ECB likely to leave interest rates in the Eurozone unchanged
The European Central Bank has been underlining what they see as the strong pressures on inflation, an indication that we are not likely to see any interest cuts in the Eurozone. That means that the currency continues to get stronger and today the Euro was close to the record level against the dollar of 1.60.
A statement from the ECB today, their April bulletin, said that the Eurozone was in a prolonged period of high levels of annual inflation, because of the price increases in energy and food. The bank has postponed the end to the economic slowdown.
Analysts say that given the statement European interest rates are likely to remain unchanged at 4% for some months.
Meanwhile the Euribor rate, used to set mortgages, continues to rise and is now close to 4.8%.
Meanwhile a new study has forecast the closure of 42,000 construction companies across Spain this year. The study from Axesor says that there has been an ever increasing number of real estate companies showing a loss since 2001, and that means that closure is inevitable.
The troubled Habitat real estate promoter has said that it hopes to return to profit in 2010. Until then Chairman, Bruno Figueras, has said that losses of 650 million ? are likely to accumulate.
The power company Iberdola has announced profits for the first quarter of the year of 1.2 billion ?, with a 65% increase on turnover. The profits are 2.6 times more than they were a year ago, and the company is now earning in three months what it took all of 2004 to obtain.
Meanwhile the EU has accused Spain of blocking the entry of foreign companies into the energy sector. It comes following the failed take over bid for Endesa by E.ON.
The Spanish Banking Association AEB has said that it has not ruled out ?accepting the costs? of the Government scheme to extend the mortgage repayment period for those families in difficulties meeting payments. The association has they will collaborate in the plan on a case by case basis, but not that much care must be taken when a mortgage extends over what is the working life. President of the Association, Miguel Mart?n, made the comments in reaction to the government?s plan, announced during the election campaign by Pedro Solbes.
And finally,
A new survey has shown that Spanish workers prefer to eat in the workplace. Nearly seven out of ten workers say they prefer to eat at work if that means they can leave for home earlier. The survey by the Sodexo company is more evidence of the pressure which the traditional three hour lunch and siesta break is under in Spain. “news feed”
