Business

In a situation of difficult access to credit by Catalan and Spanish companies, Barcelona’s Chamber of Commerce and the main Spanish bank – which is based in the Catalan capital – have agreed to open a new credit line for the 25,000 private companies (small, medium-sized and large) and independent workers affiliated to the Chamber’s ‘Club Cambra’. In January 2012 they created the first credit fund with €2 billion. Now, a total of €3 billion will be available, of which €1 billion will be for internationalisation projects. CaixaBank’s President, Isidre Fainé, and the President of the Chamber, Miquel Valls, signed the new agreement on Wednesday.

Car dealers are satisfied with this year’s Motor Show as several brands posted solid sales balances. However, some visitors were disappointed as major car manufacturers were absent, attendants were not very enthusiastic about the worldwide premiers and there was a lack of glamour. Driving simulators and luxury-car payment tours were the main alternative for those who wanted something other than the regular exhibition. The organisers are optimistic and aim to restore the splendour of past shows as the economic situation improves and Barcelona becomes a more important city for motor events.

In addition, in 2012, the Catalan capital was the world’s 5th best ranked city in the area of life quality and urban prosperity, after Tokyo, Stockholm, Paris and Oslo. Barcelona was also among the international centres regarding tourist figures, being the 4th European city which receives the highest number of foreign tourists. It is also the second best city in Europe for shopping and it is among the best in Europe for doing business, after gaining competitiveness by reducing life costs. Barcelona is the 13th world city in global competitiveness, the 12th in the number of foreign investment projects and the 10th in scientific production. Furthermore, it is the only European city with 2 business schools ranked among the continent’s top ten (IESE and ESADE).

Between this Friday and Sunday, 17 cruisers will pass through the Port of Barcelona, which is the largest number of boats arriving at the Catalan harbour in a single weekend this year. The boats are transporting 64,000 passengers who will be spending 61 euros per day per person if they are just passing by or 114 euros if they are starting or ending their trip in Barcelona. In addition, the ships’ crews will be spending an average of 30 euros per person. Barcelona will end 2013 with a total of 2.6 million cruise passengers having passed through its harbour, close to the overall record from 2011. Barcelona is the world’s fourth largest harbour for cruise ships.

The Mayor of Barcelona, Xavier Trias, emphasised that Cisco’s new centre will put the Catalan capital “in the forefront” of smart city projects. Cisco will invest €4.5 million in its new centre working on electric mobility, smart lighting and other urban projects. On top of this, the American company will also invest another amount, yet to be determined, to renovate the Ca l’Alier factory, which is owned by the City Council and has been transferred to the American company in exchange for the renovation. In addition, Trias – who is on an official trip to the United States – and the Mayor of San Francisco, Edwin M. Lee, agreed to increase the cooperation between the two cities, starting with setting up a regular direct flight connection.

In March, 2,750 flats and houses were sold in Catalonia, 13.9% less than a year ago in the same month. 32.5% were newly built homes and 67.5% were second hand ones. The previous worst month of the economic crisis had been December 2011, when 2,778 housing units were sold. However, the results from March represent the lowest level of housing sales since January 2007. The reasons behind this drop are the economic recession and the crisis of the real estate sector. In the whole of Spain, housing sales dropped by 12.6% compared to a year ago, with 22,086 flats and houses sold. However, at a Spanish level, the worst month in the last few years is still April 2012, when 21,551 housing units were sold.

Catalonia’s GDP decreased by 0.3% between January and March 2013, while the Spanish economy dropped by 0.7% in the same period. The Catalan figure represents a more gentle drop compared to the last quarter of 2012, when the Catalan economy plummeted by 0.7%. However, looking at the annual figures, results from March 2013 represent a 1.9% drop compared to March 2012. Exports and tourism are the main economic engines. However, the improvement is also due to the fact that domestic consumption continued to post negative figures but they were still better than in the previous months. The data are early estimations calculated by the Catalan Statistics Institute (Ideascat) and the Catalan Economy Ministry, released on Friday.

