The IBEX 35 stock market index rallies 30% over 2009

The Spanish stock market main index, the Ibex 35, rose by 30% over 2009. In line with other bourses it showed a strong recovery from March when countries launched the stimulus packages around the world. The increase from March has been truly spectacular, up 75%. Some profit taking in the last session saw the index close below the 12,000 level at 11,940.
Banco Santander and BBVA have seen their share prices increase by 71% and 44% respectively over the year, and outside the banking sector Telefónica has seen a 23% revaluation.
The biggest climber was Técnicas Reunidas which has risen 117% over the 12 months.
However the prospects for next year are not so optimistic as smaller domestic companies are still hit by recession.

Zapatero promises recovery for next year

Spanish Prime Minister, José Luis Rodríguez Zapatero, has admitted that 2009 has been ‘an economically very difficult year’, but he claimed that the recovery would be confirmed in 2010. The Bank of Spain has agreed that the indicators point to a recovery next year, but also warns that the improvement will be ‘limited’.
Speaking at a press conference after the last Cabinet Meeting of the year, Zapatero claimed the Spanish economy was in a moment of transition and underlined that the Government would maintain social cohesion and harmony.
‘The citizens who have lost their job are the Government’s grand concern’, he said.

Unemployment will peak at 2.8 million in 2010, according to the latest forecast from the Chartered Institute of Personnel and Development.

The business group said unemployment would continue to rise for the first six months of the new year, despite the recovery in the UK economy.

The forecast is more optimistic than previous predictions.

Earlier this year, the CIPD had said it expected unemployment to peak at 3.2 million as a result of the recession.

Unemployment remains the main concern of the Spanish people

Concern among the Spanish people about unemployment is at its highest level for a decade, according to the latest survey from the CIS, Centre for Sociological Investigation.
79% of the people asked named it as their main problem, close to the historic record of 81% reached in 1988.
In addition 47% of Spaniards say they have economic problems currently, and in third place comes criticism of the political classes at 13.6%.

Andalusia has five more wind farms under construction posed 112 MW and will create about 700 jobs over the next months.

Andalusia has a total of 121 wind farms in operation and generating an installed wind power capacity of 2,777.48 MW, in addition to five other wind farms under construction that will involve more than 112 MW. So far this year, have been implemented in Andalusia 862 MW.

Five-fold increase in the State Deficit over the past year

Spain’s State Deficit has increased five-fold over the past year to reach 71.524 billion €. The number is for the end of November and represents 6.79% of G.D.P.
The fall in income from taxes is apparent as the Government now prepares a plan reduce the spending in the autonomous regions.
Spending is up 21.5% nationally at 168.7 billion while income fell by 22.2% to 97.2 billion. Income from direct taxes was down 13.7% and from indirect taxes by 21.3%. Income from company taxes are 23.2% lower than a year ago, while IVA/VAT income is down 29.7%.

Air Comet could have continued flights over Christmas

As the Spanish Development Ministry starts to fleet Air Comet passengers home it has emerged that Gerardo Díaz Ferrán, joint owner of the airline rejected a plan to keep the planes airborne until after Christmas. The bank owed money from the rental of the aircraft offered the deal to cover the costs of operations until January 10, provided the company gave an undertaking to sell no more tickets. The Spanish press reports this was rejected by Díaz Ferrán who has continued to insist that he will not resign as Chairman of the CEOE Spanish Employers Confederation. He also claimed earlier to the press that he had received no offers or support or credit from the banks.

The cabinet approved a plan which now has to be approved by parlaiment

The cabinet approved on Wednesday the decision to allow autonomous or self-employed workers draw the dole in Spain.

However the two main self employed workers associations, ATA and UPTA hope that the measures planned will be extended when the legislation comes under debate in parliament.

