On-Line Casebook

Professor Spencer Weber Waller has recently posted the table of contents on SSRN of an on-line case book on international antitrust and a link to the full contents.  It deals mostly with jurisdiction,  procedure, trade and antitrust, and harmonization rather than the substance of the law.  See here for the link.

A most welcome initiative.

Nicolas

Comments

[raivo pommer-www.google.ee.]

Stocks inched higher Friday as better-than-expected earnings from Citigroup, General Electric and Google, helped stretch the recent advance to a sixth straight week.

The Dow Jones industrial average (INDU) added 6 points or less than 0.1%. The S&P 500 (SPX) index rose 4 points or 0.5%. Both ended at more than two-month highs.

The Nasdaq composite (COMP) gained 2 points or 0.2%, ending at a more than five-month high.

Stocks, as represented by the S&P 500, have gained 28.5% in the past six weeks, on bets that the economy is closer to stabilizing. The gains followed a selloff that left the S&P 500 at a 12 1/2 year low. A rash of better-than-expected profit reports has helped sentiment this week.

The six week run is the market's best since May 2007, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research.

[raivo pommer-www.google.ee.]

raivo pommer-www.google.ee
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HITLERS PRÄMIE

Kaum an der Macht, drängt es Joseph Goebbels 1933 hinaus ins wirkliche Leben, also in den Autosalon. "Gestern Nachmittag: mit Magda Auto-Ausstellung. Wunderbare deutsche Klassewagen. Wir haben wieder die Führung." Denn warum sollte er sich nicht gleich ein Auto kaufen und der nationalsozialistischen Volks- und Konsumwirtschaft mit gutem Beispiel vorangehen? Wenn er allerdings nur zwei Monate länger Geduld gezeigt hätte, dann hätte Goebbels, seit dem 13. März 1933 Propagandaminister, von einem neuen Gesetz profitieren können, das alle neuen Personenkraftwagen von der Kfz-Steuer befreite.

Die NS-Regierung förderte nämlich wie noch keine zuvor die Automobilisierung der Bevölkerung. Dazu gehörte nicht nur der vielberedete Autobahnbau, der bereits in den letzten Jahren der Weimarer Republik begonnen worden war, sondern auch dieses Steuergeschenk, das die notleidende Autoindustrie aufhelfen sollte. Trotzdem waren die Zulassungszahlen im dritten und vierten Quartal 1933 zurückgegangen; das Konjunkturprogramm wollte nicht anschlagen. Während die Dichter den Bleistift spitzten ("Die Stirn schließt mit der Faust den Bund;/ein deutsches Wunder wird hier kund./Und jeder, der hier dienend stand,/schuf mit am neuen Vaterland"), drohte die Wirtschaft zu verharren.

[raivo pommer-www.google.ee]

raivo pommer-www.google.ee
raimo1@hot.ee

Kapitalismus Tot

Die Weltrezession ändert vieles, auch die Sprache. Nach dem Untergang der DDR war es eine Zeitlang unmodern, die Marktwirtschaft "Kapitalismus" zu nennen. Man redete lieber von "Globalisierung" oder kritisierte bei Kirchentagen und anderen Gelegenheiten "Neoliberale" und "Marktideologen". Doch nun, in der Krise, gibt es einen neuen Grundton: Demonstranten wollen "den Kapitalismus abwracken", Finanzminister Peer Steinbrück klagt über "maßlosen Kapitalismus" und Oskar Lafontaine erklärt, das Wort Kapitalismus gebe "einfach die gesellschaftlichen Machtverhältnisse" wieder. Nicht nur am linken und rechten Rand, auch in der Mitte der Gesellschaft wächst das Gefühl, dass der Kapitalismus schuld an der Wirtschaftskatastrophe ist. Er steht unter Anklage und "ficht seinen Prozess vor Richtern aus, die das Todesurteil bereits in der Tasche haben", wie der Ökonom Josef Schumpeter vor gut sechzig Jahren schrieb. Das alles sollte misstrauisch machen.

