Daily Archives: May 14, 2012
The Constitutional Court declared admissible the application lodged by the central government against the decision of the management of the Andalusian Health Service (SAS) that ran the auction of drugs.
The Government decided to submit to the High Court a positive conflict of jurisdiction on the ground that it invaded the state law and reduced the range of services.
The approach of this conflict led to the suspension of this rule in Andalusia.
The executive said, when the Cabinet agreed on 30 March, was brought, that his decision was endorsed by the assent of the Council of State which questions the adequacy of competence order of the resolution regional.
The Board made the first such public auction on 19 March and she wanted to lower the price paid to public health by pharmaceutical drugs.
With the first of the auction, the regional government was awarded by public auction for certain generic drugs that were the need to dispense when the patient comes with a recipe that includes only the active ingredients, and thus save on the bill pharmaceutical.
In its resolution, the TC agreed to refer this request and the documents submitted to the Junta de Andalucía for within twenty days supply the documents and arguments it deems appropriate.
The mechanism set up in Andalusia, according to the central government clearly violates State powers and modifies the core portfolio of services established by the state, excluding benefits that could be accessed by applying the basic rules.
After presenting the petition to the High Court, the Executive launched a “procedure” to review the drug prices offered by four pharmaceutical companies that participated in the auction.
The Andalusian Government Executive considered the PP has moved beyond merely judicial and exerted pressure on the laboratories that were submitted to the auction of drugs.
The regional government charged that the contentious administrative declared admissible, sought a challenge to achieve rapid freezing of the measure.
The Constitutional Court also agreed to communicate this resolution to initiate this conflict to the High Court of Justice of Andalusia if challenged or is challenged that decision, in which case the process would be suspended until the decision by the High Court.
The Spanish Minister of Economy, Luis de Guindos, said today that Spain has taken “all measures” to return to growth and stabilize its economy, and called for cooperation and a joint response of the euro area to support the country.
“Spain has taken all the measures considered appropriate for effectively conviction, do we have to do to return to economic growth and stabilize the Spanish economy,” said De Guindos on arrival at the Eurogroup meeting which analyzes the situation in Spain today.
“From here we need the cooperation of the entire euro zone, a joint response, and I hope that tonight at the Eurogroup well defined,” he underlined.
The Minister of Economy and Competitiveness stressed that Spain has taken measures in the workplace, in the financial consolidation of banks profound, improvement in the medium and long-term fiscal position of the country and “we have done everything we had to do from the standpoint of the new government that takes four months and also with political stability, “said.
De Guindos attributed the dramatic rise in the risk premium to political instability in Greece and financial reform passed last Friday in Spain and provisions that will require millions of Spanish banks to sanitize and clean up their balance sheets “brick” ( real estate).
“The rise in risk premium has been quite widespread, as the fall in stock market and banks,” said the minister.
“Europe is living a moment right now complex crossroads, particularly in relation to the Greek theme and that is where we do have to make decisions,” said De Guindos.
These decisions “are important from the standpoint of political will to Greece to take measures that have to take,” added the minister.
In his opinion, political instability in Greece is now the largest element of uncertainty in capital markets.
“That’s where we need to act, find solutions and support,” he said.
Greece “has to meet commitments,” but political instability prevents you meet them and that is having an influence on other markets, he assured.
In this regard, said that the Eurogroup should give an answer to this problem in today’s meeting.
“I do not want to talk about a possible exit from the euro Greece, all I mean is that there are commitments from Greece, regardless of what their government, whatever the outcome of elections,” said.
“Greece has to give an answer from the point of view of the commitments are adequate counterpart funding that has been getting,” he underlined.
The President of “Telefonica”, Cesar Alierta, believes that Spain is solvent and that the Government’s reforms will lay the foundations for economic recovery sooner than expected, as was stated in the Board group in which he highlighted the strength of “Telefonica”.
The President of “Telefonica” has used his speech to answer to shareholders and to communicate that the Business Council for Competition, consisting of the presidents of companies in the country, is completing a study to demonstrate the country’s creditworthiness.
Alierta was re-elected director of “Telefonica” for another five years with 75.61% of the vote, has underscored the important processing carried out by the group to adapt to the new digital society.
He assured that the creation of Digital Phone makes the difference with other operators and that although markets have not yet recognized the great transformation that has seen the group, has no doubt that they will do.
