Business

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.

The largest employer’s association in Catalonia, Foment del Treball, expects that the economic recovery in both Catalonia and the whole of Spain will not lead to a growth in employment and consumption until late 2014 or early 2015, as explained in the Report on the Economic Situation published on Thursday. The Director of Foment’s Economics and Taxation Department, Salvador Guillermo, said in a press conference that the economic recovery is being “consolidated”. Nevertheless, he added that ongoing structural reforms in the energy sector, public administration or the financial system should continue. According to Guillermo, the reduction of public deficit must be slowed down in order to avoid any negative impact on the economic recovery. 

The Catalan Minister for Territory and Sustainability, Santi Vila, who is also in charge of housing policies, presented on Tuesday the draft of a new tax bill on empty flats and houses owned by financial institutions in Catalonia. During a press conference, Vila explained that such a tax is looking to be an “incentive” for banks to make available their 15,000 flats spread across 70 municipalities with “proven demand” for housing, mainly around Barcelona, Tarragona, Lleida and Girona, and which have been empty for more than 2 years without a justified cause. The amount of the tax will be based on the total number of square meters owned by the banks and will include significant accumulative bonuses if the institutions decide to rent their properties, notably for social housing. The Catalan Government estimates that banks own around 40,000 empty flats, including in areas with housing demand.

Barcelona-based SEAT, which is part of the Volkswagen Group, has chosen the Geneva Motor Show to introduce its new vehicle in the Leon range, the cars whose sales increased the most in 2013, with a total of 102,000 units sold. This latest creation is the new Leon Cupra, by far the most powerful and the fastest vehicle manufactured by the Catalan company, whose main factory is located in Martorell (Greater Barcelona). With its 280 horsepower, this sports model will hit the market in both 5-door and 3-door versions. Coinciding with the opening of the event this Tuesday, SEAT also presented the Mango version of its Mii city car, a special edition resulting from the collaboration between designers at the SEAT Martorell plant and the Catalan fashion multinational which includes, amongst other novelties, exclusive paintings in beige and black.

In February, 629,586 people were enrolled on the unemployment lists in Catalonia, representing a decrease of 4,285 unemployed people on the same month last year, according to figures released on Tuesday by the Spanish Employment and Social Security Ministry. It is also the sharpest decline for a month of February since 2004, when 5,138 fewer jobseekers were registered. With this latest drop in the unemployment figures, Catalonia has achieved eight consecutive months of registered unemployment reduction in annual terms. In the whole of Spain, unemployment stood at 4,812,486 people, down by 1,949 people in February. It is the first decrease for the month of February since the beginning of the crisis in 2007.

Barcelona, Grenoble (France), and Groningen (the Netherlands) are the three final contestants competing to be named the first European Capital of Innovation. The award, worth half a million Euros, will distinguish the city that has created “the best innovation ecosystem, connecting citizens, public organisations, academia, and businesses”. The six initial contestants have been judged according to their past achievements and future initiatives encouraging innovation. The name of the winning city will be announced during the closing ceremony of the 2014 Innovation Convention, organised by the European Commission in Brussels on the 10th and the 11th of March.

GSMA, the organisers of the Mobile World Congress, have announced on Thursday that more than 85,000 visitors from over 200 countries participated in this year’s event. The figure sets a new impressive attendance record with an overall increase of 18% on last year’s edition. Around 80,000 attendees participated at the Mobile World Congress at Fira de Barcelona’s Gran Via venues and more than 5,000 visitors attended mPowered industries programme at Fira’s Montjuïc venues. Facebook founder Mark Zuckerberg and IBM CEO Virginia Rometty delivered highly anticipated keynote speeches, while close to 1,800 international market leading companies presented their latest innovative products and services. In the Global Mobile Awards, the HTC One scooped top award of the Best Smartphone of the year, while Apple iPad was announced the Best Mobile Tablet. Wearable devices were also an exciting highlight of the 2014 MWC.

The profits of Catalan pharmaceutical company Grífols in 2013 grew by 34.6% over the previous year, reaching €345.6 million, as reported by the multinational to the Spanish Stock Exchange Regulation Authority (CNMV). The turnover of the company, based in Greater Barcelona, amounted to €2.75 billion, representing a 4.6% increase on 2012 figures. The geographical expansion of the pharmaceutical company has helped mitigating the effects of volatility in currencies, especially between the euro and the dollar. The Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) grew by 9.6% compared to 2012 and stood at €864.6 million, driven by an increase in the sales of plasma proteins and the optimization of the expenses for raw materials and manufacturing.

The Mobile World Congress (MWC) has been held in Barcelona from the 24^th to the 27^th of February. All the halls have been filled with excitement as international competitive exhibitors showed their latest products and growing trends in the mobile phone industry. This year, ‘wearable devices’ received world-wide attention. Samsung showcased the newest smartwatches called ‘Gear 2’ and ‘Gear 2 Neo’, and also its cutting-edge smartband called ‘Gear Fit’. Sony also released its latest smartband, called ‘Core’. Other companies such as Motorola, which announced at the MWC it was going to launch a new smartwatch, are about to join this emergent part of the industry.

The App Planet at the Mobile World Congress is one of the biggest app events in the world, and the Catalan App companies have taken full advantage of the opportunity to showcase their latest products. Not only this, several Catalan App companies have come together to form the group ‘Catalunya Apps’, in which big and small companies alike have joined in order to survive and compete on the global stage. ‘InQBarna’ had extraordinary success since last year with their Music based app; they have had 700,000 downloads and Apple named the best music app in 2013. Inqbarna isn’t the only large company to commit to ‘Catalunya Apps’; Sixtemia, founded 5 years ago, is on board as well.