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Issue 11/532 Previous Editions
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Barclays  ·  Bemposta  ·  BP Portugal  ·  EDP Renováveis
HPP Saúde  ·  Logica

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  • The government saved some €1.2bn by using online tenders to award contracts in 2010. That would represent savings of between 10% and 12% according to estimates published in the Jornal de Negócios.
  • Portuguese public schools are planning the start of the 2011-2012 year without fresh directions from the new education minister Nuno Crato. Crato has told teachers’ unions he will present a plan for the new year by the end of July.
  • After a long debate, Lisbon will continue to have 24 districts, though some of them will be renamed. The initial proposal at the start of the year had envisaged reducing the number of “parishes” in the capital as a way to simplify municipal government.

  • Energias de Portugal’s renewables unit said last week it had established a project finance agreement to finance its planned 90 megawatt windfarm project in Romania. The deal, led by the European Bank for Reconstruction and Development, is worth some €73m.
  • Despite the crisis, Portugal’s footwear industry is growing exports and sales, the sector association said last week. APICCAPS said sales topped €600m in the first five months of the year, up 20%, while exports rose 12% to €233m.
  • For maintenance purposes, rail operator CP said last week it will cut services on its Cascais-Lisbon line in the summer. CP will suspend 17 services a day, reducing the service to around 250 runs.
  • Sales in the service sector continued to fall in May, the National Statistics Institute said last week. Sales were down 4.4% for the sector, accompanied by a 1.5% decline in service sector employment, the INE said.
  • Municipalities owe more than €300m to water company Águas de Portugal, according to a study released last week by the Association for Environmental Sector Companies. The state hopes to privatize AdP as part of its current efforts to reduce its deficit.
  • Construction is slated to begin on a shopping complex in Evora later this year. The Evora Shopping centre will open in 2012, with some 80 stores.
  • Vehicle retailer SAG said last week it had sold a 47% stake in its Brazilian unit Unidas for around €135m. The deal brings in three new shareholders to the Brazilian company, and leaves SAG with a 53% stake.

  • Portuguese banks had a total exposure of €43.8 bn with the European Central Bank in June, a 7% decline from the previous month. The Portuguese banks have been relying on the ECB for financing, since normal markets are closed to them as a result of the sovereign debt crisis.
  • Portuguese banks reduced the total loans to the economy in May, the Bank of Portugal said last week. The central bank said loans decreased by 7.6% in the month, to a total €4.9bn.
  • Portugal will tap the market next week with a treasury bill auction to raise between €750m and €1bn. The sale of short term debt will take place Wednesday.

  • Portugal Telecom widened its lead over Zon in Portugal’s fixed-line broadband market in the first quarter after gaining clients with bundled offers of television, Internet and phone services, sector regulator Anacom said last week. PT boostedn its share of fixed-line broadband clients to 47.2% from 46.8% in the fourth quarter, while Zon’s share was little changed at 33.1% compared with 33%.

Banks Pass Stress Tests, But Moodys Flunks Them Anyway

All four Portuguese banks that were subjected to the European-wide stress tests designed to gauge their strength passed this year’s tests, with two of them – Banco BPI and Caixa Geral de Depositos – posting core tier 1 capital above the 6% level, while Millennium bcp and Banco Espirito Santo were above 5%. The Bank of Portugal said it will require Millennium and ESFG, the holding company that controls BES, to boost their capital levels up to the 6% level. Both BES and Millennium already have capital strengthening plans underway. Despite the fact that all the banks passed the stress tests, it wasn’t long before there was a round of fresh bad news, once again from the US ratings agency Moodys. The agency cut the ratings of seven Portuguese banks, knocking five of them down to levels considered “junk.” The move was blamed entirely on the recent decision from Moodys to cut the rating of the Portuguese Republic to junk, rather than anything specific new data on the banks, and was seen as more automatic than anything. Even so, Caixa Geral de Depositos reacted right away, calling the downgrade “inexplicable” and “unwarranted”.

Portugal Moves Quickly On Economic Measures

Finance Minister Vitor Gaspar last week gave his first major press conference last week, saying he will quickly implement measures, including a series of privatizations, under a €78bn bailout plan designed to restabilize the economy. Gaspar outlined an agenda of profound economic transformation to reverse the country’s chronic weakness compared to its peers. Gaspar’s stated goal was "a new cycle of prosperity.” Under the bailout program, Portugal slash its budget deficit and carry out deep structural reforms to the labor system, the justice system and the property market to boost competitiveness. Gaspar said he expects Portuguese economic growth to resume in 2013, and accelerate thereafter. For 2011, though, Portugal faces a decline in growth of 2.3% and unemployment rising to 13.2% as austerity measures bite. Among those will be a one-time special tax on income for 2011, to raise a total of €1.0 bn. The freshly elected government's commitment to cut the budget deficit to 5.9% of gross domestic product this year from 9.1% last year. The level must reach 3% by 2013. Gaspar also outlined a plan to cut over €1 bn in state spending this year.

