Barca’s domestic form ahead of this match is mixed and there have been disappointing results recently including a draw at Valencia and a 3-2 away defeat to Real Sociedad. However, the Catalans clearly have the quality to record a comfortable win here and they will be even more determined to succeed on the ground where Real have failed. Take the away victory as the first of your multiples in La Liga.

Real Madrid v Rayo Vallecano Although Real may be clear odds-on favourites to win this match, there is no such thing as a ‘banker bet’ when Jose Mourinho’s side take to the field. As they continue to concede the title to Barcelona, Real began February with a loss to Granada that saw them slip to a sixteen point deficit behind their greatest rivals. Visitors Vallecano have plenty to play for and will be looking to maintain their challenge for Europa League places.

Form isn’t great however and the fact that they have lost their last two games away from home should help to decide this match. The visitors will provide a challenge but expect Real to ease through and provide the second of your multiples from Spain. Valladolid v Atletico Madrid Atletico’s faint hopes of catching Barcelona at the top received a boost after Radamel Falcao returned from injury to help his side to a 1-0 win over Real Betis.

The Colombian striker seemed some way shot of his best but he should continue to recapture his form just in time for the game at Valladolid. The hosts are in a comfortable mid table position and at this point in the season, Valladolid have little to play for. Expect the Falcao factor to inspire Atletico in this match and take the points to complete your treble in La Liga.

Read and be informed: 
Whether you’re new or an old trader in this field, it pays a lot to read some references in order to learn the fundamentals and basics of financial spread betting. Reading news from the Financial Times or the Economists allows you to get the latest information and updates in the market, economy and asset, in general. After reading, expect that there are still a lot more to do and understand. But to better enhance your betting skills; why not try gambling with some amateurs and professionals on Partypoker. With various card games and starting bets to choose from, you’ll surely find the perfect table to join. Before joining you’ll be asked to register and choose between their two options to play – by instant play on your browser or by downloading their quick installer game software on your desktop. Interesting enough, registered players also get the chance to qualify for some of the most popular online and offline games such as the World Poker Tour (WPT), on top of the possibility to win cash prizes. On this site, you can also start your market research and understand the different betting styles by joining their growing community of online gamers. Thus, it’s best to start reading news, play online betting games and interact with some gamblers as early as now for a more successful spread betting. 

Get insights from experienced traders: 
What better way to learn something than to get a perspective from someone who has ‘been there, done that?’ Although reading references can be very essential on your ladder to spread betting success, having mentors who have first-hand experiences of the world market going up and down will surely give you a better vision on the right things you should and shouldn’t do on the same event in the market. You don’t need to find a professional or famous trader such as Simon ‘Evil Knievil’ Cawkwell to guide you. Just look for someone who has been in the industry long enough that their experience can be considered reliable. From there, you can start assessing the logical and scientific approach to your bets. 

The tips above will surely get you earning no matter if the market is up or down. But as a trader, you must understand that in any form of trading, there are always risks. It is just inevitable and almost impossible to eradicate because risking is really a part of the game. Therefore, the best way to handle your earnings and bets is to have a risk management scheme. Traders can do this by making the exposure from risk to only one per cent or even less of the total funds. By doing this, traders will have a higher chance of earning profits from transactions. 

Economic Contraction?

The reaction by investors shows a strong aversion to any signs of the economy contracting again. The last time United States manufacturing data showed an economic contraction was in July of 2009.  The Institute for Supply Management released manufacturing data that showed the index fell to 49.7 in June from a rate of 53.5 in the month of May. Today’s news about the United States economy came as an unwelcome surprise to investors around the world.

The greenback fell to 79.52 of 0.31 during trading today. At one point in the day’s trading session, the United States dollar was at a low of 79.29 yen.

European Uncertainty Hampers Economy

The euro fell 0.61 percent against the United States dollar to settle at $1.2581. After United States manufacturing data was released, the euro dropped quickly to $1.2567 before it rebounded slightly. The continued negative headlines coming out of Europe have only served to hamper the economic recovery. Recently, newspapers reported on the Eurozone unemployment rate for May. Following April’s 11 percent unemployment rate, the rate rose higher to 11.1 percent in the month of May.

