Finance: News in Brief
The landscape of European flight activity saw a notable shift with a 5.1% drop in 2024 compared to 2023. While July 2023 emerged as the peak month, January 2024 reflected the lowest activity. Despite most of the year’s decline, recent stabilization hints at a positive outlook for 2025.
An ambitious international finance package of €157 million has been unveiled to bolster a private wind power project in Ukraine. Co-financed by EBRD, IFC, and BSTDB, and supported by the EU, UK, and CIF, this initiative is a testament to the ongoing effort to enhance energy security and promote renewable energy against the backdrop of conflict.
The EU is executing strategic plans to reduce reliance on China and other nations for critical raw materials such as lithium, cobalt, and rare earths. By mining significant quantities from its own territory, the EU aims to secure a stable supply and minimize foreign dependence.
A revolutionary development in technology comes from Deepseek, a new AI model that dramatically reduces training costs and requires fewer semiconductor chips. Originating from a Chinese app, its emergence has led to notable declines in tech stock prices across global markets.
In Italy, BBVA Bank has reached a milestone, with over 680,000 customers surpassing its 2026 goal of 500,000 users. Launched digitally in 2021, BBVA initially targeted 100,000 new customers annually and is now on a trajectory to reach one million clients within two years.
In real estate, Blackstone, a major American asset group, has successfully closed a €9.8 billion European property fund, marking it as the largest of its kind. Despite prevailing market uncertainties, the firm identifies clear signs of recovery and a promising “opportunity-rich” environment.
As Easter approaches, Switzerland’s chocolate industry confronts challenges due to increased cacao prices and new U.S. tariffs. While some chocolatiers and officials express concern over key Swiss exports, many adopt a cautious and observant stance.
Speed Bump
Porsche, the German sports car manufacturer, reported an 8% reduction in global vehicle deliveries in the first quarter. This decline is attributed to weak demand particularly in China, with sales dropping by 42%, and in Europe with a 10% reduction. Even in Germany, Porsche’s home turf, deliveries fell by 34% to 7,495 units.
Amazon’s operations in Spain reached unprecedented success in 2024, generating over €8 billion in gross sales across various business sectors. This figure encompasses revenues from seven Spanish subsidiaries and two Luxembourg-based subsidiaries engaging in retail sales via Amazon.es.
Engel & Völkers Real Estate offers an exquisite luxury property in Marbella, Spain. Priced at €70 million, Villa Bellagio sits 300 meters above sea level in the elite Sierra Blanca area of Málaga. Covering 5,507 square meters on the region’s largest plot, the villa boasts 16 bathrooms and 13 suites, with luxurious amenities including a spa with a heated indoor pool, sauna, gym, and a salon.
In response to U.S. tariffs, Spain’s Prime Minister, Pedro Sánchez, is positioning €14.1 billion for a Trade Response and Relaunch Plan. The aim is to counter tariff impacts and reinforce the resilience of various export sectors.
France is experiencing shifts in import and export trends, with a notable increase in communication and publishing products imports in February. In contrast, exports of transport equipment and refined petroleum faced declines, resulting in a widening goods trade deficit to €6.4 billion. Meanwhile, the services trade surplus slightly improved to €4.1 billion.
Eurostar’s exclusive control over rail routes from London to mainland Europe is soon challenged as Italian state railway FS plans to introduce a high-speed Paris-London service by 2029 via the Channel Tunnel. The €1 billion project, in collaboration with Spanish firm Evolyn, aims at creating a sustainable and competitive European rail system.
EU finance ministers are in discussions to establish a joint intergovernmental defense fund designed to facilitate large-scale defense financing without further increasing public debt. This initiative reflects Europe’s growing resolve to enhance security capabilities independently of the US.
Banco Santander is contemplating the sale of its Polish subsidiary, Santander Bank Polska, where it holds a 60% stake valued at €7.5 billion. Despite legal challenges and rising shares, it remains early in the deal process, with Santander aiming for future growth in the Americas, focusing on locations like Mexico and the US.
Bulgaria, with its strategic location and EU integration, presents an interesting case for foreign direct investment. Boasting a flat 10% corporate and income tax rate and a currency pegged to the euro, Bulgaria offers a promising economic environment despite facing challenges such as labor shortages and slow bureaucracy.
The Spanish Ministry of Economy has collaborated with the Moroccan Ministry of Economy and Finance to finance the purchase of 40 intercity trains, valued over €750 million. This project involves the renowned Spanish train manufacturer CAF and is set to create significant employment opportunities in Spain.
Spain continues to be Morocco’s largest trading partner, engaging in a bilateral trade volume exceeding €22.5 billion annually, underscoring a robust commercial relationship between the two nations.
