are bleeding as their young talent cannot find a job and are pouring out of the country. The loss of these people is being argued is costing Italy 1% per year in economic growth. The estimate is closer to a 2% loss on GDO for Greece.

    This post was published at Armstrong Economics on Oct 16, 2017.


  • Days of Living Dangerously in Catalonia

    Fractured communities, splintered families, broken friendships.
    In Catalonia the economy is already beginning to feel the pinch from the rise in political tensions, as tourist numbers plunge 20% to 30% and as hundreds of companies, both domestic and foreign, move their headquarters to other parts of Spain, albeit in most cases only on paper.
    But there’s one business that’s doing a brisk trade: the flag business.
    Wherever you go these days, flags are everywhere. For years the esteladaflag, the starry symbol of Catalan independence, has been a ubiquitous feature of the urban landscape. But now the Spanish flag is doing its best to catch up. As Catalonia’s separatist movement grows in confidence, more and more balconies in Madrid, Valencia, Seville and other Spanish cities, including even Barcelona, are sporting the bold red and yellow of the Spanish flag.
    I took these photos in Barcelona. The estelada draped from windows and balconies:

    This post was published at Wolf Street on Oct 15, 2017.


  • Global Stocks Hit New Record High, Dollar Mixed After Dovish Fed

    In a trend observed every day this week, S&P futures are slightly in the red ahead of a post-open ramp with the VIX rising to 9.91, as Asian shares climb, European stocks are little changed. WTI crude pares recent gains, slipping below $51 after API showed an unexpected crude build. Earnings season launches with bank earnings reports from JPMorgan and Citigroup, while Economic data include PPI figures, jobless claims.
    As Reuters notes, broader investor risk sentiment has improved this week after Catalonia dialed back plans to break away from Spain, with MSCI’s 47-country world stocks index reaching a record high. Global equities now appear to be taking geopolitical developments such as the secessionist push in Spain and tensions on the Korean peninsula in their stride, to reach those record tops.
    Analysts will be keeping a close eye on banks Q3 reports: Trading probably dropped from the same period a year earlier. Executives from JPMorgan, Citigroup and Bank of America Corp. told investors last month to expect declines ranging from 15 percent to 20 percent. Goldman Sachs Group Inc., coming off its worst first half for the trading business in more than a decade, said the third quarter remained challenging. Subdued volatility, especially compared with the turmoil from Brexit and the U. S. election a year earlier — made the period particularly tough.

    This post was published at Zero Hedge on Oct 12, 2017.


  • Catalan Leader Asks For Mandate To Declare Independence, Suspends Consequences Of Vote “For Weeks”

    Following a brief intro, thanking supporters, proclaiming this a ‘Spain’ issue, and outlining the referdmum’s success, Puigdemont turned more angry, slamming the “humiliation, aggression, and Catalanophobia” of Madrid, suggesting that Spaniards are victims of propaganda, and proclaiming that “many Catalans believe that the only way to guarantee survival is for Catalonia to become a State.”
    “We’re not crazy, delinquents or doing a coup,” Puigdemont says.
    Then he paused…saying Catalonia has won the right to independence.
    “I assume my mandate to convert Catalonia in an independent State.”
    And then ads that he calls for weeks of dialog, suspending the independence referendum result.

    This post was published at Zero Hedge on Oct 10, 2017.


  • OCT 9/GOLD AND SILVER ADVANCE: GOLD UP $8.00 AND SILVER IS UP 23 CENTS/COMEX GOLD OPEN INTEREST FALLS BY OVER 2,000 CONTRACTS BUT SILVER DOES THE REVERSE AS SILVER LONGS REFUSE TO BUDGE/TRUMP IN …

    GOLD: $1282.50 UP $8.00
    Silver: $16.93 UP 23 CENT(S)
    Closing access prices:
    Gold $1284.80
    silver: $16.98
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1300.79 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1281.60
    PREMIUM FIRST FIX: $19.19 (premiums getting larger)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1300.79
    NY GOLD PRICE AT THE EXACT SAME TIME: $1282.30
    Premium of Shanghai 2nd fix/NY:$19.49 (PREMIUMS GETTING LARGER)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1282.15
    NY PRICING AT THE EXACT SAME TIME: $1281.90
    LONDON SECOND GOLD FIX 10 AM: $1278.75
    NY PRICING AT THE EXACT SAME TIME. 1279.90

    This post was published at Harvey Organ Blog on October 9, 2017.


