viernes, 21 de octubre de 2011

Current Affairs: Eta declares halt to armed conflict

Eta declares halt to armed conflict

Basque separatist group renounces use of arms after year in which it has observed unilateral ceasefire



The Guardian

Half a century of bloodshed in the Basque country has come to a historic close after the separatist group Eta finally renounced the use of arms and sought talks with the Spanish and French governments.

Three leaders in masks announced that the group was calling a final halt to the use of bombs and bullets in a video obtained by the Guardian and other news media.

"Eta has decided the definitive cessation of its armed activity," they said. Eta was following a peace script put together with the help of mediators led by the former UN secretary general Kofi Annan, after a year in which it had observed a unilateral ceasefire.

The Guardian revealed exclusively on Monday that a definitive end to Eta's armed campaign, one of Europe's bloodiest, was due to be announced this week, in response to a petition from Annan's group and following pressure from Eta's political allies in the so-called "Basque separatist left".

Annan's group made its petition late on Monday, urging Eta to make "a public declaration of the definitive cessation of all armed action". Leaders of the separatist left publicly backed the call the next day.

Eta's swift response indicates that separatist-left politicians such as Rufino Etxeberria and Arnaldo Otegi, both of whom have served Eta-related prison terms, exercise growing power over the group, according to sources close to the negotiations.

It also suggests that Eta has lost not just power over political allies, but also the support they once enjoyed among the 10%-20% of Basques who traditionally voted for pro-Eta parties.

Spanish prime minister José Luis Rodríguez Zapatero welcomed Eta's statement as a victory of democracy over terrorism. "For many, too many, years, we have suffered and battled against terror," he said. "We have done so until democratic reason has won out definitely."

"Ours will be a democracy without terrorism but with memory; the memory of 829 victims and their families, of so many wounded who suffered the unjust and hateful blow of terrorism," he added.

While Zapatero said the task of deciding what happens next should be left to the administration formed after the general election on November 20, it was not immediately clear how the governments of Spain and France would react to Eta's request for negotiations that it said should address "the resolution of the consequences of the conflict … to overcome the armed confrontation".

That is taken to mean, among other things, talks about the future of the 600 Eta members in Spanish and French jails.

The Spanish government will also come under immediate pressure to legalise the Batasuna party and other separatist organisations that were banned for being Eta fronts.

Although Zapatero's government did not meet Annan when it travelled to San Sebastian on Monday, observers speculated that group members – including former Norwegian prime minister Gro Harlem Brundtland – would not have gone to Spain without government consent.

The regional prime minister of the Basque country, fellow socialist Patxi López, has already suggested that Eta prisoners be moved to prisons closer to their families.

The centre-right People's party, led by Mariano Rajoy, which has traditionally been tough on Eta, is expected to win a landslide in the general election. If it does it will come under fierce pressure from Eta victims, including the families of PP politicians it has killed, not to concede anything to the group.

While other members of Rajoy's party have insisted that they will accept nothing less than Eta's surrender and dissolution, he has not commented publicly.

"He is a perceptive, intelligent and responsible person," said Brian Currin, the South African lawyer who has done much of the mediating work. "I am sure he will take the step to lead this process to its natural conclusion."

The announcement came 53 years after Euskadi ta Askatasuna, which means Basque homeland and freedom in the region's Euskara language, was founded by young separatists while Spain was ruled by the military dictator General Francisco Franco.

The group claimed its first victim, a civil guard police officer gunned down in Adona, near the northern Basque city of San Sebastian, in 1968.

Most of its victims, however, died in the years after Spain's transition to democracy and the approval of a statute of partial self-government for the region in 1979.

