Business

Barcelona-based car manufacturer Seat, which is part of the Volkswagen Group, delivered 8.3% fewer cars in 2012 compared to the previous year. In total, it sold 321,000 vehicles, instead of the 350,000 units of 2011. The decrease is due to the drop in car sales in Spain because of the economic recession. However, Seat sold 22.5% more cars in Germany and 8.2% more vehicles in the UK. The Catalan car manufacturer also increased its sales in Mexico by 16.5%. Overall, the Volkswagen Group sold 9.07 million cars in 2012, an increase of 11.2%. The group obtained positive results in all markets except Southern Europe (-0.3%) and Western Europe – excluding Germany – (-6.5%).

The Catalan bank has issued debt securities for €1 billion that attracted a demand of €3.4 billion. As other multinational companies such as CaixaBank and Gas Natural Fenosa did this week, Banc Sabadell is profiting from the lower spread in order to pay lower interest rates than they were a few months ago. The Catalan private bank has obtained a spread of 250 basis points over the midswap rate, which is a better interest rate than that obtained by the Spanish Treasury in its recent operations.

The number of people travelling through the main Catalan airport reached a new record last year, despite the economic recession. 35,145,176 people travelled through the airport, a 2.2% increase compared to 2011. Madrid-Barajas, Barcelona Airport’s main competitor, saw the number of its passengers drop by 9% to a total of 45.19 million people. Barcelona’s improvement is due to the significant increase in international passengers, since domestic ones dropped by 9.6%. The greatest increase was in the number of passengers arriving from or going to another EU state, which grew by 9.2%. People flying from or to outside the European Union increased by 8.9% and intercontinental passengers by 3.45%.

The operation has rocketed CaixaBank shares in the Spanish stock exchange market, which increased by 11.75% in just one day. The Catalan CaixaBank, which is the largest bank in Spain, successfully issued €1 billion in 3-year senior bonds. The operation has attracted more than 300 orders from institutional investors, representing around €5 billion, which has allowed the Barcelona-based bank to sell its bonds at a better price thanks to the significant oversubscription. 80% of the bonds issued were placed among international investors, confirming the positive recognition CaixaBank has in international financial markets. It was the first time their senior bonds have been issued on the international markets since 2010.

On the 5th of December, the Catalan Executive allocated the tender to privatise the public companies Tabasa and Túnels del Cadí to the joint venture formed by Invicat (owned by Abertis) and the investment bank BTG Pactual. On Friday, the deal was completed and the Catalan Government earned €309.6 million, representing 72% of the total of the €430 million operation. In addition, the two public companies will effectively disappear. The concession will last for the next 25 years and the Catalan Government will continue to own the infrastructures but it will transfer the management and exploitation. The operation includes the tolls at the Vallvidrera highway tunnels accessing Barcelona and the Cadí tunnel, at Cerdanya County, in the Pyrenees.

Catalonia is the second Autonomous Community, behind Galicia, where drug expenditure decreased the most in November. The austerity measures approved by the Catalan and the Spanish Governments to reduce drug expenditure are behind the significant drops in spending in Catalonia and the rest of Spain over the last few months. Pharmaceutical expenditure dropped by 13.11% over the first 11 months of 2012. Besides, the number of drug prescriptions issued in November in Catalonia decreased by 21.27% compared to a year ago.

Nissan is considering allocating the production of a new sedan car to its Catalan plant: a €130 million investment creating 1,000 direct and 3,000 indirect new jobs. However, the company is asking for salaries and working conditions to be adjusted in order to increase competitiveness. Barcelona hosts one of the main factories the Japanese automotive company has in Europe and in May it allocated the construction of a new pickup model, after a previous modification to the working conditions. The talks for the new adjustment have been ongoing since the summer but now they are at a crucial moment, since Nissan is about to make its final decision. The company has just made a counter-offer based on a minor and more progressive salary drop. In addition, it warns unions that without the new model, the company will have to lay off 600 workers as from next year.