[raivo pommer-www.google.ee.]

raivo pommer-www.google.ee
raimo1@hot.ee

ISLAND KAUPTHING BANK

Neuer Hoffnungsschimmer für die 50.000 deutschen Kunden der isländischen Kaupthing Bank: Die Bank teilte nun auf der Internetseite ihrer deutsche Niederlassung mit, dass sie die 308 Millionen Euro zusammen habe, um allen deutschen Kunden ihre Einlagen in vollem Umfang zurückzuerstatten. Außerdem können die Sparer auf Zinsen hoffen, diese Frage ist aber noch nicht abschließend geklärt. Die Konten sind seit dem 9. Oktober 2008 gesperrt. Damals hatte die deutsche Bankenaufsicht Bafin die Konten eingefroren, weil Kaupthing wegen der Finanzkrise ins Trudeln geraten und unter Aufsicht des isländischen Staates gestellt worden war. Seitdem können die Kunden nicht an ihr Geld.

Auch Islands Ministerpräsidentin Johanna Sigurdardottir bestätigte nun in einer Rede, Kaupthing habe genug Mittel, um die Spareinlagen der deutschen Kunden zurückzuzahlen. Aus regierungsnahen Kreisen in Deutschland hieß es am Montag, die Auszahlung sei nur noch eine Frage weniger Wochen. "Die Signale aus Island sind sehr ermutigend", sagte eine mit dem Vorgang vertraute Person.

[raivo pommer-www.google.ee.]

raivo pommer-www.google.ee
raimo1@hot.ee

Wolksvagen und Man in Brasilien

Europas größter Autobauer Volkswagen hat einen Verlust im ersten Quartal durch den Verkauf seines Geschäfts mit schweren Lastwagen in Brasilien an MAN verhindert. Der Wolfsburger Konzern wies am Mittwoch einen operativen Gewinn von 312 Millionen Euro für das erste Vierteljahr aus.

Vor Jahresfrist hatte mit gut 1,3 Milliarden Euro noch ein Vielfaches zu Buche gestanden. Der Verkauf des brasilianischen Nutzfahrzeuggeschäfts trug den Angaben zufolge rund 600 Millionen Euro zum operativen Gewinn im Auftaktquartal 2009 bei. VW hatte wegen der weltweiten Absatzkrise zu Jahresanfang einen Verlust für das erste Geschäftsquartal nicht ausgeschlossen. Analysten hatten im Schnitt mit einem operativen Verlust von 60 Millionen Euro gerechnet.

Volkswagen hatte sein Geschäft mit schweren Nutzfahrzeugen und Bussen in Brasilien im Wert von 1,175 Milliarden Euro zu Jahresanfang an den Münchener Lkw- und Maschinenbauer MAN verkauft.

[raivo pommer.www.google.ee]

raivo pommer-www.google.ee
raimo1@hot.ee

ECONOMIC SLUMP

The IMF urges more aggressive action by governments to clean up banks and financial groups swiftly and to purge them of toxic assets. It warns that failure to pursue this urgently risks aggravating the banks’ plight and prolonging the world economic slump.

The fund has sharply raised its estimate of losses on lending, first made in the United States, for a second time, to $2.7 trillion. That compares with an initial forecast of just under $1 trillion and a $2.2 trillion estimate six months ago. For the first time, the IMF has also issued estimates of likely losses inflicted by lending originated in Europe and Japan. It puts likely write-offs due to European lending at $1.19 trillion and those for Japan at $149 billion.

New losses to be written off by British banks this year and next are put at $200 billion, compared with $750 billion for eurozone banks and $550 billion for the US. The fresh UK losses come on top of $110 billion already written off up to the end of last year.

[raivo pommer.www.google.ee.]

raivo pommer-www.google.ee
raimo1@hot.ee

MEGA-REZESSION in Europe im Jahre 2010

Anders als bislang erwartet wird die deutsche Wirtschaft voraussichtlich auch im Jahr 2010 schrumpfen. Sowohl der Internationale Währungsfonds (IWF) als auch die führenden deutschen Forschungsinstitute rechnen inzwischen mit einem zweiten Krisenjahr. Knapp fünf Millionen Menschen sollen dann arbeitslos sein. Zudem werden die Staatsschulden dramatisch steigen, urteilen die Institute.

Während diese lediglich einen Rückgang des Bruttoinlandsproduktes (BIP) von 0,5 Prozent erwarten, rechnet der IWF mit einem Minus von einem Prozent. Auch für 2009 sind die Prognosen weitaus schlechter als erwartet. So kommen die Institute zum Ergebnis, dass die Wirtschaftsleistung um sechs Prozent schrumpfen wird. Der Fonds geht von einem Minus von 5,6 Prozent aus. Die Regierung will auf die Prognosen reagieren, indem sie ihre eigenen Erwartungen nach unten korrigiert - nach Worten von Bundesfinanzminister Peer Steinbrück (SPD) auf ein Minus von fünf Prozent oder mehr. Im Januar hatten die Experten der Regierung noch damit gerechnet, dass das BIP nur um 2,25 Prozent sinkt.