  • Global Markets Bounce As Germany, China, Spain Lift World Stocks, Turkey Crash Ignored

    With no North Korean nuclear test over the weeknd contrary to a Friday morning rumor, S&P futures rebounded and edged higher as European stocks gain, led by Spanish shares after mass demonstrations in favor of Spanish unity and speculation Catalonia may back down on unilateral independence demands, while Chinese mainland stocks reopened catching up to gains missed during the holiday week following last weekend’s RRR cut.
    World shares rose to start the week, with Chinese stocks hitting 21-month highs and the German index setting a new record, while political uncertainty triggered big moves in sterling, the Turkish lira and Spanish debt. US futures are also pushing higher in anticipation of the start of Q3 earnings season which begins later this week, with a number of Wall Street banks including JPMorgan, BofA and Citi set to report. While equities are open, the US bond market is closed today for the Columbus day holiday, while Asian markets were relatively quiet following holidays in Japan, South Korea and Taiwan.
    European stocks climbed at the start of a week in which investors were closely watching developments in Catalonia as well as U. S. earnings season kicks off. The Stoxx Europe 600 Index adds 0.23%, following four straight weeks of gains. All industry groups except miners climb. The IBEX 35 Index is up 1% as a senior member in the Catalan administration calls for dialogue with Spain, although the gauge is still down 1.2% since Catalans voted for independence in an illegal referendum. After a weekend of mass demonstrations in favor of Spanish unity, Raul Romeva, foreign affairs chief for the separatist government in Barcelona, insisted that the door was open for talks if Prime Minister Mariano Rajoy was willing to grasp the opportunity
    As Bloomberg breaks down local markets, 18 out of 19 Stoxx 600 sectors rise; 407 Stoxx 600 members gain, 171 decline. Top Stoxx 600 outperformers include: CaixaBank +2.6%, Centamin +2.5%, TDC +2.4%, Man Group +2.4%, Metro Bank +2.0%. The Stoxx Euro 600 Index also received a boost from data showing German industrial output rebounded from a summer lull with its best month in six years. The euro nudged higher, while most European bonds rose. Gold climbed and crude oil erased earlier gains.

    This post was published at Zero Hedge on Oct 9, 2017.


  • Spanish Government Issues Veiled Death Threat To Catalan Leader

    In a quite shocking escalation of the rhetoric in Spain, a spokesman for the ruling People’s Party just issued a (barely) veiled death threat to the Presdident of Catalonia.
    1. PP spokesman says Puigdemont might end up like Lluis Companys (in 1934) if he declares independence tomorrow…pic.twitter.com/II2HGUtUdH
    — The Spain Report (@thespainreport) October 9, 2017

    This post was published at Zero Hedge on Oct 9, 2017.


  • Catalan Independence: Deutsche Bank Explains How We Got Here & What Happens Next

    In the past few days, many questions have arisen regarding the exact institutional mechanisms and next steps surrounding the Catalan events.
    In this note, Deutsche Bank’s Marc de-Muizon provides a Q&A addressing these issues.
    Why is the referendum illegal?
    The Spanish Constitution states that Spain cannot be broken up. The Article 2 in the preliminary part of the Constitution states: ” The Constitution is based on the indissoluble unity of the Spanish Nation, the common and indivisible homeland of all Spaniards”. The Spanish Constitutional Court suspended the law passed by the Catalan parliament at the start of September to organise the referendum.