Banc Sabadell and Banco Mare Nostrum have reached a definitive agreement over the transfer of Caixa Penedès’ territorial network and business in Catalonia and Aragon to the Catalan bank. After this has been completed, Banc Sabadell will strengthen its retail banking activity and will have the fourth largest network of branches in Catalonia. The bank will increase its commercial network in Catalonia by 92% and will incorporate 462 branches, 900,000 clients and 2,000 workers. Caixa Penedès was a medium-sized savings bank in Catalonia. In 2010 it took part in a ‘cold merger’ with 3 other Spanish savings banks and in 2011 they created Banco Mare Nostrum.

Barcelona’s trade fair complex will end 2012 with a €116 million turnover, an improvement compared to 2011 and even more so compared to 2010. With international leading shows such as the Mobile World Congress, Alimentaria and the Smart City Expo, Fira de Barcelona competes at an international level with the world’s main trade fairs. In a press release, Fira de Barcelona reaffirms its “leadership in Spain in the area of industrial trade shows”.

The Asian multinational company sets up its fourth centre of industrial automation in the Catalan capital, where it has invested up to one million euros. This has created 20 highly-qualified new jobs. The Catalan minister for Business and Jobs, Francesc Xavier Mena, unveiled the centre in an event on Friday. “We have succeeded in attracting Omron to Catalonia”, he said.

From the next summer season, the Irish low-cost airline will cancel 4 routes from Barcelona Airport and reduce the frequency of 20 others due to the increase in airport taxes imposed by the Spanish Government. This decision means that 170 fewer flights will operate through the Catalan airport per week. In addition, the number of passengers transported per year by Ryanair will also be reduced, dropping from 5.4 million to 4.2 million. Furthermore, it will mean the direct loss of 1,200 jobs at Barcelona El Prat Airport, according to the airline. Ryanair will also cancel routes from Madrid Barajas and it will eliminate the flight linking the Spanish capital to Girona airport.

The Spanish Fund for Orderly Bank Restructuring (FROB), which is run by the Bank of Spain and the Spanish Government, has announced that it will re-start the auction proceedings to sell Catalunya Banc and Banc de València. The selling process was temporarily frozen on the 21st of June, so as to wait for a calmer financial environment. The FROB decided to put the auction on hold, in order to wait for the results of the two independent audits on Spain’s banking system made by Oliver Wyman and Roland Berger. In June, Catalunya Banc’s auction was only pending the final offers by six financial entities to be completed. In September 2011, the FROB took control of Catalunya Banc, which de facto was nationalised.

The number of passengers going through Barcelona’s Airport between January and October grew by 4%, compared to the same period last year. In just 10 months, the airport of the Catalan capital had more passengers than in the entire of 2010. The number of international passengers increased by 6.2% and those coming from the Middle East, non-Schengen Europe and Argentina grew by 25%. In fact, Barcelona El Prat’s expansion strategy is focused on international flights, especially increasing the number of intercontinental flights and their destinations. However, the number of domestic flight passengers dropped by 11.1%.

The Catalan economy contracted by 0.3% between July and September, although its results improved slightly compared to the previous quarter, when it shrunk by 0.5%. The tourism sector continues to grow and internal consumption continues to drop. Compared to a year ago, by the end of September, Catalan GDP has fallen by 1.4%.

IAG, the airlines group formed after the merger of British Airways and Iberia, has announced its plans to acquire 100% of Vueling’s capital. Iberia already has 45.85% of the Catalan airline. Now, IAG intends to buy the remaining 54.15%, equivalent to 16.2 million shares. IAG is offering €7 per share, 28% more than Vueling’s last trading price on the stock exchange market. Vueling is one of the few airlines in Europe making a profit. Catalan politicians are “worried” about the purchase, as Vueling is based in Barcelona El Prat Airport and is committed to its expansion. However, Iberia abandoned its plans to develop El Prat and has prioritised Madrid Barajas. A Catalan MEP has asked the European Commission about the possibility of there being a free competition obstacle.