[von raivo pommer-www.google.ee]

raivo pommer-www.google.ee
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REZESSION IN MICROSOFT

Der weltgrößte Softwarekonzern Microsoft hat durch die Krise am PC-Markt einen herben Gewinneinbruch erlitten. Der Überschuss brach im abgelaufenen Quartal um fast ein Drittel auf knapp 3,0 Milliarden Dollar (2,3 Mrd Euro) ein. Der Umsatz fiel um sechs Prozent auf 13,6 Milliarden Dollar, wie der US-Konzern am Donnerstag nach Börsenschluss am Sitz in Redmond (Bundesstaat Washington) mitteilte. Das ist der erste Rückgang der Quartalserlöse im Jahresvergleich seit der Windows-Konzern Anfang 1986 an die Börse ging.

Microsoft rechnet überdies nicht mit einer schnellen Besserung am Markt. "Wir erwarten, dass die Schwäche mindestens bis ins nächste Quartal anhält", sagte Finanzchef Chris Liddell. Mit seinen Zahlen enttäuschte der Softwareriese die Erwartungen der Analysten.

Der PC-Absatz war im ersten Quartal laut den Marktforschern von Gartner um 6,5 Prozent geschrumpft. Werden weniger Computer verkauft, kann Microsoft damit zum Beispiel auch sein Betriebssystem Windows seltener absetzen. Außerdem sind immer mehr der verkauften Computer Mini-Notebooks, von denen zahlreiche nicht mit Windows, sondern mit dem freien Betriebssystem Linux laufen.

[von raivo pommer-www.google.ee]

raivo pommer-www.google.ee
raimo1@hot.ee

CALAIS

French immigration minister Eric Besson pledged today to remove a camp where illegal migrants gather near the port of Calais to try crossing to Britain.

The "jungle", as the makeshift tent city is known locally, sprang up after France closed a large Red Cross centre at nearby Sangatte in 2002, under pressure from Britain which saw it as a magnet for clandestine migrants.

"The jungle will no longer exist," Mr Besson told local business leaders during a visit to Calais.

"To maintain and develop the jungle would be an obstacle to economic interests and employment," he said.

Mr Besson was due to make a speech later outlining specific measures. His visit to Calais comes two days after police and bulldozers swooped on the camp, arresting about 200 migrants and removing their tents made of plastic sheeting and bits of wood.

The raid angered human rights activists who said it made no sense to clear out the "jungle" as migrants would simply relocate elsewhere in the area, as they did after Sangatte was closed. France and Britain should be looking for more sustainable solutions, they said.

[von raivo pommer-www.google.ee]

raivo pommer-www.google.ee
raimo1@hot.ee

1948 .

The contraction followed a 1.6 per cent slump in the last three months of 2008 - the first time two successive quarters have contracted more than 1 per cent since records began in 1948.

Today's estimated fall in quarter-on-quarter output is the largest decrease since 1979, according to the Office of National Statistics (ONS).

The news came as official figures also showed that car and commercial vehicle (CV) production fell sharply again last month (see below).

The dire figures come after Chancellor Alistair Darling indicated a 1.6 per cent slump in the quarter by saying the contraction would be similar to the previous period in his Budget speech.

He also predicted the economy would shrink by 3.5 per cent this year - more than double his previous forecast.

Today's figures come amid savage declines in output for many key sectors of the economy.

Much of the contraction was driven by an acceleration in decline for the service sector, which fell 1.2 per cent from a drop of 0.8 per cent the previous quarter.

Services, which account for 75 per cent of the UK's economy, were pushed lower by a significant drop in business services, according to the ONS.

Business services, including accounting and legal services, slumped 1.8 per cent, the largest fall since records began in 1983.

Total production - including manufacturing, mining and electricity, gas and water supply - declined by 5.5 per cent, the biggest fall since 1974.

[von raivo pommer-www.google.ee.]

raivo pommer-www.google.ee
raimo1@hot.ee

SLOW- MOTION

Federal regulators on Friday will privately begin telling the 19 largest US financial institutions how well they performed in stress
tests to assess their soundness.

Regulators trying to stabilize the financial system also will release the test methodology they used, which could provide clues about which banks may be in trouble - but also could could unwittingly roil the industry.

The results of the stress tests won't be publicly released until May 4.

