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| Version 2 | Version 3 |
|---|---|
| Spain rattles markets amid fears more regions need help | Spain rattles markets amid fears more regions need help |
| (40 minutes later) | |
| Markets have fallen on fears Spain's indebted regional governments will push the country into seeking a full national bailout. | Markets have fallen on fears Spain's indebted regional governments will push the country into seeking a full national bailout. |
| On Friday, Valencia, one of the country's 17 regions, asked the central government for a financial lifeline. | On Friday, Valencia, one of the country's 17 regions, asked the central government for a financial lifeline. |
| On Sunday, a local newspaper in Murcia quoted its government's head as saying it would ask for funding help of up to 300m euros ($363m; £233m). | On Sunday, a local newspaper in Murcia quoted its government's head as saying it would ask for funding help of up to 300m euros ($363m; £233m). |
| The yield on Spain's 10-year bonds has jumped to 7.55%. | |
| On Friday, the bond yield - which implies the interest rate the government would have to pay to borrow new money, and acts as a measure of investor confidence in Spain's creditworthiness - had been 7.28%. | On Friday, the bond yield - which implies the interest rate the government would have to pay to borrow new money, and acts as a measure of investor confidence in Spain's creditworthiness - had been 7.28%. |
| Germany's 10-year borrowing costs have fallen to 1.13%, reflecting investors' trust in the country, leaving a record difference between the yield on German and Spanish bonds. | Germany's 10-year borrowing costs have fallen to 1.13%, reflecting investors' trust in the country, leaving a record difference between the yield on German and Spanish bonds. |
| There was more bad news for Spain on Monday when the Bank of Spain said the country's economy contracted by 0.4% in the three months to the end of June. | |
| Spain has already asked for and been granted a 100bn euros bailout for its banks, so far avoiding asking for the same sort of national bailout that was needed by Greece, the Republic of Ireland and Portugal. | |
| Yen strength | Yen strength |
| Stock markets fell across Europe on Monday morning, averaging losses of 1.5%, while Spain's main Ibex share index was down more than 4%. | |
| Spanish bank shares were down heavily again, with losses of 4%. Bankia was again the worst-hit and was down by 8%, matching Friday's loss. | Spanish bank shares were down heavily again, with losses of 4%. Bankia was again the worst-hit and was down by 8%, matching Friday's loss. |
| Italy, which is also struggling with high debts, saw its main share index fall 2.5% with banks the worst hit. UniCredit and Intesa Sanpaolo were among six Italian banks suspended from trading after their share prices fell sharply. | |
| The price of oil has also fallen by 2%, a sign that markets think there will be waning demand for oil as a result of worsening economic prospects. | The price of oil has also fallen by 2%, a sign that markets think there will be waning demand for oil as a result of worsening economic prospects. |
| In Asian trading overnight, the euro fell to an 11-year low against the Japanese yen - which has acted as a haven currency since the 2008 financial crisis - on worries over the situation in Spain. | In Asian trading overnight, the euro fell to an 11-year low against the Japanese yen - which has acted as a haven currency since the 2008 financial crisis - on worries over the situation in Spain. |
| The euro fell to 94.37 yen, its lowest level since November 2000. | The euro fell to 94.37 yen, its lowest level since November 2000. |
| "The fear now is that, given its debt woes, Spain may eventually need a bailout from the International Monetary Fund or the eurozone's rescue fund," Justin Harper of IG Markets told the BBC. | "The fear now is that, given its debt woes, Spain may eventually need a bailout from the International Monetary Fund or the eurozone's rescue fund," Justin Harper of IG Markets told the BBC. |
| "That is driving investors away from the euro to other relatively safer-haven assets." | "That is driving investors away from the euro to other relatively safer-haven assets." |