In his view, the digital is committed together with the strength of the operator in Latin America ensures the group’s success in the future.
Alierta has announced that Digital Telephone force is going to look at the international launch to be held next July in London, where it is headquartered.
In the Board of “Telefonica” has approved a new dividend system operator by which shareholders may choose to receive a portion of it in shares or in cash.
The Board has also approved a dividend distribution of € 0.53 per share against reserves as of May 18 and the new system of dividend from a capital increase to pay another $ 0.30 per share.
Alierta explained to the Board to collect the tax benefits of the stock dividend and has reported that he and all the council will choose this option.
These are added 0.83 euros to 1.5 euros per share dividend for 2011, while for 2012 is 1.3 euros.
These 1.3 euros plus amortization of treasury shares, the board also approved, will mean a return of 13.3% for investors, making reference to a price of 11.29 euros per share.
As usual in recent meetings, the shareholders have received a written report of the chairman of “Telefonica” in which he states that “it is surprising that at present the “Telefonica” is trading at prices similar to those of 2005.”
Since then, he says, “Telefonica” has doubled the number of customers, revenue by 1.7 by 1.5 Gross operating income before depreciation and amortization (OIBDA) and earnings per share 1.8.
Alierta also pointed out that the business in 2005, Spain accounted for 58% of “Telefonica” its OIBDA, while currently represents only 34% due to the profound transformation of the group.
The European Commission today hoped that Greece will continue in the euro respecting its commitments to its partners in the single currency.
“We remain hopeful and confident that Greece will respect its commitments in the second adjustment program,” said EC spokesman, Pia Aherenkilde at a news conference.
“We see the future of Greece into the euro. We want to follow Greece into the euro,” he said. “We have made every effort to keep Grace in the euro”.
Ahrenkilde denied that some recent statements by EC President Jose Manuel Durao Barroso, an Italian television in which he said that if a member of a club fails to respect the rules is best to leave the club, involving a change of position in Brussels .
Such statements involve “comprehensive consideration” and “general” and not related to any particular country, he said.
The spokesman stressed the position of the EC, which considers that the second bailout program “is the best solution for Greece and its people.”
These remarks came at a time when talks between the Greek political parties after elections last 6 seem doomed to failure, making it increasingly possible to hypothesize a new election.
“We respect the ongoing negotiations … Let this effort to find a solution to enable Greece to find a government and then see that it should do,” added the spokesman for the European Commission.
Still, Ahrenkilde insisted that “many answers must come from Greece.”
In case of any outflow of Greece’s euro, the Commission “has no plan B or any financial infrastructure to avoid possible contagion” to other countries like Spain, recognized a community source.
This source was confident that the Greek political parties find a solution and warned that a possible call for new elections “would be useless.”
Other elections “would cause a situation of uncertainty in the markets they serve no purpose, since, if they win games against the agreement (rescue) ask for a reformulation of the bailout is not going to be.” After the elections, “we would be in the same situation,” he said.
Barroso intends to give the Greek situation at a luncheon with President of the European Council, Herman Van Rompuy, and then with the heads of the Eurogroup, Jean-Claude Juncker and European Central Bank (ECB), Mario Draghi, the source added .
Minister of Industry, Energy and Tourism, José Manuel Soria, now confident that the various reforms being adopted by the Government of Spain will contribute to the risk premium “is not only up but can not come down and stabilize in the environment 300 points. ”
“The risk premium is the difference between what it costs to Spain to loan you money and what it means to Germany. Why it costs more to Spain and why rises more than three days? For a simple reason: Spain now has no money to buy what you need or to pay what you owe and, therefore, has to borrow, “said Soria.
In this line has added that those who can lend money to Spain “may be willing or not, and if they are, can do so at a higher cost or low.”
Soria has indicated that the money is lent to a higher cost because it has shown that what are some banks or financial institutions on their balance sheets are stated at a price that is considerably higher than what the market says it is worth, whether promotions, floors or mortgages.
According to Soria, measures approved by the Government of the Nation “force” banks to have that value exactly equal to the real “so that, over time, the risk premium can be lowered and stabilized.”
Whether the customers of financial institutions can be reassured by the recent actions of the central government in Bankia and doubts generated by the sector, José Manuel Soria, has said there is no reason to worry.
