MARBELLA CLUB

Spain’s property bust is only getting worse. The wonder is that the country’s economy and banks are still this resilient.

The Spanish government said Tuesday that housing prices remained in free-fall in the third quarter, dropping 5.5% from a year earlier, the biggest decline since 2009.

This makes Spain, in many senses, the worst case of a property bust in the developed world—the country is already deep in its third consecutive year of falling prices, with no rebounds.

Last year, the pace of decline slowed significantly, signalling some light at the end of the tunnel, but another metaphor is called for instead: that last year’s respite was nothing more than a dead cat’s bounce.

The good news should be the overall amount of the decline, since Spain’s government says prices are only down 18%, in nominal terms, since their peak in early 2008.

But that doesn’t include the effect of Spain’s persistent inflation, one of the highest in the euro zone, which makes the real drop closer to 30%—Spain’s government didn’t provide real price data in today’s release.

After earlier predictions of a short-term correction have been smashed, some analysts now say prices may keep falling for the next two years, eroding Spain’s household wealth and banking balance sheets.

Meanwhile, banks are struggling to keep up with the loss in value of the collateral against €400 billion worth of loans to construction and real estate firms, an amount that remains unchanged since 2008.

For Luis Garicano, a professor of economics and strategy at the London School of Economics, this number is perhaps the most dangerous of those related to the bust, since it indicates the banking sector exposure to such loans hasn’t diminished.

He estimates that a possible explanation is that banks have exchanged some non-performing loans for property that they now own, but not enough to offset the rising interest on the loans.

Many, if not most of these loans, are being rolled over to keep zombie developers in business, in the hope that the market will recover.

All the same, banks have also turned into property developers now.

Walk into any Spanish bank branch, looking for a mortgage, and you will see that is much easier to get it if you’ll just take one of the many, many houses the bank acquired from a bankrupt developer. But many will say why worry? The same house will be even cheaper next month.

Celebrities and millionaires living on one of Britain’s most exclusive estates have become the targets of a crime wave.

A diplomat’s wife and son became the latest victims after they were tied up and held at gunpoint during a £100,000 robbery.

St George’s Hill in Surrey has been dubbed the British ‘Beverly Hills’ and is home to Russian oil tycoons, hedge fund managers and City financiers.

Exclusive: The St George's Hill estate in Surrey has been hit by a crime wave in recent months. It lists oil tycoons and hedge fund managers among its residents

Bollywood actress Shilpa Shetty and Chelsea footballer Didier Drogba are also residents.

The estate is hidden behind security gates and guarded around the clock by security guards and CCTV cameras.

But that has failed to protect the residents from falling foul of a string of crimes since April.

Police have warned them to be on their guard after the latest incident last month was a gunpoint £100,000 robbery in which a diplomat’s wife and son were tied up.

One resident said homeowners, who paid up to £10million for the privilege, are ‘living in fear’ of becoming the next victim.

The neighbourhood, a favourite with Russian oil tycoons, hedge fund traders and City financiers, has been dubbed the British ‘Beverley Hills’.

Among the high-profile names to own a home there are Dragons’ Den star Theo Paphitis, Bollywood actress Shilpa Shetty and Chelsea footballer Didier Drogba.

Other include Scottish TV actress Hannah Gordon, former Chelsea player Jimmy Floyd Hasselbaink and the BSkyB chief executive Jeremy Darroch.

While former residents on the 420-home estate include Ringo Starr, Kate Winslet, Cliff Richard, Jenson Button and Sir Elton John.

Surrey Police admitted the tranquil Weybridge neighbourhood, known as ‘The Hill’ to locals, has been hit by a string of crimes since April.

Celebrity residents: Bollywood star Shilpa Shetty and Chelsea striker Didier Drogba are among the people who live in St George's Hill, Surrey

They included two violent robberies, a burglary, two thefts, the theft of a car, vandalism and a violent attack.

Detectives are still hunting the masked gunman behind the terrifying robbery where the victims were tied up and threatened with a sawn-off shotgun.

