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Spanish economy 5th March 2014

Spanish Santander’s long-term debt rating sees one notch rise

MADRID | By Julia Pastor | Moodys considers that the biggest euro zone bank Santander has sufficiently diversified its sovereign risk and it has become stronger to face operating risks in Spain, thus increasing entity’s long-term credit in one notch, from Baa1 to Baa2. According to BEKA finance’s analysts in Madrid after this improvement Spanish economy’s risk profile will not be anymore the main and almost only variable limiting Santander’s rating to soften. The bank got a big boost which and announced a €1.5 billion issue of convertible bonds to reinforce its capital.

  

 

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Spanish economy 28th February 2014

Sacyr and Panama Canal’s affair to end with “conceptual agreement”

MADRID | By Julia Pastor | Come to peace terms has not been easy for Spanish company Sacyr and Panama Canal Authority.  The pre-deal tacitly accepted by both parties mid February suffered a little setback some days later when hesitations of the project insurer as well as Spanish government’s prevented to sign the contract. On Thursday, the pre-deal became a “conceptual agreement” that hopefully will put a real end point to such a prolonged and complex diplomacy affair.

 

 

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Spanish economy 28th February 2014

Spain regains €136 million with first steps of Bankia’s privatisation

MADRID | The Corner Team | Bankia’ listing in Madrid Stock Exchange was cancelled up to 10 A.M on Friday. One hour later it was known that Spain sold 7.5% of the entity’s capital announced on Thursday at a value of 1.51 euros per share, which amounts a total of €1.3bn and also a discount of 4.4% against yesterday’s closing prices. Furthermore, the sale allows Spain to earn €136 million. With figures aligning with analysts’ estimations, the start of Bankia’s privatisation proves external confidence in Spanish financial sector recovery. 

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Spanish economy 24th February 2014

Misteries to solve about Spain’s structural unemployment

MADRID | By Julia Pastor | Overwhelming figures on Spanish unemployment are as unbereable and unjustifiable as difficult to undo. Nevertheless, it is convenient to remember that these numbers start from a structural rate of around 9% which would always distort comparisons with other European countries as well as final conclusions. According to the last European Commission estimates, natural rate of unemployment in the country has increased from 10.9% in 2006 to 23.2% in 2013, which will increase structural figures to 26.6% by 2015. This gives some sort of “apocalyptic view” over Spanish economy’s state, JP Morgan’s says to its clients. Maybe economists at the EC “forgot to make some reasonable adjustments.”

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Spanish economy 20th February 2014

The controversy of Spain’s Iberdrola speaking English

MADRID | By Julia Pastor | Words from the energy firm’ s president Ignacio Sánchez Galán saying before international investors that “they were more British, US and Mexican that Spanish” to explain each corporate bussiness’ importance on the company’s balancesheet has been a kind of hurt. Furthermore, Iberdrola announced  a cut of investments in Spain: of an overall €9,600bn, only €1.5 which means 15%, will come to the country and be limited to maintenance operations, while the UK will be the major destination with 41% of investments. Against the background of the controversial energy reform having place, the debate between Spanish government and energy industry is getting hotter.

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Spanish economy 14th February 2014

Thousands of Spaniards trapped in underwater mortgages

MADRID | By The Corner | A few years ago, owning a house was the dream of many. However, today this dream was turned into a nightmare for more than almost 600.000 borrowers in Spain. Thousands of homeowners across Spain are trapped in underwater mortgages more expensive than their houses.

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Spanish economy 13th February 2014

Spanish recovery: PM Rajoy fights to sell optimism in electoral year

BARCELONA | By Joan Tapia | Markit analysts point out the positive impact of the wage reductions that increase the competitiveness of Spanish products and help export. If Europe pulls the cord – as the PMI show- the economy could accelerate in the coming months. The Government exaggerates these data (reforms, foreign capitals inflow, and European growth) to underline that the economy will create jobs in 2014 while other analysts – more independent or from other political areas – show more caution.

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Spanish economy 11th February 2014

Bill Gates bites Spanish market again with Prosegur’s little purchase

MADRID | By The Corner Team | When Bill bought 6% of Spanish construction company FCC in last October Spain’s analysts remarked renowed investors interest in the country and anticipated the trend would continue in the coming months. On Tuesday, Bill Gates counterbacked with the acqusition of 2-3% of private security Prosegur.

Spanish economy 5th February 2014

Big Spanish banks rise profits fourfold to €8bn

MADRID | By Francisco López | As lower provisions, sale of assets and gains from financial operations enable big names such as Santander, BBVA, Caixabank, Bankia, Popular and Sabadell to multiply profits by four, the FT encourages to invest on Spanish banks, especially on medium size entities. However they have an unfinished business: profitability.