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Issue 13/616

Barclays  ·  Bemposta  ·  BP Portugal  ·  EDP Renováveis
HPP Saúde  ·  Logica

"Proud to be associated with success"
 

  • Consumer prices were flat in April, compared with March, leaving annualized inflation up just 0.2% compared with March 2012. Excluding more volatile food and energy costs, inflation was up 0.3%, according to the National Statistics Institute.
  • The water sector association AEPSA last week warned that planned new legislation is likely to translate into higher water prices for consumers. The association said that the new law aims to pay down debts held by municipalities and other local government bodies by passing on the cost to consumers.
  • The Organization for Economic Cooperation and Development’s advance indicator for economic activity in Portugal improved for the 11th straight month in March, finally inching over the 100 points level that indicates a return to growth in the medium term. The OECD’s indicator was positive for most of the large economic blocs including the US, Europe, Brazil and China.
  • Finance Minister Vítor Gaspar last week presented the Portuguese edition of This Time It’s Different, the controversial and influential book about debt and financial crises written by Carmen Reinhart and Kenneth Rogoff. Gaspar wrote the preface to the Portuguese version.
  • The Portuguese foreign press association and former President Mário Soares launched a book last week that collects articles from a number of foreign journalists living in Portugal. The book, Portugal na Imprensa Estrangeira, includes work from the late Martha de la Cal of the New York Times, Peter Wise from the Financial Times, and Francisco Barcia of La Gaceta de Los Negocios, among others. Brazilian journalist Renato Mendes edited the book.
  • Portugal’s gross domestic product slipped 0.3% in the first quarter compared to the fourth quarter of 2012, but was down 3.9% compared with first quarter 2012, the National Statistics Institute said last week. The first quarter was the ninth straight quarterly decline for GDP.
  • FC Porto defeated Paços de Ferreira 2-0 to win its third straight national football league championship. It was FC Porto’s 27th title overall, and came despite Benfica’s win over Moreirense. Porto won a crucial match against Benfica last week to all but seal the national title.
  • Lisbon powerhouse Benfica stumbled at the very last minute to lose 2-1 to Chelsea at the European League final in Amsterdam last week. The two teams played a close game, with Benfica taking the lead early and Chelsea equalizing in the second half, then taking the game with a goal in the 92nd minute. SIC TV was a winner, though, as more than 3.1m people tuned in to watch the game, making it the TV program with the biggest audience so far this year.
  • US golfer Peter Uihlein won the Madeira Islands Open by two strokes after shooting a 4-under 68 this past week to garner his first career title. It was Uihlein’s third top-10 finish in seven European Tour events this season.



  • Energias de Portugal has hired investment boutique StormHarbour to manage its upcoming sale of bonds related to the “tariff deficit”. EDP plans to sell at least €500m worth of the bonds this year, and will kick off a multi-city road show to explain the deal to investors in the main international markets.
  • Asteck, a Dutch investment company, said last week that sold 5% of its stake in Jerónimo Martins, leaving it with a 5% stake. Asteck’s Heerema vehicle sold the 31.5m JM shares at up to €17.25 each though an accelerated book-building process managed by Goldman Sachs.
  • EDP will have to pay more taxes in the Netherlands as the result of an agreement with tax authorities there. EDP was initially supposed to pay €2.2m on its profits of €43m at a Dutch-domiciled investment vehicle, but will now have to pay €13.5m.
  • Energy regulator ERSE last week said that EDP will have to pay a total €7m in compensation to customers who were overcharged for electricity because of faulty meters. ERSE ordered EDP to pay the compensation – up to €35.4 per customer affected – as a credit on June energy bills.
  • Winemaker Sogrape boosted its annual revenues to €204m in 2012, helped by the acquisition of Spanish unit Bodegas LAN. Outside of Iberia Sogrape produces wine in Chile, Argentina and New Zealand, and produced profits of €10.3m.
  • GalpEnergia and its partners Petrobras and BG have won another four concessions to search for oil in deepwater locations offshore in Brazil. The group, in which Galp holds a 10% stake, will pay around €95 million for the right to explore and drill in the Bacia de Barreirinhas zone in northern Brazil.
  • Moviflor, the large Portuguese furniture maker and retailer, has asked for state help to restructure its finances in an effort to dodge bankruptcy and save 950 jobs. The company has applied for the state’s Special Revitalization Process, which gives qualifying companies assistance in restructuring.
  • Profits at national electricity grid operator REN fell 16% in the first quarter to €29m, hurt by higher interest costs and the weak economic backdrop in Portugal, which has hurt electricity consumption.
  • Portugal’s government lost hundreds of thousands of euros due to fraud in the civil construction sector, the State Magistrate’s office said last week as it brought charges against 44 companies in the sector. The companies are accused of tax evasion through a complex scheme of false billing.


