Daily Archives: April 26, 2012
The president of Bolivia, Evo Morales, will open on May 1 the second floor of Repsol’s gas processing Margarita field, whose production goes to Argentina, accompanied by the owner of the oil, Antonio Brufau, and officials said that Spanish group.
The ceremony will take place on the sixth anniversary of the “nationalization” of hydrocarbons by Morales, and the presence of Brufau on the spot was confirmed to Efe by sources of Repsol in Bolivia.
The Bolivian government announced in January that would increase in 2012 shipments of gas to the Argentine market, reaching 11.6 million cubic meters per day, thanks to the new plant of Margarita, whose inauguration was scheduled before Argentina announced last April 16 Repsol expropriation of most of its shares on the local oil YPF.
The president of the Bolivian oil, Carlos Villegas, said then that the country’s gas production would rise to 51.9 million cubic meters per day, nearly 9 million more than in 2011, which will ensure the provision, “especially in Argentina” .
“This year we increased the production of gas exports to Argentina, from 7.5 to 11.6 million cubic meters,” said Villegas.
The second floor of Margarita, located in the southern department of Tarija, will increase from 3 to 9 million cubic meters per day production of that field, the largest gas field in Bolivia, but do not know the total volume of reserves.
The Margarita field and neighboring Huacaya, which form the block Caipipendi are managed by Repsol, which owns 37.5% of the grant, as British Gas (BG), while Pan American Energy (PAE) has the remaining 25%.
The contract for the sale of Bolivian gas to Argentina establishes minimum shipments of 7.7 million cubic meters of gas per day, volume should be increased to 27.7 million in 2017.
In November 2011 Brufau Morales ratified before an investment plan of Repsol in Bolivia 640 million dollars for the period 2010-2014, during a visit of both the Margarita field.
The European Union today placed 2,700 million euros in 10-year bonds at an interest rate of 2.75%, as a measure to finance the program of financial assistance to Portugal through the European Financial Stability Mechanism (EFSM), guaranteed by the Community budget.
This issue adds to the 1,800 million in bonds to 26 years took place last week, bringing the average maturity of European loans to Portugal between 12.2 and 10.8 years, reported European Commission, responsible for the operation.
The new 10-year issue closes the chapter on funding provided for Portugal in the first half of 2012, after previous auctions of bonds at 30, 20 and 26 years in January, February and April, respectively.
The bonds mature on April 4, 2022 and offer a yield of 2.79%.
The issue has become an interest 56 basis points above the benchmark in transactions of this type.
The operation was closed in 45 minutes with a demand of 7,800 million euros which came mainly from Europe, especially Germany (28%) and the United Kingdom / Ireland (17%), France (13%), Scandinavia ( 9%), Benelux (8%) and Switzerland (5%).
By type of investors, asset managers led the subscriptions to 38%, followed by funds and pension insurance, with a share of 23%, central banks and official institutions (18%) and financial institutions (18%) .
Crédit Agricole CIB, DZ Bank, J.P. Morgan, Morgan Stanley and Société Générale managed the issue.
Portugal will receive the funds on 4 May.
The rescue of Portugal amounted to 78,000 million over three years, which contributes to the EFSM 26,000 million euros.
Portugal receives EU funding through the EFSM, the European Financial Stability Fund (EFSF) and the International Monetary Fund (IMF).
From January 2011 to and including this latest transaction, the EU has issued a total of 39,700 million euros in bonds, mostly for the EFSM.
The EU has yet to fund another 2,000 million euros from next September.
The Chrysler Group today announced net income of $ 473 million in the first three months of this year, four times more than the same period in 2011, and helped swell the profits of Fiat.
The Italian company, which has the controlling stake in Chrysler, reported a net profit of 502 million dollars between January and March, which exceeded analysts’ expectations and showing strong sales outside Europe offset weakness in its traditional market.
In the first quarter of 2011 Fiat profit was 49 million.
Net profit attributable to parent company was 137.7 million dollars, compared with one of $ 38.4 million in the first three months of 2011.
Chrysler’s net income in January, February and March were up 25% and reached 16,400 million dollars, while its global sales increased 33% to 523,000 units the, according to Infome has released today the company.
