Spain is Getting Better and Better: Reynes

Your next video will start in

Recommended Videos

  • Info

  • Comments


Feb. 28 (Bloomberg) -- Francisco Miguel Reynes, Chief Executive Officer at Abertis, discusses the economic outlook for Abertis and future investments by the company. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

There is speculation the central bank will wind in the trading band.

The yuan has dropped to the lowest since 2007. china's central bank will double the trading band by the end of june.

Joining us now to discuss his company possible earnings is the chief executive officer of abertis.

Big in toll roads and telecommunications infrastructure, thank you very much for joining us.

Sales are up by 25%, two thirds of your sales are generated outside of spain.

Can you continue the performance you had in 2013 in 2014? the aim of the company is to become a global company.

In 2013 we became the world wide leader.

We worked hard to integrate our new positions in brazil and chile.

We are targeting the world as our market.

You're pretty convinced that we will have a lot of opportunities . our business is long-term.

Our business is related to concessions, which means private money for public investment.

It is a perfect pdp, and we are proud that we are ranked number one in our or.

The traffic outlook has been good.

The numbers are good in all your key markets, barring spain.

The best quarter, fourth quarter of last year, has been the best since 2008. is spain turning when it comes to the traffic outlook?


Spain is getting better and better.

If you look at the figures, we start with declining traffic in the first quarter of 2013 by nine percent.

It has declined by a small percent in the last quarter.

I think many of the jobs are now performing.

I think we will have a better 2014. we have inflation data from spain.

It shows deflation on a year on year basis.

How does that feed into your business?

Of course that is linked to our business.

We have done our job internally.

We have been promoting efficiency programs that are clearly offsetting the problems we may have on the income side.

I am pretty convinced that with the recovery margins, the company will get much better.

Will the economy look better in 2014 than it did in 2013 and 2012 and 2011? the government is making reforms.

Unemployment is still high.

There's a deflationary trend within the country.

What is the outlook for spain economically this year?

Spain has been suffering a very long crisis, since 2008. to be honest, economic things do not change from one day to the next.

Many things have been done in the last two years.

Hopefully we will start to get this feedback, positive feedback -- the exports from spain are at record levels.


With our figures, trucks on the motorways are growing faster than light vehicles.

That is a demonstration that our expert activities are getting better.

You want to grow in the u.s. and australia.

You are big in chile and brazil.

Gives a taste for what is happening in some of these emerging markets, given the volatility we have seen at the start of 2014. the first market where we are out of spain is france.

This is the first investor in france.

The first spanish investor in france.

We have invested over 5 billion since we came in.

We are seeing a very strong economy, although neither traffic nor gdp is showing such a richness.

France is a wealthy country.

But we are also a long-term investor.

We have been criticized sometimes because of the special data quarter by quarter in brazil or argentina or chile.

We are long-term thinkers.

We are pretty convinced that our investments on that side of the world will go better and better.

That is a demonstration in the traffic figures.

How are toll road contracts globally right now?

Our strategy is to become global and try to combine emerging markets with secure markets.

That is the reason why we are targeting countries like the u.s. and the u.k. and australia.

We are on the way to discuss a project in australia.

I cannot explain more than this.

Of course, it is a very interesting market.

Telecom italia have been trying to sell its towers.

Who knows how long?

Are you to buy them or not?

It depends if it is a good project.

We will look at any project that makes sense, but we will never break any of our golden rules for investment, which is mainly value creation and maintaining our dividend funds.

What is the outlook for 2014 when it comes to investing him and where are you investing?

Keep in mind that our investments are a consequence of a combination of recurrent traffics -- -- we have been investing parallel to our percentage, country by country.

For example, 30% of these investments have been focused on the spanish economy.

We took over the majority control of [indiscernible] . in brazil we have invested the most because we enter with a very important program.

In 2014, one of the parents we will invest with more is france.

It is a very special and creative solution for public investment with private money.

We're going to focus in france, as well.

On the day that the ecb releases inflation figures, what would you like the ecb to do?

Would you like a further rate cut?

Q1 a negative rate cut.

-- or a negative rate cut?

85% of our debt is at a fixed rate could we have made it our job not to be dependent on the decisions on the day today.

We can ask any central bank to take the best decision for the whole country, not just for one company.

Final question, is barcelona going to win the league in spain and the champions league?

Of course we will say yes.

Of course we saw a real madrid win.

In any case, we will have a spanish company at the end.

Thank you, francisco.

Francisco reynes, the chief executive of abertis.

Ukrainian parliament has just voted in a new government.

They are preparing their country for snap elections in may.

In the meantime, the u.s. has

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change