SPAIN DAYBOOK: Salgado Says Efforts Will Restore Investor Trust
Finance Minister Elena Salgado said she’s confident Spain’s deficit-reduction efforts will restore investor trust and end the need for European authorities to support the nation’s bonds.
*Euro-region governments can’t let Finnish demands for collateral derail a second rescue package for Greece, Spanish Finance Minister Elena Salgado said, as she predicted nations will approve the rescue in September.
*Foreign-exchange traders are putting their faith in Jean-Claude Trichet, betting the European Central Bank President will save the euro from a collapse predicted by everyone from George Soros to Paul Volcker.
*Italy’s austerity drive, enacted in exchange for European Central Bank bond purchases driving down borrowing costs, may backfire as it chokes the economic growth needed to ease Europe’s second-biggest debt burden.
*Banca Civica SA, the Spanish lender that carried out an initial public offering last month, said Credit Suisse Group AG bought 23.2 million of its shares lender during the stabilization period for the stock that ended Aug. 19.
*Telefonica SA (TEF) was introduced as least preferred stock at Citigroup within European telecommunications services sector.
*The IBEX 35 Index (IBEX) lost 2.1 percent to 8,141.90.
*The spread between Spanish and German 10-year borrowing costs narrowed to 286.1 basis points.
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