The Portuguese airline TAP showed profits of 180,5 million euros between July and September.

According to an official statement, the company profited 230 million euros during the first nine months of the year. 180,5 were made during the last trimester, between July and September. The remaining 49.5, from January to June. This means a 364% increase from the first six months to the following three.

Given TAP’s history, this is encouraging news. During last year’s homologous period, the company presented losses of 90,8 million euros. These profits represent the first positive liquid result of these first nine months. According to the statement, it is a ‘historic’ win.

Note that whilst profit is an important financial metric, it cannot be the only metric used to assess whether a company is performing better than it was in the past, or is performing well.

To have an accurate picture of the actual state of the company, it is important to evaluate the profit in the context of an analysis that considers various factors. This holistic approach is what enables a more accurate assessment.

TAP was one of the first airlines to present accounts for the third trimester of 2023. Below we will report some of the values presented on those accounts. These values, being important assessment factors, will reiterate what the profits suggest.

In terms of revenue, during these first nine months of 2023, the company showed results of 3,2 thousand million euros. This represents a 30%, or 725 million euros increase when compared to the same period of the previous year.

The recurring EBIDTA (performance before amortizations, and without extraordinary effects) for these first nine months was 752,4 million. The last trimester alone accounts for 390,7 million euros, 110,7 more than what it was during the same period of 2022.

Moreover, in terms of passengers carried, the company flew 4,5 million during this last trimester. A 5,2% increase when compared to last year’s homologous period. In terms of flights operated, it had 5,7% more flights when compared to that same period.

Among the remaining activity indicators, the only one that did not show an increase was the ‘load factor’. This value corresponds to the occupancy of the aircraft and decreased by 2.2% when compared to last year. Notwithstanding, it is still above 80%, which is good.

Operational costs increased by 1,7% (982,2 million euros). This was due to the increase in the activity mentioned above, and to the increase in personnel costs, which was 60,5% when compared also to last year’s third trimester.

It is important to note that the company is returning the value of the wages to what they were prior to the cuts performed by the last administration. This means that it will have more satisfied workers. The degree of satisfaction is very important for the quality of the work performed.

TAP is doing better than it was, and the series of factors evaluated to provide the assessment show encouraging results. Not just in terms of the present, but also for what the future holds.

Note that TAP is a State-owned company, and is supposed to be privatized eventually. The process has already started.

The work done so far by the company’s new Chairman and CEO, who was appointed earlier this year, is visibly producing results. After managing the case of SATA Azores Airlines, Luís Rodrigues was chosen by the Portuguese Government to deal with TAP.

In very simple terms, the job was to fix the company and prepare it for the future sale. And, according to the results, so far, so good.

Guinness World Record holder Bobi, a medium/large-sized Portuguese dog, died last Saturday, at 31 years and 165 days according to the Government’s pet database.

Earlier this year, in February, Bobi became the holder of two Guinness World Records. He was the world’s oldest living dog, and the oldest dog ever. Now, if the pattern repeats itself, Bobi will be the oldest dog ever for almost a century. 

Prior to Bobi, the oldest dog ever died at 29 years of age, in 1939. This corresponds to something between 150 to 200 years, in human years. Bobi lived 2 more years, dying at 31. Considering Bobi’s size, his age corresponded to almost 300 human years.

When he was born, in 1992, Bobi was part of a series of newborns that would have the luck to experience the world. However, fortunately, the children of the family that owned them decided to save him and hide him from the rest of the family for a period of time. Later on, when they discovered it, they accepted Bobi and fed him the same food they ate.

As stated by Lionel Costa, Bobi’s owner, the secret to his longevity was the calm and peaceful environment he lived in. Note that Bobi was not the only dog owned by the Costa family to live a long life. Bobi’s mother lived until the age of 18, which is already an old age for a dog, and another of the family’s dogs lived until 22.

Maybe, we’re not so different. Today, there are studies showing that those who live a calm, peaceful, and balanced life are more likely to live longer.

