The deal is worth $1.1 billion…Comments »
Monthly Archives: May 2012
“Spain is the crucial front in Europe’s battle to contain its economic crisis, and the fight is going badly.
Spain’s economy is in a tailspin. Some forecasters say the unemployment rate, already a punishingly high 24.4 percent, could reach 30 percent. The government’s credit rating has just been downgraded, and its cost of borrowing — close to 6 percent — is putting its solvency in question. Investors are watching the country’s banks with mounting concern.
Europe’s leaders cannot blame Madrid. Mariano Rajoy’s center-right government is making progress on reforms aimed at improving the country’s competitiveness and has tried — to a fault — to meet the European Union’s austerity demands. The resulting budget cuts are strangling the economy, squeezing the government’s revenue and increasing the likelihood that Spain will need still more austerity to meet the EU’s fiscal targets. The policy has become self-defeating….”Comments »
“Gold is seen dropping for the first time in six days in London on concern that physical purchases of the metal are slowing. Palladium fell from a five-week high.
The U.S. Mint sold 20,000 ounces of American Eagle gold coins in April, the least since June 2008, data on its website show. India last week celebrated the Akshaya Tritiya festival, considered an auspicious day to buy precious metals, and there was “disappointing demand,” UBS AG said yesterday.
“Physical demand has been relatively quiet,” Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said by phone today. “There is a real lack of interest in the market. We’ve seen profit-taking and gold will continue to struggle” to move out of the $1,640 to $1,670 an ounce range, he said…”Comments »