In Spain


Bien! Unemployment numbers in Spain reduced by 6,632 people

MADRID | The number of unemployment benefit claimants in Spain in April fell by 6,632, bringing the total down to 4,744,235 people according to data released Friday by the ministry of Employment and National Insurance. Although this is the first decline in eight months, analysts pointed out that the little improvement in unemployment figures was mainly due to temporary hiring during Easter and was lower than expected. On average, experts polled…


Slim talk about growth in Euroland

MADRID | Following German Chancellor Angela Merkel’s instructions, those supposedly at command in Euroland zealously repeat that growth and austerity are not in contradiction. Beware about such a slim talk. Their underlying message is that fiscal compact must be preserved at all costs, growth delivery amounting to a merely cosmetic make-up. Eurocrats are working out ways to sell through financial engineering the same money under a more “à la mode” disguise….

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Bolsas y Mercados’ equity trading up in April, but drop in corporate debt volume

MADRID | Bolsas y Mercados Españoles BME, the operator of all stock markets and financial systems in Spain, said Thursday that equity trading volume on the Spanish stock exchange in April had reached €65.75 billion. This is an increase of 7.25% from the previous month but 19% down on the same period in 2011. The trading volume for the first four months totaled €242.70 billion, down 26% from the same period…

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Almost all Spaniards are now poorer

By Carlos Díaz Guell, in Madrid | In Spain, households’ financial assets fell by 3.5% in 2011 due to a downturn in acquisition activity and especially market declines recorded in the third quarter of last year after the deterioration of the sovereign crisis. This is compounded by the collapse of housing prices, which caused housing sector wealth to fall by 6.6% dragging total net wealth down 51 percentage points of GDP. In 2011 it also was reported a change in the composition of household savings with a fall not seen…


Sweeping U-turns undermine Madrid’s credibility

MADRID | No one expects incoming governments to keep promises entered while campaigning to cajole voters. But Rajoy’s performance does merit a place in the Guinness record book. Didn’t he adamantly bind himself never to facilitate lay-offs? Didn’t he commit himself never to increase taxes? People can understand he may break pledges when confronted with a dismal economic scenario. But they have good reasons to feel frustrated at the hectic way…

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Spain contracts but recovers faster than any other euro country

MADRID | After the national office for statistics in Spain confirmed everyone’s suspicions about the country returning to recession, with a -0.3% economic contraction versus expectations of -0.4% , a note from BBVA research team on Spain’s strengths could come handy as a reminder that the #spanic would be still avoidable and this Espan-hole could be safely closed. BBVA analysts explained in its monthly report aptly headlined ‘Leaving stereotypes behind‘ that…

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Friday’s chart: Spanish advertising cares about the Internet

Infoadex published this week the advertising investment data in media in Spain during the first quarter of 2012. To most financial analysts, the figures are in line with their estimates about advertisement spending in general television broadcasters and continue registering massive drops in the daily press and radio stations. It surely is the consequence of a depressed domestic market and the country’s economic travails. But on a more contextualising note,…


The case against Spanish banks: how the New York Times got it wrong

NEW YORK | When one of the world’s most prestigious newspapers quotes a blogger as the main source of a story on international economy, sure that blogger’s words do get a boost. The New York Times Business front page recently spoke of “Spain’s weak spot“, saying that “A rising portion of Spain’s €663 billion, or $876 billion, in home mortgages at risk of default could lead the country’s banks to a…

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Spain’s budget is starting to crack

MADRID | First quarter figures showed a marked deterioration in central government finances. Its gap has grown by ¾ as compared to the same period of the previous year, reaching 1.85% in terms of GDP. A most disappointing outcome that undermines firm pledges to slash deficit this year in a substantial way. Claims that more money has been pumped to regional authorities, pensions and unemployment benefits appear as futile excuses. For…


Spain’s best-selling newspaper El País to cut jobs

The financial City of Madrid welcomed El País’ redundancy plans to improve the balance sheet of the best-selling newspaper in Spain. Investor reports on Wednesday warned that the adjustment in personnel could affect a sizeable number of jobs, but it was necessary to confront the loss of 51pc of accumulated advertising income since 2007. In 2011, the drop in advertisement contracts was of -15pc. Analysts at ACF remarked that the company…