Prices rise 0.9% in Euskadi and inflation remains at 3.1%

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The prices in Euskadi went up nine tenth last October so the increase in the CPI stood at 3.1%, according to the INE. In the whole of Spain, the October CPI experienced a rise of eight tenths, bringing the annual rate registered an increase of 3.5%.

By province, prices rose in October by 1.2% in Alava and 0.9% in both Gipuzkoa and Bizkaia. In the last twelve months, the highest increase was recorded in Bizkaia (3.3%), followed by Gipuzkoa (3.1%) and Alava (2.8%).

On the whole of the CAV the most inflationary in October were clothing and footwear, with a price increase of 12.5% and education, with an increase of 2.5%. Conversely, prices fell on recreation and culture (1.1%), transport (0.7%), housing (0.6%) and hotels, cafes and restaurants (0.2%).

As regards the annual period, prices fell on only in communications (1.7%). The rest of the branches experienced price increases, the most significant being those in housing (6.6%), transport (5.8%) and alcoholic beverages and snuff (5.5%).

Julen Lopetegi

Facebook's Stock Debuts on Wall Street

After weeks of anticipation, it was finally time Friday for Facebook official debut on Wall Street. After jumping more than 10% in the first few minutes of trading, Facebook stock closed less than 1% higher.

Despite the lukewarm start, analysts say trading volumes were high. The IPO was one of the biggest in history.

The year's most hotly anticipated public offering kicked off at 11 a.m, Friday in New York, with founder Mark Zuckerberg ringing the Nasdaq opening bell remotely from Facebook headquarters in Menlo Park, California.

"We've actually seen a few of that type of behavior in some other tech IPOs this year where the initial excitement was high, there was a lot of buying and then it just gradually fell off," said Gayad.

After opening at $38 a share, Facebook stock closed just 23 cents higher. That's a big wake up call for a company that is now worth more than a $100 billion, said media analyst Nick Thomas.

Nerea

TNK-BP to Join Rosneft’s Arctic Shelf Projects

Russian-British joint oil venture TNK-BP has confirmed its intention to join state-controlled oil major Rosneft in developing hydrocarbon deposits in Russia’s Arctic, Rosneft head Eduard Khudainatov said on Saturday.

The move follows a similar decision by Russia’s largest private-owned company LUKoil.

The LUKoil head said the company was ready to work with all leading world oil companies with experience, qualification and technologies on the Arctic shelf.

Rosneft had previously made an offer on the joint development of 12 fields on the Arctic shelf to domestic oil companies LUKoil, Bashneft, Surgutneftegas and TNK-BP.

Under existing rules, only companies with over 50 percent state ownership and no less than five years experience working in marine exploration are allowed to develop the Russian continental shelf. Only Rosneft and gas giant Gazprom currently meet these requirements, which has prevented the other companies taking on shelf projects without their participation.

Aitor

SPANISH GOVERNMENT WILL DEDUCT TAXES TO THE TOWN COUNCILS THAT DON'T PAY TO THEIR PROVIDERS

Spanish government will deduct some taxes that it fave before to the city councils if these institutions don’t arrange the operations of debts to pay their providers or if they don’t fulfil the ones that they agree each other.

BOE (Spanish Oficial Report) published yesterday the law that the cabinet passed on Friday. It establishes the obligation of information for a funding mechanism. In this mechanism the creditors who accept a deduction will have priority in the cashing.

This operation will transfer to the Spanish State the rights of local entities in its participation on the taxes of the State ‘in the necesary quantity to face the payment obligations’.

Apart from the providers that accept a reduction the payments that are demanded in the Justice Court before the first of January 2012 will become priority too. The most ancient debts will become priority too. The city councils will send to Treasury Department before de 15th of March, a relation of its obligation that they have to pay yet.

Erik Rios Salazar

Polish Economy

The Polish economy is one of the most important in the European Union and one that did not suffer during the global financial and economic crisis. Its market of nearly 40 million inhabitants, located strategically in the center of Europe, won 8.4 billion euros of foreign investment in 2009. Despite the global crisis Poland can boast its economy because it is the only EU economy that continues growing.

