Business View

The Deputy Prime Minister, Soraya Saenz de Santamaria, stressed today that one of the “strengths” of Spain is the “political and parliamentary stability” with a horizon of four years, which drives away “ghosts” and matters “that recurrently become” .

Saenz de Santamaria has been expressed in these terms during the presentation in the auditorium of the Reina Sofia Museum of “Modesta Spain” by Enric Juliana, journalist and correspondent for “La Vanguardia” in Madrid.

The vice president has been convinced that Spain will be able to overcome the current situation as it has in the past because it is the “same people”, but “stronger for having learned the lesson that you always down to earth” and “act modestly. ”

Have you considered that at present there is a “feeling that you live in a real roller coaster on the nature and the being of Spanish.”

“It’s bad to get used to everything, but I think the worst is used to living a kind of daily apocalypse that never ends,” said the vice president after praising the “calm reflection” Juliana does in his book.

According to the vice, often does not call attention to the strength that now accounts for political stability.

This is a “key element” in the whole of the EU but also outside, to convey to those who analyze all day if Spain will be able or not to leave the situation as the vice president.

He added that Spain has political stability “sufficient” to execute your program, which drives away ‘ghosts and issues that repeatedly come back. ”

In this regard, stressed that, unlike other countries, there is uncertainty that creates dissonance between the chambers, or coalition governments that do not match, and that the political landscape, “at least one side” is ” moderate. ”

For the vice president, the “phenomena” that are being seen in other states “leads us to learn” that the “best way to tackle the crisis” is from the restraint, modesty and stability.

The vice president, who has maintained a dialogue over an hour with journalist, has coincided with Juliana in the need for a “pact for modesty” and argued that the “spring effect” that exists to do an exercise austerity in order to grow.

In this dialogue, the vice president has asked the reporter what “modesty’s different about humility, even humiliation, seems called for in national and international environments.”

The European Commission (EC) today approved the temporary increase of 10,000 million euros up to 55,000 million, the ceiling of guarantees offered by Belgium, France and Luxembourg to the bank Dexia as part of their rescue .

The three countries decided to increase the limit initially set to ensure that the entity may terminate its resolution and to ensure financial stability.

Brussels, as explained by the EC in a statement, gives green light to that decision with the same arguments, but does so only temporarily.

The final decision on the compatibility of public support with the European rules on State aid will be announced once the EU executive completes its analysis of the Dexia settlement plan.

Today, the EC says it has “doubts” about the legality of extra guarantees amounting to 10,000 million euros granted to the bank, then add to the “tremendous support” and previously granted.

Dexia benefited from a first bailout in 2008 and again in need of public intervention in 2011, when France, Belgium and Luxembourg decided to split the entity into three branches to facilitate the restructuring.

The guarantees given by the States, initially of 45,000 million euros and then increased to the 55,000 million, were distributed with 60.5% by the Belgian State, 36.5% of French and 3% of Luxembourg.

Argentina’s President Cristina Fernandez announced today that it will change its fixed deposit in a fund dollars in Argentine pesos and encouraged his ministers and assistants to do the same, under the government’s campaign to encourage savings the national currency.

“I have a one-time fixed dollar for some time (…) and I decided to put my time deposits in pesos, is more profitable to have it in pesos,” the president said during a ceremony at the Casa Rosada.

The president urged his ministers and his colleagues to follow suit and referred concretely to the former Chief of Staff Aníbal Fernandez, who last week sparked an intense controversy by admitting he had savings in dollars and waiting for the right moment to change them.

“Fernandez you the first in line and bonnet,” he snapped the president, who lamented the “incongruous things that have been heard in recent days, including one’s own” on the Government’s strategy to “de-dollarization” the economy national.

Cristina Fernandez criticized those who questioned the government’s campaign and was convinced that “if the dollarization had succeeded, the Argentines would all be dead.”

The Treasury increased restrictions on dollar purchases in recent weeks, with new regulations for access to the U.S. currency for travel or cancel mortgage loans.

The new rules in practice restricted access for many investors to the formal exchange market, which resurrected the informal channels of forex trading.

The Brazilian Finance Minister Guido Mantega admitted today that private investment has fallen in the country for fear of the global crisis, but I hope a speedy recovery because “the economy (national) can grow,” despite the turbulence .

Mantega told reporters that, in compensation for the reduction of private investment, the state grew in the first months of this year around 30 percent over the first half of 2011, which used to leverage the activity economical.

“We have a very strong external crisis is not resolved” and “half afraid that leaves the private investor,” according to the minister, who said the government is “creating conditions” to recover the pace of business investment, by tax reduction in certain sectors and a cheapening of credit.

