Here’s what got us chatting this morning:
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Here’s what got us chatting this morning:
Welcome to a live blog with analysis and comment from FT experts as Spain’s cabinet gives details of a savage budget that will determine the immediate future of the country and relation with the rest of Europe. Watching closely: Eurozone partners; central banking institutions; the Spanish people; regional separatists, to name a few. Strong reaction is expected, from the market and the street, to further austerity measures. David Gardner, John Aglionby and Ben Fenton are collating the best of it.
18.22: FT experts are retreating into their fastnesses as we write to deliver cogent and considered views on what the Spanish government’s actions mean, and we live desk types gird our loins for the next challenge. Until then, que no hayan novedades, as they used to say in Spain.
18.06: Peter Spiegel has sad news from Brussels for friends of the European Financial Stability Facillity:
While it is unlikely to be mourned, and there are no plans we know of for an FT obit, it was, in its full form, popular with macro-economic rappers. That “stability-facility” thing, just magic.
18.03: Currency market reaction to the Spanish budget from the FT’s Alice Ross, reminding us that there is more news to come tomorrow, principally on how much Spain’s banks need to recapitalise.:
After hitting its lowest level all day during the Spanish budget, the euro later recovered and was trading just under $1.29, a 0.2 per cent rise on the day. Other currencies related to risk appetite built on their gains, with the Australian dollar rising 0.8 per cent, the New Zealand dollar rising 1 per cent and the UK pound rising 0.4 per cent.
Currency analysts said the rise in the euro was perhaps more related to the removal of uncertainty following the highly anticipated budget, rather than an enthusiastic thumbs-up for the proposals. And the euro is not out of the woods yet, with the results of Spain’s banking stress tests tomorrow set to indicate how much Spain’s banks need by way of recapitalisation.
18.00: Very interesting post from Lisa Pollack over in FT’s Alphaville community, on whether capital flight from Spain is as straightforward as it seems to be.
17.56: Hold up, just a bit of news in at the end there. Montoro, the budget minister, refused to comment when asked whether Spanish state pensions would rise in line with inflation next year. A fairly significant “No Comment”, one would imagine.
17.54: In fact, according to @cataloniadirect, the Catalan parliament has just approved calling a referendum on independence. That is hardly likely to be the last word on the matter, but it does suggest that we haven’t heard the last of that story by a long chalk.
17.52: But, just as Chris Adams thinks it’s all over…it is now. Spanish government’s press conference has now ended. We may have a bit more market reaction for you though, so hang in for a bit. Read more
Welcome to FT’s summary of US election news
Thursday sees a relatively quiet day on the road for the campaigns: there are no new polls to chew over and while both candidates head to Virginia, a state still in play according to surveys, both President Barack Obama and Mitt Romney, the Republican challenger, have only one stop there.
Mr Romney then heads off to Pennsylvania, where US press reports suggested he has already stopped advertising. The average of state polls at RealClearPolitics.com gives Mr Obama an 8.3 point lead in Pennsylvania. The website’s overall poll has the president retaining a 4 point lead nationwide, but it is becoming clearer by the day that just a few states will really decide the outcome. Ohio is one of them. Read more
Is the worst over in the eurozone?
With the ECB committed to unlimited purchases of eurozone bonds, the German Constitutional Court in a forgiving mood, and the Dutch electorate surprising pundits by voting for pro-euro candidates, is the worst over in the euro crisis, or, with Spain still teetering, is this just another false dawn? Tony Barber, Europe editor, and Peter Spiegel, Brussels bureau chief, join Gideon Rachman.
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Gideon Rachman is away until September 1st, working on a special project.