This is because the assignment of European funds or the 2012 European Championship, which has pushed the development in the area of construction and services. It is also expected that in the next years will continue the development of the Polish economy.

The Polish legal system is adapted to the needs of the common market. It offers investment mechanisms similar to those of the EU and they have benefits in foreign investment.

Poland is in a time of continued development in spite of other European Union economies that are suffering the global financial crisis. In recent years it has grown at a rate higher than the Eurozone and the GDP growth rate was 1.7%.

The fall of the world economy has increased the unemployment rate and is currently located by 11.9%. And the inflation rate is 3.5% by the strong domestic demand and the increase in consumption.

During the last year and because of the crisis in the international economy, imports and exports have been affected. Poland exports were 99.8 billion euros in 2009 (17.6% less than last year). Most exports absorb the EU countries. And the main business partners of Poland are Germany, France, Italy and Britain.

Nerea

COMPANIES OF GIPUZKOA WILL RECEIVE 35 MILLION EUROS FOR THEIR INTERNAZIONALITATION

SabadellGuipuzcoano savings bank and Adegi (Gipuzkoa’s employers association) credit facilities will give a boost to 19 proyects.

SabadellGuipuzcoano and Adegi have gave 35 million to 19 proyects of internazionalitation of different companies of Gipuzkoa. Both entities renew last september the agreement they signed one year ago. Last’s years agreement was based on the boost and development of Gipuzkoan companies outside the Basque Country.

Last year’s agreement was a good new for the basque companies located in Gipuzkoa. SabadellGuipuzcoano gave to the companies more than 120 million euros, to promote one of the companies key factor in competitivity, said Adegi.

19 proyects have been funded. 17 of them are operations of 33 million on Exporta line and the other 2 on Implanta line, which receive 1.9 million for its commercial or productive implantation in countries like Brazil or Angola. 53 proyects of Gipuzkoan companies received 102 of funding during the first year of the agreement. This was a good new because it was 50% more than the initial forecast.


Erik Rios Salazar

WITHOUT AGREEMENT ON THE SUMMIT

The Czech Republic and UK have not signed up the fiscal compact of the European Union. UK Prime Minister, David Cameron, has said that he has “legal concern” to use the European Union institutions in enforcing the fiscal treaty. In another hand, the Prime minister of Czech Republic, Vaklav Klaus, has argued “constitutional reasons” to not signing the treaty.
The goal of this fiscal compact has been to get a closer coordination of budgets policy across the European Union to prevent excessive debts accumulating.
The treaty has been signed up for twenty-five members of twenty-seven; all less UK and Czech Republic. Germany's Government has demonstrated a great interest for get a general agree, but it has been impossible.
This summit has been seized to discuss about lots problems like how to reduce unemployment across the eurozone or to find the possible ways to stimulate economic growth despite the stringent austerity budgets in many countries.

Aitor

ONLY 4.1% OF SPANISH POPULATION IS THINKING ON BUY A HOUSE IN 2012

The 4.1% of the population in Spain said that probably they will buy a house in 2012. This is the result of a survey made by CIS (Spanish Centre of Sociological Research) to make the ICC (Index of Confidence Consumers). This is a very low percentage, but it is higher than last month’s percentage. Servimedia report us that last month’s percentage of Spaniards which were thinking of buying a new house was around the 3.9%.

But all news are not good. 69.9% of Spaniards think that probably their familiar economie’s situation will be the same or worst in the next six months. This is a worrying perspective because when the crisis was hiting very strong during the beginning of 2009 year, the percentage of this question it was not high as nowadays.

ICC (Index of Confidence Consumers) fell 2.7 points in January. The final result was 68.3 points, very low perspective, because a positive perception for the economy is around 100 points. This survey report us that 57.6% of Spaniard people don’t have enough money to finish the month.

Erik Rios Salazar

Who wins with the crisis?

In life there is always someone who is benefited from the misfortunes of others. The global financial crisis is not a exception.

During the past year there have been companies that have seen their incomes increase as the crisis also did.

Who is on the big side? who in the small side?

