BERLIN | By Alberto Lozano | As problem loan formation slows and credit costs ease, Spanish banks should perform better than Italians and Portuguese over the remainder of 2014 and through 2015 according to Moody’s.
MADRID | The Corner | Spain was the EU28 member state with the highest increase in the production in construction during the 2Q, with an increase by 7.0% YoY, according to first estimates from Eurostat. Moreover, Spain was the fourth country in the EU28 with the biggest increase in the production in June, with a growth of 6.8%. However, the construction experienced a decline of 2.9% in June in comparison to May, which represents the second biggest monthly decline of this variable among the EU28 member states. In June compared with May 2014, seasonally adjusted production in the construction sector fell by 0.7% in the euro area and by 0.3% in the EU28.
MADRID | The Corner | Petroliam Nasional Berhad (PETRONAS) of Malaysia has awarded to Técnicas Reunidas a contract for the engineering, procurement, construction, and commissioning (EPCC) of all hydrotreating units, interconnections and torch of the Refinery and Petrochemical Integrated Development Project (RAPID) in Pengerang.
MADRID | The Corner | Spain’s GDP expanded by 0.6% in the 2Q of 2014 over the previous quarter, the fastest pace in the Eurozone after Latvia’s growth (+1%). With Portugal (+0.6%) and Netherlands (+0.5%), Spain becomes one of the best economic performers in the eurozone during this quarter. Moreover, according to the figures published today by Eurostat, the Euro area has stalled in the 2Q, especially as a result of the contraction of Germany, the Italian fall into recession and France’s stagnation. Meanwhile, the Greek economy contracted by 0.2%, the lowest drop since 3Q 2008 and it could show that the country is meeting its full year growth target of 0.6% for 2014.
MADRID | By J. J. Fdez-Figares (LINK) | European stocks closed yesterday again with notable declines -with the exception of the Swiss- pressured by a complicated geopolitical scenario, while the macroeconomic figures in the region continue to disappoint. Thus, European stock markets began the day in negative tone after economic sanctions agreed by Russia against the European countries and with the speculation that the country will send troops to Ukraine. The Spanish index Ibex 35 goes through the worst beginning of August since 2011.
MADRID | The Corner | The headline seasonally adjusted Business Activity Index rose to 56.2 in July from 54.8 in June to signal a faster increase in activity at Spanish services companies during the month. The sharp expansion in activity extended the current sequence of growth to nine months and Spanish service providers saw new business increase at the sharpest pace since late-2006.
MADRID | The Corner | The unemployment rate in Spain falls in July by 29,841 people and drops for six consecutive months. The total number of unemployed stands at 4,419,860. For the first time, unemployment is below the 4.42 million that the current executive found when it came to power. Regarding to the nature of the employment created, it is important to highlight the growth of indefinite contracts by 18.41%. The cumulative reduction of unemployment in the first 7 months of the year (281.478 people) is the largest since 1998. In seasonally adjusted terms, unemployment registered in July grows in 32,357 people, a figure which corresponds to the time series trend, where since 2000 the seasonally adjusted unemployment always increases in July, with the only exception of 2004.
BERLIN | By Alberto Lozano | Despite of the growing concerns following the escalation of the crisis in Ukraine towards the end of the month, the EZ manufacturing PMI index remains expanding in July (51.8), according to Markit data published today. Netherlands (53.5), Germany (52.4) and Austria (50.9) saw an acceleration of the growth, while Greece (48.7) continues depressed and France (47.8) keeps being the “Europe’s sick man” and the main brake to the European growth. With the worst figure in Europe, the French manufacturing sector even contracted in July at the fastest rate since December. Meanwhile Ireland (55.4), followed by Spain (53.9), registered again the sharpest rate of growth, supporting the eurozone manufacturing recovery.
MADRID | By Fernando G. Urbaneja | United Kingdom has displaced Brazil, which displaced before Spain as first market by benefit contribution to Banco Santander. Of the 2,750 million € earned in the first six months (+22% over the first half of 2013), 20% comes from the British market. Brazil contributes the 19% of benefits and Spain recovers share until reaching the 13%. And then there are United States (9%), Mexico (8%), Chile (7%), Poland (6%), Germany (5%), Portugal (2%) and other countries from Europe and Latin America (11%).
BRUSSELS | By Alexandre Mato | The last Eurobarometer after the european elections showed that the EU’s image is improving among its citizens. 35% of them have a positive image of communitarian institutions. Austerity measures to fight the economic crisis or the unresolved unemployment problem have not erased this ‘popular feeling’. But more than 40% think that in a national or European level the economy will remain “the same” for the coming 12 months. Only 24% see an improvement.