MADRID | By Carlos Díaz Güell | We are facing a new era in global economy: the rise of the so-called “new economy,” full of challenges and uncertainties that can’t be ignored so as to be on the road to growth. However, Spanish politicians seem to turn a deaf ear and to ignore the needs of the labour market.
WASHINGTON | By Pablo Pardo | Dean Tenerelli started investing in Spain one year ago. At the time, many of his colleagues thought that he was going too far. Certainly, he went further than anyone else. But, so far, his bet is rendering excellent yields. Tenerelli manages the T. Rowe Price European Stock, a SICAV with more than $900 million (approximately 700 million euros) in assets, of which around $150 million are in Spanish companies shares. Now, others, such as Bill Gates, Warren Buffett and Carlos Slim, have followed this manager’s example and have started to pour money into Spain. Tenerelli has talked with The Corner over the phone about his experience.
MADRID | By Julia Pastor | Telecom Italia needs to reorganise its balance sheet via a capital increase, a dividend cut or a sale of assets. Spanish Telefónica, which has a 22.4% stake of the Italian firm through Telco, may be willing to help the company by a convertible securities issue or the participation in that capital increase.
MADRID | By Carlos Díaz Güell | For the second consecutive quarter, Spanish banks have maintained their lending criteria and there is a lower decline in credit demand than in previous quarters. For the next months we expect a moderation in credit reduction, a sign that the country has left the worst of the crisis behind.
MADRID | By The Corner Team | The Spanish market’s activity is reviving: after the continued rally of last weeks, the stock exchange reached a monthly historic record in its number of negotiations and traded 30% more than October 2012 –the highest figure in the last 27 months.
LONDON | By Barclays analysts | Several data releases over the past few days confirm that the Spanish economy has left behind a very long recession. The data confirm our view of a very gradual recovery in economic activity starting in Q3 2013 (seeEuropean Economics Quarterly, October 2013, for details). The economy grew at +0.1% q/q in Q3 13 after nine consecutive quarters of negative prints.
THE CORNER TEAM | For the first time since 2009, when the country lost the top credit rating by S&P, Spain’s outlook has been upgraded. Fitch affirmed its ‘BBB’ investment-grade rating and gave it a “stable” prospect thanks to progress in reforms and improved export performance.
WASHINGTON | The Corner Team | Thanks to the implemented reforms between June 2012 and June 2013, Spain has become more business-friendly, according to a report by the International Finance Corporation (IFC) and the World Bank. Among others, the country eliminated the requirement to obtain a municipal license before starting operations.
MADRID | By Julia Pastor | Banco Santander’s chairman Emilio Botín pointed it out a couple of weeks ago: “Everyone is interested in Spain to invest”. Meanwhile, Bill Gates bought 6% of the FCC. As if light had come to the Spanish economy, €20bn of foreign investment has flooded the country in the first eight months of 2013, doubling last year’s figures.
MADRID | By The Corner Team | The Spanish economy is enjoying some hopeful news at last. After 38 months in the red, retail sales in September rose. Foreign direct investment reached 20 billion from January to August, a symptom of consumer’s confidence increasing. And yields dropped to the lowest since May before the government pays interest and bond maturities of about 21 billion euros.