The big side: Some financial institutions apart from survive the crisis took benefits of it as is the case of the U.S. bank JP Morgan Chase and Barclays among others. The "parasites" of the bag are other beneficiaries of the crisis. These investors benefit from the stock market crash. Gold Investors are others because according to experts, gold is a safe bet in times of crisis. Whose offer the right product at the right time and Bankruptcy specialists they couldn't miss in this section all those specialists, financial advisers and lawyers specializing in bankruptcy.

The small side: The takeout companies because many families have already chosen to spend more time at home, watching a movie on TV instead of going to the cinema, cooking, or take some pizzas instead of going to a restaurant. Those who have spent years waiting, because they have been saving for years because before it was so expensive that they could not afford to buy anything but they can now afford to buy "cheap".

And finally ... journalists. If not, as one guy named "Martin" who says at a forum in cyberspace, "we would still talking about Britney Spears."

And you, what do you think?

Who has benefited from the crisis?

Nerea

SPANISH GOVERNMENT STOPS THE PRIVATIZATION OF 'BARAJAS' & 'EL PRAT' AIRPORTS

Ana Pastor minister told us that government has postpone the entry of private capital in Aena (Spanish airports and aerial navigation), waiting to know the value of it assets.

The new Public Works minister told us this decision on monday. This decision will affect to the two principal Spanish airports, 'Madrid-Barajas' and 'Barcelona-El Prat'.

She gave a press conference in Ministry's seat, giving the explanations of this postponement. She said that they have taken the decision to not disintegrate Spanish airports chain. The decision to privatize the two Spanish principal airports was taken by former president, José Luis Rodríguez Zapatero.

The 31th of January was the last day for the consortiums to present the offers. This process is what has stopped Mariano Rajoy's president new executive.

Erik Rios Salazar

EUROPE DRAGGING THE WORLD

According to the IMF has said, the world economy is “deeply into danger zone” because of Eurozone.
So IMF’s predicts that the global economy will grow by 3,25 % in 2012, a 4% less than the earlier forecast.
In fact the Eurozone countries know that their economic will growth less than their first prediction, from 1.1% to 0,5%. The “fever” will also affects to the strongest economies such as France or Germany.
This stimate reduce the predictions of the german economy from the initial 1.3% to 0.3% for 2012.
With France we are going to see that it’s economy will down from the initial 1.4% to the final 0.2%.
However, the IMF thinks that the United States Economy will grow about 1.8%, thanks to it’s strong domestic data on jobs and manufacturing.
The crisis in the Eurozone is going to affect to emerging markets such central and eastern Europe or Asia too.
IMF goes on saying that Europa’s most pressing challenge will be to restore the confidence and put end to the crisis in the Eurozone.

Aitor

In the world "there are more poor" than previously thought

India is poorer than Africa. This is known as Multidimensional Poverty Index.

In India there are 421 million people living below the poverty line while 410 million live in Africa. That means that the world has 400 million more poor people than estimated to date. The index was applied in 104 countries and it measured 78% of the population.

To calculate poverty are based on income. For example, the World Bank considers poor person who has an income below $ 1.25 per day. But also take into account things like health, if their children went to school (education), if they had a dirt floor in their home, if they had access to electricity, if they had water well or if they cook with firewood.

Among Latin American countries, Uruguay is the one with the lowest poverty rate (1.7%), followed by Ecuador (2.2%), Argentina (3%) and Mexico (4%).

Niger is the poorest country in the world by the new index (92.7%), followed by Ethiopia (90%), Mali (87.1%) and Central African Republic (86.4%).

Nerea

GERMANY GROWN 3% IN 2011 AND REDUCED ITS DEFICIT TO 1%

German Gross Domestic Product (GDP) grown 3% during 2011, and its public deficit was only 1% of GDP, despite of debt crisis and world’s economic weakness.


Statistical office (Destatis) remembered today that german economy grown 3.7% in 2010, and that the GDP was reduced 5.1% in 2009.

Descent of that 1% will allow Germany to observe for first time in three years the limit of 3% that establishes euro’s stability agreement. Germany break that agreement in 2010 (4.3%) and 2009 (3.2%).

The office said that thanks to the good national situation, Germany got the last year to reduce its debt.

Last year, German state, federate state and town’s red numbers were 26,700 million euros, but two years ago they were 105,860 million euros.