  • Michael Frendo has been named Chairman of Banif’s operations on the island of Malta. Frendo, a former Foreign Minister for Malta, will replace Joseph Sammut at the helm.
  • JP Morgan and Banco Santander Totta have decided to sue the Metros of Lisbon and Oporto over the terms of “swaps” contracts that the government is trying to change in order to trim losses. The banks say the swaps contracts are legitimate and that English law applies, and have brought their lawsuits in the UK courts.
  • The Bank of Portugal’s gold reserves have doubled in value since 2008, with the 382.5 metric tons of the yellow metal tucked in the vaults now worth €15.5 billion. The central bank also had a banner year in terms of activity, posting a profit of €449 million compared with €31 million in 2011. Of the profits, 80% will be handed over to the state.


  • Four months after Portugal Telecom launched its package deal for internet, TV, fixed-line telephony and mobile, competitor Zon has launched a similar “quad-play” deal. Called 4P, Zon’s move is seen as a way to keep its rival from gaining too much of an advantage while Zon completes its merger with Optimus.

Parliament Votes To Allow Same-Sex Adoptions, With Limits

Portugal's Parliament last week passed a law that will let same-sex married couples adopt their partners' children. But lawmakers declined to approve proposed legislation that would give gay couples the same adoption rights as heterosexuals. The leading opposition Socialist Party's proposal permitting a person in a same-sex marriage to adopt a partner's biological or adopted child squeaked through by a margin of five votes, while the Left Bloc and Green Party's bill that would have let gay partners adopt children together as a married couple was knocked down, with 104 votes against, 77 in favor and 21 abstaining. Last week's vote follows a law passed in 2010, when the Socialists held a parliamentary majority, which legalized the marriage of same-sex couples in civil ceremonies.

CEOs See Compensation Rise Slightly; Many Fall Back

The CEOs of the companies that comprise the benchmark PSI-20 stock market index earned a total 6% more in 2012 than in 2013, for a total €15.4 million. Energias de Portugal's CEO António Mexia was the best-paid top executive, receiving total remuneration of €3.1 million, including bonuses. Of the companies, only six CEOs saw their pay rise last year, two had unchanged compensation, and the remainder received lower compensation, with the drop in some cases rising as high as 20%. According to the Jornal de Negócios newspaper, which analyzed annual reports for the companies listed on the Euronext Lisbon stock exchange, fixed compensation for the company chiefs was €9.4 million, down from €9.6 million in 2011, while variable compensation, or bonuses, was nearly €6mm up from €5 million the previous year. Based on fixed compensation, GalpEnergia's CEO was the most highly paid, taking in €1.3 million, while conglomerate Sonae's Chief Executive had the lowest fixed remuneration, at €182,000.

Beyoncé Wipes With Renova, Apparently

Fashionable industrial products maker Renova last week highlighted a report in Cosmopolitan magazine that top pop singer Beyoncé Knowles uses the Portuguese company's red toilet paper. According to the Cosmo article, Beyoncé insists on having Renova's bright red rolls at all times, and demands it in her tour riders – those contracts that detail the backstage amenities stars require while on the road. Renova makes a wide range of toilet papers in various colors, including black, yellow, pink, green and Beyoncé's red. The black rolls in particular are said to be popular in hip Manhattan dance clubs and other venues. But Renova has also made inroads into more ordinary markets, with a recent deal to sell its premium loo rolls to US retailing juggernaut Wal-Mart. The initial agreement will cover Wal-Mart's 350 big box stores in Canada. The Cosmo article is here: http://www.cosmopolitan.com/celebrity/news/beyonce-red-toilet-paper-review

The European Central Bank - Broken transmission mechanisms
NEW figures from Europe reveal that both GDP and inflation in the euro area are falling, while unemployment is steadily rising. —

Barry Hatton: "The Portuguese Are Starting To Despair"
PDV caught up with the British author and local correspondent for the Associated Press who has called Portugal home for over 25 years, sharing his insight on the country, its people and what makes it worthwhile living here despite the centuries-old crisis. —