Leaders in Europe decided last week to buy up government bonds from financially troubled nations. The Netherlands and Finland both protested this move. Negative sentiment about the results of the Eurozone summit has served to dampen investor confidence.  Headlines surrounding the continued crisis will only heighten uncertainty and make the situation in Europe worse.

Preventing Debt Contagion

After a day of optimistic trading on Friday, the euro has settled back to earth. Investors and market analysts are uncertain whether the measures taken by the Eurozone will be enough to stop debt contagion from spreading to other nations. Analysts believe that the recent rally by the euro will continue to fade in the next few weeks. Although Spanish and Italian bonds are at lower levels, they are still higher than their historical norms. If the bond rates rise again, it could spell out trouble for the Eurozone and the global economy.

After having its largest one-day rise since March of 2011, the euro has dropped a little less than 1 percent against the yen. By the end of trading on Monday, the euro was at 100.04 yen.

Europe Looks Forward

The European Central Bank is planning to meet on Thursday and discuss refinancing options. Market analysts believe that the ECB could change their rate by 0.75 percent. If the European Central Bank chooses not to refinance the rate, the markets could be severely impacted. Investors who are looking to place bets on the outcome will have a difficult time during this week of trading. United States markets will be closed for the nation’s Independence Day on July 4. During this day of trading, there will be less liquidity than in a normal day. Betting on the outcome of the European Central Bank decision will be risky for even the most experienced market strategist.

Australia Dollar Performs

With all of the dismal news coming out of Europe and the United States, Australia appears to be an exception. The Australian dollar is still at $1.0248 against the United States dollar. This marks a level very close to its two-month high set during the night of $1.0279. The Reserve Bank of Australia is expected to announce its decision about the interest rate at 0430 GMT on Tuesday. Market Analysts believe that the Reserve Bank of Australia will choose to keep the cash rate at 3.5 percent.

Speculation Surrounds the Fed

At the June meeting of the United States Federal Reserve Bank, Ben Bernanke chose to not initiate new rounds of quantitative easing unless the situation in the United States worsened. After the dismal manufacturing report for June, analysts are speculating future moves by the Federal Reserve. If the Fed chooses to intervene in the marketplace, it would weaken the United States dollar.

When the Federal Reserve does quantitative easing, they buy back bonds that are owned by banks. This gives the financial markets additional liquidity that can be used to promote a higher employment rate and investments. The only downside to quantitative easing is its tendency to weaken the value of the greenback. With all of the negative reports coming out of the United States, it may be the Federal Reserve’s only option. 

Investors are currently uncertain about how the Spain bank bailout will play out. The markets have reacted in recent days to doubt over the Eurozone’s ability to control the debt crisis. As the date of new Greek elections fast approaches, the uncertainty has only increased. If the wrong party is elected in Greek elections, the possibility of a Greek exit from the European Union and default will become a possibility.

Positive News from Greece?

Earlier in the session today, the euro improved against the United States dollar. A report issued in the Financial Times announced that the European Union was considering a proposition to relax the terms of a Greek bailout. The leader of the Greek political party, Syriza, also announced his support for Greece remaining within the Eurozone. Previously, Syriza had been opposed to the bailout. News of this reversal strengthened investor sentiment around the euro and caused the euro to reach today’s high of 1.2609 against the dollar.

As Spanish and Greek concerns ease, Italian debt issues are starting to take center stage. Italian bond yields are currently on the rise. This equals out to a great deal of uncertainty in the markets over a potential Italian bailout that may have to occur in the future.

The Dollar Falls Against the Yen

Government reports in the United States show that retail sales fell for the second month in a row. This is the largest monthly decline for the United States for the last two years. After reports of the drop came out, the United States dollar fell 0.4 percent. The greenback ended the day at 79.28 against the yen. The dollar also dropped against the Swiss franc. Weak retail sales managed to cause the United States dollar to drop to 0.9520 against the franc. With a weaker dollar, gold also rose 14 dollar during today’s session to finish out at $1,624.60.

 Moody’s Cuts Spanish Ratings

After all of the recent debt issues in Spain, Moody’s decided to cut the rating for Spanish debt. Government debt in Spain fell three notches on Wednesday to Baa3. This places Spanish debt only one notch above junk status. Previously, Spanish government debt had been rated at an A3.

