Business

The Barcelona-based bank, which was totally nationalised in December 2012 and received a €9.08 billion bailout, has made profits of €532.2 million in 2013, which would represent €167.8 million without the extraordinary profits. In 2012, CatalunyaCaixa posted losses of €11.86 billion. In 2013, the operational costs were reduced by 13.1%, having drastically reduced the number of employees and branches. The bank's capital ratio is now 14.36% and the main capital following Basel III criteria reached 12.3%, which represents liquidity of €15.01 billion. With these figures, the Spanish Government is in a better position to sell CatalunyaCaixa, which forecasts profits also for 2014. This company was the result of merging the banking business of 3 savings banks in 2011: Caixa Catalunya, Caixa Tarragona and Caixa Manresa, which disappeared after a long tradition of social work. The operation was part of Spain's restructuring of the banking sector.

American corporation One Distribution, which runs the skating brand Supra and Kr3w Denim, will move its European headquarters from Biarritz (France) to Barcelona. From the Catalan capital, One Distribution will also be managing its markets in the Middle East and Africa. The US company will occupy a 1,000 square metre building in Barcelona's 22@ technological district, in the Poblenou neighbourhood. Two showrooms will also be built to showcase One Distribution's products. According to sources from the Catalan Ministry for Business and Employment – which has assisted the company in setting up offices in Barcelona, 30 new jobs will be created within the first two years.

In Catalonia, direct foreign investment – excluding the stock-exchange –grew by 31.5% year-on-year to reach €3.51 billion in 2013, as indicated by a report from the Spanish Ministry of Economy and Competitiveness. According to the Foreign Investments Registry, with such a figure, Catalonia achieved its second best year in history, only surpassed by the €4.82 billion received in 2010. Besides, Catalonia accounted for 22.2% of all foreign investments in Spain in 2013, which amounted to a total of €15.81 billion, meaning 8.8% more than the previous year. The region of Madrid was the leading Autonomous Community in Spain for foreign investment attraction, receiving €8.64 billion, which is it to say 54.6% of the total amount. However Madrid's sum also represents a 7.1% decrease on 2012 figures.

Japanese multinational Olympus, specialized in optics and reprography, has unveiled its new headquarters for Spain and Portugal, aimed at becoming its main centre for Southern Europe. The new facilities are located in the business district of L'Hospitalet de Llobregat, a city literally attached to Barcelona, between the Catalan capital and El Prat Airport. The new offices occupy 2,500 square meters in a building on the Europa Square, close to the Fira de Barcelona. It will welcome 30 employees of the divisions of Consumer Product, Microscopy, Industry, and Medical Systems. Merging the headquarters for Spain and Portugal constitutes a step forward to gain weight on the Southern Europe market, said Olympus Iberia's CEO.

Catalonia is the only Autonomous Community in Spain to have registered a decrease in wages, as it was also the only one to have public employees' Christmas payment – equivalent to a month’s salary – entirely eliminated in 2013, according to the latest Quarterly Labour Cost Survey issued by the Spanish Government. Hence, while Spanish wages have increased by 2.1% in 2013, the wages of Catalan employees have continued on a downward trend continued o, falling by 0.7% at the end of December 2013 compared to the last quarter of 2012. The average salary in Catalonia stood at €2,133 per month, returning to 2009 levels, when it had amounted to €2,119. Labour costs, which group the employee salary and social costs assumed by companies, have also fallen by 0.4% in annual terms in Catalonia whereas they were up by 2.1% in Spain.

The Barcelona-based fashion enterprise announced that the French investment group Eurazeo will join the Catalan company after a €285 million injection. For this operation, Desigual will issue a share offer that will increase its capital by 10%, which will be entirely covered by Eurazeo. In 2013 Desigual posted a net profit of €129 million, which represents a 71% growth on the 2012 figures. The Catalan retail company's turnover reached €828 million, 18% more than the previous year, according to the Director General of Desigual, Manel Jadraque. On Tuesday, when presenting the company's results for 2013, Jadraque disclosed an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of €242 million, representing 29% of the sales figures.

International sales of Catalonia's sparkling wine Cava have amounted to 241.3 million bottles in 2013, 0.77% less than the previous year. The President of the Cava Regulatory Council, Pere Bonet presented such figures in a press conference on Tuesday. Bonet linked this decrease with the current economic context and recalled that other regions producing sparkling wine had registered sharper declines, for instance Champagne with a 2% drop. The Spanish market, accounting for one third of Cava sales, has performed better than in previous years and only fell by 0.47%. On the other hand, sales in the foreign market, which had increased every year since 1980, registered a 0.92% decrease in 2013.