The woman, aged in her 30s, and her teenage son escaped unhurt as he made off with cash and jewellery worth £100,000.

Police suspect their attacker may have had an accomplice in a car outside but the pair managed to dodge security on the estate.

One local, who did not want to be named, said all householders had been warned about the recent crimes and been told to ‘be vigilant’.

He said: ‘There has been a lot of talk about the crime rate in the past six months.

‘Although it might not seem particularly high compared to most of the country, the simple fact is that people pay a lot of money to live here and do not expect to be living in fear.

‘There are private security guards, CCTV cameras, barriers and all sorts, so this kind of thing is very out of the ordinary for people who live here.

‘We have been told to be vigilant and to report any suspicious behaviour to the police and to the security team here.’

Elmbridge councillor Peter Harman said: ‘They’ve got their own security on the estate and they have cameras that monitor traffic going in and out, and all the cars are recorded, so it should be easy to trace people.’

The residents’ association boasts it is a ‘unique location’ for successful high achievers looking for a ‘secure and private location.’

Each house is required to have ‘at least’ one acre of land and boundaries cannot be marked by fences or walls, only hedges and bushes.

The 964-acre estate boasts its own golf club and 15 tennis courts, four squash courts, state-of-the-art gym, 20m swimming pool and sauna, bar and restaurants and its own beauty spa.

According to estate agents Savills, the the area is ‘internationally renowned as one of the most sought-after private estates in England.’

But it is not the first time the estate has had problems with unwanted intruders and people ignoring the law.

In May, peace at the gated community was punctured when squatters moved into an empty property 200 yards from the members-only tennis club that forms its social hub.

Residents were sent a letter saying those responsible were ‘known to police’ and they should be on their guard.

But the unwelcome neighbours managed to stay for several weeks at the £3million empty property which was at the centre of a long-running legal dispute.

A Surrey Police spokesman confirmed the crimes took and said officers continue to appeal for witnesses over the armed robbery.

A spokesman for St George’s Hill Residents’ Association declined to comment.

Estepona Town Hall has drawn up a new by-law which includes measures against street prostitution with a ban on offering, requesting, negotiating for or accepting paid sexual services in public spaces, particularly within 200 metres of residential or commercial centres and schools. Fines are envisaged for those who fail to comply with the regulations. Councillor Ana Velasco told Europa Press that the by-law is expected to be approved at the next council meeting. Assistance and advice will also be available from social services for prostitutes who work locally, especially for those who want up to give up the profession. The by-law also covers other matters such as the practice of youngsters drinking in the street, graffiti, unauthorised street peddling and the responsibility of dog owners to clear up after their pets.

The Spanish National Police has arrested a British man who is wanted by the authorities in the United States for a fraud. Named as 61 year old R.B.A. he was arrested in Torrevieja, Alicante, when he was carrying out some transactions in a real estate company. The US fraud dates from March 1999 when the Briton was the main owner of a company which mis-invested the firm’s retirement funds. He and others in the company invested part of the fund in treasury bonds, but the rest was transferred to personal accounts. The arrest was carried out by agents of the UDEV from the Alicante Police Station, coordinated by the fugitive location group of the Judicial Police.

The wife of the man who shot him has been arrested for covering up the crime and another youngster is in custody for attempted robberyThere have been two more arrests in the case of the 15 year old Moroccan boy whose body was found on the roadside between Marbella and Ronda on morning. The owner of a nearby finca was initially arrested, and it has now emerged that he shot the teenager dead after catching him breaking in to try and steal his marijuana plants. The owner, 58 year old P.N.G., moved the body off his property to the roadside and now faces charges of a public health crime in addition to the murder charge. His wife has also been arrested for allegedly covering up the crime. The third person taken into custody is a friend who was with the deceased on the night it happened, who is charged with attempted robbery. The deceased lived in San Pedro de Alcántara and is reported to have been involved in previous attempted break-ins at the property with a group of friends from the area. They had been shot at before, and on one occasion one of the group suffered minor injuries but did not report the incident to the police. The murder weapon was a hunting shotgun which was found in a police search of the suspect’s house. Another 10 firearms have also been confiscated.