Government organised flights for stranded Air Comet passengers

The Spanish Government is to spend 6.3 million € in getting Air Comet passengers to where they have to go, and has chartered four planes to meet the demand. The first one leaves Barajas airport in Madrid for Buenos Aires at 8pm tonight, and will be followed by flights to Lima, Begotá, Quito and Guayaquil. Priority will be given to those who have a ticket to travel before Dec 26, which represents 90% of the 7,000 passengers thought to be affected by the collapse of the airline.
Meanwhile the Chairman of the employers’ organisation CEOE, Gerardo Díaz Ferrán, is still resisting increasing demands for him to resign from the post, given the increasing problems in his business interests, including Air Comet.

Ministry for Development withdraws Air Comet’s licence to operate

Ferrovial wins appeal against British airports sell off

Telecinco will be the majority shareholder in the new company and also takes 18% of Digital +

Telecinco televisión, owned by Silvio Berlusconi, has purchased rival private television company Cuatro in Spain, and is also taking a 22% share in the satellite platform Digital +. Both Cuatro and Digital + are part of the Prisa Media Group, owners also of El País.

Debt levels increasing in Spain

Data from the Bank of Spain shows that Spanish families on average owe 38% more that what they have saved. The difference between credits and savings is slightly greater than it was a year ago, when it stood at 37%.

Bank shares were also hard hit after leading central bankers and national regulators said they were aiming to introduce proposals to strengthen international financial requirements on lenders by the end of 2012.

London’s benchmark FTSE 100 index sank 1.93 percent to close at 5,217.61 points, the CAC 40 in Paris dropped 1.16 percent to 3,830.82 points and the Frankfurt DAX fell 1.00 percent to 5,844.44 points.

Media companies rally on merger deals and rumours

Antena 3 (Planeta) and La Sexta (Mediapro) television are about to complete the first large media merger in Spain, to create a new company where Antena 3 will be the main shareholder.
El Mundo reports that agreement is about to be sealed on the deal which has been under negotiation for some months.
Next April is being given as the launch date for the company which will be broadcasting to eight channels on the TDT Digital Terrestrial Network.
Shares in both firms have rallied on the Madrid Stock Market today on the news, with Antena 3 up 5% and Telecinco also rallying by 6% on rumours of a deal with Cuatro.

The Irish economy saw modest growth in the third quarter of this year.

Figures just released by the government’s statistics agency showed gross domestic product rose by 0.3% compared with the quarter before.

The figure indicates the country has pulled out of what was one of Europe’s worst recessions.

The economy shrank by 7.4% compared with July to September last year, although that is better than the second quarter’s year-on-year fall of 7.9%.

Inflation returns to positive territory in Spain

The Spanish IPC annual inflation index has returned to positive numbers at 0.3% for the year to the end of November. An increase in energy related products is the cause, with both petrol and heating fuel at a higher price. The positive number comes after an eight month period where the data was in negative territory.
Minister for Employment, Celestino Corbacho, has commented that the increase in inflation is ‘sign change’ in the economy. He said that we are passing from an economy in recession to one in growth. However his comments have already been doubted by some experts who consider the increase in prices is down to the increase in fuel, and not a recovery of the economy.

A further collapse in the number of property sales in Spain

House sales in Spain fell by 21.3% in October compared to the same month last year, according to the National Statistics Institute. The reduction taking the number of deals done across the country to just 33,060 is the lowest since April and comes when many experts had forecast a recovery. It seems none of the real estate fairs or special offers on property from banks which have re-possessed homes have been able to stimulate the market.
October sales were 12.1% down also on those seen in September.
The data indicates that a recovery from the recession in Spain may still be some way off.

A400M makes its maiden flight over Sevilla

Spanish Prime Minister Jose Luis Rodriguez Zapatero rejected on Thursday pessimistic forecasts by the Standard and Poor’s ratings agency, which has lowered Spain’s credit rating.

“Let’s be clear. The Spanish treasury is being financed in a completely normal way,” he said, referring to demand for the government’s sovereign debt bonds and the interest it has to pay.