The slow-motion rollout is intended to blunt market reaction to the news of which banks are healthy, which ones could fail if the recession worsens and which need more money to survive.

News reports, including a confidential outline of the tests first reported by The Associated Press this week, have led analysts to start handicapping which banks could fail. The speculation will intensify with Friday's release of the test methodology.

``I'm worried about the overreaction - people selling every bank short and pulling out all their deposits and hiding their money in the mattress,'' said Scott Talbott, a lobbyist with the Financial Services Roundtable, which represents the biggest financial firms.

Regulators are striving to release enough information about the stress tests to inspire confidence. But they don't want to give analysts so much detail that they can run their own tests on the banks before the official release of results.

[raivo pommer-www.google.ee.]

raivo pommer-www.google.ee
raimo1@hot.ee

CHINA GOLD

Die Volksrepublik China hat ihre Goldreserven seit dem Jahr 2003 von 600 auf 1.054 Tonnen aufgestockt. Das teilte der Leiter der Verwaltung der Währungsreserven, Hu Xiaolian, der chinesischen Nachrichtenagentur Xinhua mit.

Peking hatte in den vergangenen Jahren keine präzisen Angaben über seine Goldreserven gemacht. Marktkenner vermuteten allerdings schon länger, dass Peking seine Reserven ausbauen würde. Der Goldpreis legte am Freitag in Reaktion auf die Meldung aus China leicht zu. Kurz nach Eröffnung des New Yorker Handels kostete die Unze dort 908 Dollar. Der HUI-Index (Amex Gold Bugs Index) führender Goldminenwerte verbesserte sich zu Handelsbeginn um 3 Prozent auf 299 Punkte. Ende März hatte der Index noch 342 Punkte erreicht.

Leichte Diversifizierung der riesigen Währungsreserven

Wie Hu Xiaolian sagte, erfolgte der Reservenaufbau überwiegend durch Käufe von in China selbst gefördertem Gold. China gehört seit Jahren zu den wichtigsten Förderländern der Welt. Mit ihren Reserven von 1.054 Tonnen übertrifft die Volksrepublik die Schweiz, die Reserven von 1.040 Tonnen ausweist. Innerhalb der chinesischen Währungsreserven von rund 2.000 Milliarden Dollar spielt Gold aber nach wie vor nur eine bescheidene Rolle: Der Marktwert der Goldreserven beträgt lediglich gut 30 Milliarden Dollar

[raivo pommer -www.google.ee.]

raivo pommer-www.google.ee
raimo1@hot.ee

FIAT SERBIEN-OSTBILLIGARBEITER

Der italienische Autobauer Fiat kämpft bei der neuen Produktion seines Modells Punto in Serbien laut einem Zeitungsbericht mit massiven Qualitätsproblemen.

Von den zum Start der Montagelinie in der Stadt Kragujevac fertiggestellten ersten 305 Fahrzeugen seien nur 54 als fehlerlos zum Verkauf freigegeben worden, berichtete die serbische Tageszeitung «Politika» am Samstag. Fiat lässt bei seinem langjährigen serbischen Kooperationspartner Zastava das Punto-Vorgängermodell für den Verkauf in Osteuropa montieren.

Mal sei die Motorhaube knapp unter, mal knapp über den Kotflügeln ausgekommen, beschrieb das Blatt einige Qualitätsmängel. Ein anderes Mal habe ein Auto das Montageband ohne die vordere Stoßstange verlassen. Probleme gebe es auch bei der Lackierung, die per Hand erfolge. Die einen machten die mangelnde Qualifikationen der Arbeitskräfte, andere Fehler an den aus Italien gelieferten Montageteilen für die Probleme verantwortlich.

[raivo pommer-www.google.ee.]

raivo pommer-www.google.ee
raimo1@hot.ee

PANIC

The financial events of recent weeks have filled many of us with shock and panic. Surely no one could have predicted that we would be in this mess? Well, actually, they did. Here are ten people who saw the financial meltdown coming...

Here is a question Mr Cable’s posed to Gordon Brown, then Chancellor, during Treasury Questions back in November 2003: “The growth of the British economy is sustained by consumer spending pinned against record levels of personal debt, which is secured, if at all, against house prices that the Bank of England describes as well above equilibrium level. What action will the Chancellor take on the problem of consumer debt?”

Mr Brown did not answer how he would solve the problem, merely replying that: “We have been right about the prospects for growth in the British economy, and the hon. Gentleman (Mr. Cable) has been wrong.”

