Oil (and Repsol), Always a State Affair
MADRID | By Fernando G. Urbaneja and Julia Pastor | Repsol is a “rara avis”, a private and listed firm, with public shareholders and indirectly supported by the Spanish government.
Spanish economy
A nasty surprise for Spanish banks
MADRID | By J.P. Marín Arrese | As credit institutions gathered in Frankfurt to meet top ECB officials for a first-hand appraisal of the forthcoming common supervision, the Spanish banks proved utterly misinformed. They had taken for granted that domestic sovereign bonds held in their balance sheets could be accounted at their nominal value. Yet Draghi failed to provide any assurance to that effect, hinting the issue being subject to review next year.
Lights and shades of Rajoy’s two years as Spain’s president
MADRID | By Julia Pastor | Two years, a €100 billion banking bailout, and a comprehensive package of structural reforms later, Spain’s president, Mariano Rajoy, celebrated on Wednesday his 2011 electoral victory. These years’ balance is some sort of bittersweet taste. The country’s external perception has improved, but unemployment and public debt numbers are still a heavy burden.
Spain Seeks Foreign Investment to Keep on Growing
MADRID | By The Corner Team | In order to ensure the consolidation of the recovery in the Spanish economy, all reforms and modifications should focus on boosting foreign investment in the country. After all, it has demonstrated to be a land of opportunities for smart investors.
20% of Spanish Bank Branches Will Close Before 2015 (Roland Berger)
MADRID | The Corner Team via CapitalMadrid | Spanish banks will close 20% of their branches by 2015, compared to 10% which shut down in Germany and 5% in France, according to a Roland Berger report called ‘The future of the retail banking in Europe’.
Spanish Banking Sector Non-performing Loans Reach Record in September
MADRID | The Corner Team | The balance of non-performing loans of the Spanish banking sector rose in September to reach a new record of 12.68 percent, since the 12.12 per cent in August, according to provisional figures that the Bank of Spain reported on Monday. The volume of non-performing loans rose 6.888 billion euros, up to 187.830 million euros.
Spain in Pictures: The road to recovery continues
NEW YORK | By JPMorgan analysts | The Spanish economy has been showing clear signs of recovery since the summer, although from very low levels and we see no time for complacency for Rajoy’s government, a risk investors are already highlighting. There are some pending structural reforms in the fiscal, legal and pension sectors, while, in the banking sector, we would encourage a final cleanup to prevent a Japanese-style downturn, regarding which the October deflation data may be a warning. In our view, a more stable legal environment is also necessary for investors in regulated sectors, where banks and utilities are likely to be most affected.
Experts Not Convinced By Spain’s Labour Reform
MADRID | By Francisco López | There are increasingly more voices doubting the effectiveness of the labor reform that’s apparently making the Minister of Industry so proud. Qualified labour market experts argue that such reform has been a fiasco and it has not served nor it will serve to meet its main target: the creation of productive employment.
Politicians get sloppy with Spanish labour market
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.
Tenerelli, the fund manager who ‘discovered’ Spain in the midst of the crisis
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.