Mantega said that cutting measures taken in recent weeks have boosted consumption and allowed, for example, that automotive sales would improve by 10.8 percent in the second half of May.

“That means that this process will continue in June and there will be higher rates of growth of gross domestic product (GDP)”, which in the third quarter will outperform in the first, when it grew only 0.2 percent, below official forecasts pointing to 0.5 percent.

The prosecutor has opened an inquiry to determine if a crime could be committed during the process of creating diverse Bankia and required documentation, this entity as both the Bank of Spain expects the system to forward “with the greatest haste possible.”

This was revealed in an interview, the state attorney general, Eduardo Torres-Dulce, who said that the Anti-corruption measures, which opened last May 28, were ordered to “the realization of certain situations in the process of constitution of Bankia that apparently could lead to some clue that would investigate the criminal acts. ”

The Attorney General acknowledges that “there is a social demand for the activities (of banks) are investigated,” but adds that “although there were no social demand,” the matter “that deserves investigation.”

The investigation of the Prosecutor’s Office prior to the filing of lawsuits by individuals focused on corporate activities of Bankia, although the filing of such complaints has forced the Attorney General to submit to the court that handles all the steps taken so far, consistent basically in the request for documentation.

“We have taken those requests to the court for (…) know what line of inquiry that we propose,” said Torres-Dulce, which is considered “premature” to realize the potential crimes being investigated because “the situation itself entities and the financial and economic situation of the country “advises” really conservative “.

Will review the documentation that made the experts-both the Administration and Anti-that to determine “whether the facts constitute a crime and then go ahead, in which case we would bring oral evidence or, if if appropriate, assignment: quote charges against any person. ”

To do this, he insists, is “essential” the cooperation of the entities investigated and documentation held by the Bank of Spain and the National Securities Market Commission (CNMV).

The process of formation of Bankia goes back to early 2011, when there was the merger of Caja Madrid, Bancaja and five other entities-Caja Insular de Canarias, Laietana Box, Box Avila, Segovia and Caja Caja Rioja, leading the group then chaired by Rodrigo Rato, who eventually asked to be naturalized on 9 May.

For now, the Court of Instruction No. 21, Madrid the group handles a complaint against Rato Clean Hands and against the Bank of Spain Governor Miguel Angel Fernandez Ordonez, to “the possible existence of a criminal offense” in their management and asked the Prosecutor to report on whether or not to admit to proceed.

The European Commission (EC) today criticized the changes, “abrupt” in supporting renewable energy introduced into Spain and other countries and has called for greater coordination Twenty in terms of aid and trade in energy between them.

The EU executive today presented a communication on the situation of renewables in Europe in which, on the one hand, welcomed the good progress towards the goal of this type of energy in 2020 represent 20% of consumption in the EU and secondly, alert a number of problems.

Among them, Brussels shows concern for the “abrupt end” of support schemes for renewable decided by several countries.

These will include Spain, which last January announced a temporary cessation premiums for the new facilities to help reduce the deficit.

For the EU Energy Commissioner, Günther Oettinger, ending aid “the overnight” supposed “to end the confidence of investors”, not only that country but also “in renewable energy throughout Europe.”

The commissioner has been particularly critical of the changes retroactively.

Along with that problem, Brussels sees a need for greater “coherence” between support schemes in different Member States and calls them “encourage cost reduction and prevent over-compensation.”

“We must continue to promote renewable energy sources and promote innovative solutions. We have to do so profitably. This involves generating wind and solar power where feasible economically and market it in Europe, as we do other products and services “Oettinger defended.

The EC has called for more cooperation between the twenty-seven for all to meet its goals of using renewable, whether they have ample capacity to produce energy from sources such as those for which it may be cheaper to buy another Member State or a third country.

In this sense, Brussels has proposed boosting investment in the North African countries, which have great potential, and allow Europe to import electricity from clean sources.

Overall, the EC considers that the EU is on track to meet a binding target for 2020 was imposed.

Now, according to Brussels, it’s time to start thinking beyond that and give investors “clearly long term.”

Oettinger explained that the Commission expects to make a proposal to this effect in the first quarter of next year, which could introduce a new binding target for 2030.

The Commissioner stressed the need to raise these kinds of decisions “now” and “not in five years,” given the long-term planning requires the energy sector.

The chairman of the parliamentary group of the German Christian Democratic Union government (CDU), Volker Kauder, today called on Spain to ask the European rescue, given the difficulties being experienced by the banking sector.

“I think Spain should take shelter under the umbrella of rescue not (problems of) the country, but by (the difficulties) banks,” said fellow of the Federal Chancellor, Angela Merkel, told the morning news German public broadcaster ARD.