Apart from an incident in 2018, where a sudden collapse because of breathing difficulty led to hospitalization, Bobi had a relatively healthy life. Even though he eventually had some trouble walking, and seeing, Bobi was well. After all, his 31 years of age correspond to something like 300 of ours. 

The International Monetary Fund (IMF) warns that house prices, in Portugal, are overvalued by 20%.

Even though prices dropped slightly, the IMF warns that houses are overvalued by 20% and that the banks should prepare for the risk of non-compliance and the existence of non-performing loans (NPL’s).

In an interview given to the Portuguese agency ‘Lusa’ during the IMF’s annual meeting, the Fund’s Director for Europe (Alfred Krammer) stated that this tendency can be observed in more than two European housing markets and that it creates risks for financial stability.

Because of the impacts of COVID-19 and the war between Russia and Ukraine, prices have been increasing. These impacts led to a decrease in the supply, an increase in construction prices, licensing restrictions, and inflation, which resulted in a steady increase in the banks’ interest rates.

According to Krammer, Portuguese banks are solid. However, they should prepare for how mortgage holders will be affected in terms of available income. In Portugal, 90% of mortgages have variable interest rates. Thus, banks should prepare for more difficulties.

The recommendation is that the financial institutions create a safety net for the sectoral systemic risk. This will allow banks to have a bigger margin for dealing with households that are becoming more, and more, at risk of non-compliance.

The Director also recognized the ongoing housing crisis. According to him, the most worrying is the accessibility to housing and the possibility of renting. A problem that the current measures created by the Portuguese Government will not be able to solve.

In accordance with the statement, the existing measures are only provisory and do not constitute a viable long-term solution for the problem that exists today. They are unsustainable in the long run and, because of that, should be temporary and target the most vulnerable.

In the Director’s words, “It is the housing supply that has to increase, and that means social housing.” The Government must address the accessibility to housing and to the possibility of renting. It must protect the most vulnerable, which are becoming more in number, and in the degree of vulnerability. 

Portuguese bank Banco Empresas Montepio has been sold to the Portuguese fintech super-app Rauva.

According to the information disclosed by both parties, Montepio Bank agreed to sell its Companies’ Bank banking license to the fintech app Rauva for 35 million euros.

The operation is still pending the approval of the regulating authorities, a process that will take several months. During that time, before the transaction is complete, all the assets, liabilities, operations, and workers of the Companies’ Bank shall be fully transferred to Montepio Bank.

According to the bank’s CEO, the value of the sale was established in accordance with a reference of 1.15x to 1.18x the value of the company’s Bank’s own capital, which was evaluated at 30 million euros. The simple calculation, according to the defined rule, established that the value of the transaction should be around 35 million euros.

At this time, it is not yet possible to estimate the positive impact of the transaction on the results of Montepio Bank. However, when it comes to the other side, Rauva became one of the first fintech apps to acquire a banking license. That, alone, will have a tremendous impact on its results in the upcoming years.

According to Jon Fath, Co-Founder and CEO of the fintech company, Rauva is the first Portugal’s business super-app. By acquiring the banking license, the company wishes to turn its app into a bank capable of helping small and medium enterprises, and entrepreneurs running their businesses.

Rauva’s idea is to start in Portugal, helping the country in the first place. And, then, expand the license for the rest of Europe and become a European bank, in order to target the European market.

More than 112 thousand Israelis applied for Portuguese nationality under the Sephardic law in the last eight years.

The Sephardic law, which was approved in 2013 but only came into effect in 2015, established the possibility for the descendants of Sephardic Jews (those expelled from Portugal by the end of the 15th century) to obtain Portuguese nationality according to a special procedure.

According to an investigation made by the Portuguese media, between 2015 and 2022, 112 297 Israeli nationals took advantage of the referred legislation and contacted the Portuguese Ministry of Justice for the purpose of obtaining Portuguese nationality, which was granted.

One of the most famous figures to obtain Portuguese nationality under Sephardic law was ex-Mossad Director, Tamir Pardo. Pardo, who was in charge of the Israeli secret services between 2011 and 2016, became a Portuguese national in 2018. Since then, the ex-director became the owner of a medical cannabis plantation in Vila de Rei, Portugal.