Catalonia’s PortAventura and Ferrari have reached an agreement to build a new area dedicated to the illustrious sports cars, expanding the current amusement park. Thanks to an over €100 million investment, ‘Ferrari Land’ will open in 2016 with 75,000 m² at its disposal. Visitors will discover several attractions designed for fans of the Italian brand, including a vertical accelerator announced as the highest and fastest in Europe. ‘Ferrari Land’ will also host the first Ferrari themed hotel, which will offer 5-star accommodation in 250 rooms. The Italian company had already opened a dedicated theme park in Abu Dhabi named ‘Ferrari World’, which was met with much success among fans of the prancing horse. The new amusement facilities will be built next to 'BCN World', a $6 billion resort that will open next to PortAventura, with hotels, conference centres, casinos, theatres and golf courses.

E-commerce giant Amazon is studying the possibility of opening its first logistics centre in Catalonia, as advanced by some newspapers on Thursday. The new facilities could be located in El Prat de Llobregat, next to Barcelona's main airport. The centre could dispose of 210,000 m2 of work space and 151,000 m2 of land, making it larger than the Amazon centre in Madrid, according to ‘La Vanguardia’ newspaper. Works could start soon for the logistics centre to become operational by late 2015, with 3,000 employees expected to be hired. The Catalan Minister for Business and Employment, Felip Puig, regretted this early announcement as the company has not reached a final decision yet. Puig regretted the “reckless” move by the Spanish Secretary for Trade for disclosing the news and added that Catalan authorities continued to “work discreetly” to attract investments from foreign multinationals.

On Tuesday the Barcelona-based bank, which is the largest financial entity within the Spanish market, attracted a strong €2.6 billion demand, 88% of which came from international investors. It was CaixaBank's 10-year mortgage covered bond first issue since 2007, before the financial crisis. The operation will boost the Catalan bank's liquidity position, which stood at €60.762 billion at year-end 2013, 17.9% of its total assets. In addition, it satisfies demand from institutional investors for this product. The issue price was 80 basis points over the mid-swap rate and better than expected thanks to strong investor demand. This means CaixaBank sold the mortgage covered bonds at an interest rate of 2.625%, 67 basis points below the last rate for a similar issue by the Spanish Treasury.

Catalan exports of industrial products amounted to a total of €54.96 billion last year and registered an average increase of 2.2% on 2012 figures. International sales have risen in all levels of technology except the high-technology sector, which registered a 0.4% decrease over the previous year, amounting to a cumulative value of €5.26 billion in 2013. According the Catalan Institute of Statistics (IDESCAT), such a decrease was due to a 4.9% drop of high-technology exports towards the EU-28 while sales to the rest of the world increased by 4.6% over the previous year. On top of this, there was an 11.1% drop in exports of computer, electronic and optical equipment while sales in the pharmaceutical sector only increased by 4.1% during the same period.

During the 2014 Innovation Convention, organised by the European Commission on Tuesday, Barcelona was named the first European Capital of Innovation. The Catalan capital has prevailed over finalists Grenoble (France) and Groningen (the Netherlands) in a contest which also involved Paris, Espoo (Finland) and Malaga (Spain). The winning project highlights the predominant role of the city in promoting new technologies and bringing together government bodies and citizens, in order to enhance sustainable economic growth and improve the people’s welfare. The award is endowed with € 500,000 to promote innovation. Barcelona's Mayor, Xavier Trias, stated that new technologies in an urban environment have to "work towards improving people's everyday lives[…] or they will fail".

Greater Barcelona-based car manufacturer Seat has hired 450 new workers to cover an expected increase in production. The new employees will join the workforce at the Martorell factory to aid the production of two of its most popular car models, the Ibiza and the Leon. Seat also announced an increase in overall production during a strong performance in 2013, which saw its highest production rates for 5 years. Besides, the Japanese Nissan recently extended the contract to 308 temporary workers and hired additional 20 people in its Barcelona factory. Last November, Nissan launched a shorter night shift to produce the Primastar X83 van, which was extended in February in order to increase production.

The President of the employer’s association Cercle Català de Negocis (CCN), Albert Pont, and the Coordinator of the economic division of the Catalan National Assembly for independence (ANC), David Ros, presented on Monday a manifesto defending the economic viability of a Catalan State. The heads of the ANC and the CCN have called on professionals in the economic sphere to sign the document since independence “is viable, and from an economic point of view, desirable”. Both Pont and Ros have also emphasised that the self-determination process is not harming the Catalan economy, quite the contrary, as revealed by the latest figures for exports and foreign investments.

The MediaTic building in the 22@ Innovation District of the Catalan capital will now be known as the Barcelona Growth Centre, also becoming a meeting place for entrepreneurs and businesses. Such an announcement was made by Mayor Xavier Trias to the fifty attendees of the Barcelona Growth Board meeting, which took place at the City Council on Thursday. Currently, the 8-floor building hosts initiatives such as the Mobile World Capital Foundation, the Agency for Barcelona Brand, the Open University of Catalonia and the Barcelona Mobile Startup, among others. To convert the building into a platform for businesses, the City Council and the Chamber of Commerce will set up an office of assistance to entrepreneurs on the ground floor, which will act as a “facilitator” to create new companies.