In October 2005 Mr Wood wisely declared: "Investors should sell all exposure to the American mortgage securities market." In an interview in 2007, he said: "Some institutions have been behaving like leveraged speculators rather than banks… The UK economy is heading for a sharp shock. It just remains to be seen how bad

[raivo pommer-www.google.ee]

raivo pommer-www.google.ee
raimo1@hot.ee

BaYErn LB bank

Es geht um die Zukunft einer Bank und ihrer vielen Beteiligungen, die sie in den vergangenen Jahren für viel Geld gesammelt hat. Und darum, dass vieles von dem nun auf der Kippe steht.

In Brüssel hieß es zuletzt, auf die BayernLB kämen "kräftige Auflagen" zu. Beteiligungen im Ausland sollen wegfallen, das Kapitalmarktgeschäft wird eingedampft, möglich ist auch, dass sich die BayernLB von ganzen Einheiten trennen muss.

Die Bank, die 2008 Verluste von über fünf Milliarden Euro einfuhr, muss in den nächsten vier Jahren 5600 der knapp 20.000 Stellen im Konzern kappen. Nur wo - das ist die Frage.

Noch hofft Kemmer, dass er die Stellen mit feinchirurgischen Schnitten möglichst schmerzlos los wird. Käme es hart auf hart, müsste er sich von ganzen Töchtern trennen. Von der Kärntner Osteuropa-Bank Hypo Alpe Adria (HGAA) etwa, die in 2008 einen Verlust von über 500 Millionen Euro einfuhr und wie die Mutter gestützt werden muss.

[raivo pommer-www.google.ee]

raivo pommer-www.google.ee
raimo1@hot.ee

Global recession took to the streets for Labour Day.

In Germany, on course for its biggest slump since World War II, Berlin police made 49 arrests as young demonstrators hurled bottles and rocks and set fire to cars and rubbish bins in the early hours.

Around 200 far-right extremists later attacked with sticks and stones a rally organised by trade unions in the western city of Dortmund, as well as police, who dispersed the skinheads with truncheons and took 150 into custody.

Some 484,000 people gathered for peaceful May Day rallies across Germany, unions said, but police were bracing for more pitched battles after nightfall with—and between—far-left and far-right groups.

In Turkey, security forces fired tear gas and water cannon in clashes with hundreds of May Day demonstrators in Istanbul that left dozens of people hurt.

Demonstrators threw rocks and petrol bombs at police and smashed the windows of banks and boutiques in the centre of Turkey’s biggest city. In Ankara, about 100 demonstrators also clashed with police, the Anatolia news agency reported.

Istanbul governor Mehmet Guler said 21 policemen and 20 demonstrators were slightly hurt and 108 mainly young people were arrested in the clashes.

[raivo pommer-www.google.ee]

Credit Crisis

More on our friends at Healthcare Connections, currently doing a roaring trade flogging Tamiflu to people worried about swine flu – for a total consideration of around £60, compared to the £7.10 NHS prescription price. A reader gets in touch to say that the company's sales staff told him it could take several weeks to get the medication out to him once he parted with his cash. A little disappointing since Tamiflu is most effective when used during the first few days of infection.

Horlick feels the heat again

Another blow to Nicola Horlick, right, the City superwoman who looked a little less clever when it emerged that her fund management company, Bramdean, had taken a big hit from the Madoff affair. One of Bramdean's biggest shareholders, Elsina, controlled by the entrepreneur Vincent Tchenguiz, has now called an extraordinary general meeting of the company, in a bid to unseat its entire board.

Desperate times call for desperate measures

Do you think the posh grocer Whole Foods Market is struggling to get punters through the doors of its flagship outlet in Kensington High Street in London? Efforts to pull in a crowd seem to have been stepped up: the store is hosting a series of events, ranging from Cuban dancing shows to a lecture series on coping with allergies. There is even a "Free Salsa Class for Thirsty Thursday Customers". Given the price of some of its food, perhaps a seminar on how to do a full week's shop without giving your bank manager heart failure might be more appropriate.

Primark outfoxes the demonstrators

Primark hasn't got where it is today without some smart thinking. When executives discovered the opening of a new store in Tooting, south London, due today, was to be the target of a demonstration by War on Want, they acted quickly. An embarrassing scene was avoided by the simple trick of opening the store 24 hours early – the doors were thrown open yesterday morning.

[raivo pommer-www.google.ee.]

raivo pommer-www.google.ee
raimo1@hot.ee

MAY DAY FINANCE

Hundreds of thousands of European workers feeling the pinch of the economic crisis rallied at May Day protests Friday from Moscow to Berlin to Istanbul.