Fiat bought Chrysler during its bankruptcy in 2009 as part of a rescue plan structured and guaranteed by the U.S. government.
In the statement, adding that this year, Chrysler expects to sell between 2.3 and 2.4 million cars and trucks, and estimated net income of the year added 65,000 million dollars.
Chrysler is the first firm manufacturer of motor vehicles in the U.S. that accounts for its profits, will Ford, which will on Friday, General Motors on 3 May.
The process of downsizing in Cuba, which this year plans to eliminate 170,000 jobs, is developed with “lack of transparency” as today criticized an economic specialist Cuban state television.
The plan that will leave 170,000 people in the administration as “available” in 2012 will add to the “secret code” of those who left their jobs last year, said a morning news reporter Ariel Terrero, specializing in issues economical.
Terrero says that the Ministry of Labor “has not addressed this important program with sufficient transparency” and claims development data through “partial information” and “comments” of some ministries and regions.
“We do not know if they have been more affected women than men, do not know how has been the relationship of age, in short, do not even know how many workers were available last year, with precision,” he insisted.
The Cuban government announced the removal of about 500,000 state jobs in the first phase in 2011 (10 percent of the employed population), within the framework of its economic adjustments to “update” the socialist model of the island.
Last year, President Raul Castro himself admitted delays in the process, said he could not framed in “inflexible deadlines,” and insisted that the Cuban government “will not leave anyone stranded.”
Terrero said Thursday that the issue deserves to be dealt with “more range” because it is a measure “fundamental” to aspire to efficient firms in Cuba and its impact on the lives of workers.
She also stated that “most” of workers who have been “available”-the euphemism used in Cuba to refer to those laid off, were relocated to other positions within the state sector, mainly linked to productive activities.
“Another part of the workers much less has been to seek alternative employment in the self-employment (private sector), which has been perhaps the most widespread and most widespread, but not the most important in order to create alternative employment at least so far, “added the journalist.
The specialist has also stated that this year the number of workers in the private sector should amount to about 600,000, which would represent a “breakthrough” for the official forecasts that non-state employment forms occupy more than 40 percent of GDP Cuban in five years.
Currently more than 370,000 Cubans are engaged in the emerging private sector of the island since the government expanded the mode of self-employment in October 2010 as part of its economic reforms.
The European Council President, Herman Van Rompuy, proposed today that the EU is inspired by the model of the Community program Erasmus student exchange to facilitate mobility of workers across labor markets in different EU countries.
“We have to make it easier for workers to go where the jobs are,” said Van Rompuy in his speech at an economic forum held in Brussels today.
In his view, “the impressive number of vacancies in Germany, the UK and elsewhere in the EU shows that there are real shortages of labor or at least specific gaps in certain places.”
Therefore, opted for “doing work which Erasmus has done studies,” adding that the European Commission is already examining ways to realize this idea.
“There is much we can do to ensure that our workforce remains the best equipped in the world. But let us be specific: What can the EU by a young Spanish or Swedish 16?” Asked Van Rompuy.
In this regard, he stressed the need “to provide adequate training, both before the start of careers during and after these.”
He also noted the importance of strengthening the link between education and training systems and labor markets, and for that proposed programs to encourage and promote work practices first contracts with appropriate conditions.
“It has ended the era of a job for life, so at least everyone should have a fair chance first,” said Van Rompuy.
He stressed the importance of funding education systems and research and development as a “key to growth in the short and long term,” and said the EU “can play a very important” by EU funds or European Investment Bank.
The president of the Junta de Castilla y León, Juan Vicente Herrera, today asked the European Commission (EC) that mining companies showing that they are profitable in 2018 do not have to repay the aid they have received, as required by Brussels .
“If state support for the mining company in 2018 acquired a horizon of return and do not need more subsidies, not force them to those companies who have made an effort to return the money received those years,” said Herrera to the press after meeting with EC Vice President and Minister of Competition, Joaquin Almunia.
Herrera argues that these grants are treated as business investments, which are “sunk, which is justified if the end of the period are profitable” and considered that the opposite is a “contradiction” with the policies of support to coal.