The group has been seriously weakened by police action in recent years, and some observers claim it has simply been defeated.

jueves, 13 de octubre de 2011

VIDEO - THE SMALLEST CAR IN THE WORLD

TOP GEAR is a very successful BBC TV programme about CARS. The presenters are famous for their sense of humour and sarcasm. Watch this part of a programme where Jeremy test drives the smallest car in the world. I think you will enjoy it ...

domingo, 9 de octubre de 2011

Finance&Economics: Spain's No. 5 retail bank Banco Popular launched an all-share bid for its smaller rival Banco Pastor







(Reuters) - Spain's No. 5 retail bank Banco Popular launched an all-share bid for its smaller rival Banco Pastor on Friday, proposing a merger that would give the two poorly capitalised banks a chance to cut costs and pool resources.

Popular offered 1.115 new shares for each Pastor share, and said the deal was subject to approval from a majority of Pastor shareholders.

A source close to negotiations told Reuters that Popular has a commitment from shareholders with some 50.1 percent of Pastor capital to take up the offer.

"The proposal to buy Pastor was announced after ensuring that, in principal, both Pastor's chairman and its core shareholders would take up the offer," the source said.

Neither Pastor nor Popular confirmed, however, that the deal has received the green light from Pastor chairman Jose Maria Arias Mosquera or from other core shareholders, Spanish retailer Inditex founder Amancio Ortega and Spanish savings bank Novacaixagalicia, each with 5 percent.

The deal implies a premium of about a third, valuing Pastor at about 1 billion euros compared with its market capitalisation of some 826 million euros.

After the capital hike to issue new shares, the premium would be 16 percent, Bankia analyst Javier Bernat said.

The Spanish stock market regulator had suspended trading in both shares earlier on Friday, sparking speculation of a merger.

Spanish banks are under pressure to close offices and sack staff as they grapple with falling profit, closed money markets and demands for increased provisioning against rotten real estate assets.

Pastor failed Europe-wide bank stress tests in July, which measured how banks will fare in a deep economic crisis including sovereign debt defaults. Popular passed, but by such a low margin that it must boost capital.

The Spanish banking sector is in the midst of restructuring, as the government forced on it a wave of mergers between unlisted savings banks, and recapitalisation.

"The deal makes all the sense in the world because Popular is very efficient and Banco Pastor has liquidity problems," said Jose Carlo Diez, chief economist at Intermoney Valores.

The Spanish merger comes as German and French leaders meet to decide how to strengthen European banks shaken by exposure to Greek debt, which hovers on the brink of default. But Spanish banks' exposure to Greek bonds is relatively small.

CONSOLIDATION

A tie-up would be the second merger between listed Spanish banks since the nation's economy took a dive following the bursting of a housing bubble in 2008. Mid-sized bank Sabadell took over smaller peer Guipuzcoano in September 2010.

"It was time that we had an acquisition on a bigger scale amongst the private banks, given how important the recapitalisation process is for the Spanish financial sector for the future," said Santiago Carbo Valverde, economics professor at Granada University.

Popular's total assets at the end of 2010 were 130 billion euros, making it Spain's No. 5 bank by assets. Its market capitalisation is almost 5 billion euros.

Pastor's total assets at the end of last year were 31 billion euros. It is one of Spain's smaller listed banks.

Popular's Tier 1 capital ratio in the European bank stress test in July was 5.3 percent, against 3.3 percent at Pastor.

Both banks had been rumoured to be looking at savings banks as possible purchases. Government-driven consolidation reduced the number of these unlisted, regional banks to 15 from 45 last year.

"Buying Pastor is a much better deal for Popular than one of the savings banks. Pastor has been on the market for some time and (Barcelona-based) rival Caixabank was really interested in getting its hands on it," a source close to the deal said.

None of the savings banks, known as cajas, managed to seal deals with private equity firms this year, and the Bank of Spain took over three last week, valuing them at practically zero.

Pastor's home base is Galicia, north-west Spain, where it controls 20 percent of the market. Like Popular, it focuses on loans to small and medium-sized businesses.

Apart from operational synergies, Popular's swoop on Galicia is also strategically sound because of the proximity to Portugal, where it has a growing banking business, Bankia analyst Javier Bernat said.

