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Spain Business Brief - Tuesday July 1 2008
By h.b. - Jul 1, 2008 - 12:57 PM
ALSO SEE : • Spain Business Brief - Friday October 10 2008 - Oct 10, 2008 - 1:36 PM
• IBEX 35 falls below the 10,000 level - Oct 10, 2008 - 6:30 AM

The Madrid Stock Market - Archive Photo EFE
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The Spanish stock market heads south in 2008
The IBEX 35 stock market index in Madrid has ended the worst six months in its history by losing 20.7% of its value.
The index starts the month of July at 12,046 points.
Only a few companies are up over the half-year – Grifols, Técnicas Reunidas, Mapfre and Repsol YPF.
The index has been pulled south by the turbulence on financial markets, the lack of liquidity, and the increase in crude oil prices.
Some experts expect some form of recovery in the second half of the year.
The 20% fall over 6 months is comparable to a period in 2002 when the index was down 18% over concerns in Latin American investments at the time.

Lemons have gone up in price over the month of June by 12%, 63% year old year, while sunflower oil and flour saw yearly increases of 45% and 30%. The price increase has been affected greatly by the striking lorry drivers last month with other fresh food also greatly affected.
Some items have fallen in price over the month in June, such as onions down 12%, green peppers down 6% and potatoes down 3%,
All these price comparisons are year on year.

The new power rates for electricity come into effect today, July 1, with an average global increase in price of 5.6%. Those who use most power will see prices up 8.3% and those who use the least will become part of a new ‘social tariff’. Minister for Industry, Miguel Sebastian said that the idea is to increase energy savings. Sebastian also advised workers to dress informally and not wear a tie unless completely necessary.
The Solaria company has meanwhile seen its share price slip 13% on the stock market today following rumours on the market of possible regulatory changes. The company makes solar panels.

Spain is the European country where unemployment has increased the most in the inter-annual numbers. Unemployment here in May was up to 9.9%, an increase of 0.3% over the month, according to the numbers from Eurostat. A year ago unemployment here was at 8.1%. Eurozone unemployment is stable at 7.2%.

More evidence of the slowdown, car sales have shown their largest fall for 15 years. Numbers for sales over the first six months of the year were down 17% - at levels not seen since 1998.
The Minister for Tax and the Economy has said that Spain saw growth of less than 0.3% to June for the second consecutive quarter. The Minister said that the worst is still to come in the rest of this year and next.

Shops start their sales today across the country with the hope that the ‘rebajas’ will save their trading year. Discounts of upto 70% are reported to be on offer for the bargain hunters in some areas.

The IBEX 35 has continued south today and has lost the 12,000 point level today.


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ALSO SEE :
• Spain Business Brief - Friday October 10 2008 - Oct 10, 2008 - 1:36 PM
• IBEX 35 falls below the 10,000 level - Oct 10, 2008 - 6:30 AM
• Spain Business Brief - Thursday October 9 2008 - Oct 9, 2008 - 12:59 PM
• Pedro Solbes says that emergency bank fund will not cost the taxpayer in Spain - Oct 9, 2008 - 8:40 AM
• Spain Business Brief - Wednesday October 8 2008 - Oct 8, 2008 - 1:02 PM
• Barcelona and Madrid in the top ten cities for business - Oct 8, 2008 - 7:50 AM
• Zapatero announces savings bank guarantee of 100,000 Euros - Oct 8, 2008 - 6:17 AM
• Spain Business Brief - Tuesday October 7 2008 - Oct 7, 2008 - 1:19 PM
• Spanish Prime Minister meets with the country's bankers - Oct 7, 2008 - 6:39 AM
• Spain Business Brief - Monday October 6 2008 - Oct 6, 2008 - 1:12 PM
• Spain considers how to bring the 500 Euro notes into the banks - Oct 6, 2008 - 6:45 AM