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Spanish economy 27th April 2012

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,…

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Spanish economy 26th April 2012

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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Spanish economy 26th April 2012

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…

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Spanish economy 25th April 2012

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…

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Spanish economy 25th April 2012

Direct investment in Spain increases for the second year in a row

By Carlos Díaz Guell, in Madrid | Global foreign direct investment flows in 2011 increased by 17% year on year, recovering pre-crisis levels. Spain also regained investment flows into equity last year, with a rise in total net investment (total minus divestiture) of 18.2% year on year that reached 1.8% of GDP. Some aspects of this foreign direct investment figure in Spain are worth commenting. For instance, the growth rate was positive…

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Spanish economy 23rd April 2012

Monday’s graph: improvement in gross debt ratio of Spain’s private sector

International Financial Analysts Afi brought to our attention this chart from 2011 financial accounts in Spain, which confirm that ratio of gross debt (loans and different security prices) of households and businesses in Spain has dropped by 13.5 percentage points of GDP. The figure is now 216pc, down from the maximum levels reached during the second quarter in 2010. It also reflects the downturn in indebtedness operations during last year,…

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Spanish economy 23rd April 2012

The Bank of Spain’s baffling performance

MADRID | The Spanish government has good reasons to feel irritated at the Bank of Spain’s erratic conduct. It has endorsed bank plans to meet the reform targets without raising any objection. Yet, it has failed to provide any credible explanation on how credit institutions might raise €45 billion in the coming months. Taking for granted that Santander, BBVA and CaixaBank will easily achieve their required €10 billion provisioning, that leaves…

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Spanish economy 20th April 2012

Spain’s government must pass by blackmail from counter-austerity lobbies

By Carlos Díaz Guell, in Madrid | No one in Spain is going to make it easy for the Rajoy government. Policy reforms and budget cuts undertaken by the cabinet, although considered timid and inadequate by many, will inevitably leave a number of victims in the ditches and they don’t seem willing to let this occur without doing anything against it. The business sectors (most of them) affected by constrictions in public spending…

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Spanish economy 20th April 2012

Don’t blame FTAlphaville, blame Fernández Ordóñez

By Luis Arroyo, in Madrid | At FTAlphaville there recently was talk about the Spanish banking system. Sí, that particular banking system that, according to the Bank of Spain governor Fernández Ordóñez, has fixed itself without the nation’s Treasury putting any euro at all. The answers to questions like who ordered him to say this, and what for, when everybody knows and complains about public capital injections in our banks are…

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Spanish economy 18th April 2012

Pharmaceutical co-payment: Spanish pensioners charged 10%

By Tania Suárez, in Madrid | One more twist in the reform plans introduced by the Spanish government: time is up for the public health system… again. The vice-president Soraya Sáenz de Santamaría said in March that “the matter of the [sanitary] co-payment is not on the table of the Cabinet; it is as simple and crystal clear as that.” In Spain, the pensioners did not have to pay for…