Spain's banks will face a massive spike in funding needs next year - around 130 billion euros ($174 billion) of Spanish bank debt will come to maturity in 2012, according to Thomson Reuters figures.

miércoles, 5 de octubre de 2011

Finance&Economics: Inditex SA : Zara improves its ranking in Interbrand’s annual list of global brands

Inditex SA : Zara improves its ranking in Interbrand’s annual list of global brands




The brand has climbed four places, to 44th position in the ranking of the most valuable global brands released by brand consultancy Interbrand. According to the 2011 ranking, the Zara brand is valued at USD 8,065 million (EUR 6,056.5 million), 8% higher than the previous year. Zara first joined the annual list in 2005 when it was ranked at number 77.

In the 2011 ranking, Interbrand highlights out the constant renewal of the latest fashion trends offered by Zara, its logistics system as well as its presence on the Internet and the social networks.

Interbrand is the world’s leading brand consultancy and its ‘Best Global Brands’ rankings one of the key indicators to measure brand value and influence.

2011 RANKING OF THE TOP 100 BRANDS (top 10)

1. COCA COLA (brand value USD 71,861 million)

2. IBM (brand value USD 69,905 million)

3. MICROSOFT (brand value USD 59,087 million)

4. GOOGLE (brand value USD 55,317 million)

5. GENERAL ELECTRIC (brand value USD 42,808 million)

6. MCDONALDS (brand value USD 35,593 million)

7. INTEL (brand value USD 35,217 million)

8. APPLE (brand value USD 33,492 million)

9. DISNEY (brand value USD 29,018 million)

10. HP (brand value USD 28,479 million)

martes, 4 de octubre de 2011

Finance&Economics: Ex-Caja Directors Face Payout Investigation, Cinco Dias Reports

Ex-Caja Directors Face Payout Investigation, Cinco Dias Reports



Former executives of Novacaixagalicia, the savings bank that received a 2.5 billion- euro ($3.3 billion) bail out from Spain last week, face an investigation over million of euros in payments they received on leaving the lender, Cinco Dias reported.

The new management, headed by Chairman Jose Maria Castellano, will examine the payments after Novacaixagalicia was taken over by Spain’s bank rescue fund last week, the newspaper reported, citing people familiar with the process.

Former managing director Jose Luis Pego was paid about 8 million euros in pension contributions and compensation when he left the bank in September while Javier Garcia Paredes and Oscar Rodriguez, who served as deputy managing directors, received about 7 million euros, the newspaper said

lunes, 3 de octubre de 2011

Finance&Economics: Spain nationalises three more savings banks

Spain nationalises three more savings banks



By The Financial Times

Spain’s official bank rescue fund has nationalised three more struggling savings banks, valuing them even lower than their directors’ worst expectations of only a few weeks ago, according to the Bank of Spain and private bankers.

Miguel Angel Fernández Ordóñez, governor of the Bank of Spain, said on Friday that the Fund for Orderly Bank Restructuring or Frob was spending €4.75bn on recapitalising the banking operations of NovaCaixaGalicia (NCG), CatalunyaCaixa and Unnim.

The takeover of the three was expected. September 30 was the deadline for banks to find new capital to ensure that their “principal capital” – akin to tier one core capital under international banking rules – reached 10 per cent of risk-weighted assets for lenders without outside investors.

Valuations were exceptionally low however, suggesting that the Frob was unimpressed with the assets of the cajas or savings banks concerned, all of which have been affected by the collapse of the Spanish property bubble since 2007.

NCG’s banking business was valued at 0.12 times book value, CatalunyaCaixa’s at 0.09, and Unnim at zero, said Mr Fernández Ordóñez and Javier Aríztegui, who heads the Frob executive. That gives the Frob 93 per cent of NCG, 90 per cent of CatalunyaCaixa and 100 per cent of Unnim, they said. Unnim was assigned a nominal value of €1.

“When a caja is worse, as when anything is worse, then it’s worth less,” was the blunt comment of Mr Fernández Ordóñez.

