Deficit per GDP reduction in cold blood increases the debt per GDP ratio. We have been there, already. The sensible thing to do is to finance economic growth to shorten the deficit, even if it prolongs for a certain period the increase of debt.
Inflation in the euro area falls by 0.1 percentage points to 2.5% year-on-year. CaixaBank analysts predict a downward slide in inflation over the coming months.
In the euro zone, cash in circulation, and short-term and long-term bank deposits, money market funds grew at a year on year rate of 4 percent in October.
BARCELONA | CaixaBank | The adjustment in employment during the crisis has been more intense in those countries with a real estate bubble. Leading indicators point to further job losses.
Institutional investors may be getting their hands in higher-yield sovereign bonds to increase their results, but there are some financial reports of improving macroeconomics for the euro zone.
Rating agencies keep Spain’s credit rating at investment grade. The stability of the United States’ debt market, threatened by the fiscal cliff.
EU exports to most of its major partners grew in January-August 2012 compared with January-August 2011, except for India (-5%). The most notable increases were recorded for exports to Russia and South Korea, both +18%.
LONDON | In spite of bad economic figures for the euro zone, more peripheral banks may be enjoying access again to wholesome market credit. Spain continues under the spotlight, though, and the situation could become rather difficult.
MADRID | The Spanish government faces an uncomfortable dichotomy, says Carlos Díaz Güell: it either prolongs the fiscal measures taken in 2011 or lets the public deficit grow even further.
CaixaBank research | The current surplus reaches almost 60 billion euros, close to the peak of 2004. Rising oil prices and the euro’s appreciation might slow up the pace of growth in the current surplus.