SPAIN DAYBOOK: Cabinet Meeting to Call Election; Almunia Speaks

Spain’s Cabinet holds an extraordinary meeting as Prime Minister Jose Luis Rodriguez Zapatero is set to call officially the Nov. 20 election, as the EU’s antitrust chief, Joaquin Almunia will be interviewed.

WHAT TO WATCH: *European Union antitrust chief Joaquin Almunia is interviewed at 8:30 a.m. at radio station Cadena Ser. *Zapatero holds Cabinet meeting in Madrid at 11:30 a.m. CET to call the general election.

ECONOMY: *European Central Bank Executive board member Jose Manuel Gonzalez-Paramo said governments avoided their responsibility with the Euro as they failed to meet their fiscal and market flexibility commitments, ABC newspaper reported, citing an interview. *The International Monetary Fund’s $384 billion lending chest may not be enough to meet all loan requests if the global economy worsens, Managing Director Christine Lagarde said. *The Spanish economy is growing modestly with strong growth in exports, Finance Minister Elena Salgado told the International Monetary Fund. Salgado also said Spanish banks don’t need an external auditor to boost market confidence, EFE reported.

EQUITIES: *Repsol YPF SA Chairman Antonio Brufau secured the backing of independent board members before the company’s board meeting, due on Sept. 28, El Confidencial reported, without citing anyone. *Banco CAM SAU, the commercial bank created by Caja de Ahorros del Mediterraneo, suspended the payment of interest from its subordinated debt, which was due Sept. 25, because of its first- half results and its commitments with the European Union, the company said in a regulatory filing. *Sacyr Vallehermoso SA (SYV): Shareholders of the Spanish builder called for an urgent board meeting to obtain details of an agreement between Sacyr and Petroleos Mexicanos to control almost 30 percent of Repsol YPF SA (REP), Expansion reported.

MARKETS: *The IBEX 35 Index climbed 2.1 percent to 7,996.9. *The spread between Spanish and German 10-year borrowing costs narrowed to 345.9 basis points.

To contact the reporter on this story: Manuel Baigorri in Madrid at mbaigorri@bloomberg.net

To contact the editor responsible for this story: Emma Ross-Thomas at erossthomas@bloomberg.net

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