Violence and clashes between police and angry protesters disrupted some events, including in Greece, Germany and Turkey. But overall participation fell short of what many countries' unions had hoped for on May Day, a public holiday in many countries that has long celebrated the social and economic achievements of labor movements.

Many of the protesters complained about rising unemployment and lost benefits, but few specifics appeared to emerge from the demonstrations about what governments should be doing to fight the global crisis.

In Paris, fractious French labor unions came together for the first time in decades to stage a joint march that ended at the Place de la Bastille. Up to 300 smaller demonstrations were planned across France, and police said turnout in Strasbourg, Nancy, Metz and Besancon was many times higher than last year's May Day events.

[raivo pommer-www.google.ee]

raivo pommer-www.google.ee
raimo1@hot.ee

SPAIN BANK CHRISE

Spain's Santander, the euro zone's largest bank, on Wednesday said its first quarter net profit dropped by only 5 percent amid Spain's economic slump and increasing bad loans.

The bank, the biggest in Spain, said "the financial crisis and the economic slowdown have resulted in slower growth in activity and increased non-performing loans, which have required greater provisions."

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Santander said its loan-loss provisions were up 73.2 percent to ?2.234 billion ($2.9 billion). Bad loans as a proportion of lending stood at 2.49 percent, nearly double the 1.25 of a year before.

The results, described as "excellent" by bank vice president Alfredo Saenz, were seen as better than expected and pushed shares up 4.1 percent to ?6.83 ($8.87). Banks around the world have reported huge losses stemming from the collapse of securities based on U.S. mortgages to people with shaky credit.

The bank said that the year-on-year results were affected by the integration of two British acquisitions, Alliance and Leicester and the deposits and distribution channels of Bradford and Bingley, which contributed ?66 million ($85.75 million) in the quarter, as well as two months of results from U.S.-based Sovereign Bank, which registered an attributable loss of ?20 million ($25.98 million).

It added that the depreciation of the British pound and certain Latin American currencies had an impact of between 7 and 8 percentage points in profit growth in euros.

"Excluding these effects, the group's attributable profit would be practically the same as in the first quarter of 2008," Santander said.

It pointed out that net profit was actually up by 8 percent compared to the fourth quarter of the 2008.

Spain, one of Europe's economic success stories for more than a decade, has seen its economy stumble badly over the past year due to the collapse of a real estate bubble and tighter credit conditions owing to the international financial crisis.

The country has gone from being among the Europe's largest job creators to having its highest unemployment rate at 17.4 percent.

[raivo pommer-www.google.ee.]

Pian kaikki maailman pankit kriisissa

SPAIN BANK CHRISE

Spain's Santander, the euro zone's largest bank, on Wednesday said its first quarter net profit dropped by only 5 percent amid Spain's economic slump and increasing bad loans.

The bank, the biggest in Spain, said "the financial crisis and the economic slowdown have resulted in slower growth in activity and increased non-performing loans, which have required greater provisions."

Advertisement

Santander said its loan-loss provisions were up 73.2 percent to ?2.234 billion ($2.9 billion). Bad loans as a proportion of lending stood at 2.49 percent, nearly double the 1.25 of a year before.

The results, described as "excellent" by bank vice president Alfredo Saenz, were seen as better than expected and pushed shares up 4.1 percent to ?6.83 ($8.87). Banks around the world have reported huge losses stemming from the collapse of securities based on U.S. mortgages to people with shaky credit.

The bank said that the year-on-year results were affected by the integration of two British acquisitions, Alliance and Leicester and the deposits and distribution channels of Bradford and Bingley, which contributed ?66 million ($85.75 million) in the quarter, as well as two months of results from U.S.-based Sovereign Bank, which registered an attributable loss of ?20 million ($25.98 million).

It added that the depreciation of the British pound and certain Latin American currencies had an impact of between 7 and 8 percentage points in profit growth in euros.

"Excluding these effects, the group's attributable profit would be practically the same as in the first quarter of 2008," Santander said.

It pointed out that net profit was actually up by 8 percent compared to the fourth quarter of the 2008.

Spain, one of Europe's economic success stories for more than a decade, has seen its economy stumble badly over the past year due to the collapse of a real estate bubble and tighter credit conditions owing to the international financial crisis.

The country has gone from being among the Europe's largest job creators to having its highest unemployment rate at 17.4 percent.