The EU adopted in December 2010 to aid to loss-making mines of coal, located mainly in the northwest of Spain, the Ruhr (Germany) and the Romanian Jiu Valley by 2018, four years later than originally planned .
Until then, subsidies will be phased out and, this year, companies will have to prove they are viable without government support, or close.
Herrera said he did not discuss the deadline of 2018 for aid, as it considered that it is in your hands to change this criterion.
However, it considered a “contradiction” that companies that have achieved levels of profitability “for the efforts of competitiveness and the proper use of state aid this year,” being forced to return the money invested to remain open.
“We understand that is a real absurdity and a contradiction, existing aid until 2018, they are necessarily linked to the closure of farms. What happen if they are profitable? If you are not being forced to close, but not to return them, “he said.
Herrera said that Almunia has not expressed their views regarding this proposal.
This afternoon, President of the Board will meet with EU Environment Commissioner, Janez Potocnik, who will be moved a proposal to support the open pit mining with European standards of environmental protection.
Moreover, Herrera avoided commenting on the announcement of Alonso-mining group whose members are companies Coto Minero Biscay (CMC) and Northern Mining Union (Uminsa) – that will adjust their workforce to 67% cut in aid to coal, the project provided by the Spanish Government Budget for 2012.
“Today we are in Brussels,” he replied to questions from reporters about whether intercede with the prime minister, Mariano Rajoy, to prevent this cut.
Ireland has completed “successfully” the latest revision of its economic rescue carried out by inspectors of the relation among the European Central Bank (ECB), European Commission (EC) and the IMF, confirmed today the Irish Minister Finance, Michael Noonan.
“We celebrate that we have fulfilled our objectives, that all measures have been implemented and the program is on the right track,” Noonan said in reference to the marked roadmap for Ireland in the rescue of the European Union and the IMF (IMF), measured at 85,000 million euros.
The minister said that the government deficit was reduced in 2011 to 9.4 percent of GDP, below the ceiling of 10.6 percent set in the aid program, which augurs, said that the Government will reach deficit target of 8.6 percent in 2012.
Since this country was forced in late 2010 to accept a bailout, the Executive coalition between Conservatives and Labour have applied more than “one hundred specific actions” and has already had access to just over 70 percent of fund money help, Noonan said.
“It has managed to stabilize public finances, have carried out structural reforms and financial sector is focused on meeting the needs of the Irish economy,” said the Conservative leader.
Meanwhile, the Irish Minister for Public Expenditure and Reform, Labour’s Brendan Howlin, reported today that the troika and the Dublin government have reached an agreement regarding the fate of the 3,000 million that will generate sales of state assets.
“Much will be used to support policies to create jobs and stimulate the economy,” said Howlin.
“During the past quarter, he added, has significantly reduced the number of staff, thereby fostering a sustained savings in wages. Also continue to actively manage public spending and I am sure we will meet our objectives in 2012, such as we did in 2011. “
The European Council President, Herman Van Rompuy, announced today that studies convene a special summit of EU leaders to advance measures to promote economic growth.
“I do not rule calling on European leaders at an informal meeting for an open exchange of ideas at an earlier date and better prepare the measures of the June European Council” (already scheduled for the 28th and 29th of that month), said Van Rompuy at an economic forum in Brussels.
“Europe needs a structured economic growth, and we can do, but the reforms take time,” said Van Rompuy, adding that this is “the highest political priority for European leaders right now.”
The European Council Chair moved that the community leaders try to make “important decisions” in this sense at the top end of June, and raised the possibility of holding the said special meeting previously.
In particular, opted for a more integrated single market, a strengthening of the competitiveness of EU companies and “expanding the role of the European Investment Bank (EIB),” to facilitate the financing of sectors such as research and development.
Van Rompuy defended the need to undertake fiscal consolidation in the EU, and stressed that it “does not mean only short-term austerity, but also means investing in the future and make the right choices.”
“Fiscal consolidation is not an end in itself, is a prerequisite for sustainability and growth. And the effects of structural reforms are not immediate,” he said.
In this regard, he added that even the economic strategies focused on growth “require choices and sacrifices,” adding that they “should not be supported only by a generation or social group.”