German economic institutes say that probably the weakness of the crisis, and debt crisis in euro area will affect Germany. That effect will do that Germany only grows 0.5% in 2012.


Erik Rios Salazar

KUTXABANK: THE NEW BASQUE SAVINGS BANK

BBK in Biscay, Kutxa in Gipuzkoa and Vital in Alava board of directors signed two months ago basque savings banks merger. It’s a good new for basque economy, because all the deal of the three savings banks will mix in the new bank, called KutxaBank. This bank will start to operate this month.

The incorporation of the three savings banks will create the fifth savings bank in the ranking. It had 75,091 million euros in assets the last day of 2010. It will have more than 9,000 workers and more than 1,300 offices. The offices will be apart from in the Basque Country, in Madrid, Barcelona and Andalusia. We have to remember that six months ago BBK take over Andalusia’s CajaSur. His principal capital will be around 12.8%, perfect competence to take over more savings banks if it’s necessary.

In the new savings bank, BBK will have the control with a participation around 57%, and 12 chief executives, Kutxa’s participation will be around 32% and 6 chief executives, and to finish, Vital the 11% of the participation with 2 chief executives. BBK’s director will be the director of the new savings bank, and Kutxa and Vital’s directors will get the first and second vice presidency respectively.

The new savings bank will have his registered office in Bilbao, where the economic-finnancial head office will be located. Computing and Human Resources activity will be located in Donostia-San Sebastián, and the institutional trades in Vitoria-Gasteiz. They decided this kind of distribution, to divide the payment of taxes between the three foral funds.

BBK, Kutxa and Vital will keep their legal status, the administration of their charitable work and the trade name on each historical territories. They hope that with the merger the savings bank Kutxabank will multiplicate for three the outcome, from 380 million euros in 2010 to 846 million euros in 2015. Charitable work will increase 133%.


Erik Rios Salazar

Present situation in China

In last years Chinese economy has grown clearly. Everything has been for its great industrys and big exports all over the world.

Among the products that China has developed strongly are high technology products, such as cars, personal computers, phones, DVD players, televisions... and also other products like clothes, footwears, furnitures and toys.

China is fundamental in the global economy and the development of other economies as well as producer and consumer in big quantities because it represents 30% of global consumition of coal, cotton, rice and steel.

Its industrial production, exports and investment grew the Chinese economy by 9.1% in 2003, the highest rate since 1997.

In 2004 China imported about 40% of the oil on the world market, becoming the second largest oil consumer after the United States.

At present, China overtook the United States in consumition of food, raw materials, energy... therefore per capita income in China has increased rapidly.

But not everything is of pink colour for China's economy. The main current weaknesses of it economy are:

- The financial sector, for the amount of unrecovered loans that banks have.
- The rise in unemployment and underemployment.
- Environmental pollution.
- Territorial inequality.
- The aging population.



Nerea

PRESIDENT OF IMF: HER LAST ADVICES

Christine Lagarde, president of ‘International Monetary Fund’ (IMF) has sent a message to all european leaders asking them for ‘talk in Europe with an united voice’ and to ‘prepare an specific calendar’ that will help us to confront the debt crisis that threats to break the international economic system.

‘International economy is in a danger situation’. Lagarde said this two weeks ago, and she advise that probably the 4% of growth in world’s economy for 2012 can be less than this percentage.

Lagarde remind that this crisis in Europe ‘is a crisis based on the confidence of the public debt and on finnancial system soundness’.

President of IMF has told that investors are waiting for a simple but specific calendar. She said again that all European leaders have to talk in Europe with an united voice; she said this after she had seen the protectionism of a couple of countries.

Erik Rios Salazar

CHANGES IN SPANISH ECONOMY

This Friday Spain will have a new president. Today, the future president told us what kind of politics is going to use in the next four years. Here we have them.

One of his objectives is to decreese the public budget deficit in about 16.500m euros. Also he is going to decreese the expenditure of the Spanish Public Administration. He is not going to repair the redundancies of the goverment employees, he will do only in basic services. He will remove the early retirement, but he will maintain them only in special situations. It will remove the days of holiday, the famous bridges (when you take more than one day of holiday), changing the holiday days to Mondays, saying that this kind of change will be better for the Spanish economy. But not all the news are bad, because he had said that he will update the retirement pensions with the IPC (Spanish reference to calculate the increase of the contracts, etc.) the 1st of January.

