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Socimis

Spanish economy 29th October 2020

Spanish SOCIMIs Could Suffer A Major Setback With A Tax Burden Of 15%

Even though SOCIMIS have played a leading role in the Spanish real estate market since 2013 , as a result of Covid-19, their market value has dropped to €21.268 Bn, a decline of more than 17% against the end of 2019. In addition, these vehicles have benefited from a tax regime adapted to that of traditional REITs. Now, however, the government could impose a tax burden of 15% on them, which would damage cash flow and increase the risk premium associated with investing in real estate assets in Spain, say Banco Sabadell analysts.

 

Repsol

Ibex, Markets, Spanish economy 28th October 2020

Repsol Leaves Ecuador After The Sale Of Its Assets To Canadian Firm New Stratus Energy For €5 M

Repsol has reached a good intentions agreement with the Canadian company New Stratus Energy for the sale of assets in Ecuador, so that the oil company will leave the South American country, where it has been present for almost twenty years. The deal amounts about $5 M (about € 4.2 M) to be paid in two installments, although there could be additional contingent payments linked to certain circumstances, such as an extension of the service contracts term, which would bring it up to $12 M (about € 10.1 M). 

spain no confidence

Spanish economy 28th October 2020

With The Lack Of Confidence in Spain, The Crisis Is Prolonged

Miguel Navacués | In the 2’Q20 Spaniard’s savings rate on disposable income reached a record high of 31.1%. Investment depends on companies’ expectations, sales and profitability, which increase their value. And it in turn depends on the effective demand, which determines the volume of sales. If there is no sales volume in sight, there is no demand and GDP shrinks. Demand in Spain -except from abroad- is still digesting the collapse due to the pandemic, and the resurgence in cases, amid a climate of permanent mistrust which is prolonging the crisis.

Spain ratings

Spanish economy 27th October 2020

Spain: Expecting The Unexpected

Economists are getting used to expecting the unexpected. The unprecedented fall in Spain’s GDP—seen during the first half of the year—was followed by one of the highest growth rates ever recorded. In the third quarter of the year, quarterly GDP growth was around 14%. The unusual extent of the growth seen during the recovery is mirrored by the atypical way in which it has taken shape. Growth is expected to return to more ‘normal’ levels in the fourth quarter, i.e. about 2%. While this rate is high in comparison with any quarter in Spain’s recent history, it indicates a sharp slowdown.

spain budget 2021

Spanish economy 27th October 2020

Spain’s Reconstruction Budget Plan For 2021 Includes 151% More Spending On Health Care Than At Present

The Council of Ministers today approved the draft General State Budget for 2021, following the agreement reached last night by the coalition government. The proposal will be focused on mitigating the effects of the pandemic’s effects with the largest public expenditure in history. This amounts to 239.765 billion euros – an increase of 10% – including an advance of 27 billion of European funds. Now the most difficult part remains: obtaining parliamentary support for the Budget.

full employment

Spanish economy 27th October 2020

Spain jobless rate soars to 16.26%, despite adding 569,600 jobs in Q3, according to the EPA

The number of employed people increased in the third quarter of the year by 569,600 compared to the previous quarter which saw the greatest impact of the pandemic from confinement. The total number of employed stood at 19.17 million. However, the number of unemployed also increased by 355,000 to 3.722.900, equivalent to a rate of 16.26%, the highest since the first quarter of 2018, according to the Labour Force Survey (EPA) published on Tuesday.

spain poverty oxfam

Spanish economy 26th October 2020

Poverty In Spain Could Rise By More Than 1.1 M People Due To The Pandemic, Warns Oxfam Intermon

The socio-economic consequences of the pandemic could increase the number of people living in poverty in Spain by more than 1.1 million if no further measures are taken, according to new estimates by Oxfam Intermón. With this increase, the total number would reach 10.9 million people, rising from 20.7% of the population before COVID-19 to 23.07% after the impact of the pandemic. At an international level, the organization highlights that for the first time in 20 years, extreme poverty will increase.

Cellnex torreta

Ibex, Markets, Spanish economy 26th October 2020

Cellnex Extends Its International Expansion To Poland, One Of The Strongest Economies In Eastern Europe

Following Cellnex’s recent capital increase of 4 billion euros, the company has reached an agreement with Iliad to acquire a 60% controlling stake in the company that will operate Play’s 7,000 telecommunications sites in Poland. The agreement between Iliad and Cellnex is expected to be closed by Q2 2021. It will allow the company to enter a new market and further consolidate its leadership position in Europe, where it will reach 73,000 telecommunication towers.

spanish food

Spanish economy 25th October 2020

Spain Invests €4 Mn To Promote Spanish Food On The External Market

The Spain Food Nation campaign, coordinated by ICEX, will provide market agents with all the necessary information to promote the international marketing of Spanish food as well as to help the sectors most affected by the health crisis and the effects of US tariffs. It will take place in some 20 countries, and will present Spain as a country that supplies safe food to Europe and the world.

Gran Canaria

Spanish economy 23rd October 2020

UK and Germany Give Back To The Canary Islands The Status Of Safe Destination

The low incidence of the Covid19 virus in the Spanish islands has led the United Kingdom to include again the archipelago in its list of safe air corridors, which will mean that travellers will not need to go into quarantine. For its part, Germany will lift the restriction on travel to the islands on Saturday. Both countries, which are the two largest international sources of tourists to the Canary Islands, will boost the tourist season in a region where this sector accounts for 35% of GDP and 40% of employment.