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Spanish elections doubts can reduce spreads between Spain and Portugal

Spanish economy 25th February 2019

Spanish Elections Doubts Can Reduce Spreads Between Spain And Portugal

Growth in Spain remains strong but the country can withstand some political instability before the results of snap elections that will be held on 28 April. As reported by analysts at Julius Baer, “polls are indicating a hung parliament, but shifts in party policies could enable both a centre-left and a centre-right coalition government to be formed.” The spread difference between Portugal’s and Spain’s 10-year government bonds currently stands at 30 basis points.

 

Spain has highest proportion of contracts of 6 months or less

Spanish economy 18th February 2019

Spain Has Highest Rate Of 6 Mths Or Less Contracts

According to data of the International Labour Organisation (ILO), which links the increase in poverty to the length of contracts, in a comparison of 18 European countries, Spain has registered the largest proportion of contracts of 6 months or less. According to its forecasts, Spain’s unemployment rate will fall from 15.5% in 2018 to 14% in 2020.

Spanish PM

Spanish economy 15th February 2019

Spanish PM calls general elections for April 28

Spanish PM Pedro Sánchez called snap elections for April 28th after holding an extraordinary cabinet meeting in Madrid. The ballot follows Sanchez’s defeat in parliament over his 2019 fiscal plans. Madrid avoids May 26 “Super Sunday,” with local, regional and EU elections the same day.

Santander, the first European bank that will not redeem its issue of CoCos

In Europe, Markets, Spanish economy 13th February 2019

Santander “Shocks” The Market: Becomes The First European Bank That Will Not Redeem Its Issue Of CoCos

On Tuesday Banco Santander announced that it will not exercise the repurchase of its contingent convertible bonds (CoCos) – the AT1 – of 1.5 billion euros and coupon of 6.25%. The bank, which referred to financial reasons, had already warned in its presentation of results that it would only make the call if conditions were adequate.

REE finally buys 89,68% of Hispasat from Abertis for 949M€

Spanish economy 13th February 2019

REE Finally Buys 89,68% Of Hispasat From Abertis

Red Eléctrica, the company which manages Spain’s high tension electricity cables, has agreed to buy 89.68% of Hispasat, the largest operator of satellite infrastructure by volume in Spain and Portugal, for 949 M€ from Abertis Infraestructuras. REE had already tried to buy Hispasat at the beginning of last year, even reaching a pre-agreement with Abertis. But the deal was frustrated by the corporate operations in Abertis and the disagreement of the previous government.

Spain Catalonia

Spanish economy 12th February 2019

The Fear Of An Accident Is Beginning To Dominate Spanish Society

Joan Tapia (Barcelona) | BBVA says that Spain could grow 2.4% this year (it grew 2.5% in 2018) and 2% in 2020. This would create 800,000 jobs over the two years and unemployment would fall to 12.6% (compared to 15.3% in 2018). Yet, BBVA also warns that the probability of an accident has increased. Spain’s public debt is 12 points above the eurozone average, around 100% of GDP. Moreover, the Catalan situation is explosive as it represents 16% of the population and 19% of GDP.

Spain’s real estate sector: from recovery to expansion

Spanish economy 11th February 2019

Spain’s Real Estate Sector: From Recovery To Expansion

House sales have been posting double-digit figures for the past three years, there is strong growth in construction and prices are clearly on the up. What will the future bring? As explained in the next report from Caixabank Research, this positive trend is expected to continue in the sector, both because of the Spanish economy’s good performance and also the healthy state of the industry itself.

electricity prices

Spanish economy 6th February 2019

Spanish Utilities’ Regulator Wants To Control Debt And Dividends

The National Markets and Competition Commission (CNMC in its acronym in Spanish) is processing a circular so that all energy companies which supply electricity, gas and hydrocarbons meet six ratios which constrain their level of debt and dividends in relations to the volume of assets, cash flow, EBITDA or financial costs.