Spain Business
Spain Business Brief - Tuesday May 13 2008
By h.b. - May 13, 2008 - 12:37 PM
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The new inflation numbers from the INE National Statistics Institute have been released this morning. They show that prices rose in April by 1.1%, but despite that the annual rate fell by three tenths of a point to 4.2%, the first fall in seven months.
Prices of clothes and footwear rose considerably over the month, by 9.3% with the arrival of the new spring and summer fashions, but it was once again transport costs and foodstuffs which lead the yearly numbers.
The IPCA, the harmonized index in line with the rest of Europe, also came in at 4.2% for the year, while underlying inflation annual rate, which does not include energy or foodstuffs, was 3.1% for April, three tenths down on the number in March.
Commenting on the new numbers, Spanish Minister for Tax and the Economy, Pedro Solbes, said, ‘We are a little bit better, but it is a bad inflation number’.
The increase in petrol prices has been good news for Repsol YPF which has announced a 36% hike in profits to reach 1.212 billion € for the first quarter. These are the first results for the company since a new strategic plan was put into action, and the weakness of the dollar against the Euro has also played its part in the numbers. The net result in dollars was up 61.9%
The Acciona company has announced a 9.5% increase in profits for the first quarter of the year at 154 million. Turnover was up 74% compared to the same period a year ago to reach 2.854 billion. The numbers show the consolidation of Endesa and good progress in the energy and services sectors of the company.
Banco Santander has announced that it will put 165 million € into an increase in capital in the United States Soverign bank. The amount is decribed as ‘the necessary part’ so as not to reduce the percentage of the capital owned in the bank which stands at 24.99%.
The Ex P.P. Economy Minister, Rodrigo Rato, who now works in the private sector, has called for more transparency in the Spanish financial system. The ex Director of the International Monetary Fund said that ‘Keeping such a high current account deficit is unsustainable’. However he also noted that Spain has important assets, including ‘one of the best’ financial services sectors, to face the economic slowdown.
And finally,
Telefónica has announced it is to double the speed of its basic ADSL broadband connection in the summer to reach 6 MB. The improvement comes at no extra cost to the consumer as the company wants to hold on to its position as market leader in the sector. The change over will take place in stages and is expected to take at least three months to complete. The ADSL Rural service will end on July 1. Telefónica is obliged to pass on the improved service to resellers who use telefónica lines also, so we can expect lower prices and deals from other companies to follow.
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