    This post was published at Zero Hedge on Oct 6, 2017.


  • Spike In Airborne Radioactivity Detected In Europe, Source Located In Southern Urals

    In late February, concerns about a potential nuclear “incident”, reportedly in the vicinity of the Arctic circle, emerged when trace amounts of radioactive Iodine-131 of unknown origin were detected in January over large areas in Europe, according to a report by the Institute for Radiological Protection and Nuclear Safety, the French national public expert in nuclear and radiological risks. And while Norway was the first to measure the radioactivity, France was the first to officially inform the public about it.
    “Iodine-131 a radionuclide of anthropogenic origin, has recently been detected in tiny amounts in the ground-level atmosphere in Europe. The preliminary report states it was first found during week 2 of January 2017 in northern Norway. Iodine-131 was also detected in Finland, Poland, Czech Republic, Germany, France and Spain, until the end of January”, the IRSN wrote in a press release.

    This post was published at Zero Hedge on Oct 6, 2017.


  • Spain Teaches Catalonia a Lesson about the Power of Money

    Money is fickle and fearful.
    Within 48 hours this week, Catalonia, Spain’s largest regional economy, lost three of its seven biggest homegrown multinational corporations and several large national companies – at least on paper – to cities in other regions of Spains.
    The first important company to leave since Sunday’s referendum was mid-sized pharmaceutical company Oryzon Genomics SA, which announced on Wednesday that it was departing Catalonia for Madrid. The same path has been traveled recently by firms like Derby Hotels, Unico Hotels, WPP and Schibsted.
    But it wasn’t until Banc Sabadell, Spain’s fifth largest bank, announced that it was changing its registered company address to Alicante, a provincial city on Spain’s south-eastern coast, that the threat of a corporate exodus from Catalonia began to be taken seriously.
    Banc Sabadell is as Catalan as the town that bears its name, but its management has been warning for years that it would move out of the region in the event of Catalan independence. That threat wasn’t taken seriously until Thursday.

    This post was published at Wolf Street by Don Quijones ‘ Oct 6, 2017.


  • Bill Blain: “Aside From The Jobs Report, What Else Is There To Say This Morning?”

    ‘You’re a cop. I had your job once. I was good at.’
    Continued Upside! What does it mean? Short term complacency danger, but long term maybe soft bull?
    It’s Payrolls Day! Clue: monthly payrolls are not a particularly reliable indicator, although the data-set has acquired a quasi-religious sentiment status despite being a unreliable single look-back data point amongst the deluge of information we can plough every day. (In fact, pretty much discount today’s payrolls: if they are positive they change nothing, negative and they will be dismissed as ‘hurricane distorted’ – look to the next release in November as more meaningful!)
    Aside from the jobs report, I’m wondering what else there is to say this morning?
    VIX at yet another record low. S&P sustains a record number of record highs. Market fully prepared and ready for a December hike. Even Spain rose yesterday – boosted by the perception of a Catalan pull-back. My bearish stock picking chum Steve Previs had to reset his shorts because of the market’s resilience.. My chums in the financials sector have gone all bullish (again) convinced higher rates are good for banks, ‘synchronised global growth’ means lower NPLs, and now we’ve got potential Fed Chair candidates actively supporting rolling back regulation. What can possibly good wrong?

    This post was published at Zero Hedge on Oct 6, 2017.