Part of the reasoning behind the ratings cut was the recent bailout plan approved by the Eurozone. This new bailout package will increase Spain’s debt burden in future years. If Spain has further fiscal problems, Moody’s has stated that they could be lowering Spain’s rating even further in the future. Since Spain sits just one notch above junk status, any further cut would rock the country’s government.

Currently, Standard & Poor rates Spain higher than Moody’s. Spain is currently at BBB-plus rating according to Standard & Poor with a negative outlook for the future. On June 7, Fitch dropped Spain’s rating to BBB. This marked a three notch decrease from Spain’s earlier credit rating.

Spain was not the only loser on Wednesday. Moody’s also chose to cut credit rating for Cyprus amid concerns over a possible Greek exit from the euro. Greece has already had to deal with a weaker credit rating due to its ongoing fiscal crisis. The new cut lowered Cyprus’s rating by an additional two notches. As the third smallest country in the European Union, Cyprus is closely tied to Greece economically. As Greece suffers from continued fiscal constraints, Cyprus has been negatively affected. Moody’s rating cut resulted from an estimate that Cyprus will require extra capital injections for its banking system. This capital is currently believed to be a total of five to ten percent of GDP.

A Pan-European Banking Union

Reports that were leaked from European officials show that the Eurozone is preparing to more closely integrate the Eurozone’s economies. They plan on creating a Eurozone banking union to help deal with fiscal crises and improve investor sentiment.

In recent months, worried investors have chosen to pull their funds out of banks within the Eurozone. Fears over a potential Eurozone breakup and devalued funds have only served to fuel investor’s concerns. Greece released figures this month that showed total deposits in Greece dropping by 17 percent in 2011. Although the numbers are not out yet, anecdotal reports suggest that withdrawals are also occurring within the Spanish banking system. 

Facebook stock deputed at $38 on Friday. After this initial offering, the stock value started to fade quickly. By midday, the stock had declined a total of $5. This 13.7 percent drop in stock value brought it to a session low of $33. By mid-afternoon, Facebook stock rallied slightly to finish at $34.80.

On the rest of the Nasdaq, technology stocks rose as a whole. Apple shares rose 4.3 percent by the end of the day to finish at $553.40.  This recent rally came after a week of decline prior to the Facebook IPO. Apple is currently trading just 13 percent away from its April high.

Global Outlook

Part of the improvement in the Nasdaq comes from the statement issued by the G8 on Saturday. The leaders stressed that they are committed to promoting job growth and backed Greece’s decision to stay in the euro. After the recent controversy over a Greek exit from the euro, this statement came as a reassurance for investors around the world.

Slowed Growth in China

Meanwhile, China has committed to supporting growth within the country. As the world’s second largest economy, investors were recently worried by the economic slow-down in China. Current economic indicators indicate that China is going to suffer from a slowdown in the second quarter.

In other financial news, the Dow Jones rose 104.25 points or a total of 0.84 percent.  It finished out the day at 12,473.63. Although Facebook has recently started to suffer, the rest of the stock market seems to be gradually improving. Financial experts believe Facebook’s problems are caused by the poorly carried out deal. With the largest IPO In history, the financial markets required more planning and preparation for a successful IPO.

Other Tech Shares

Yahoo shares rose 1.1 percent on Monday to finish at $15.59. In recent weeks, the embattled company had to deal with the resignation of a CEO and controversy surrounding his qualifications. The shares rose again on news that Jack Ma was buying back as much as 40 percent of his part in the Alibaba Group. The $7.1 billion deal is supposed to bring the Chinese leader a little closer to an impending public listing.  

Chaos in the Global Markets

With a consensus still not reached by political parties, Greece is still on the brink of exiting the Eurozone. As a result of fears over Greece’s exit, shares around Europe fell. In France, the CAC 40 fell 2.53 percent to end at 3,050.64. Germany’s Dax dropped a total of 2.55 percent. Over in the United States, the lack of confidence in the market translated into the Dow Jones falling 1 percent.

In recent days, the likelihood of Greece leaving the Eurozone has increased.  Investors are afraid that Greece will form its new government too late to receive bailout money. If they do not succeed in receiving bailout cash, the Greeks will be forced to default on their significant public debt.

