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International banks used a record Spanish government bonds as collateral to obtain financing in the markets during the last week, suggesting an improvement in confidence in Spain as fears subside as the fourth largest economy in the euro zone could renege on obligations to pay its debt, according to the British newspaper Financial Times. “
In this sense, the short-term loans backed by Spanish bonds on repurchase agreements, the main financing tool in the euro area, amounted to 160,000 million euros last Wednesday, according to the platform Broker Tec intermediation cap.
In particular, the paper points out that most of the entities involved to guarantee Spanish bonds are domestic institutions, which have been the most difficulties have had access to funding.

“Spanish banks are highly dependent on loans from the European Central Bank (ECB) because of fears about the stability of the financial sector,” says the paper.
“This is a very positive sign for Spain to reduce its dependence on loans from the ECB;” said Don Smith, economist at Cap, quoin adds that “also represents an important step in the right direction for the Euro zone.”
In this regard, “Financial Times” says that a big reason behind this increased willingness to accept bonds as collateral Spanish endorsement by LCH.Clearnet and Murex, which offer coverage to any “defaults”.

In particular, LCH.Clearnet, the clearinghouse in London, launched its clearing services for Spanish government bonds and repose on 9 August.
On the other hand, Cava Madrid last month became the first Spanish institution to adhere to EurexRepo, the electronic marketplace related to Murex Clearing, the exchange operator controlled by Germany, Deutsche Bores.

However, Spanish bankers still perceive difficulties in obtaining financing. “There are now more cash for Spanish banks, but is highly selective, short-term and focused on the big names,” said a banker on condition of anonymity, adding, “this is the reason why that banks and try to find new markets.”
Latest figures show that Spanish banks borrowed money from the ECB for a record amount of 140,000 million euros last July.

We begin the analysis of the global economic situation and we do using the data of GDP of the strongest economies on the planet who has published the International Monetary Fund.

The data also highlight the supremacy of China against Japan, it is important to highlight that Brazil moves on Spain.

One of the Latin American countries with higher levels of growth from China to India that takes away from Spain ranked 8th in the ranking.

Thus, while China grows at a rate close to 10% and India makes it to 8%, Brazil has accumulated a 6.5% growth and is ranked ahead of Spain.

Some comparative data are not decisive but analyzed in isolation; the truth is that shows a shift in the sources of power, emerging economies appear to donate points to consolidate as more powerful development of this new cycle.

In May 2006, issued a press release that hit the Israeli economic environment. It was the purchase, by W. Buffet, 80% of the company Oscar, a maker of tools for the metalworking industry, for four billion dollars. The news, at that time, he realized a very important event and that certainly could be interpreted, rightly, as a show of confidence in the country’s industrial capacity.

However, we should remember that at that time the treatment the media gave Israel the transaction was such that it seemed that we were all fortunate. This led me to write at the time that “very nearly every one of us feel personally that was about to pocket some of that money and shared the honor of being chosen by the said investor to buy it ‘our’ company”.

Course and had passed while the impact of the transaction, re-entry to normal and the acceptance of that in the best, the most favored are the former owners of Oscar, while for the country and society can have meant a further step in the weakening of its ability to control their resources.

I came to mind this incident to reflect on what is happening with the discovery of large deposits of natural gas in the territorial waters of the country, news that has again placed as the subject of headlines.

Until recently, Israel was recognized as a country endowed with little natural resources, particularly energy resources. However, in the late 90s were discovered and put into operation a natural gas field (the Mari-B field) in territorial waters against Sakhalin, it is estimated that this site will remain productive until 2012 .

In early 2009 the same company that had explored and exploited the Mari-B field, is an American business consortium partners (Noble Energy) and Israeli (Derek, Asarco, Door Gas) – announced the discovery of a new field natural gas (field Tamar) off the coast of Haifa, estimating that would be able to meet the needs of the country for the next 15 years.

In addition, in June this year the company announced that the consortium said the new discoveries, including the field Leviathan, Israel would be entering a path to energy independence because it would have “sufficient local power for 100 years.”
Please note that Israel imports about eight million dollars to 9,000 annual energy commodities (oil, gas and coal, mostly), which represents almost 20% of total U.S. imports, excluding diamonds.

The deputy general secretary of the PSOE federal and Minister of Public Works, José Blanco, branded the national president of the PP, Mariano Raja, “bogus patriot” and warned that its objective is “to make adjustments horse” in the European economy.

On the Feast of the Rose, White visited the town this morning Areca Saragossa, where he staged a rally-lunch for more than 1,200 activists and supporters, among whom he predicted that the PSOE would win the regional and municipal elections of 2011 and the 2012 general.