 – the biggest ever uncovered in the UK. Nigel Cranswick, 47, tried to cheat the taxman by claiming back tax on £2billion worth of bogus sales made by his mobile phone firm I2G. The “phenomenal” turnover was generated in eight months, HMRC said. Advertisement >> Meanwhile Cranswick lived it up in his rented villa in Marbella. “Despite this phenomenal turnover... I2G operated from a small office in Sheffield,” HMRC said. The scam was smashed after a five-year police probe, Newcastle crown court was told. Cranswick, from Sheffield, admitted conspiracy to cheat HMRC, as did accomplices Brian Olive, 56, of Doncaster, and Darren Smyth, 42, from Rotherham. Claire Reid, 45, also from Rotherham, admitted false accounting. The four will be sentenced next month

 wealthy Britons are planning to flee what they believe to be an over-taxed and crime-ridden UK, with France the most favoured destination, according to a survey published by British bank Lloyds TSB. The survey, published on Monday, found that 17 percent of those with more than £250,000 ($391,025) in savings and investments wanted to move abroad in the next two years, up from 14 percent six months earlier. The most popular destination for the rich exiles was France (21 percent), followed by Spain (15 percent) and the US (11 percent).  Three-quarters of those questioned (73 percent) thought that crime was a bigger problem in Britain than other developed countries. "Sadly, it seems August's riots, tax increases and a rising cost of living have cast a pall over life in the UK for some wealthy people," said Nicholas Boys-Smith, managing director of Lloyds TSB International Wealth in a statement. "It may reignite fears of a 'wealth drain' from our economy as rich people seek pastures new," he said. 42 percent of those questioned named tax as a reason for leaving, up from 35 percent six months ago. Cost of living was a factor for 52 percent, up from 31 percent. Research in January 2011 suggested that 4.6 percent of the UK population have over £250,000 in savings and investments, which equals around 2.8 million people.

A man has been arrested in connection with the death of the 15 year old Moroccan whose body was found by the roadside between Marbella and Ronda. The arrested man lives on a nearby finca to where the body was found, and has claimed that the 15 year old was continuously stealing from him. Government Sub Delegate for Málaga, Hilario López Luna, said that the National Police arrested the Spaniard on Tuesday. The 15 year old Moroccan is known to have had a police record. The arrested man said that he surprised the Moroccan on his land and shot him in the face with a shotgun. He then moved the body to the roadside. He is expected to appear in court shortly.

former chief of the National Police in Ronda claims that he was accused in the police corruption case because people wanted to “bring him down”. Nine people are accused in the case which is currently being tried in Malaga. They include three other National Police officers and a Guardia Civil. The hearing was initially planned in March last year but was suspended after the defence for one of the accused asked to know the identity of some of the protected witnesses to carry out tests. This was agreed, but the trial was postponed on two other occasions. There are 60 witnesses, many whose identities are protected. Malaga Public Prosecutor is asking for a total of 39 years for the five officers who allegedly failed to investigate prostitution and drugs sales at brothels in the area from which they are accused of demanding money and sex in exchange for not going ahead with deportation orders for the illegal immigrants working there between 2003 and 2007. Three club managers were charged with prostitution, and another man who allegedly accompanied the officer with influence peddling. He is said to have boasted about his relationship with the police and an affair with the local judge. The Internal Affairs investigation led to the arrests of the officers and the other people between February and May 2007. The former National Police chief visited the brothels and, like the others, allegedly had drinks and sexual favours which he never paid for, and was also accused of helping an illegal immigrant who worked in a care home in exchange for sex. The prosecution believes that another one of the National Police rented a house to one of the brothel owners for the girls to stay in and tipped them off about possible raids. The former police chief claims in court that the whole case is a set-up organized by people he had arrested or had problems with in the past, including other officers, and says he never failed in his duty, nor abused his position to obtain sex or anything else. He does admit to having had a consenting relationship with a protected witness who he claims demanded money from him and went to his wife after they split up. He says he regrets this, but that it was the only thing he has done wrong.