The minister said that the Government has taken steps to “force banks to that, from its benefits, make supplies of money to cover the value they are saying and, now, have assets on their balance sheets in compared to the value, however, markets are saying they have. ”
It has therefore called for peace of mind to bank customers.
On the possibility of the Canary Islands Government itself create a tax office, Soria recalled that the Executive has approved as part of the Budgetary Stability Law which, among other duties, provides that the autonomous communities meet their income.
For Soria, “is not the time to make expenditures not go beyond what are essential public services, creating more bodies, more agencies, or to further increase public numbers of staff now have to make adjustments in the public sector. “
Bankia shares have lost half of its value since its IPO in July last year, mainly because of concerns aroused, following the resignation of Rodrigo Rato and the entrance to the state capital.
According to market data consulted, at 11.40 Bankia securities worth EUR 1.876, compared with 3.75 euros which began trading on July 20, 2011.
This represents a loss of 9.42% in the session, the biggest drop of IBEX and the continuum.
Rodrigo Rato’s resignation as president on Monday of last week and wake up alarms on the status of the entity, which soared on Wednesday as the new president, Jose Ignacio Goirigolzarri, proposed to the State Financial Bank nacionalization Savings (BFA ) Bankia matrix.
So, last week, the entity lost in the stock market by 15.6% of its value, that is, its capitalization was reduced by 766 million euros in five trading days.
The collapse of today has more to do with the new provisions required by the Government for not troubled real estate assets in financial reform adopted on Friday.
According to information provided yesterday, Bankia is the entity that more money will have to bring in additional provisions, 4.722 million euros, rising to 4.813 million by adding the 91 required to its parent, BFA.
Until 11.40 pm and 2.98 million were traded securities Bankia, worth 5.8 million euros.
The Treasury has today placed 2.903 million euros in letters to twelve and eighteen months, with respective interests of 3.09% and 3.40%, both slightly higher than the previous auction, held on April 17, when he had to double that income.
This means that investors have reacted with some reassurance to the new royal decree approved Friday by the Spanish Government which implies that banks should mobilize an additional € 30,000 million to meet the new requirements of real estate provisions.
These provisions affect the home loans not considered problematic, as opposed to the amendment passed in early February, which required banks to clean up 54,000 million portfolio of bad loans or problematic.
Of the 2.903 million euros awarded today are 2.192 million letters a year, at an interest rate of 3.09%, slightly up from 2.74% in the previous auction, the date on which the Treasury had to double the interest on the previous bid.
In today’s auction were awarded another 711 million in letters to eighteen months, with interest at 3.40%, also slightly higher than 3.20% of the previous bid.
However, the letter requests have exceeded the 6,300 million, more than double the target of attachment ranging between 2,000 and 3,000 million, marking, according to analysts, the real success of an auction, since it means that the interest of the Spanish debt market has not cooled.
Nevertheless, the sovereign debt market continues to accuse the stress caused by the problems of the Greek parties to form a government, which could force new elections to call and even speculated about a possible exit from the euro.
Shortly after the auction, the risk premium Spanish stood at 482 basis points above the opening 471 points, its highest level since November.
This occurred because the interest of ten-year Spanish bond rose to 6.28%, unlike the German, who fell to 1.45%.
The Spanish stock market also showed their concern, with a fall of 2.84% to 6,796 points.
The group HC (Hydrocarbon Logistics Company) reported net income of 33.1 million euros between January and March, representing a decrease of 7% over the same period of 2011 due to falling incomes and worsening the financial result.
Between January and March, CLH generated a turnover of 132.9 million euros, 2.6% less, and reduced its gross operating profit (EBITDA) by 5.9% to EUR 72 million, reported Today the company to the National Securities Market Commission (CNMV).
The recurring operating profit was 51.4 million euros, 4.5% less, and operating income totaled 146.5 million, 1.8% less, with a decline from the basic logistics 1.5% (115,600,000).
Revenue appropriations of petrol and diesel increased by 1.8% and those derived from allocations of aviation products fell 16.5%.
The financial result showed a negative balance of 4.2 million euros, up from 2.9 million a year earlier, because the financial cost increased from 725 to 776,700,000, to higher average debt volume, because the profit contributed by member companies fell by 1.1 million.
The output of petroleum products from CLH facilities totaled 10.3 million cubic meters until March, 2.2% less than a year earlier due to falling demand prompted by the unfavorable economic climate and the high price of refined products.