So, asked all participants to avoid being “fooled” because behind all the “populist proposals” by Mariano Raja is the aim of “winning the election on the back of the crisis and then make a horse fit and throw the Zapata blame.”

In this regard, said a few days ago has been validated as the Royal Decree Law of adjustment, and that the PSOE did not have a positive vote of the PP and Raja, a “patriot cheesy”, while other nationalist parties (CIO) had “more sense of state” that the PP who recommended “less wrapped in the flag of Spain and more committed” to the real interests.

The minister asked how to say that the PP is the party of the workers “looking at the face of Raja” and deplored the “hypocrisy” of the secretary general of the PP, Dolores de Co pedal, who recalled his “Palestinian scarf” Raja and challenged to explain “what change and how” the proposed labor reform.

The new rules impose more frequent visits from officials of Euro stat to countries subject to prosecution for excessive deficit.

Thus, when there is reasonable doubt about the accuracy of the deficit and debt figures sent by a government in Brussels, the EU executive will send officials to the country concerned and to review firsthand the central government data, regions municipalities and social security.

In addition, Member States should provide Euro stat with the information required to examine the quality of fiscal statistics. Economic Affairs Commissioner, Olli Rein, said the new audit powers “are an essential requirement to have an economic and monetary union (EMU) strong and functioning effectively.” “We need accurate and reliable statistics on national accounts for EMU to work,” he said.

Rein announced that the first country to send a mission Euro stat when Parliament ratifies the strengthening of its powers would be Bulgaria. “We have some concerns about the functioning of statistics in Bulgaria,” he explained.

The EU executive called for and these additional powers in 2004, precisely when it was discovered that Greece had falsified data to enter the euro. However, the capital has refused to grant.

However, after coming to power, the New Greek socialist government again reviewed in October the deficit forecast for 2009 from 3.7% of GDP was estimated last spring to 12.5%. Subsequently, Euro stat has again revised upwards the Greek deficit last year to stand at 13.6%.

Distrust in the quality of the Greek statistics has been one factor that has aggravated the country’s debt crisis and forced him to benefit from the fund of 110,000 million set by the euro zone countries and the International Monetary Fund avoid bankruptcy. To avoid these problems again in the future, Member States have raised their reserves and have agreed to give more powers to the Audit Commission.

Cava de Burgos was now “fully satisfied” with the authorization of the Government of Castile and Leon Civic joining Bank and said that this decision “represents a major milestone in shaping the Group and facilitates the cruising speed it wants to acquire for its implementation on 1 July. “

The Ministry of Economy and Employment announced this afternoon at Burgos entity authorized to accede to the Institutional Protection System (SIP) which is part of the integration of the Group that conform Cava de Burgos, Cava Navarre and Cava Canaries.

This communication also states the need to obtain licenses from other mandatory to start the integration process must provide both the Bank of Spain and Spanish monetary authority, as the Ministry of Economy and Finance, said in a statement picked up by Europe Regional Government Press.

The authorization also involves compliance with all terms of the contract establishing the SIP. Cava de Burgos must submit periodic information for follow-up, the Ministry of Economy and Employment.

According to Europe Press reported Civic Banking sources, the Ministry of Finance also announced today the signing of the Ministerial Order authorizing the Group to operate, once it received a favorable report by the General Directorate of Treasury and Bank of Spain.

“In front are the relevant entries and other administrative processes to see Civic Banking SIP as the first bank operating in Spain, without consuming resources of Fob, launching a pioneering business model and growth and internationalization as key challenges future, “sources said

In Spain, one of the elements considered essential to overcome the crisis is improving the productivity of the country.

It is generally diagnosed since the mid-eighties; the growth of total factor productivity in the Spanish economy has been slowing. Among the reasons, the principal, is the lack of utilization of human capital improvement, training and knowledge-and communication technologies and information management in recent years. Obviously, there are other reasons that could be attributed side to corporate culture rather scanty or certain aspects of regulatory and subsidy policies in some sectors have helped strengthen the economy more dynamic and efficient.

At present, the negotiation of labor reform is thinking exclusively in terms of reducing the costs of explicitly linking human-capital increased productivity, but without addressing the two key issues for an economy XXI century in our country: to increase technological capital and its efficient use by companies and the empowerment of human capital-education and lifelong learning.

It is a fact that the Spanish business community, without exception, brings them to heave the empowerment of human capital – only 18% of companies used the funds for employee training last year by the deduction of contributions to Social Security – and many do not invest what they should invest in technological capital and the only thing they want is cheap labor.

