THE SPANISH STOCK MARKET FELL BY 1,28 PERCENT FOR A CUT IN GROWTH PROSPECTS IN CHINA

The Spanish stock market fell 1.28 percent today and lost the level of 8,500 points affected by the decline in international markets after China revised their growth predictions for this year and come down the activity in the services sector euro zone .

With the risk premium by 313 basis points, the main indicator of the Spanish market, the IBEX 35, has dropped 109.90 points, or 1.28 percent, to 8,453.50 points. The annual losses rise to the 1.32 percent.

The main European markets recorded minor losses, as the Frankfurt fell 0.79 percent,Milan, 0.68 percent, the Euro Stoxx 50 index, the 0.64 percent, London, 0.61 percent,and Paris, 0.39 percent.

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Although China enhanced the activity in the services sector, the reduction of GDP of the Asian country and warnings about problems with the Greek debt-conditioned the bad start of the Spanish stock market session, in less than an hour lost about 2 percent and approaching to 8,400 points.

The lowering of growth projections China this year, from 8 to 7.5 percent, sowed losses among Asian centers this morning: Hong Kong fell 1.4 percent and Tokyo 0.8 percent.

Jon Mikel Cruz

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

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

Back to the monthly electricity meter reading

The Spanish Ministry of Industry, Energy and Tourism has sent to National Comission of Energy a royal decree project on the electricity meter reading.

With this decree, the government will end with the reading system applicated since september 2008. This reading was made every 2 months, even if the users used to pay the electricity bill every month. So, one of the two readings was based on an estimate.

The Ministry has communicated that, with this new lar, the government wants consumers to pay just the electricity they use. The system still in force has generated an important number of claims by part of the consumers.

If the consumer wants to continue with the monthly billing, the electricity company will continue with the bimestral meter reading and months when there is not a real reading, it will be esmatimated.

Also, to make the billing easier, the royal decree project says that the consumers will be able to provide the meter reading, in the case that the distributor could not carry it out. The possibility of reading your own meter to help with the billing already exists for other supplies like the gas or the water.

Xabier

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

Zapatero is going to adjust wages to productivity

President requires a flexible bailout fund for countries with debt problems.
José Luis Rodríguez Zapatero, has sent a letter to the permanent European Council president, Herman Van Rompuy ,that is accepting adjust wages to productivity, one of the measures contained in the Covenant adopted by the Euro on Friday that the eurozone leaders at the request of Germany.
That implies to have more attention for the labor market. If they align salaries and productivity, is going to increase the employment and the training of the workforce.
Zapatero claims that opening up protected sectors is very important. He believes in the liberalization of sectors linked to the overall economy: professional services, energy or the digital economy.
It also asks the Commission a greater effort in evaluating the reforms that each country of the Covenant.
The Moncloa sources have insisted that the wage adjustment is the responsibility of the bilateral negotiations between employers and unions, which have until March 19 to reach agreement.
The Euro pact obliges Zapatero and other leaders of the eurozone to announce new measures to improve competitiveness in the March 24 summit.
The Government could undertake to carry out some reforms. Although no negotiations have been completed taking into account the reform of collective bargaining and employment policies.
During the summit of the eurozone to be held this Friday, Zapatero defended facilitate flexible bailout fund for countries in debt and strengthen its financial capacity.


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