Business

The first lab in Europe for certifying car industry products to be sold in China has been unveiled in L'Hospitalet del Llobregat, near Barcelona's seaport and El Prat Airport. The Chinese publicly-owned company CCIC Holding Group opened on Monday a lab in Greater Barcelona, which will also certify products from other industries, such as the textile industry, and the construction and chemical industries. As well as products from Europe, it will also certify products from Northern Africa and the Americas. The new plant will also facilitate companies from the Asian giant that wish to contact Western suppliers, becoming a bridge for fostering foreign investment. Therefore, it will turn Barcelona into one of the main gateways for exporting Western products to China. The project has been attracted by the Catalan Government's programme 'Invest in Catalonia', as well as by a trip to China made by the Mayor of Barcelona, Xavier Trias.

Last week, TSB announced Banc Sabadell's interest in purchasing all of the shares of the British bank, which is partially owned by Lloyd's. The board of the 6^th largest bank in the United Kingdom then said they would welcome the Catalan bank's takeover bid, which they set at £3.40 per share (equivalent to €4.80). This meant that Banc Sabadell would buy TSB for £1.7 billion, or €2.4 billion. At that time, the Catalan bank denied any definitive agreement had been reached and simply confirmed that there were some talks in progress. A week later, Banc Sabadell has finally announced and approved the takeover bid, on the same terms released last week. In order to fund the transaction, the Catalan corporation will carry out a €1.6 billion increase in capital. This purchase will significantly strengthen Banc Sabadell's internationalisation, dramatically increasing its presence in the UK and in London's financial circles.

Vueling and American Airlines signed on Thursday an agreement to foster the interconnection of their flights through Barcelona El Prat Airport and Rome-Fiumicino so as to increase their destination network. The Barcelona-based airline offers 140 destinations from the Catalan capital to Europe, the Middle-East and Africa, and 55 from the Italian airport. American Airlines clients will be able to take a flight to Barcelona and transfer to a Vueling flight using a single ticket and pick up their luggage at their destination airport. In addition, Vueling clients will be able to take a flight to Barcelona and fly onwards to New York, Miami, Philadelphia and Charlotte through American Airlines or its subsidiary US Airways. This strategic agreement links Europe's widest network of short- and medium-distance flights, which is operated by Vueling through Barcelona, with transatlantic routes linking the Old Continent to important hubs in the United States.

The Catalan Government announced it will bring the High-Speed Train to Girona Costa Brava Airport thanks to an investment of €8 million. On the one hand, the tourism and economic sectors in Girona have celebrated the agreement because the construction will connect the airport to the city of Barcelona, to Barcelona El Prat Airport, to Figueres and to Southern France. On the other hand, High-Speed train experts from the University of Girona (UdG) are sceptical about the performance of these trains at Girona Costa Brava Airport because of the low volume of passengers and the profile of low-cost travellers.

PortAventura announced it will start the construction of the amusement area devoted to Ferrari in May, with the objective of finishing work around a year-and-half later. FerrariLand will be part of PortAventura and will also be the first theme park of the Italian car brand in Europe, adding to the park it has in Abu Dhabi. It will be built in Salou, located in Catalonia’s Costa Daurada, near Tarragona and Reus. The new area will come after a €100 million investment. In addition, in the coming  months it should be confirmed whether the $6 billion BCN World resort, with Las Vegas-style hotels and casinos, but also with theatres and conference centres, is to be developed in the area. PortAventura also announced it is about to unveil its first 5-star hotel, coinciding with the theme park’s 20^th anniversary.

The 22@ technological and business district of Barcelona, which is located between Glòries and the Fòrum areas and around the streets of Diagonal and Pere IV, grew by 136% more in 2014 than in the previous year. The area has accumulated 88% of the pre-leased offices and has also attracted 34% of operations in the Catalan capital. This huge growth could come to a stop in a year because some experts warn that there will not be enough space available if there is no new construction. The increase in this area of the city is almost three times higher than the average in Barcelona, which grew to 53.76%. The Information and Communications Technology sector leads office acquisition, with 28% of total real estate investment used to set up offices in Barcelona being accounted for by this sector.

In February, prices in Catalonia increased by 0.2% in monthly terms but decreased by 0.8% in annual terms, according to figures released on Thursday by the Spanish Statistics Institute (INE). The inflation rate in Catalonia has been in negative territory for the last 4 months, despite the improvement in February. The monthly increase in fuel prices has been the main factor behind February's positive figures. In Spain as a whole, prices also increased, by 0.2%, over the last month but showed a 1.1% decline in annual terms. Spain's annual inflation rate has been negative for the last 8 months. Therefore, there is a serious risk of deflation, which could represent a threat by making it more difficult to pay back debt.

