By Juan Pedro Marín Arrese, in Madrid | Analysts are busy collecting evidence for a huge recession. The 70% drop in the Baltic Dry Index, ranging now below the lowest level hit in 2009, has been hailed as the proof doomsday is looming. It seems that only bad news are taken on board, others being hastily dismissed as rubbish. Are prospects so bleak? Well, we are far from expecting a favourable…
By Julia Pastor, in Madrid | Repsol YPF’s petrol deposit finding in Vaca Muerta (Argetina) seems to have no end. An external audit commissioned by the company revealed that the reserves of unconventional oil (shale oil/gas) exceed initial expectations and increase to no more no less than an equivalent 22,807 million oil barrels, which according to the newspaper Negocio would mean a sixfold increase in the company’s reserves. Spanish analysts agree…
By Julia Pastor, in Madrid | The Spanish financial system reform is already under way, so it generates a non-stop stream of news and comments. The news on Thursday precisely come from the minister of Economy Luis de Guindos’ statements, who said during an interview to radio broadcaster Onda Cero that after the second round of mergers and acquisitions, there will be around twelve entities left in Spain. “They will…
By Tania Suárez, in Madrid | IAG’s CEO Willie Walsh said last year that if the opportunity arose, they would definitely be willing to take a major equity stake in Japan Airlines. Now, that opportunity has apparently arisen. IAG has come to an agreement with Japan Airlines (JAL), and both companies will soon sign a joint business agreement. According to Walsh himself, IAG has “established very close links with JAL”…
MADRID | The Spanish newspaper Expansión on Wednesday published that 48- year old Daniel Maté, from Guipuzkoa and with a degree in Law and Economics from the University of Deusto, will become the largest shareholder of the mining and raw materials giant that will result from the biggest merger ever agreed in this sector. Maté now has 6.03% of Glencore, which will become 3.31% of the merged entity, after having purchased a…
By Tania Suárez, in Madrid | Thanks to the current environment of improved trust and confidence levels, Spanish companies and banks have reopened the primary market. Santander was the first one, followed by Sabadell, BBVA, Banesto and Telefónica. Repsol and Ferrovial joined to this debt issuing, and it is expected that Pescanova will be the next one. Some experts see the European Central Bank’s open bar of liquidity, together with…
By Juan Pedro Marín Arrese, in Madrid | Use of emergency doors being forbidden by Germany, except in cases of force majeure, trouble-ridden Southern Europe is to expect a painful and slow real adjustment. This process will allow its current competitive gap to phase out little by little. In other words, less pay for the same job. Refusal by workers to grasp the inner benefits derived from lower wages tackling imbalances inevitably…
By Luis Arroyo, in Madrid | The reason? Well, their States are exemplary. No banks in trouble, no massive public debt but a very aggressive monetary policy to grease the inevitable deleveraging process. Let us compare them to the US, for instance, whose gross debt to national GDP has already touched the 100pc base. This, I suppose, should shake the beliefs of old Keynesians like Krugman, stubbornly champions of a…
By Julia Pastor, in Madrid | Last week, Rajoy’s government passed a Royal Decree, which forced all the Spanish financial entities to provision a total amount of €50bn to cover the losses coming from the property boom effect. But banks had not yet calculated their corresponding piece of the cake. On Tuesday, the three biggest Spanish entities, Santander, BBVA and Caixabank, communicated to the supervisor body –the Spanish Securities Market Commission– the…
MADRID | As reported by the daily newspaper Expansión in Tuesday’s edition, the reactivation of the property tax will be added to the increase of the personal income tax in Catalonia and in the autonomous region of Asturias creating a joint effect of more than 60%. Experts warn that these regions are susceptible to relocation and capital flight. The increase in personal income tax has placed Spain among the countries…