Strengthening Sterling for your Property Purchase in Canary Islands

Latest on financial and currency exchange markets from Halo Financial with strengthening sterling vs euro for your property property investments in the Canary Islands:

I have the solution Greece’s debt woes; I saw an advert for a company that, as long as you are a home owner (I am sure the Greek government must own some property) takes all your debt, consolidate it into one affordable monthly payment and frees you from all your worries. They can even get you some extra money for a holiday or a new car or something. If they can do that for the smiling people in the advert, just think what they can do for Prime Minister Papandreou and it would let Angela Merkel off the hook too.
And Greece does need some urgent help because credit ratings agency Standard and Poors announced that it had dropped the rating for Greek government debt to ‘junk’ status yesterday. That puts it in a par with the likes of Romania and Azerbaijan and quite apart from the embarrassment for Greece and the rest of Europe, it will also make it much harder for Greece to raise the €9 billion it needs by 19th May without paying a hefty premium. S&P also downgraded Portugal’s debt level on the basis that the Greek debt contagion could spread. That’s a bit like your credit rating being hit because someone in your lottery syndicate failed to make his credit card payments, just in case you do likewise but S&P are unrepentant. Please do remember though that right up until they collapsed, S&P and the other agencies were still saying mortgage backed securities were cast iron safe.
To be fair though, I don’t think anyone in the market was unaware of Greece’s problems (probably no one in the Western hemisphere either) and that would explain the lack of a sudden drop in the value of the Euro after the announcement. However, many analysts are concerned that the markets haven’t yet reflected the gravity of Greece’s situation and the longer term effects of the downgrade within the pricing of the Euro. I am sure those who need to buy Euros will be hoping they are right and that a sudden epiphany will hit traders who will sell the heck out of Europe’s currency. There were effects elsewhere as the US Dollar was bought by safe haven seekers and that resulted in a drop in the Euro- US Dollar exchange rate which wasn’t reflected in the Sterling - Euro rate.
On the UK side of things, UK mortgage lending levels were up on last year but last year was the worst in decades so that is no great surprise. However, the month on month figure was disappointing and the news failed to move the Pound. Sterling also ignored the warnings from the Institute for Fiscal Studies that none of the three main political parties had outlined anywhere near enough cuts to hit their debt reduction targets. I think we could all work for that institute then because we all know they are being cagey about the depth of the cuts necessary; they don’t think we can handle the truth and are fearful that we will shoot the messenger if we are told the facts of life about Britain’s massive debt problem. Perhaps it will take a warning from the IFS before the truth outs.
Yesterday brought further UK election polls suggesting the potential for a coalition or minority government is undiminished. And despite what is being said in some quarters, the financial markets are not convinced this is good for the UK, so the Pound is notable to strengthen through significant technical levels. It is stuck below AUD 1.6666, below EUR 1.16, below USD 1.55 and below CAD 1.55 as well. Thankfully for those with Sterling to sell, we are still near the tops of these ranges but I think we have to thank heavens the election is only a week away so we can get on with trading the fundamentals rather than the election polls.
Today started with Australian inflation data which showed a 2.9 percent annualised increase; right at the top end of the Reserve Bank of Australia’s target range. Traders took that to mean further interest rate hikes would be forthcoming in spite of the RBA governor suggesting their base rate was near to average levels and the Australian Dollar remains strong this morning relative to the US Dollar but fairly flat against the Pound.
Today also brings interest rate decisions from America and New Zealand. No change is forecast from either central bank but each of their statements will be essential reading for those with an interest. We are looking for evidence of when and how the US Federal Reserve will start to reduce their cash support for the markets through the TARPS plan and we are wondering when the Reserve Bank of New Zealand will start to hike interest rates to bring their base rate back to a more normal (for New Zealand) level of 4 to 6 percent. All, some or none of this will be revealed today.
And that is about it for today. I’ll let you go because I know you are itching to get back in front of the TV to watch more election campaign interviews. Its riveting isn’t it....other than the fact that nothing is really happening, other than after the Thursday interviews.

Gran Canaria Anfi Tauro Golf

Gran Canaria Anfi Tauro Golf in Gran Canaria has an 18 hole and a 9 hole course which has been designed amid a stunning array of lakes, palm trees and volcanic mountains. These courses boast the accolade of being created by world class golfcourse designers Von Hagge, Baril and Smelek. They gave them a flawless balance between exquisiteness and test. Anfi Tauro Golf is a striking haven for playing golf at any time of the year, owing to Gran Canarias' perpetual easygoing climate. Architects Von Hagge, Baril and Smelek are considered be amongst the top ten golf course architects in the world and have been recognized for designing over a thousand golf courses, which include the Horai Club in Japan, the Doral Country Club in Florida and the Costa Resort and Spa in California. Their work stands out due to their ability to read a landscape and combine delicate stylishness with exceptional beauty.
Anfi Tauro Golf courses offer a tranquil visual setting to advantaged coastal surroundings, where you will fully enjoy an immaculately maintained PGA Championship level course. It has been sympathetically designed in acres of rich vegetation, verdant green gardens, waterfalls and lakes. It is also surrounded by inspiring volcanic mountains. The courses are integrated into the environment and the original shape of the valley is preserved. The bungalows and villas adapt to the topography in a way that a balance is achieved with the natural surroundings.

