A Spanish banking crisis put Spain's banks under a ton of problem payments. This was caused do to cheap credits and very nice landscape. It lowered the ratings of 9 of the top 10 banks by the Standard & Poor's reviews. It has already started showing effects here in America.
Greece's elections are coming up on June 17 and this is what every investor is watching closely. As if the current leading party wins then it is most likely that Greece will exit the Euro Zone. This is the one thing EU leaders fear the most. To try and put the effect to a minimal, the French leader proposed Eurobonds. So far there is nothing other than the first primary vote to tell about the creation of these bonds.
The dollar gained to the British Pound of Friday, but it lost to the euro and the Japanese yen. It is predicted that the dollar for next week will continue to rise on the Pound but fall on the euro.
Top officials from the EU and ECB are secretly at work on a "master plan" to create an entirely new Europe. The proposals won't be unfamiliar to anyone following the debate - banking union, fiscal union, political union. "We have to deliver after two years of crisis, finally an answer," says a senior EU official.
The EU is hoping for a July 9 start date for its permanent 500B (euro) rescue fund (the ESM). Key will be German parliament, where lawmakers may not vote on approval until early July. Opposition lawmakers - whose support is necessary - have made noises about withholding votes unless Merkel eases up on austerity demands.