Spain Finance & Business Review

The European Central Bank increased interest rates by a quarter point yesterday as expected, making it the fifth increase in under a year. Base rate now stands at 3.25%, and yet another increase is expected in forthcoming months. The current rate is the highest it has been for the past three and a half years.

The Construction company ACS has asked the National Energy Commission for permission to buy more shares in Iberdrola. It wants to go over the 10% level and has even talked about reaching 24.9%. That is the largest amount of shares it can own without having to launch a take over bid.

The IBEX 35 stock market index rose to a new all time high in Madrid yesterday reaching 13,100 as the fusion fever continued and the market enjoyed the new lower oil prices. Among the greatest climbers was the BBVA bank whose shares rose 3.25% on the day.

Spanish/Argentinean Repsol YPF and the Russian Gazprom have signed a collaboration agreement for future joint projects in the search for gas and oil in Europe, Latin America and Africa. The Spanish company considers it an important alliance for the future, especially in the world gas market.

The Industrial Production Index for August was up 5% compared to a year ago, with the largest industrial growth being shown the Basque Country and Aragón. The numbers come from the National Statistics Institute which also reports that consumer demand was up 2.3% over the year.

The number of broadband Internet connections in Spain has reached the six million level, according to the Telecommunications Market Commission. The number means that there are 13.6 broadband lines for every 100 inhabitants, most of them ADSL.

Spain’s state owned Parador hotel chain of 91 top hotels with some 10,000 rooms could be in for a change in how it is run. The Minister for Industry, Tourism and Trade, Joan Clos, said that in ‘a reasonable amount of time’ he wanted to find a way that the regional government’s could play their part in the running of the establishments. The matter has come to the forefront following certain clauses in the new Catalan Statute. Last year the Paradors made a profit of 38.1 million €, 17.2% more than in the previous year.

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