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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

I’ll have a political crisis with my financial one, please.

What goes best with a financial crisis? Exactly, a political one. And Spain finally got a matching pair. While the government is set to announce its latest measures, unrest is increasing and Catalonia has called snap elections in the region.  In Madrid, protests are getting out of control.

Catalonia is Spain’s most important economic region and contributes 1/5 of GDP. It also has the most debt. The suprise election could be a move towards its independence from Spain. Although Catalonia has always been the Scotland of Spain, the most recent separatism movement stems from the “unfair treatment” of the relatively richer region, which is required to increase its payments to Madrid due to crisis measures. From the FT on September 12:

“If we cannot reach a financial agreement, the road to freedom for Catalonia is open,” Artur Mas, Catalonia’s president, said on Tuesday.

Followed by this statement today:

“The hour has come to exercise our right to self rule,” said Artur Mas, Catalonia’s president.

And as though that wasn’t enough, Andalucia now wants to apply for a government bailout worth €4.9bn. It’s kind of busy right now, please try again next week. After all, the 2013 budget is due tomorrow. The market’s reaction: yields are back at 6% for the first time since Draghi unveiled the ECB asset purchasing plan. read article

And while we’re talking about the periphery: Greece is headed for a general strike today, where all those who still have employment (and actually get paid) show there discontent with the government’s fiscal measures. Airtravel, railtravel, any other travel, banks and post offices (the list goes on) will be impacted. Barely impressed, PM Antonis Samaras approved a €11.5bn cuts package yesterdayread article

After protests and temporary production stops, the Japan-China conflict has reached a new stage. Both Nissan and Toyota said they would scale back their Chinese production indefinitelyAll Nippon Airways recorded 40,000 cancellations for flights between Japan and China in the coming weeks. Toyota stated that it will not reach its production target for the year due to the unforeseen circumstances. read article

Of course this is coinciding with China’s economic slowdown and Asia-focused hedge funds underperforming against other regions and global benchmarks. Let’s rush to Latin America as long as we can.

So long.

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2 Responses

  1. princess1960 says:

    hello .to day i see differnt news CATALONIA..this problem is many years (and even is Spanish) people they thinking is better than MADRID wrong ..we will see after …Catalonia is peace of Sp..peace of the problem economic -politice .for me people be come a littel (we are better )but not this is global problem and they have to understand that ..
    CHINA i know there have unemployment…and inflation so ????
    EU …nowhere go this politice …they followning ..
    GR (no comment) just this people have learn to have to much tooo much with not clean work now come difficult for tham …
    for me needed (metra) BUT right way because here pay the people really doesn’t have (ligo)%
    Japan my favorit country (we see they have some problem) (is very logic) but one state who have reserve no worry..
    Mongolia IS REALLY OPORTUNINTY for busisness .
    and i like there .
    NOW Latin American have one power free force work in USA
    i have one extrem idea about emigration
    because this is one very seriuse theme noone see like this
    JUST under a control by contrate bwt gv of the coutries needed to have eEMIGRANT UNDER CONTROLL
    and NO one emigrant from MIDDLE EAST noone ….AF.PAC. IR IR TUR..ALL HAVE TO STOP TO GO OTHERS COUNTRES ..
    so after my comment i have to say too THANK YOU

  2. Silva says:

    Latin, or at least South, America is doing fine. Which is why nobody sane would want migrants from elsewhere: for each decent one, five anuses wanting to live the Colonial Iberian lifestyle.

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