  • OCT 5/ANOTHER RAID TODAY AS WE HAVE ONLY ONE MORE DAY LEFT UNTIL GOLDEN SEEK ENDS/SPAIN TO HOLD THEIR DEBATE ON SEPARATION ON MONDAY/TRUMP TO DE CERTIFY THE IRAN NUCLEAR DEAL/

    GOLD: $1272.10 DOWN $1.60
    Silver: $16.60 DOWN 10 CENT(S)
    Closing access prices:
    Gold $1268.00
    silver: $16.60
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $n/a DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $n/a
    PREMIUM FIRST FIX: $8.24 (premiums getting larger)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $n/a
    NY GOLD PRICE AT THE EXACT SAME TIME: $/na
    Premium of Shanghai 2nd fix/NY:$13.00 (PREMIUMS GETTING LARGER)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $not important
    NY PRICING AT THE EXACT SAME TIME: $not important
    LONDON SECOND GOLD FIX 10 AM: $1283.10
    NY PRICING AT THE EXACT SAME TIME. 1283.10
    For comex gold:
    OCTOBER/
    NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH: 199 NOTICE(S) FOR 19,900 OZ.
    TOTAL NOTICES SO FAR: 2314 FOR 231,400 OZ (7.197 TONNES)
    For silver:
    OCTOBER
    31 NOTICES FILED TODAY FOR
    155,000 OZ/
    Total number of notices filed so far this month: 370 for 1,850,000 oz

    This post was published at Harvey Organ Blog on October 6, 2017.


  • Defying Spanish Defense Ministry’s Civil War Threat, Catalans To Hold Debate Monday

    Spanish (and European) stocks surged this afternoon as headlines crossed that Catalan separatists were hoping to ‘stall’ proceedings in hope of negotiating with Madrid. That hopeful headline appears to have been crushed now as Bloomberg reports the Catalan regional parliament intends to meet as planned Monday, defying a suspension by Spain’s Constitutional Court.
    As Bloomberg reports, Jordi Sanchez, who heads the Catalan National Assembly, said that lawmakers may need to gather in an alternative venue, but that the debate on an illegal referendum on independence from Spain will take place. Sanchez collaborates closely with Regional President Carles Puigdemont and the speaker in the Catalan legislature, Carme Forcadell. He helped organize the vote on Oct. 1.
    ‘There will be some formula for the Catalan Parliament to convene and hold its meeting as planned,’ Sanchez said in an interview in Barcelona.
    ‘There will be a plenary session.’

    This post was published at Zero Hedge on Oct 5, 2017.


  • Spain Rebounds, Pound Tumbles In Quiet Session Ahead Of ECB Minutes, Fed Speakers

    Global markets came off record highs, trading subdued, with US index futures unchanged as traders are unwilling to make major moves ahead of today’s ECB minutes and tomorrow’s NFP release, and before speeches by central bankers including SF Fed President John Williams and the potential next Fed chair Jerome Powell, as well as ECB executive board members Peter Praet and Benoit Coeure.
    There was a modest relief rally in Spain, where the main IBEX 30 stock index traded up close to 1%, with banks across the region seeing some bullish performance as participants continue to guess whether or not Catalonia will declare independence next week as Economy Minister Luis de Guindos poured cold water on Catalonia’s bid for independence. A well-received Spanish bond auction, the first since the referendum and which saw the highest 10-year bid-to-cover ratio since February, added to the optimism. Other auctions out of France and the UK were well digested across markets. The Spanish-German spread posted its first tightening this month.

    This post was published at Zero Hedge on Oct 5, 2017.


  • Catalonia Chaos Begins to Squeeze Spain’s Financial Markets

    Bank shares plunge. Money is already on the move. Spain’s biggest political crisis of a generation, which has led to the complete breakdown of communication and understanding between its government in Madrid and the separatist region of Catalonia, is finally beginning to take its toll on the country’s financial markets.
    Spain’s benchmark index, the Ibex 35, slumped nearly 3% following its worst day of trading since the Brexit vote last June. Spain’s 10-year risk premium – the differential between the yield on its 10-year bonds and the yield on Germany’s 10-year bonds – soared to 129 basis points. And that’s despite the fact that the ECB continues to buy Spanish debt hand over fist.
    But it is the banks that have borne the brunt of the pain this week. On Monday, the first trading day after the independence referendum, they lost 4.84 billion in market value. Over the past five trading days, shares of the two biggest Catalan-based banks, Caixabank and Banco de Sabadell, have plunged respectively, 9% and 13%.
    So tense is the situation that the CEOs of each bank felt compelled to release a statement today reassuring customers that they have all the means and tools necessary to protect their interests. Their contingency plans include the option of abandoning their base of operations in Catalonia and moving elsewhere – to Madrid in the case of Sabadell and Mallorca in the case of Caixabank.

