Business

A combination of Spain’s economic predictions and Valencia’s formal request to the central government for financial assistance shook the markets on Friday, despite the stringent the austerity measures passed this week and the approved deal to lend up to 100bn euros to the Spanish banking sector. The Spanish government expects an unemployment rate of 24.3% and a fall in GDP of -0.5% in 2013, expecting to be out recession by 2014 and 2015 with a GDP growth of +1.2% and 1.9% respectively. The Valencian Government has requested assistance from the Spanish Government, making it the first autonomous community to ask for emergency financing from the regional liquidity fund.

Ryanair, the low cost Irish airline, announced this Friday the closure of four flights from Barcelona due to the rising costs approved by the Spanish government and imposed by the AENA, the institution responsible for Spanish airports and aerial navigation. Ryanair has also cancelled eleven flights in Madrid, including a service from Girona. Michael O’Leary, the Chief Executive of Ryanair, announced that the services will stop from November. Barcelona Airport will lose connections to the East Midlands, Leeds Bradford, Hamburg and Trieste.

The Mayor of Barcelona, Xavier Trias has finished a seven-day visit to China. The aim of the trip was to promote Barcelona’s economy and attract new foreign investment in the Catalan capital. The Mayor spoke of the trip in a very positive light, pointing out the economic potential of Barcelona and highlighting the Chinese companies’ appreciation for the opportunity to invest in Barcelona.

Illegal street sales, colloquially called in Catalonia ‘top manta’, is a daily problem that police and councils face and find difficult to solve. This non authorized business has a turnover of about €100 million per year. Coinciding with the beginning of the tourist season, the Confederation of Commerce of Catalonia (CCC) has started a new campaign called ‘Estirem de la manta’ (‘Pull the blanket’) to deal with this irregular practice. The objective: to raise awareness of the social and economic harm of this illegal activity with tourists and natives in order to tackle the problem. The CCC estimates that there are about 2,500 people currently working in this prohibited business in Catalonia.

The British financial news publication has also awarded the Spanish Santander the ‘Best Bank in the World 2012’. Euromoney emphasised CaixaBank’s fiancial solvency and its strong growth over the previous years.

Catalan companies sold more goods and services abroad than they did to the rest of Spain in 2011. 52.9% of all Catalonia’s external sales were made abroad, while 47.1% were made to the rest of Spain. In addition, it is the first time that Catalonia has registered a positive balance of trade.

Sales of industrial goods to non-EU markets increased by 28% between January and March. Catalan industry reached a record in 2011 by exporting €55.19 billion in goods. However, the sector continues to lose jobs, which makes it more competitive in return. Also, industrial investment increased by 2.4% in 2011.

Up to 200 enterprises and 3.000 video-game professionals are attending the Gamelab Fair, an international event specialized in this sector. The main videogame companies in Catalonia have announced during the occasion that they are uniting to grow internationally and attract foreign investment.

Choosing between these two rival cities to build the macro complex of hotels, casinos and business centres is “very difficult”, according to the Chief Operating Officer of Las Vegas Sands Corporation, Michael Leven, who visited Barcelona on Monday and Madrid on Tuesday

The Catalan company has promoted its presence in BRIC countries and has achieved two consecutive years of profits therefore recovering from the effects of the explosion of the property bubble

From October 15th to 17th, Barcelona will host Seafood, the largest show in southern Europe in the field of marketing fishing products. In its first edition, the show will feature nearly 300 exhibitors, 40% of them international, as well as many representatives of exhibiting companies and processors of seafood.

The leading company in Spain for online entertainment sales, born in 2000, has not stopped expanding over the past twelve years. What began as an idea among four friends to get the theaters filled, today is a leading Internet company with more than 350 employees, a presence in six countries and a turnover of €210 million a year.

Independent auditors state that in the worst possible scenario the Spanish banking system would need up to €62 billion. The Eurozone agreed to put at Spain’s disposal up to €100 billion if needed. In the most likely scenario, the Spanish banking system would require between €16 billion and €25.6 billion. Within the most stressed case, Spain’s three main banks would have enough resources of their own to face difficulties and would not need any additional funding. They are the Barcelona-based CaixaBank and the two international giants BBVA and Banco Santander.

House prices have dropped for 17 consecutive quarters in Catalonia. Last quarter’s drop was the highest since the crisis in the sector began in 2008, falling by 14.6% in the last 12 months. In Spain as a whole, house prices dropped by 11.8%.

On its 75th anniversary, the company has demonstrated the keys to its success: innovation and the study of the healthy properties of food. The President of the Catalan Government has said that Gallina Blanca is an example of solid-working practices which fight speculation and help to improve the economic situation.