8th Week Post on Economics News about the UK

Original Article: http://www.bloomberg.com/news/2012-06-04/german-2-year-yield-drops-below-zero-as-crisis-deepens.html

Spanish bond yields rose as the Spanish Prime Minister urged European leaders to protect banks in the Euro zones. The rising bond returns signal a stabilizing Spanish bond system. Further, a falling unemployment rate in Spain boosts market confidence. Consequently, it is expected that investor confidence on the Spanish economy will be slightly gained back upon the promising economic indicators.  A most direct effect over the British economy will be that, as Spanish bond yields go up, investors will direct their capitals into Spain, which will reduce investment on British bonds. As a result, the demand for British pounds will go down, leading to British Pounds depreciation. The change in British Pounds value will in turn influence trades between the UK and other countries in the world.