No aid may flow directly from the bailout funds to a public fund Spanish bank, also said Kauder, who early last April he visited Madrid, where he met, among others, the Spanish prime minister, Mariano Rajoy.

Kauder rejected the information published today by the newspaper Süddeutsche Zeitung about the European Union to facilitate the rescue study of Spanish banks by the transfer of direct aid from the European Financial Stability (EFSF) to Bank Restructuring Fund (FROB) Spanish .

The Christian Democrat parliamentary leader also stressed that Spain should develop a program of growth to also improve the training of young people and recalled that he spoke with Rajoy in Madrid on the subject.

“To this we must invest in schools, educational personnel, material. And it could make money the European Union,” said Volker Kauder, who said that the capital for such an initiative could come from structural funds, in which countries individuals must also make its contribution.

Given the problems of Spain to meet the latter Kauder said to be “of the view that we use the Structural Funds also to those prospects and give countries the opportunity to make their own contribution later or in another form.”

The SZ adds that the Madrid government should commit to eliminating the problems of the Spanish financial sector, if necessary with new blends, and even with the closure of certain banks.

He adds that, compared to the case of Greece, Spain need not be subjected to severe conditions to consolidate their budgets or reform its economy.

The SZ notes that EU experts estimate that the Spanish banking institutions may need assistance of between 75,000 and 100,000 million euros to overcome the crisis of the housing bubble.

The risk premium of Spain, which measures the difference to be paid to investors who buy Spanish public debt rather than German, fell today at 10.33 hours to 500 basis points, which was not the case since last May 25.

After closing yesterday at 510 basis points, the spread between bond yields and ten years Spanish and German in the same term narrowed today after the Spanish bond yield fell to 6.28% from 6.41% of the eve.

German bond yields, meanwhile, went from 1.21% to 1.27% at this time.

In the two preceding weeks, doubts about the permanence of Greece in the euro area and the process of recapitalization of Spanish banks placed Spain’s country risk in intraday highs above 540 basis points, its highest close though, May 30, was at 538 basis points.

The relative calm that prevails in the sovereign debt market in the euro area is due in part to the support of most industrialized countries, the G7, the financial and fiscal union in Europe.

In this thesis implicit support for the Spanish is added today, according to analysts clarify Saxo Bank, the European Commission’s proposal to manage future banking crises, the first step towards union bank.

In particular, various forms are shuffled to recapitalize Spanish banks, the last one which reveals the daily Süddeutsche Zeitung (SZ) citing EU sources.

According to this newspaper, the EU is looking to facilitate the eventual rescue of the Spanish banking sector through the transfer of direct aid from European Financial Stability Fund (EFSF) to Bank Restructuring Fund (FROB).

The spreads between ten-year domestic bonds and German the same period of other countries in the euro area also relaxed, so that Italy fell to 434 basis points, to 1,061 in Portugal, and Greece, 2791.

Tokyo stocks rose strongly today with the best expectations for the debt crisis in the euro area and the depreciation of the yen against the dollar and the euro, giving respite to exporters Nipponese.

The benchmark Nikkei rose 151.53 points, or 1.81 percent, and was at 8533.53 points, while the Topix index, which groups all the values ​​of the first section appreciated 10.32 points, or 1.46 percent, to 718.56 integers.

Of the 33 sectors that make up the floor Tokyo ‘, led the gains the property, followed by securities houses and insurers, while the major losses were recorded for gas and electricity, air transport and the pharmacist.

Vehicle manufacturers and export-oriented electronics gained ground in favor for the depreciation of the yen, which in modern day Tokyo was exchanged in band $ 78 and average of 98 yen to the euro.

The teleconference held yesterday the G7 finance chiefs also reassured the minds of investors.

However, many investors were cautious about the situation in Spain, after requested more support from the EU to clean up the banking.

In addition, investors will look fantastic in the European Central Bank (ECB), which is expected to keep interest rates now at 1 percent.

“The market expects some kind of decision (ECB), but few investors who expect to go so far as to cut interest rates. In any case, the ECB is expected to show its support to countries like Spain,” said Kazuhiro Takahashi, an analyst at Daiwa Securities, the agency Kyodo.

Among the major exporters, Sharp jumped 6.9 percent, while Nikon rose 3.5 percent.

The manufacturer of optical and medical devices, Olympus last year involved in a scandal over hidden losses, gained 0.5 percent after rumors pointing to a possible alliance with Panasonic, would become its largest shareholder.

Panasonic, meanwhile, gained 3.7 percent.

In the first section advanced 1,348 values, compared to 248 that lost ground and 67 remained unchanged.

Trading volume was 2,081.70 million shares, above Tuesday’s 1,807.90 million.