    This post was published at Wolf Street on Oct 4, 2017.


  • OCT 4/SPAIN TO DECLARE THEIR INDEPENDENCE ON MONDAY/TRUMP STATES THAT BONDHOLDERS OF PUERTO RICO BONDS WILL BE WIPED OUT/GOLD AND SILVER HOLD/

    GOLD: $1272.10 UP $0.10
    Silver: $16.60 DOWN 1 CENT(S)
    Closing access prices:
    Gold $1274.80
    silver: $16.61
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $n/a DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $n/a
    PREMIUM FIRST FIX: $8.24 (premiums getting larger)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $n/a
    NY GOLD PRICE AT THE EXACT SAME TIME: $/na
    Premium of Shanghai 2nd fix/NY:$13.00 (PREMIUMS GETTING LARGER)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $not important
    NY PRICING AT THE EXACT SAME TIME: $not important
    LONDON SECOND GOLD FIX 10 AM: $1283.10
    NY PRICING AT THE EXACT SAME TIME. 1283.10
    For comex gold:
    OCTOBER/
    NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 75 NOTICE(S) FOR 7500 OZ.
    TOTAL NOTICES SO FAR: 2115 FOR 211,500 OZ (6.5785 TONNES)
    For silver:
    OCTOBE
    23 NOTICES FILED TODAY FOR
    115,000 OZ/
    Total number of notices filed so far this month: 316 for 1,695,000 oz

    This post was published at Harvey Organ Blog on October 4, 2017.


  • Catalonia To Declare Independence From Spain On Monday

    Spanish stocks tumbled, with the IBEX index sliding into a 10% correction, following an overnight report that Catalan leader Puigdemont was set to make a statement at 9 p.m. (1900 GMT) on Wednesday, after an all-party committee of the region’s parliament meets to agree a date for a plenary session on independence. That concluded moments ago and CUP, the pro-secession party that is a majority in the Catalan parliament, has announced it will declared independence from Spain in plenary session on Monday, El Pais reports.
    As reported last night, Catalan President Carles Puigdemont told the BBC that his government would ask the region’s parliament to declare independence after tallying votes from last weekend’s referendum, which Madrid says was illegal. “This will probably finish once we get all the votes in from abroad at the end of the week and therefore we shall probably act over the weekend or early next week,” he said in remarks published on Wednesday.
    Puigdemont’s comments came after Spain’s King Felipe VI accused secessionist leaders on Tuesday of shattering democratic principles and dividing Catalan society, as tens of thousands protested against a violent police crackdown on Sunday’s vote. The Catalan leader is due to make a statement at 9 p.m. (1900 GMT) on Wednesday, during which he is expected to announce that Catalonia will formally announce independence on Monday.
    Spain has been rocked by the Catalan vote and the Spanish police response to it, which saw batons and rubber bullets used to prevent people voting. Hundreds were injured, in scenes that brought international condemnation.
    And while the constitutional crisis in Spain, the euro zone’s fourth-biggest economy, has hit Spanish stocks and bonds, raising Madrid’s borrowing costs, it has so far failed to have an adverse impact on the broader European market, or the Euro which has remained relatively steady in recent days. As shares in Spain’s big lenders fell on Wednesday, Economy Minister Luis de Guindos tried to reassure investors and customers. ‘Catalan banks are Spanish banks and European banks are solid and their clients have nothing to fear,’ he said on the sidelines of a conference in Madrid.

    This post was published at Zero Hedge on Oct 4, 2017.