Sir Paul and the new Lady McCartney had emerged beaming after the ceremony at Marylebone Register Office. 

The newlyweds were greeted on the steps of the building by friends and family who covered them in rose petals. 

'I do': The newlyweds pose in this official but quirky wedding photograph taken by Sir Paul's photographer daughter Mary McCartney

Man and wife: Sir Paul McCartney and his new wife Nancy Shevell wed in an intimate ceremony at Marylebone Town Hall

Husband and wife: Sir Paul McCartney and new wife Nancy Shevell leaving the Marylebone Register Office

The pair got into a car with Paul's daughter Beatrice who had acted as bridesmaid and made their way to their North London home for the reception. 

Sir Paul and Nancy, 51, became husband and wife in front of just 30 guests.

Spain may exhume the remains of dictator Francisco Franco from his huge mausoleum near Madrid and move them to a cemetery, the daily Periodico de Catalunya reported on Monday. The proposal is being considered by a commission of experts which the government has tasked with proposing how to deal with the Valley of the Fallen, Franco's monumental burial place in San Lorenzo de El Escorial. The mausoleum is seen as being contrary to the 2007 Law of Historic Memory on the 1939-75 Franco era. Franco took power following the 1936-39 civil war in which his troops defeated those of the leftist republican government. The law stipulated recognition of the wrongs suffered by Franco's victims, including measures such as removing Francoist monuments and assistance to associations reopening mass graves. One of the last issues to be dealt with is the Valley of the Fallen, which was built by republican prisoners. The mausoleum holds the remains of more than 30 000 people, including those of hundreds of republicans, whose bones were brought there to increase the number of people buried at the site. The commission comprising historians and legal experts is mulling ways to turn the mausoleum into “a monument of reconciliation.” The commission is now considering the possibility of removing Franco's remains from the basilica of the Valley of the Fallen and transferring them to El Pardo cemetery in Madrid, Periodico de Catalunya reported. This might be accepted by the Franco family, because he would then lie next to his wife Carmen Polo, according to the report. The basilica also houses the remains of Jose Antonio Primo de Rivera, the founder of Franco's Falangist party. They would not be removed from the Valley of the Fallen, because he was executed by the republicans during the war and is therefore considered a war victim.

chris lindsay

A NEW dad died after being beaten up during a holiday in Spain.

Chris Lindsay was found unconscious in the street following a night out with work pals.

He died five days later - on his girlfriend's 30th birthday.

Chris's dad Harry, 63, said: "It's hard to take. We keep thinking he is going to walk back through the door at any minute."

Chris's family raced to the Costa del Sol after doctors rang to say he was fighting for his life.

They are now trying to piece together what happened on the night he was attacked.

Chris, 34, who leaves a three-month-old son Jude, had flown to Spain with colleagues from The Marketing Company, based in Glasgow's Hope Street.

A group of around 10 of them were staying at a villa in Calahonda, between Marbella and Fuengirola.

On the night he was attacked, marketing officer Chris, of Edinburgh, and his pals had been out for a meal.

Most of them went to bed later but Chris and a senior colleague decided to keep the party going and went back out.

The pair got separated in a bar and Chris was found unconscious in the early hours of the morning.

It is not known how he sustained his injuries or how he got to hospital. But relatives who rushed to his bedside in Carlos Haya hospital in Malaga say it was obvious he had been attacked.

His brother Tony, 38, of Edinburgh, said: "We don't know who found him but he had been unconscious in the street on the Sunday morning and his passport was missing.

"When we saw him, his face was OK but there was bad bruising down his right-hand side, and cuts on his knees and elbows.

"We have no idea if he was jumped or if it was a one-on-one, but he had certainly been in a fight."

Chris was taken to hospital in Marbella before being transferred to Malaga. He died on Friday after suffering liver and kidney failure.

His family and his girlfriend Vikky Soloman hope a postmortem examination will shed more light on what happened.