Political Uncertainty

As Greece tries to form a coalition government, top commentators see its future as shaky at best. Greece is just one step away from having to call new elections which will only further the political uncertainty and turmoil within the country. International creditors are reacting to the new developments with alarm. After giving the country billions of euros to bail it out in 2010, it is starting to appear like Greece will default on debts. This situation has only been furthered by a potential Spanish default. As Spanish bonds incrementally approach 7 percent, the likelihood of two European countries defaulting has only increased.

More Austerity Measures?

Part of the political turmoil is fueled by Greece’s distaste for austerity measures. Former measures resulted in five years of heavy recession and protests. The current leader of the government, Mr. Tsipras, has already stated that he cannot support any governmental measure which will result in more spending cuts. Greece’s former bailout resulted in cut pensions, salaries and high tax hikes that the country is still suffering from. The people of Greece are severely against any new austerity measures and the current government reflects this distaste. With Greece’s unemployment currently hovering above 21 percent, there is only one thing that is certain: something must be done.

A Domino Effect in the Marketplace As a result of the mistakes made by JPMorgan, shares in other United States based banks have fallen. Bank of America dropped 2.4 percent after the report issued by JP Morgan. Over in Europe, the Deutsche Bank fell 1.0 percent and Barclays dropped 3.5 percent. All of this was a result of strategies taken by Ina Drew in New York City and Achilles Macris in London. As a part of the CIO unit, they took riskier, more volatile chances than investors had previously been led to believe. The egregious errors are expected to cause further issues throughout the second quarter for the embattled company.

As an arm of the bank, the CIO is used to hedge portfolios and make bets. The word ‘hedging’ is used by investors to describe certain kinds of investing that are intended to reduce risks associated with drastic changes in prices. One famous case of this investment strategy was with Bruno Michel Iksil aka, the London Whale. Iksil worked for JPMorgan and reportedly capitalized on the investing strategy during his time there. What this Means for the Public In light of the recent developments with JPMorgan and the 2008 crash, it may be time for the public to consider actual financial reforms. More should be done to prevent exactly this sort of issue from happening. This is sadly not a singular occurrence. The strategy was used by the bank as a whole instead of by just a single, rogue individual. The badly executed plan failed and consumers are left to deal with the fallout. Mr. Dimon, the CEO of JPMorgan was dismayed to report the company’s quarterly earnings to the Securities and Exchange Commission.

After being such a public opponent of the Volcker rule and banking regulation, it is embarrassingly ironic that this scenario would play out at his bank. In 2008, JPMorgan was in far better shape that many American banks. Since this unexpected trading loss, the bank has reaffirmed its commitment to transparent business practices. Mr. Dimon believes that his company can move past its mistakes and learn from them. As the next quarter unfolds, investors will have to see if his company fulfills their promises.

The move by the International Airlines Group comes just a month after they chose to purchase BMI. The original purchase was intended to help ease overcrowding at the Heathrow airport. In light of this summer’s Olympic Games, the original choice seems to have been a wise one.

Chief Executive, Willie Walsh, had coveted the landing and take-off spots held by BMI for years. The landing slots at Heathrow airport were viewed as extremely lucrative by IAG.

BMI is based in the city of Aberdeen. In total, it has scheduled flights that leave out of a total of 14 Northern European, Scottish and English airports. It owns 18 Embraer SA jets. Previously, the company was owned by Lufthansa. After Lufthansa was unable to maintain the added airline, it sold BMI to International Airlines Group for a fraction of the original cost. This reduced price came as a result of Lufthansa’s inability to sell off the Regional division of the airline prior to the deal with IAG. 

Controversy arose last week when the CEO of IAG announced that they may sell off a division of BMI known as BMIbaby. Since the smaller division had continued to lose £100 million over the course of the last few years, the executives at IAG could not see a logical reason to keep the company. The announcement by International Airlines Group reportedly said that up to 470 jobs at BMIbaby could be put at risk.