Luís Gonçalves Da Silva É O Novo Consultor Da Abreu Advogados

A Abreu Advogados dá mais um passo na estratégia de crescimento e valorização técnica das suas áreas core com a entrada de um novo consultor; Luís Gonçalves da Silva. Mestre em Direito e fundador dos Institutos de Direito do Trabalho e de Direito do Consumo da Faculdade de Direito de Lisboa, Luís Gonçalves da Silva integrará a Área de Prática de Direito do Trabalho.
Luís Gonçalves da Silva tem uma extensa e prestigiada actividade académica. É docente da Faculdade de Direito da Universidade de Lisboa, dos Cursos de Pós-Graduação de Direito do Trabalho do Instituto de Direito do Trabalho da Faculdade de Direito de Lisboa, das Faculdades de Direito da Universidade Nova de Lisboa e da Universidade Católica do Porto, e conta com uma vasta obra e inúmeras participações em seminários e conferências, nacionais e internacionais.
Foi Consultor do Secretário de Estado Adjunto e do Trabalho, tendo participado na elaboração, entre outros, do Anteprojecto, Projecto e Código do Trabalho (aprovado pela Lei n.º 99/2003, de 27 de Agosto) e respectiva regulamentação, tendo também recentemente tido responsabilidades na elaboração de diplomas laborais.
Luís Gonçalves da Silva foi ainda Coordenador do Grupo de Trabalho para a Reforma Laboral dos Profissionais dos Espectáculos, Presidente do Grupo de Trabalho para os Assuntos Laborais dos Transportes Rodoviários, Membro da Comissão de Acompanhamento da Reforma Laboral (CARL) e Membro da Comissão Interministerial dos Transportes. Entre 2006 e 2010, foi Vogal do Conselho Regulador da Entidade Reguladora para a Comunicação Social (ERC) e, actualmente, é membro da Direcção do Instituto de Direito do Trabalho da Faculdade de Direito de Lisboa e integra a lista de árbitros presidentes do Conselho Económico e Social.
If you wish to attend one of the events listed below, please contact:
Mª Helena Fernandes, BPCC, Lisbon.
Phone: +35 1 213 942 020, fax: +35 1 213 942 029, 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

16 May at 6:00pm (Lisbon) - Retirement Planning Seminar hosted by JP Morgan at Hotel do Chiado, Lisbon. R.S.V.P by email to carla@imperiusam.com

29 May (Algarve) – Business Breakfast on “Saving Money In Portugal” by Info At Your Door at Amendoeira Golf Resort in Alcantarilha.

30 Maio (Porto) – Pequeno-almoço Debate sobre “Contratos de Distribuição – Indemnização de Clientela” com a Macedo & Associados no Hotel Tiara Porto.

5 Junho (Porto) – Informal Business Drinks at the Barões – Quinta dos Barões – Avenida D. João II – Oliveira do Douro – 4430-022 Vila Nova de Gaia.. Let us know of your intention to attend and turn up from 6.30pm onwards.

5 Junho (Lisboa) - Business Training / Curso Intensivo de “Gestão de Tesouraria” através do INEDEM, com certificação DGERT.

5 Junho (Lisboa) - Almoço-Debate com Dr. Luís Amado, presidente do Banif, sobre o tema “O Futuro da Europa” no Hotel Sheraton em Lisboa.

6 Junho (Lisboa) – Seminário sobre “Energia Eléctrica: custo e perspectivas” no Hotel Corinthia Lisboa.

18 Junho (Porto) - Business Training / Curso Intensivo de “Gestão de Tesouraria” através do INEDEM, com certificação DGERT.

10 July (Algarve) – Lunch-Debate with Minister for Economy, Mr Álvaro Santos Pereira, at the Conrad Algarve. Further details TBC.

19 September (Lisbon) – Tour and lunch aboard MSC OPERA cruise ship for all Chamber members. Sponsored by MSC Cruzeiros S.A. Spaces are limited and on a first come first serve basis.

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
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Aguirre Newman  ·  Bonhams  ·  British Council
BT Portugal  ·  Colt Telecom  ·  Conrad Algarve
Hilton Vilamoura  ·  HN  ·  Jones Lang LaSalle
Moneris  ·  Praia D'El Rey  ·  PT Negócios
Sage Portugal  ·  Sovereign  ·  Tejo Energia
Xerox Portugal