Seoul Declaration

Europe country risk of Ireland, Portugal, Italy and Spain slowed their records once European leaders clarified that the noteholders will not pay part of a possible bailout of Ireland. . The Finance Ministers of the 5 major European economies today issued a communique in Seoul, to the margins of the G20 Summit, to clarify that money private in a possible bailout of Ireland will not be used. Italy reaches the 200 basis points for the first time. Irish bond already pay 9.25%. The Seoul Declaration commits itself against competitive devaluations, but without setting specific targets. Without measures specific against the major problems impeding the exit of the crisis, as the war of currency and trade imbalances.

The final communique of the Summit points go toward more determined by market exchange rates and suggests refraining from adopting competitive devaluations. In an indirect reference to the U.S., heavily criticised for keeping the dollar at historic lows to encourage exports, the G-20 is recommended to the economies advanced, including those with reserve currencies, monitor the excessive volatility and distorting of exchange rates movements to avoid the risks of flows of capital in some emerging countries. Bank of Ireland, the main Irish Bank by stock market capitazalicion, predicts that its operating profit will fall between 35% and 40% this year. Euro area GDP and EU + 0.4% 3T (1% + 2T) and 1.9% and 2.1% respectively. Germany slows its growth + 0.7% in Q3 (+ 2.3% 2T revised upward) London 5.804-0.18% France 3.826 – 1.06% + 0.4% in Q3 (+ 0.7% 2T). Spain 10.198 + 0.48% reaches record levels of country risk: 231 bps above the 220 yesterday, although after the communique of the Ministers of European finance in Seoul, manages to go down to the record level of yesterday. President Zapatero, reiterated the soundness, solvency and confidence of Spanish debt from Seoul, but admitted that the problems of Ireland are affecting spreads that maintains with respect to the German bond.