SPAIN DAYBOOK: Bank of Spain’s GDP Estimate; Cabinet Meeting

The Bank of Spain is expected to publish its monthly bulletin, including an estimate for first-quarter gross domestic product figures at 10 a.m. CET.

WHAT TO WATCH: *The campaign for regional elections starts today. The ruling Socialist party may lose most of the 13 elections on May 22, a poll showed yesterday. *Spain’s Constitutional Court ruled to allow Basque party Bildu to stand in local elections this month, overturning a decision from the Supreme Court, El Pais reported. The decision may prompt the Basque Nationalist Party to resume its support of the minority Socialist government in Madrid, the newspaper said.

ECONOMY: *Cabinet meeting followed by a news conference by Deputy Prime Minister Alfredo Perez Rubalcaba at 1:45 p.m. in Madrid. *Lars Feld, a member of German Chancellor Angela Merkel’s council of economic advisers, said that he envisages two more interest-rate increases by the European Central Bank this year. *Spain’s National Statistics Institute publishes industrial production data for March at 9 a.m. CET.

EQUITIES: *Fomento de Construcciones & Contratas, the Spanish construction and engineering company, is scheduled to report first-quarter earnings before the market opens in Madrid. FCC will hold a conference call at 9:00 a.m. CET. *International Consolidated Airlines Group posted a first-quarter after-tax profit of 33 million euros compared with a loss of 243 million euros a year earlier. *The regional government of Madrid is preparing the ground for the water company Canal de Isabel II to buy up to 25 percent of the shares on offer in the initial public offering of Bankia, the bank formed from the savings bank merger led by Caja Madrid, Cinco Dias reported.

MARKETS: *The IBEX 35 Index fell 0.8 percent to 10,627.3 in Madrid. *The spread between Spanish and German 10-year borrowing costs widened to 202.2.

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