Tony added: "Something has happened after he went back out. But all we can say for sure is that he has ended up dead."

Chris's dad Harry, 63, a care worker of Airdrie, Lanarkshire, said: "We're going about in a trance at the moment. Chris was a hard worker and a good lad."

Tony added: "I am absolutely devastated.

"Chris was absolutely thrilled to have become a dad again.

"There are still too many question marks about what happened."

Police on the Costa del Sol are investigating.

Chris's body will stay in Spain until officers decide whether to launch a criminal inquiry.

A Foreign Office spokesman said: "We can confirm the death of a British national in Spain. We are providing consular assistance to the family."

The affliction, caused by flexing the neck for extended periods of time, can be a forerunner of permanent arthritic damage if it goes without treatment. Cases of the repetitive strain injury are on the rise as smart phones and tablet computers such as the iPad become increasingly popular, experts said. In severe cases the muscles can eventually adapt to fit the flexed position, making it painful to straighten the neck out properly. One chiropractor said her company had treated thousands of patients for the condition, which can also result in headaches and shoulder, arm and wrist pain. Rachael Lancaster, of Freedom Back Clinics in Leeds, said: "Text neck is caused by the neck being flexed for a prolonged period of time

Elena Munoz/AP

A bull brutally gored a matador in Spain on Friday, tearing through the man's jaw and pushing out his eyeball as spectators watched in horror.

"I can't see, I can't see anything," Juan Jose Padilla, 39, shouted as he was rushed out of the ring while bleeding profusely and cupping his protruding eye.

The 1,120-pound animal had chased the bullfighter and pinned him to the ground, goring him after he tripped. Television images caught the horrifying scene.

The bull, named Marques, was the second fighting beast Padilla had faced during the second day of the annual Virgen del Pilar festivities in Zaragoza.

Padilla was rushed to emergency facilities at the Misericordia bullring before being driven to the hospital.

A statement from the Miguel Servet Hospital said he was in a stable condition after a five-hour operation to repair his face.

The hospital said Padilla was likely to suffer facial paralysis and lose sight in one eye.

The hospital said he suffered eye, bone, muscle and skin damage when the bull pinned him to the ground. Surgeons had not been able to repair a severed facial nerve.

Surgeons used titanium plates and mesh to reconstruct parts of Padilla's face.

organised crime and drugs unit, UDYCO of the National Police on the Costa del Sol has found 900 kilos of hashish on a yacht and hidden in a house in Cártama. At least eight people have been arrested, three Moroccans and five Spaniards. La Opinión de Málaga reports that the investigation started in Madrid, and a police operation last week which observed how the yacht left Morocco last week destination Spain. The vessel was intercepted and then escorted into Málaga port where 600 kilos of hashish was found. The police say the owner of the yacht is already well known to them for his alleged links to hashish trafficking across the Strait. The second part of the operation came in Cártama where a home was found to contain 300 kilos of hashish, 2.5 kilos of cocaine, some 150 marihuana plants and about 70,000 € in cash. A man and woman arrested there were finally released. It’s believed the house was used to store the drugs before they were distributed across Europe.

LOCAL POLICE in Nerja are to crack down on bar and restaurants which take up too much space on pavements. Over the past month, complaints from Nerja residents have risen regarding bars and restaurants putting their tables out on pavements, preventing people from passing. Nerja is a tourist area, and most local cafeterias, bars and restaurants have their tables, chairs and signs out on the pavements, something which is allowed as long as they pay a fee to do so. However, there are limits to how much space they can take up, and it appears that in over this summer, some of them have decided to ignore the rules, making it difficult for pedestrians and vehicles to pass. This also affects shops which put their goods out on the pavement. One shop in particular has had its goods confiscated after doing so on several occasions. The owner was cautioned, but failed to keep within the limits set for his shop. This does not necessarily lead to a fine, but the owner will have to pay to get his merchandise back. “It’s not permissible to allow any business to obstruct walkways used by tourists and local residents, nor to endanger others” sources from the town hall said.