The Saló de l’Automòbil exhibition is the main meeting point for the automobile industry in Spain and will take place at the Montjuïc trade fair from May 9th to the 19th. 22 car brands and 32 premieres are announced: two worldwide, four European and 26 at Spanish level. The showing coincides with the Spanish Formula 1 Grand Prix at the Circuit de Catalunya and the extreme sports event X Games of Barcelona, completing a motor week in the Catalan capital. Spanish Prime Minister Mariano Rajoy will kick off the Motor Show on Friday the 10th of May.

The international business of the Catalan energy company has been the main driving force behind the profit increase in the January-March period, compared to a year ago. Gas Natural Fenosa’s EBITDA which come from its international business increased by 8.1% while that coming from the Spanish market dropped by 2%. International business represented 44.1% of Gas Natural Fenosa’s total consolidated turnover during the first three months of this year. The consolidated EBITDA reached €1.33 billion, 2.2% higher than that reached in the first quarter of 2012. The company’s debt levels reached 50.9%.

The Catalan financial entity Banc Sabadell reached an agreement with the Dutch insurance company AEGON on Friday to buy 50% of the shares of Mediterráneo Vida, S.A. de Seguros y Reaseguros, the joint venture originally established with Caja de Ahorros del Mediterráneo. The operation is on the condition that they receive the green light from the regulatory authorities. The transaction will allow Banc Sabadell to own 100% of Mediterráneo Vida, S.A. With the operation, the Catalan bank will move forward in the organisation of its insurance subsidiaries and affiliates.

The President of the Catalan Government announced the initiative which will aim to develop an industry and knowledge cluster of the automation sector. The cluster would profit from the multinational companies based in Catalonia, the country’s industrial sector traditionally linked to cars and bikes, the export infrastructures, Barcelona’s car fair, the Formula-1 racing circuit and the innovation, design and education centres. The new cluster is fully supported by the Catalan Government, since automation is one of the main engines driving Catalonia’s economy. It aims to strengthen the sector’s competitiveness, foster cooperation between companies, facilitate the education and training of professionals, develop innovation and implement strategic agendas such as sustainable mobility and electrical vehicles.

The Catalan Banc Sabadell has bought all the shares in the Lloyds subsidiary companies in Spain: Lloyds Bank International and Lloyds Investment. Banc Sabadell paid €84 million that will be paid through giving 53.75 million shares in the Catalan bank to the British banking giant. This way, Lloyds will control 1.8% of Banc Sabadell’s total shares. The agreement foresees than the UK group will become a “stable shareholder”, since Lloyds has committed to keeping the stocks for at least two years. With the operation, the Catalan bank will control the Lloyds retail and investment businesses in Spain, where the UK company has 28 branches, €1.79 billion in loans and €760 million in deposits.

Passenger traffic from the Catalan capital’s harbour increased by 18% in the period from January to March, and that of cruise passengers grew by 40%. In total, 9.8 million tonnes of goods were transported through the Port of Barcelona. The tonnes of goods transported via container increased by 0.8%. Regarding the transport of cars, which is one of the harbour’s main activities, 164,452 car units were transported through the port, a 1% increase compared to last year.

IAG, the company resulting from the merger of British Airways and Iberia, improved its initial offer from €7 per share to €9.25 to buy 100% of the Catalan airline’s shares. Iberia already owned 45.85% of Vueling and the IAG offer aimed to buy the remaining 54.15%. However, IAG had already stated the operation would still be carried out if it could buy 4.16% of Vueling’s share, in order to own 50.01% of the airline. Finally, more than four fifths of the remaining shareholders decided to sell their stocks to IAG. The international airline will buy 44.66% of Vueling’s shares and then it will own 90.51% of the company based in Barcelona El Prat Airport. Vueling is one of the few European airlines that has made a profit in the last few years. It has a competitive business model, flying to more than 200 destinations.

47 foreign investment industrial projects, bringing in €331.88 million, landed in Catalonia last year through ‘Invest in Catalonia’, a programme from the Catalan Government. This represents 37% more investments than in 2011. The projects created 2,324 new jobs and they also allowed companies to keep 2,566 positions. Besides, the Spanish Ministry for the Economy stated that foreign investment in Spain dropped by 43% in total and by 14% in Catalonia. The Catalan Business Minister, Felip Puig, explained that the Spanish Ministry data includes financial investments. However, Puig emphasised that the Spanish Ministry’s report also states that industrial and manufacturing investments in Catalonia increased by 6.2% and 11% respectively.