TSB, which is the seventh-largest bank in the United Kingdom, confirmed on Wednesday that they have received a preliminary takeover bid of £1.7 billion (equivalent to €2.35 billion) filed by Banc Sabadell. The Catalan bank would have offered £3.40 per share (€4.80) and would be ready to buy the entire British financial entity, 50% of which is still owned by Lloyds. Sources from Sabadell have confirmed takeover talks, but they stressed that they are still preliminary in nature. After the news was released, shares of TSB increased by 26.4% while those of Banc Sabadell dropped by 7.5%, causing the Spanish Stock Exchange Authority (CNMV) to temporarily suspend trading in the Catalan bank. When Banc Sabadell returned on the stock market, its shares continued to decrease, dropping by 10.5%, but they partially recovered and ended the day with a 6.6% loss.

Catalonia exported €56.87 billion worth of industrial products last year, which represents a 3.5% increase on 2013’s figures, according to data released on Wednesday by the Catalan Statistics Institute (Idescat). The exports of high-technology products reached €5.58 billion, a 6.1% growth on figures from the previous year. These were also the type of product which experienced the greatest increase in exports during 2014, mostly thanks to sales from outside the European Union, which increased by 10.9%. Such an important boost also meant that sales outside the EU were larger than exports to other European Union Member States. The international sales of medium-high range products reached €28.27 billion, a 2.8% growth on 2013 figures.

Cava is a Catalan sparkling wine produced using the ‘Méthode Champenoise’. According to statistics from the Cava Regulatory Board, some 242.29 million bottles of Cava were sold in 2014, which represents a 0.38% increase on 2013 figures. Sales on the domestic market increased for the first time after two years of decline, reaching 87.58 million bottles, a 7.54% increase over 2013, with 6.14 million more bottles sold. Sales in bars and restaurants are one of the main reasons for the domestic increase since these grew by 9.3% over 2013. These results compensated for the drop in 2014 sales to the EU market, which accounted for 111.62 million bottles, 5.3% less than in 2013 and a decline in absolute terms of 6.22 million bottles. This was mainly due to a contraction in demand from the German market.

The average price of houses and flats in Catalonia was 2.2% higher at the end of 2014 than at the end of the previous year, according to the Spanish Statistics Institute (INE). At Spanish level, housing prices increased by 1.8% in 2014. It is the first time since 2007 that housing prices have increased both in Catalonia and Spain as a whole. In quarterly terms, the price of flats and houses in Catalonia increased by 0.6% between the end of September and end of December. At Spanish level, they increased by 0.2% in the same period. The recovery of the real estate market is a particularly strong indicator of the economic recovery in Catalonia and Spain, especially taking into account the collapse of the construction sector during the years of economic crisis.

The 2015 Mobile World Congress, which takes place each year in Barcelona, has shattered the records by hosting more than 93,000 visitors from 200 different countries, as reported by event organiser GSMA on Thursday, the last day of the trade fair. Thisyear’s attendance exceeded by 9% the figures recorded in 2014 and by 45% the number of people who visited the event during its first edition in 2006. The 2015 Mobile World Congress confirmed itself as the global platform for the cell-phone-related industries, where a large number of news and products were unveiled for the first time by world-class companies such as Samsung, HTC, Sony, Microsoft and Google. Mark Zuckerberg (Facebook), Sundar Pichai (Google) and Jimmy Wales (Wikipedia) were among this edition's main speakers.

This year at the Mobile World Congress one of the most discussed trends is the Internet of Things (IoT): everyday objects that are connected to the internet and which are able to control other machines. Although some of these implements do not yet have a direct application on the consumer market, the automobile sector is already selling vehicles with these functionalities. Smart cars can be controlled with a smartphone, for example, by creating a temporary digital key to access the car, and can also enable other devices in the home.

Entrepreneurship in Catalan universities is not as common as in the United States, but that is starting to change. The Online University of Catalonia (UOC) along with the Polytechnic University of Catalonia (UPC) have a stand at 4YFN, a parallel event to the Mobile World Congress, which is the main international event of the cell-phone-related industries, and which has taken place in Barcelona every year since 2006. 4YFN is focused on small companies that build internet services, the so-called ‘start-ups’. For years, universities have run offices dedicated to helping students and teachers to create a business, but the struggle to find investment and difficulties in setting up a business are still the major complaints of young entrepreneurs.

The Catalan companies on show at the Mobile World Congress this week not only include recently created start-ups. Some companies have been in the business for over 20 years with delegations in 19 countries, such as the registering operator Lleida.net. There are other projects on show which, although already active, have not been launched completely and are still in beta form, such as King of App, an open source app creator. Neither of them are based in Barcelona, but rather in Lleida in Western Catalonia. Most of the Catalan companies on show at the MWC are at one of the stands of the Catalan Government, which gives these companies space to promote their products either at the general exhibition or in the App Planet hall. But others such as Lleida.net set up their own stands.