S&P published a specific note on Spain economy on 31/10 where it states that the recent events in Catalonia should not have any immediate impact on its rating nor its outlook (BBB+/Positive). At the same time, Moody’s published a note on Spain which is more cautious about the risks of implementing Article 155.
In Spain, companies should “express their future needs in the medium and long-term and transmit them to the education system. At the same time, the education sector has to contribute and help young people to get a job tomorrow. If this is not perfectly in sync, like a watch, it doesn’t work,” explains Francisco Belil, a Gas Natural board member and deputy chairman in Spain of the Bertelsmann Foundation.
From 15:25 last Friday afternoon, when the Catalan Parliament made its unilateral declaration of independence, events have speeded up. Three hours after the solemn, but sad proclamation, the Republic of Catalonia disappeared into thin air. Mariano Rajoy dissolved the regional parliament and fired Carles Puigdemont’s government by implementing Article 155 of the Spanish Constitution in the Senate. And the biggest surprise: a call for elections on December 21.
Ratings agency Fitch has warned that a property bubble is evident in the centres of Spain’s large cities. But it makes it clear that it does not anticipate any generalised bubble in housing prices in the country in the short-term. This is due to the high level of stock which still has to be absorbed and the restrictions on buying a home.
The capital hikes carried out by Spanish companies totalled 4.114,7 billion euros in September, almost four times more than a year earlier and the highest figure in that month since 2012. This is according to data analysed by the Economic Studies Department of rating agency Axesor.
Financial institutions, companies and households have continued to adjust the debt accumulated in the first half of the year. In the case of non-financial companies and households, their level of debt is increasingly closer to the European average, against a backdrop of greater economic growth and preference for home ownership.
In Spain banks stocks, particularly Santander, play an unusually important role in driving the index Ibex35.To understand the prospects for the Spanish banks (and ipso facto, the overall index), it is crucial to have a handle on the health of the domestic real estate market,” confirms Goldman Sacha experts.
Shares in biotech company Oryzon Genomics continued their advance today, after the company said on Tuesday that it plans to move its headquarters from Barcelona to Madrid.
Spain’s services sector, about 50% of the country’s GDP, was boosted in September thanks to new business at the fastest rate in more than two years, according to Markit’s Purchasing Managers’ Index (PMI).
Bankinter |The variation in the number of jobless in September (according to the Social Security register) was apparently slightly higher (worse) than forecast: +27.900 vs +21.500 expected vs +22.801 in September 2016. (That said it was slightly better than the 26.087 registered in September 2015).