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Spain Business Brief - Monday August 23 2010
The number of tourists to arrive in Spain during July was up 4.5% on the same month last year, thanks to visitors from the United States, up 32.1% at 146,980, Switzerland up 24.7% and the Scandinavian countries, up 16.7%.
The month saw 6.97 million arrivals, the largest increase seen for 26 months, and represented the third consecutive month to show an improvement.
Meanwhile the number of overnight stays in hotel rooms by international tourists in Spain grew by 11.1% in July, while national travellers were also up by 1.8%. It resulted in an overall improvement of 7.2% as prices continued their falls and were on average 0.8% cheaper than a year ago.
A Socialist deputy on the left wing of the party, José Antonio Pérez Tapias, has broken party ranks by lamenting that the party will be remembered for the introducing ‘sackings for forecast losses’. Latest legislation allows for companies to use a forecast of lower profits as a reason to lay off members of the workforce.
Meanwhile another part of the new measures have also been criticised by the UGT union. They are angry at the reduction in the number of days after which a person claiming unemployment pay has to attend a training course. It is being reduced from 100 to 30, and if they fail to attend they will lose their payment.
Investment services companies have seen their profits fall, in the first six months of the year to 138 million €, down 22% on the same period last year. The cause for the fall is being put down to the large 25% reduction in profits seen in the securities firms.
Moodys rating agency has noted that Spain faces the largest challenges of those countries currently holding an AAA rating. They say the problems are larger here because of the collapse of the real estate bubble, and say that although both the United States and the U.K. have a similar situation, they both have more vitality in their economies. Moody’s considers the adjustments after the real estate boom in Spain will take years to complete.
Mortgages are on the way up in price in Spain with August showing a point of inflexion in interest rates. Average mortgages being revised this month will be six € more expensive per month as forecasters think the Euribor will end the year at around 1.5%.
Banco Santander is reported to be interested in taking control of the Polish bank, Zachodni WBK. It comes as Allied Irish Banks has announced the selling of their shares. The bank is valued at 2.76 billion €. There is reported interest also from PKO; the largest bank in Poland, and also from BNP Paribas.
Brussels has given the green light for the purchase of Puleva’s milk section by the French company Lactalis. It means the Spanish firm will be left to concentrate on pasta and rice.
And finally,
Catalan textile and fashion firm, Desigual, will pay a record rent for the story on London’s Oxford Street previously held by Disney. The company beat off competition from O2 and Mango, and will pay more than a million and a half € a year for the store.
The month saw 6.97 million arrivals, the largest increase seen for 26 months, and represented the third consecutive month to show an improvement.
Meanwhile the number of overnight stays in hotel rooms by international tourists in Spain grew by 11.1% in July, while national travellers were also up by 1.8%. It resulted in an overall improvement of 7.2% as prices continued their falls and were on average 0.8% cheaper than a year ago.
A Socialist deputy on the left wing of the party, José Antonio Pérez Tapias, has broken party ranks by lamenting that the party will be remembered for the introducing ‘sackings for forecast losses’. Latest legislation allows for companies to use a forecast of lower profits as a reason to lay off members of the workforce.
Meanwhile another part of the new measures have also been criticised by the UGT union. They are angry at the reduction in the number of days after which a person claiming unemployment pay has to attend a training course. It is being reduced from 100 to 30, and if they fail to attend they will lose their payment.
Investment services companies have seen their profits fall, in the first six months of the year to 138 million €, down 22% on the same period last year. The cause for the fall is being put down to the large 25% reduction in profits seen in the securities firms.
Moodys rating agency has noted that Spain faces the largest challenges of those countries currently holding an AAA rating. They say the problems are larger here because of the collapse of the real estate bubble, and say that although both the United States and the U.K. have a similar situation, they both have more vitality in their economies. Moody’s considers the adjustments after the real estate boom in Spain will take years to complete.
Mortgages are on the way up in price in Spain with August showing a point of inflexion in interest rates. Average mortgages being revised this month will be six € more expensive per month as forecasters think the Euribor will end the year at around 1.5%.
Banco Santander is reported to be interested in taking control of the Polish bank, Zachodni WBK. It comes as Allied Irish Banks has announced the selling of their shares. The bank is valued at 2.76 billion €. There is reported interest also from PKO; the largest bank in Poland, and also from BNP Paribas.
Brussels has given the green light for the purchase of Puleva’s milk section by the French company Lactalis. It means the Spanish firm will be left to concentrate on pasta and rice.
And finally,
Catalan textile and fashion firm, Desigual, will pay a record rent for the story on London’s Oxford Street previously held by Disney. The company beat off competition from O2 and Mango, and will pay more than a million and a half € a year for the store.
(You can find a photo for this story at Typically Spanish - Click here)