video Finance Videos

Reuters Today: Spanish yields seen rising at auction - 06:21

Surprise services boost points to UK recovery - 02:54

Breakingviews: Do as I say, not as I do – German wages - 05:04

Market Pulse: Spain under fire as investors shun bond sale - 03:28

Myanmar's Kyat begins managed float - 01:59

ASEAN: territorial code of conduct draft by year-end - 01:48

U.S. Morning Call: Stock futures down, JPMorgan to be fined - 02:08

EMEA Day Ahead:: Thursday - 03:13

3XSQ: Customer funds in question; royal return - 05:44

Still cashing in? Hirst retrospective - 02:32

World's biggest car delivery center - 02:41

FACTBOX: Titanic the movie sails again - 02:20

Trading at Noon: Wall St. down on lost hope for stimulus - 02:48

Draghi holds rates, offers caution - 01:50

Breakingviews: Gun bubble redux - 02:51

Yahoo cuts 2,000 jobs - 01:15

Easter egg panic in eastern Europe - 01:28

Wealth Strategies: Equity rally has 3 years left in cycle - 06:05

Congressional insider trading ban - 01:17

Gas prices no detour for car buyers - 02:13

Demand for fuel-efficient cars will outlast spike in gas prices - 02:36

Most engines of growth are in emerging markets : Nissan CEO - 05:39

U.S. Day Ahead: GAP set to shine with same store sales - 01:59

What's next for Google's Larry Page?... Not a dividend - 02:21

Spain battles borrowing costs

Thursday, May 24, 2012 - 01:36

May 24 - Anti-austerity protestors round on Spain's government while investors demand more security on bonds and an audit on the fragile banking sector gets underway. Joanne Nicholson reports.

▲ Hide Transcript

▶ View Transcript

Families who've lost their savings and investments gather in Madrid. They come in a week when Spanish borrowing costs have reached breaking point. This as the government is desperately trying to shore up its banking sector. These protestors listen to their spokesman outside the very bank the government has stepped in to rescue, at a cost of 9 billion euros. (SOUNDBITE) (Spanish) BANK CONSUMER GROUP ADICAE SPOKESMAN, ANTONIO PULIDO, SAYING: "We are here in front of Bankia'a head office to mark the week of protests against the massive sale of toxic financial products to families with the only objective of cleaning up their own balances." One in ten in Spain has an account with Bankia. Investors in the banking sector are now demanding record levels of risk premium on government bonds, taking them to levels thought to be unsustainable. A one month audit on the banks is underway to try and figure out how the sector would fair if the recession is prolonged. And while the banks comes under scrutiny, the labour unions are protesting against reforms, they say, will make it easier to fire people. (SOUNDBITE) (Spanish) 31 YEAR-OLD ACCOUNTANT, ESTER, SAYING: "I'm here because of the labour reform, everything our parents did is going to hell, that simple, and I think it's unfair." But the Spanish government is sticking with planned cuts it's hoped will save 45 billion euros and reduce the deficit from 8.9 percent of GDP to 5.3 percent this year. The Spanish regions have been warned government will intervene if the cost cutting measures aren't carried out. Joanne Nicholson, Reuters

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code