HLC believes that it is likely that weak demand for oil is maintained throughout the year given the negative forecasts of economic activity.
In the products of land, representing 84.6% of the total withdrawals of motor fuels fell 0.9% to March and the rest of diesel by 3.1% less use of heating.
The output of aviation products declined in the first quarter of 12.2%, of the economic situation some firms spanning air, while the output of marine products rose 23.6%, due to the commissioning new storage tanks IFOS in Algeciras.
In the first quarter, CLH invested 12.5 million euros, half a year earlier.
TEPCO, Japan’s largest electricity operator of the troubled nuclear plant in Fukushima, lost more than 7,500 million euros in fiscal 2011 and at the edge of the temporary nationalization, faces an uncertain future.
Although much smaller than the red ink of 1.25 trillion yen (EUR 12.112 million) the previous year, Tokyo Electric Power (TEPCO) chains with the loss, released today, his second negative year because of the nuclear crisis triggered by the earthquake and tsunami of March 2011.
The company attributed the dismal performance of this fiscal year, ended March 31, increasing the costs of its power stations, which now underpin its electricity generation after the Fukushima accident forced him to paralyze the rest of your plants nuclear safety or routine checks.
Problems in the power and the government appeals to energy savings have also helped sales of TEPCO were reduced by 0.4 percent to 5.25 billion yen ($ 51,860 million).
To solve the financial difficulties of the company, which provides electricity to more than 45 million people, the Government approved the plan on May 9 that plans to inject 1 trillion yen (9,700 million) in public funds, in exchange for put under state control group for at least one or two years.
The injection will be used by TEPCO, and ensure the power supply, addresses the costs of dismantling the damaged reactor and compensate those affected by radioactivity.
Some 80,000 people are still evacuated in a radius of 20 kilometers around the plant, and many experts say it will take decades to decontaminate areas affected by radiation.
The total amount of compensation that will mean is another question in the future of TEPCO, which so far has only made plans for compensation to five years for those residents most affected areas.
For government assistance to be effective must be approved in June by the next meeting of shareholders of the company, which for this fiscal year 2012 provides for a net loss of “only” 100,000 million yen (970 million), well below filed today.
Both Nippon Government as responsible for the electrical expect even that it returns to profit in fiscal 2013, Japan concluded the March 31, 2014.
However, these estimates assume that achieved TEPCO move forward two controversial measures: rising more than 10 percent of electricity bills for households and reactivate its nuclear plant in Kashiwazaki-Kariwa, Niigata in the province (northwest) .
The government itself estimates that the recovery of this plant, one of the largest in the world in terms of electricity, we would at TEPCO a reduction of about 780,000 million yen (7,557 million euros) in generation costs.
The Spanish Foreign Minister, Jose Manuel Garcia-Margallo, said today that the situation in Greece “great concern” to Europe and recalled to Athens to meet all agreed whether to continue in the euro.
“We all agree that membership of the euro implies a number of obligations, including fiscal discipline and macroeconomic discipline, ie club membership required to comply with the rules of the club,” said Garcia-Margallo after meet with their counterparts from the European People’s Party (EPP) in Brussels.
According to the Spanish minister, now up to the Greeks “decide if they are willing to comply with these obligations or not.”
“The best that Greece could do for their own survival and the survival of the Economic and Monetary Union in its current situation and its current context, is the earliest form a government and the sooner that will fulfill the obligations under the which was agreed a rescue package, “he said.
Garcia-Margallo said that Greece “has had two rescue packages and remove extraordinarily generous” in exchange for the commitments it accepted.
The concern of the conservative foreign ministers, according to the Spanish, has expanded “because the latest polls seem to say that a game would be far from the European ideal which would have an absolute majority and that Greece would not be able to meet the conditions of the rescue. ”
“Therefore (Greece) would choose a path that the further away than the closer to monetary union,” he said, referring to a possible victory of the radical left if convene new elections.
Asked if the euro countries would wait for new elections in Greece before making a decision on the future of the country, Garcia-Margallo said he was not “able to speak.”
He also recalled that “any turmoil in the markets by definition affects not only us, but to all European Union countries.”
Garcia-Margallo participates today in Brussels at a meeting of foreign ministers of the bloc, whose end will coincide with the start of a meeting of holders of euro zone finance.