The economic and the unemployment situation in Spain is really dramatic. Spain has actually more than 5,400,000 people on an unemployment situation, more or less the 23% of the total.

He is going to do three different reforms in different fields. He will reform the finnancial sector and the public sector. The future president had said that the new goverment is not going to spend more than the minimum necessary. For example, one of his important changes will be the limit who is going to put into practice to all the Spanish public institutions, in the expenditure and indebtedness. He will change the finnancial system too, reorganizing balances, and promoving the fussion between different banks. For the public administrations and the factories he will promove a reform of the IVA (it is like a tax that it is impose to commercial transaction).

Erik Rios Salazar

THE BANK EXPECTED A RETURN INTO RECESSION IN SPAIN IN 2012

The AEB employer warns that it is difficult for private consume pull the economy through containment of wages and unemployment.
Is estimated that the Spanish economy will grow about 0.5% in 2011, far short of the forecast, because it predicts a sharp drop in the fourth quarter of the year which could follow another decline in the first months of 2012.

This way, at the end of March of next year, Spain could re-enter in recession, according to forecasts of economic-financial report in December of the Spanish Banking Association.

On the hopeful side, the employer is probable to achieve the fiscal consolidation target for the deficit does not exceed 6% of PIB this year.


The AEB adds that the Spanish economy has reduced its need for financing and debt but says it is very difficult for private consumption pull the economy if you consider containment of wages and high unemployment.

Jon Mikel

'CAF' COMPANY IS WORKING FOR A NEW CONTRACT WITH SAUDI ARABIA

‘CAF’ company is working for a new contract to export new trains to Saudi Arabia. The contract is almost closed; and it contains the manufacturing of nine trains. Each train will have five wagons, and a locomotive. It has the option of add five more locomotive and seventeen more wagons. This is the second contract with Saudi Arabia in the last three years. In 2008’s June Saudi Arabia’s National Railways signed a contract with ‘CAF’ to manufacture and maintenance eight trains for four years. The contract was valued in 105 million euros. In the last contracts of ‘CAF’ we can find contracts with Houston in the United States (39 trains) and Auckland in Oceania (57 electric trains). In september, the benefits of the company were 84 million euros, 8% more than last year, 2010.

‘CAF’ is probably the most important factory in Gipuzkoa, in the Basque Country. It’s located in Beasain, and the first creation of the company was in 1860, but it takes its actual name in 1971. It creates a lot of different trains and trams for everykind of cities. For example: Madrid, Barcelona, Bilbao, Washington, Rome, Brussels, Hong Kong, Amsterdam, Pittsburgh, Lisbon, Belgrade and more underground trains are made in ‘CAF’.

So, this is a good new for basque economy. Nowadays we are in crisis time, so everykind of upturn of our economy is good. We need to help our local companies, because they’ll be the best solution for the crisis in the future. We can say that without good and competitive companies, we’re not going to solve unemployment and economic problem in the Basque Country. That’s the reason why now all the political institutions have to help our local companies. If they help our companies giving everykind of material to go ahead, they’ll surprise us with this kind of news. Then, you’ll feel very proud of your country and the good work of it.

Erik Rios Salazar

'CAF' company's factory, in Beasain.

Angola offers help to Portugal

The angolan president, Jose Eduardo Dos Santos, says that his country is ready to help Portugal, its former metropolis, to fight against the Portuguese crisis.

Dos Santos spoke about it in the final of the two days visit of Portuguese prime minister Pedro Passos Coelho.

Analysts expect a 2.8% contraction of Portuguese economy for next year. In the other hand, their forecast about Angola is that the African country's economy is growing around 12%.

International Monetary Fund (IMF) accepted giving Portugal a rescue package valued in more than US$100.000 millions on condition that Portugal make many reforms, including privatisation of state companies.

In last years, Angolan investments in Portugal have grown and analysts expect these tendencies to continue privatizing many Portuguese companies.

Xabi