Following a rise in interest in January, property purchasers looking to buy a holiday or retirement home on the Costa Blanca coast in Spain have been discouraged from completing on their purchases due to the increasing strength of the Euro against the pound.

The Euro which has been gaining strength not only against the pound, but against a weakening US currency, has come under increasing pressure to follow the US lead and cut interest rates to ease pressure on property markets world-wide as well as the spiraling cost of crude oil.

Problems for the ECB lie in the fact that the Euro zone economy has not seen economic indicators as strong as those in the US that a serious slowdown is on the way and have been retiscent to cut interest rates until more definitive signs are reported. Part of this problem could lie in the fact that the Euro zone economies are not yet homogeneous enough to warrant the single picture scenario. It could be seen that any interest rate cut would be more of a political move which may end up hurting some member countries economy at the expense of others. This was always going to be a problem with the Euro zone, where mobility of labour has been an issue.

With so many languages involved, it is much more difficult for the Euro zone workforce to cross borders and language divide to find jobs in another geographical area of the Euro zone. This means that pockets of unemployment appear next to areas of near full employment in a given industry or sector. Normally, as you would find in the US, a worker would be able to move from the East to West coasts to fill job shortages. In the Euro zone this does not happen leaving divergent economies being governed by one central banking policy.

As far as it affects property markets, the 10% depreciation of the pound against the Euro has all but wiped out any correction in Euro based property prices in Spanish coastal areas, which have been suffering from a correctional downturn for nearly three years. Popular resort towns such as Javea, Moraira and Calpe had seen some increased interest in property for the first time in more than a year. Since January though, the appreciating Euro has meant that prices for British residents, who make up the majority of purchasers, have effectively risen in real terms.

Hope now rests with the European Central Bank cutting interest rates to bring the exchange rates more into line with historical norms. Otherwise the market will continue to drive agents out of business at a rate never before seen. The lack of business in the sector is not only in the Costa regions of Spain. The domestic economy has seen share prices in construction company stocks plummet over recent months. Fears of over supply in the industry have driven stocks lower on the back off the weakened demand.

About the Author

Hot Property Spain are a local specialist agent dealing in Moraira Property. Also specialist in Javea Property & New Development properties in  the Costa Blanca.

When we think of the business empires that were started in garages, images of computer whiz-kids immediately come to mind. But the trend of giant Oaks from little acorns goes back much further than this. As far as motorcycles are concerned, they don’t come much bigger than Harley Davidson and Honda, who as the pioneers of the motorcycle culture held a commonality in that their dreams were born on different sides of the globe from a dislike of bikes.

By bikes, I mean of course, the pedal variety. In 1903 William Harley and Arthur Davidson with the help of Arthurs brother, Walter, took their first steps on the road to glory in an attempt to conquer the hills of Milwaukee with a motor powered bicycle. Their first attempts failed, but by 1904 they had improved their design enough to be able to enter a race at the state fair. They came fourth, and within two years had moved from their garage to their first company factory address. The address in Chesnut Street, now Juneau Avenue, is still their corporate headquarters today.

Although separated by a generation, Soichiro Honda also began his career surrounded by bicycles. His father, a blacksmith by trade also owned a bicycle repair shop where Soichiro grew up with a fascination for all things mechanical. After a six year apprenticeship on an auto repair shop in Tokyo Soichiro returned home to set up his own auto repair shop but it was his adaption skills in adding a piston engine to a bicycle that would start him on the road to success.

By the time that The Honda motor Company was formed, the Harley Davidson Motor Company was a world leader in motorcycle production. They had supplied custom bikes to the army through two World Wars until the Jeep took over as the utility vehicle of choice. In 1952 under increasing competition , Harley Davidson applied for a 40% import tariff on foreign motorcycles. The application led to charge of restrictive practices against the company. This would be the first of a string of events that would lead the company into decline during the following decades. Through Hollywoods portrayal of the bikes in outlaw biker movies such as The Wild One in 1953 starring Marlon Brando and later, in the now cult movie, Easy Rider with Peter Fonda and Jack Nicholson, the Harley Davidson name became synonymous with rebellion and illegality. What we view today as an integral part of what makes a Harley special, was, at the time, damaging sales of the bikes and threatening the very future of the company.

Things got worse in 1969, when the company was bought by American Machinery and Foundry. AMF attempted to streamline production resulting in a labor strike that let to the manufacture of sub-standard machines. There unreliability became a standing joke and the bikes gained nicknames such as ‘hardly driveable’ and ‘hogly ferguson’ It was from this last nickname that the riders of Harleys would later be called ‘Wild Hogs’.

It would take a group of thirteen investors to lead the recovery in the fortune of Harley Davidson motorcycles. Bought in 1981 from AMF, they implemented new manufacturing protocols and regained the reliabilty standards of the companies early models. Funnily enough though, it was the depiction of the bikes between the 50’s and 70’s that would finally give Harleys the cult status they hold today.

They say that ‘What doesn’t kill you, will make you stronger’. Well, whilst Marlon, Peter and Jack’s portrayals came close to ending this American icon, it was the cult status of the era and these films, that would endure to provide the maturing ‘baby boomers’ with their piece of nostalgia.

Harley Davidson became the custom bike to own through the nineties and its stock price soared. No longer the evil machine of rebellion, the bikes had become the symbol of a generation of achievers looking to recreate the image of their teenage heroes.

In todays 24/7 society, with Blackberrys and pagers, mobiles and handhelds, hitting the road on a Harley, with nothing but the sound of the exhaust in your ear, is the new dream, for a new generation looking to escape their 100mph lifestyle, by doing 120mph alone on the open road instead! Go Hogs!

About the Author

When it comes to Harley Davidson Motorcycles , merchandise, Harley Davidson parts, new and used Harley Davidson bikes, www.lookcyclesusa.com is the place to shop