The labor reform, as is being proposed we turn to an intensive economy-wage labor increasingly devalued the sole policy objective of reducing the rate a few points of unemployment.

No need to resort to the statistical series to observe that countries with higher productivity and adding value often have higher wages. While in Spain, with low wages, companies tend to invest less in capital improvements to its human and technological.

finance investment projects in any economic sector. The so-called “Production Financing Program of South America will be anchored by the Central Bank (BCRA), but reservations will not be used for this purpose. The announcement had been advance Profile Journal on Sunday.

The loans will be available with an interest rate of 9.9% annual fixed weights and have a period of up to five years. Projects that a unit comprised of the Ministries of Industry and Economy will evaluate applications. For its part, the Central Bank will give financial institutions public and private resources to lend against the security of tenure of such bonds.

Industry reported this medium, have been relieved about 100 investment projects. The main areas involved are steel, petrochemicals, leather, textiles, footwear, medicines, wood and furniture, auto parts, software, toys, and dairy foods.

Indeed, the purpose of the loans is to achieve anti-inflation, given that current demand for goods and services grows above generate supply and price increases, among other factors.

The Minister of Industry, Debora Giorgio, explained, “This growth generates greater investment needs, which are aggregate demand this year and a greater supply of goods and services for the future. Furthermore, the increased investment will result in import substitution, value-added exports and supply the booming domestic market. “

The chair of the Finance Committee of the National Assembly (AN), Deputy Ricardo Sanguine, attributed the decline in economic activity in Venezuela to the national electricity crisis.

Indicators of Central Bank of Venezuela (BCV) showed the close of the first quarter of this year a significant fall in gross domestic product (GDP) of 5.8 points.

“We are in an energy crisis, and all productive activity, industrial, service, agriculture, electricity demand,” said the deputy Sanguine interviewed by José Vicente Hoy.

This is the fourth quarter continued to decline in the Venezuelan economy. ‘This had been observed’, Sanguine said.

‘It warned that we were down this quarter but did not imagine that 5.8 points, which is a substantial rate, which are visible from the effects of the oil sabotage and coup detach. “

The congressman recalled that despite the economic downturn in the episodes mentioned that took place in 2002, ‘advanced greatly and the following year we had significant growth, not seen in the history of Venezuela’s economy. “

‘on this occasion can not be different, “said Rep. Purist.

“We are encouraging the development of productive activities of social property, social production companies in all areas: agriculture, industry, service, distribution and marketing of products,” he said.

Sanguine said that the state control of strategic companies that were in private hands would boost the economy.

Venezuela faced in late 2009 and early 2010 an electricity crisis due to a severe drought that affected the course of the rivers that feed the main dams that generate electricity to the country.

This situation prompted the government to build national systems of electricity production alternatives to hydropower. The Geri dam supplies the country 70% of its energy.

Economists and analysts said in recent days the possibility that the United States suffer a recession due to double Europe’s financial crisis, caused by the ballooning budget deficit of Greece, Spain and Portugal.

The Nobel laureate economist Joseph Stilts said last week the international press that a strong dollar and a weak European economy increased the possibility of two U.S. recessions.

Such a scenario sparked investor nervousness, which caused the three major U.S. stock indexes posting their worst May since 1940, when Franklin Delano Roosevelt held the presidency of the United States.

During this month, which officially ended last Friday in the U.S. after the Memorial in War-the three main stock indexes recorded a loss of eight percent from April.

On 5 May, the Dow Jones index in New York lost almost a thousand points in minutes, a drop caused in part by a technical error still completely unclear.

During this month weighed Greece’s inability to finance its budget deficit, disclosed by the loan of billion-trillion dollars, in English-committed to the country by the European Union (EU).

In addition, uncertainty about the future of Europe increased in recent days to rescue the bank in Spain Camases and because the stock rating cut by Fitch is rating grade sovereign debt of that country.

Fitch followed the example of other rating agencies, which had already downgraded the sovereign debt of Spain, the same as that of Portugal and Greece.

European Financial difficulties have pushed the euro to its lowest valuation since April 2000, with a low monthly until 28 May to 7.7 percent against the dollar.

The crisis in Europe, analysts, could affect the U.S. economy is in a first stage of recovery and with an unemployment rate remains at 10.0 percent.

During the week, the secretary general of the Organization of Trade in Europe, John Monks, said that Europe was heading to another stage of contraction, if not place more resources to the continent.

For his part, economist at New York University who predicted the recession started in 2008, Muriel Robin, has indicated that a stock market decline of 20 percent is likely in the coming months.