The 9 hole course also has other amenities like a driving range, chipping area, a putting green as well as practice bunker. The golf courses have been designed in Arizona style and one of their main features of is the view of the desert merged with palm trees and rocks. A club house and golf academy are also situated in the 650.000 square meter site.

For more information on a golf property or any property in Gran Canaria please contact us at info@goldacreestatesgrancanaria.com or call 0034 928565613. Properties can be viewed at http://www.goldacreestatesgrancanaria.com/

Sterling/Euro Rates Stable for Property Buyers in Gran Canaria, Fuerteventura and Greece

Latest news from Halo Financial on currency exchanges for the Euro for those Uk clients buying properties in Gran Canaria, Fuerteventura and Greece.
Airborne volcanic ash is still the main news item after a very quiet weekend for British and most European skies. If you believe what you read in the weekend newspapers, Nick Clegg has single-handedly changed the face of British Politics and no one in Britain is voting for anyone else; at least that’s what I think they said. Oh and Jensen Button accompanied Lewis Hamilton across the line in the Chinese Grand Prix for a fantastic British 1 - 2. You see; you didn’t need to read the papers, I have summed it up in one paragraph and managed to ignore the depressing stuff.
As for the financial markets, risk is a dirty word this morning as traders and investors run for cover after the US regulators announced they are prosecuting Goldman Sachs for misstating details on some of the Securitised Investment Vehicles (mortgage backed securities) they sold in the heady days before the market in these products collapsed and the world economy followed suit. This opens up the potential for further prosecutions but there has been no word on whether the credit ratings agencies will be sued as well; if you remember, these guys were valuing these SIVs as 'triple A' right up until the collapse.
Investors are also nervous about the future of the Chinese economy though after the level of home loans were curbed by the authorities. Apart from this being a signal that China will continue to try to calm their overheating economy, it is likely to have a knock on effect on raw material prices; especially things like copper and the raw materials for steel and concrete. So watch the Australian Dollar closely because if China adds further tightening measures, we might just see a glimmer of hope for those who need to buy Australian and New Zealand Dollars and would dearly love more attractive prices than these.
In other news, the Ernst & Young Item Club is predicting slim growth for Britain in 2010 followed by a stronger return to more normal levels of growth in 2011. That is perhaps why the Pound hasn’t fallen further after the prospects for a hung parliament loomed ever closer. A round robin of the various opinion polls over the weekend does suggest support for the three main parties is fairly evenly split and that is not liked by the financial markets. Neither will they be keen on the fact that this Friday brings the 1st estimate of UK economic growth during the first three months of 2010. The 1st estimate is based on just 40% of all available data but it is still closely followed; especially after the slim growth in Q4 2009. Most commentators are forecasting something around 0.4% growth for Q1 but as we saw last time, there can be a fair old variation in this first guess so the lead up to Friday could be a very edgy time for the Pound. We will get UK inflation, retail sales, unemployment data, the minutes from the last Bank of England meeting, money supply data and government debt levels before then so this could well be one of the Pound’s busiest weeks of the year.
I guess it wouldn’t be a Daily Currency Insight without some mention of Greece so I would hate to break with recent tradition. Greece is looking ever more likely to draw on some of the funds being made available to her from the EU and International Monetary Funds. However, we will have to wait for the Icelandic ash to dissipate before the interested parties can get together to discuss it in Athens. Have these people never heard of telephones? In the interim, the Euro will have a fair bit to contend with during the week; not least the raft of speeches by EU central bankers on Wednesday. At least they should be able to drive or catch trains to their destination in Frankfurt even if the skies are still off limits although knowing how the EU works, there will probably be a special dispensation for these guys while everyone else sits and fumes.
And that is about that for this Monday. This week does bring its fair share of data and plenty of reasons for volatility so don’t worry, it will be lively; a bit more lively in fact than the mayor of Tracy City, Tennessee, Carl Geary who sadly died whilst campaigning to become mayor and was therefore no longer alive when the votes were cast but who was returned to the position with a landslide majority. It reminds me of the story about a New York media agent who, when he was told Elvis Presley had died was reported to have said, “Great Career move”.

Easter Visitor boost to Canary Islands

Large numbers of Brits are expected to book flights to Italy, Spain and the Canary Islands this spring, ABTA - The Travel Association has said.
GoldAcre Estates in Mogan, Gran Canaria realises that this will only help boost visitors and property buyers to the Canary islands with second home owners receiving an additional increase to their rental bookings.
Frances Tuke, a spokesperson for the organisation, said that destinations on the continent are especially popular over the Easter period. "Easter is a great time to go to places like Italy, Spain and the Canary Islands," she explained. "These are all good for a bit of sun this time of year."Ms Tuke went on to say that different countries have varied traditions during Easter, with Greece and its Orthodox faith taking it particularly seriously by holding a major festival. The travel expert also suggested that more Brits could be booking cheap flights to Spain during the holiday period as it tries to compete with non-eurozone countries such as Turkey and Egypt.
This is very good news for second home owners who already get a solid winter of holiday rentals, extending the season further.
Anyone looking for cheap flights can go to the travel section at http://www.buyingrancanaria.com/ or at http://www.goldacre-estates.com/.