By contrast, CaixaBank, the new banking arm of Barcelona-based La Caixa, was floated at 0.8 times book value, while Bankia, a merger of Caja Madrid and six other savings banks, managed 0.4 times.

Spanish regulators have consistently been more optimistic about the state of the country’s banks than Spanish commercial bankers and foreign analysts, arguing that tight supervision has limited potential losses.

Regulators say the Frob is investing a total of €7.55bn, with private investors having put in €5.84bn, most of it through the initial public offerings of Bankia and Banca Cívica in July. Spanish officials insist that they see no immediate need for further recapitalisation of the country’s lenders, although independent analysts say €30bn or more of extra injections may be needed to stabilise the system.

“As of September 30, the process of recapitalisation is complete,” said Mr Fernández Ordóñez.

In the restructuring of the Spanish banking sector, the number of cajas has been reduced from 45 to 15 through mergers.

But successive interventions to rescue failing cajas – first Caja Castilla La Mancha, then CajaSur and most recently Banco Cam (formerly Caja Mediterráneo) – have weakened the case of the authorities. Soon after each rescue, published figures showed loan losses to be much worse than thought.

After being seized in July, Cam reported a first-half net loss of €1.14bn and disclosed that its bad loan ratio had risen to 19 per cent of assets, compared with the officially published figure of 9.1 per cent in December.

The authorities will now try to sell the cajas controlled by the state, starting with Cam, but are expected to find it difficult to find buyers unless they offer generous “asset protection schemes” to insure the new owners against loan losses.

Current Affairs: Excitement in Spain as eccentric Duchess marries man 24 years her junior

Excitement in Spain as eccentric Duchess marries man 24 years her junior

The flamboyant Duchess of Alba, Spain's much-loved 85-year-old grandee, will this week marry a civil servant 24 years her junior - to the initial horror of her children.



The Telegraph

Her first wedding was the most expensive the world had ever seen - a marriage so spectacular, so regal, that there were fears it could overshadow the nuptials a month later of Princess Elizabeth of England. Her third wedding may pale in comparison - but it is still one of the most sought-after invitations in Europe.

The 85-year-old Duchess of Alba, a Spanish aristocrat famed for her eccentric fashion sense and £3 billion fortune, is set to walk down the aisle this week, to marry a civil servant 24 years her junior.

She has overcome objections from her six children, concerned about their inheritance, and even the King of Spain, who also had his doubts about the suitability of Alfonso Diez. But Cayetana Fitz-James Stuart, descended from Churchill and King James II, is nothing if not single minded.

"I'm a very determined person," she said. "I've got my own ideas about things and I try to make them reality."

On Wednesday, at 1pm, the Duchess will marry at the chapel in the grounds of the Palacio de las Duenas, a majestic 16th-century estate where she lived with her two previous husbands and raised her children.

The King and Queen of Spain - close family friends - will not be present, owing to protocol which states the Royal family only attend first marriages. But last week the Duchess introduced Mr Diez to the king at his Madrid palace - a necessary act of ceremony for the woman who, it is said, could walk from the northern tip of Spain right to the farthest southern point without ever leaving her ancesteral lands.

The duchess is a distant relative of Queen Elizabeth, but - it is claimed - is more "noble". She holds the world record for the most aristocratic titles, being a duchess seven times over, a countess 19 times and a marquesa 23 times. Indeed, her full name is Maria del Rosario Cayetana Alfonsa Victoria Eugenia Francisca Fitz-James Stuart y de Silva.

As head of the 530-year-old House of Alba, she is entitled to ride her horse into Seville Cathedral, and according to protocol does not have to kneel before the Pope. Some geneologists even claim that the Queen must bow to her, owing to the fact that the duchess is descended from James II through his illegitimate son James Fitz-James, while the Queen is from the "upstart" Saxe-Coburg-Gotha line.

