Spain: Spain to Launch EUR 6.3 Billion Stimulus Package
Spain will unveil a new stimulus package worth EUR 6.3 billion (USD 8.6 billion) next week, Prime Minister Mariano Rajoy has announced. The main corporate tax rate would be cut to 25% from 30%. (Source: BBC News)
Euroarea: Europe’s Banks Brace for Interest Rate Cuts, With Mario Draghi Expected to Act
Europe’s banks were bracing themselves over the weekend for much anticipated cuts in the Eurozone’s commercial interest rates to boost the currency zone’s struggling economy. (Source: The Guardian)
Portugal: Portuguese Bond Yields Rise After Supreme Court Rejects Austerity Measures
Portuguese government bond yields rose today after the supreme court has struck down several austerity measures proposed in the government’s 2014 budget. The 10-year benchmark yield increased 7 basis points, reaching 3.72%. (Source: Reuters)
Thailand: Thailand Junta Announces Economic Crisis Plan
The Thai political junta announced on 2 June a series of economic measures to prevent a possible economic crisis. The list includes a promise that spending would not exceed the limits to be laid out in a forthcoming budget as well as a price-cap on fuel for 30 days. Moreover, according to the Army Chief, elections would not be held for more than a year. (Source: BBC)
China: A Turning Point at Last for China’s Economy?
A better-than-expected Purchasing Managers’ Index result shows that factory activity expanded at the fastest pace in five months in May. The PMI reading is seen as a positive sign for the Chinese economy.