The euro's real trouble - The crisis of the single currency is political as much as financial
Anyone struggling to understand why Europe has proved incapable of putting an end to the euro's crisis might find answers in a bad-tempered dinner at a summit on October 28th 2010. —

Luanda 'most expensive city for expats'
Luanda, the capital of Angola, is the world's most expensive city for expatriates, according to a survey. — (BBC News)

Porto de Leixões bate recorde até Junho

O Porto de Leixões movimentou "um valor recorde" de mais de oito milhões de toneladas no primeiro semestre de 2011, um crescimento de 12% face ao período homólogo, divulgou hoje a infra-estrutura portuária de Matosinhos.
Segundo o comunicado, "o primeiro semestre de 2011 teve o melhor registo de movimentação de mercadorias de toda a sua história". Nos primeiros seis meses do ano, a carga exportada totalizou 2750 mil toneladas, mais 24% do que no mesmo período de 2010, sendo Angola, EUA, Reino Unido, Holanda, Espanha e Argélia os principais destinos da carga exportada a partir de Leixões.
"O maior crescimento nas mercadorias em Leixões nos primeiros seis meses deste ano registou-se na carga geral fraccionada, que atingiu um valor de 51% em relação a 2010, com um total de 462 mil toneladas movimentadas", acrescenta a infra-estrutura. - (AICEP)

If you wish to attend one of the events listed below, please contact:
Mª Helena Fernandes, BPCC, Lisbon.
Phone: +35 1 213 942 020, email: h.fernandes@bpcc.pt
This Diary of Events has now been expanded to include a selection of initiatives organised by the Commercial Section of the British Embassy* in Lisbon

21 July (Algarve) - New Members Cocktail Evening at BPCC member, Hotel Parque das Laranjeiras in Vilamoura.

27 July (Algarve) - New Members Cocktail Evening at BPCC member, Quinta do Barranco Longo in Algoz.

4 August (Algarve) – New Members Cocktail Evening at BPCC member, Mirage Garden in Alcantarilha.

14 Setember (Porto)Informal Business Drinks at the newly-open luxurious Intercontinental Hotel in Porto. Let us know of your intention to attend and turn up from 6:30pm onwards.

24 September (Óbidos) – Golf Tournament at Praia d’El Rey with the French and American Chambers of Commerce. Sponsored by Logica.

5 November (Algarve) – Family Day at Autódromo Internacional do Algarve in Portimão. Further details TBC.

11 November (Algarve) – Celebration of São Martinho at Castelo de Silves, sponsored by BPCC member Quinta do Barranco Longo.

Power Network lunches are organised on a regular basis (by invitation only) throughout the country. Should you wish to receive an invitation to attend the next one in your area, contact us on info@bpcc.pt
Interested in sponsoring these or any future Chamber events? - then contact us on h.fernandes@bpcc.pt

With respect to information in the publication, neither the British-Portuguese Chamber of Commerce nor any of our employees, makes any guarantee, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information. While the BPCC believes the information to be reliable, human or mechanical error remains a possibility. Neither the BPCC nor any of the sources of the information shall be responsible for any errors or omissions, or for the use or results obtained from the use of this information.
© British-Portuguese Chamber of Commerce

Please address any comments / enquiries to Chris Barton on c.barton@bpcc.pt
If you know of other companies who would like to subscribe to this service please forward their details.

Those Members who would prefer not to receive these bulletins should notify the Chamber accordingly.
Members wishing to sponsor bulletins should contact the Chamber for further details.


Aguirre Newman  ·  Bonhams  ·  British Council
BT Portugal  ·  Colt Telecom  ·  Conrad Algarve
Hilton Vilamoura  ·  HN  ·  HPP Saúde
JLL  ·  Millennium bcp  ·  Moneris
Praia D'El Rey  ·  PT Empresas  ·  Sage Portugal
Sovereign  ·  Tejo Energia  ·  Xerox Portugal

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Events Calendar

Business Training / Curso de Formação

Business Training / Curso Prático de Contabilidade de Análise de Balanços através do INEDEM, com certificação DGERT.

Business Breakfast

Pequeno-Almoço-Debate subordinado ao tema “Avaliação de Impacte Ambiental" com a pbbr no Barclays - Palácio Sotto Mayor.


Almoço-Debate com Ministro da Economia, Dr. António Pires de Lima, sobre o tema “A Retoma de Portugal” no Hotel Altis Grand.

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