As a result of the economic uncertainty, BMI’s regional airlines will be run by their former boss, Ian Woodley. Prior to 1996, Ian Woodley ran Business Air. Later, this airline was bought out by BMI and became the basis for its regional division. In recent news, International Airlines Group has said that all long-term liabilities and assets would be sold as a part of the deal. The new owners of this property are now Sector Aviation Holdings. The Scottish consortium will now have control of all owned and operating lease aircraft. In two weeks, the entire deal should be complete. Sector Aviation is backed by businessmen with aviation experience in companies like Loganair. 

Commerzbank bought out Dresdner Kleinwort in 2009. In an attempt to lower costs, it chose to not pay the bankers their bonuses amid the high losses sustained in 2008. In a recent court decision, judges ruled that the four-year-old contract was a binding agreement. The judgment is likely to reinforce consumer stereotypes that banks are run for the benefit of banking officials and not the clients.

Lawyers from the firm warned that ruling in favor of the investment bankers would allow other copycat claims to be filed from bankers across the industry. By ruling in favor of the bankers at Dresdner Kleinwort Ltd, the judges have narrowly interpreted contractual obligations. Commerzbank must pay its employees their bonuses regardless of profits or losses made by the bank.

Dresdner had previously created a minimum bonus pool of €400 million in order to keep its employees working even in difficult financial times. Former chief executive officer, Stefan Jentzsch had reassured employees previously that the bonuses would remain no matter how the bank performed financially. The recent judgment orders the bank to pay out the minimum bonus fund to front and muddle office employees according to individual performance. 

The judge added that the contractual obligations existed outside of the current public sentiment. Although banking and investment bonuses came under fire in 2008, the company had committed itself to this agreement and must honor it. Wider issues and criticism in society has no role within the courtroom proceedings.

After the court’s ruling, a spokesman at Commerzbank affirmed their intent to appeal. The London-based bank still holds to its belief that bonuses should have been reduced in light of the financial losses sustained by the company.

Part of the issue at the heart of the matter is the statement made by the former chief executive of Dresdner. As the bank was sold to Commerzbank, the CEO repeatedly reassured its workers that they would retain all of their pay and bonuses. In light of his reassurances, many employees chose not to leave the company while the transfer was being made. The lawyers who represented 21 of Dresdner’s former bankers welcomed the decision. 

After recent discussions of bailout options, Spain is forcing its banks into a recapitalization plan. All of the banks involved in this new program must set aside billions of extra euros to soothe lender’s fears of a default or Spanish credit crisis. The new plan will mostly protect investors with property loans and forms a pillar of the country’s new restructuring plan.

Although the Ministry of Economy in Spain has stated the plan is not yet complete, it seems that any recapitalization will include at least €30 billion that must be set aside throughout the banking sector. After the recent money injected in Bankia, Spanish officials and investors around the world are worried about the possibility of further instability in the Spanish banking system. The Ministry of Economy believes that the finalized numbers for the program will be completed by Friday.

In preparation for the new provisions, Spanish banks have started setting aside the additional money. In February, Mariano Rajoy ordered that weaker banks put away funds equaling €54 billion. The new provisions that will be issued on Friday are expected to increase this amount and apply to a larger sector of the marketplace.

Currently, Spanish banks count over €180 billion in property loans on their balance sheets that could cause future problems. The majority of these loans were made before Spain’s housing bubble burst. Ideally, the government hopes to create enough provisions for property values to become more liquid. Part of the current problem is that banks are unable to sell property assets and even home owners are unable to escape from their exceptionally large mortgages. Once the provisions are complete, Spain hopes that banks and consumers will have a reprieve from the current financial turmoil. If the program works as expected, the real estate market will be able to effectively restart and banks will have a heightened lending ability.

Bankia is expected to receive additional public funding. This bank currently has the most property exposure in all of Spain with €51.5 billion in current investments. Current property exposure by Bankia tops that of Santander’s €32 billion in Spanish property investments.

Bankia was formed in 2010 as a conglomeration of seven smaller banks. Just last year, this bank was put on the stock exchange in Madrid. As it continues to undergo financial trouble, the Spanish government has committed to providing an additional €10 billion to keep it going. As a result of these highly controversial monetary injections, the CEO of Bankia, Rodrigo Rato, resigned last week. The new CEO is expected to be José Ignacio Goirigolzarri. His ultimate promotion to Bankia is expected to be finalized this week.