Van Rompuy rejected “magic formulas” talking about “a rapid and easy”, and insisted that “you must wait to see the effects of reforms on growth and employment.”
He highlighted the “long march” that have traveled the Union and its Member States, and appreciated the “courageous steps” taken by European leaders.
“Some of my colleagues have taken the bull by the horns,” said Van Rompuy, who mentioned in particular the labor market reforms implemented in Spain and Portugal.
Banco Sabadell has won in the first quarter 80 million euros, 5% less than the same period of 2011, following the allocation of 293.4 million in endowments, and has postponed the second quarter, the application of additional sanitation of 1,600 million financial reform demands.
Of the total endowments of the first quarter, 117.4 million are for loan losses, while 176 million correspond to provisions on property and financial assets.
The entity that presides Josep Oliu stressed in a statement sent to the National Securities Market Commission (CNMV) data have evolved in the first quarter “better than expected”, since all business margins are improving, despite the “uncertain and challenging macroeconomic environment.”
Thus, the net interest margin has been achieved in these three months, 407.3 million euros, representing a growth of 7.4%, while gross margin stood at 692.2 million, a 3, 1%.
It has also grown, namely a 8.5% margin before provisions, amounting to 378 million.
The default rate for the Catalan club is 6%, slightly higher than last year, up from 5.46%, but remains below the average for the whole financial sector, 8.16% .
At a press conference, the CEO of Banco Sabadell, Jaume Guardiola, stressed that late payment is no longer linked only to real estate, but is taking an upturn in the business.
In the area of SMEs and freelancers, arrears grew from 5.69% at the end of 2011 to 6.31% in the first quarter, while large firms has increased from 2.85 to 2.93%.
In private industry, however, there has been a slight improvement, from a rate of 2.89% to 2.83%.
Guardiola has said that this year may still be an increase in levels of delinquency, although this trend may have its “tipping point” in late 2012.
Sabadell for the first quarter was marked, among other things, the sale of its 20% stake in Bank of Bajio Mexican entity, an operation that has generated a gross capital gain of 28.5 million euros.
The bank has also made a capital to absorb the Savings Bank (CAM), although this operation has yet to obtain the approval of Brussels.
In this context, the bank has chosen to postpone the second quarter the consolidation of about 1,600 million that requires financial reform, but still confident that you will get benefits.
“The results will be good”, has advanced Guardiola, who recalled that the entity still has 800 million of general provisions that, together with its ability to generate earnings, cushion the impact of provisions.
Specifically, the bank expects in the second quarter results are similar to those for the period January to March.
Prime Minister of Italy, Mario Monti, said today that all adjustment measures being taken in the European Union will bring growth and claimed themselves to be put in place an effective policy to encourage this.
“Now Europe needs policies to boost growth potential and avoid policies that only provide a sense of contributing to growth,” Monti said at a business conference on ending the crisis.
“Structural reforms alone will never bring growth,” he said, and considered that has a rather “deflation” when what is needed is to increase spending selectively in areas that promote growth and generate demand.
Italian Prime Minister explained that it is not challenging the European fiscal pact or budgetary discipline and denied that the solution lies in further increasing the deficit as in the past.
According to Monti, “we need to open the mind, not as a way of circumventing budgetary discipline but to make it truly sustainable in the medium term.”
“There are policies that should be avoided because they are a fictional shortcut to growth and continued expansion of the deficit,” he said.
He said that this type of behavior goes against the spirit of the fiscal pact and “does not bring good consequences for national economies.”
“We reject the policies aimed to grow through the creation of more deficit,” he said.
He stressed that the EU should focus on what, at both national and European policy is the liberalization of services, strengthening the internal market, development of border infrastructure and other reforms aimed at raising potential growth in the medium term .
Prime Minister of Belgium, Elio Di Rupo, who also participated in the conference, agreed that the key Monti is no longer only fiscal discipline but to stimulate growth.
“We realized that the key, regardless of budgetary discipline, is how to stimulate growth and put Europe back on the road to prosperity,” he said in his speech.
“It is crucial to implement new measures and find new financial resources,” added De Rupo, who noted as a possible source of income to the tax on financial transactions.