Spain Business
Spain Business Brief - Friday November 13 2009
By h.b. - Nov 13, 2009 - 1:38 PM
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European Central Bank - EFE
The Eurozone exits recession
The Eurozone has moved out of recession after five quarters in negative growth, with Germany and France leading the way for the zone. Those countries have already spent the last two quarters in growth, while here in Spain the numbers remain negative, falling by 0.3% in the third quarter, and 4% over the year.
Spain is at the bottom of the list, along with Greece and Cyprus.
Meanwhile the IPC retail price index has moderated its falls according to the latest numbers for October, but the annual rate has nevertheless still accumulated eight months in negative territory. Prices in October were 0.7% higher than in September, but down -0.7% on a year ago. That compares to the yearly rate of -1% registered in September. Prices were up in all regions of the country, but especially in Aragón and Galicia where they grew by 1.1% in October, four tenths more than the national average.
Underlying inflation which excludes food and energy, grew 0.9% in October to take the annual rate to 0.1%.
Those unemployed who have been without the right to collect benefit since January this year, can now apply for the new 420 € monthly payment from the Government, which will last for a maximum of six months provided the unemployment rate remains above 17%. Payment should be made the day after it is applied for at the employment office. This six month period of emergency payments is also limited to a single time during working life.
The announcement last night of the green light for the merger between Iberia and British Airways has been shadowed this morning by the latest results from the Spanish carrier. The company lost 16.4 million in the third quarter, but say that it is an improvement over the two previous quarters. The losses for the year so far are now 181 million €.
Despite recent optimistic talk, the CCOO union has poured some cold water on the expectations resulting from a resumption of talks with the employers on the wage round. Secretary General, Ignacio Fernández Toxo, said that there is no negotiation currently taking place with the employers, and he takes it as read that when it restarts it could lead to new frustrations.
General Motors has admitted that for it to make Opel viable in Europe it needs public help. The company is continuing to talk to EU governments, but has said that it is prepared to invest what is needed in Opel to ‘drive the company to success’.
The competition authority in Spain, CNC, has announced a record 120 million € fine to be imposed on six insurance companies who have been found guilty of forming a pact on prices on obligatory building insurance between 2003 and 2007. Among the list are well-known names Mapfre, Caser and Swiss Re. The companies consider the punishment to be disproportionate and say they are considering an appeal.
The ex President of the SOS food company, Jesús Salazar, has declared himself bankrupt. Action has been started against him by the company which claims that 230 million € was diverted during his watch.
Deloitte has forecast Christmas celebrations this year that perhaps even Scrooge would be happy with. Family spending in Spain is expected to fall 19% overall, but spending on food and parties at home will be down by a massive 41%.
And finally,
A row has broken out about which shopping bag is greener. The Spanish association of plastic bag manufacturers, ANAIP, has launched its own re-usable model, which it claims is more ecological than the synthetic raffia bag beign sold by Carrefour.