The heavy weight of history, protocol and expectation would prove an almost unbearable burden for most. But the duchess has somehow managed to resist the pressures of her role and carve out her own path with undeniable flair. Invariably sporting hippy bracelets and ankle charms, her love of bohemian, brightly coloured clothing has made her a contstant site on the nightly gossip chat shows. She revels in eccentricity, famously declaring that her style icon was "myself".

She had lost her first husband, Luis Martinez de Irujo y Artazcoz, in 1972. Her wedding to him in 1947 was considered the last great feudal wedding in Spain, with the cream of Spanish nobility gathering to witness the beautiful young heiress tie the knot with a dashing naval officer.

Following his death she married again, to Jesus Aguirre y Ortiz de Zarate - an intellectual and former Jesuit priest - but he died in 2001.

The twice-widowed duchess was friends with Mr Diez for over 30 years. His brother Pedro, an antique dealer, was a close friend of the duchess's second husband.

Both brothers lived quietly in Madrid's leafy, middle-class district of Chamberi. Alfonso worked as a civil servant at Spain's ministry of employment, and was described by friends as being cultured, refined, and interested in art and antiques.

But three years ago he bumped into the duchess by chance, on leaving a cinema. The pair share a love of bullfighting, flamenco, cultural heritage and art, and when Spain's voracious tabloid press heard of the blossoming romance, his quiet existence was rapidly transformed into a very public role in the spotlight.

"I felt very lonely after Jesus died, and I developed feelings for Alfonso," she told Spanish celebrity magazine Hola! in 2008. "When you get to know someone and you like them, you end up falling in love a little, and I fell in love with him.

"At one point, he confessed that he had developed feelings for me over the years. At first, I thought he was crazy. Later it hit me – it was something that would fill any woman with happy pride."

The couple made plans to marry, but her children were worried about their mother - and their inheritance. "My mother can't marry, owing to questions of historic responsibility," said her youngest son, Cayetano Martinez de Irujo.

"They don't want me to marry, but they change partners more often than I do," the duchess has said about her children, all of whom have had high-profile marriages that ended in divorce. "The tough part was that my children didn't understand and they got quite angry with me.

"It's true that I planned to marry. We were both full of enthusiasm for the idea. I took a step back for my children. I saw that everything was going to be very complicated."

But eventually she found a way. Earlier this summer, she divided up her vast wealth – thought to between £524m and £3bn – between them. Mr Diez has also signed away any rights to the fortune. The inheritance includes vast properties in Madrid, Marbella, Ibiza and Seville - her main residence. Among the treasures is a collection of historical documents that include Columbus' first map of the Americas, and the last will and testament of Fernando the Catholic, as well as a library valued at €20.5 million that includes a first edition of Don Quixote from 1605, and a family Bible from 1429.

She also has one of the world's best private art collections, with works by Rembrandt, Reubens, Velazquez and Titian.

Among them is a portrait by Francisco de Goya of her ancestor, the Duchess of Alba, who is said to have been the artist's lover and the model for his masterworks "The Clothed Maja" and "The Naked Maja". Picasso wanted the Duchess to pose naked for his tribute to the Goya works but she declined - much, now, to her disappointment.

With the fortune tied up and Mr Diez written out of the will, the children's objections melted away. "I sorted it out because I wanted to," she told Hola! last month. "Nobody pressured me to do it. Besides, as long as I am alive, everything is still in my hands."

And, as Seville gears up for yet another much-hyped Alba wedding, the city is abuzz with marriage fever. The Duchess, with her outlandish, hippy dress sense, has chosen Sevillian designers Victorio y Lucchino to make her wedding dress - and it is unlikely to be subtle.

Souvenir shops sell face masks featuring the Duchess and Mr Diez. T-shirts are sold, bearing her unmistakable frizzy hair and distinctive features.

People are happy for her - "they tell me so on the street," she said - and admire her resolve in marrying again, in her ninth decade.

But if there wasn't support from her friends, family, and countrymen?

"I wouldn't care," she said. "I'd get married anyway."