Even though the Portuguese passport is among the most valuable in the world (in terms of Visa-free entries), the law was perceived, by those seeking it, as a safety net. The possibility granted by its application allowed Israelis to have a Plan B in case the conditions in the Middle East became unbearable and there was the need to escape like there is today.

However, last Friday, the Portuguese Parliament approved a law proposal made by the Government that intends to put an end to it. According to the relevant sources, the Sephardic Law is supposed to be revoked on January 1st, 2024.

During the debate that preceded the voting, the Portuguese Minister of Justice explained that the special regime granted by the law has been in place for over ten years and that, even though it represents a valid recognition, it has served its purpose.

The Minister also explained that the future ending of the Sephardic Law does not necessarily mean that descendants of Sephardic Jews will not be able to apply for and obtain, Portuguese nationality. It only means the ending of a special treatment.

From January 1st onwards, those descending from sephardic jews, like everyone else, will be subject to the general rules of the Portuguese Nationality Law.

According to the winner of the EuroVision contest in 2017, “Portugal is not for the Portuguese”. In his words: “Portugal is a phenomenal country, but more for those who visit than for those who live there.” The singer says “Portugal is an amazing country for foreigners and wealthy people”

In an interview given for the Spanish program ‘La Resistencia’, which was intended to promote his new work ‘Timbre’, Salvador Sobral went far beyond music. The musician took the stage as a platform to express his opinion about Portugal, the Portuguese, and the current State of the Nation.

The conversation started around the Iberic Union that will be required for organizing the 2030 FIFA World Cup. The interviewer stated that it would be good to see the union go beyond soccer. He suggested an Iberic Peninsula (composed of Portugal and Spain) united under one Government.

The Portuguese musician deflected the implicit question and took advantage of the moment to share his thoughts on the above mentioned. He believes that, because of the Portuguese government and the conditions under which the Portuguese live, Portugal is not for the Portuguese. In fact, as he stated, “It is for the French that live there, for the ones that buy houses, for the rich. For them, it is super good.”

The Court of Justice of the European Union (CJEU) has stated that the Portuguese Personal Income Tax (IRS) for interest on bonds and securities received abroad violates the free movement of capital.

According to a decision made by the Court of Justice of the European Union, in response to a question posed by the Portuguese Supreme Administrative Court, the Portuguese legislation on the taxation of interest on bonds and securities received in another country violates one of the four fundamental freedoms of the European Union.

In agreement with the Single European Act, signed in 1986, EU membership means accepting the fundamental freedoms of goods, capital, services, and people. These freedoms, which have been legally guaranteed since the amending treaty came into effect, are considered inseparable, and are the cornerstone of the EU, the European Single Market, and the euro.

In accordance with the judgment of the CJEU, legislation such as the Portuguese does not respect the fundamental freedom of free movement of capital.

The current legislation subjects interest income earned by taxpayers to a progressive tax rate of up to 40% when such income comes from bonds and debt securities issued by an entity of another Member State or a third State such as the Swiss Confederation.

In contrast, when said interest income comes from bonds and securities issued by an entity of the respective Member State of residence and is paid by such entity, the tax rate is only 20%.

This discrepancy, according to the court, violates the free movement of capital.

When the CJEU rules that national legislation violates one of the fundamental freedoms, it typically means that it is incompatible with EU law. If this happens, the consequences can include:

1 – Invalidation of national law (if CJEU declares it invalid, the law cannot be enforced or applied);

2 – Affected individuals may have the right to claim damages or compensation;

3 – CJEU can order injunctions to stop violations or require the Member State to take the necessary actions to comply with EU law;

4 – Potential financial consequences (financial penalties are rare and exceptional);

5 – Ruling can exert legal and political pressure on the Member State to amend its legislation.

It is important to note that the CJEU’s decisions are binding to all Member States and that the national courts are obligated to follow the CJEU’s interpretation of EU law. Failure to do so may lead to infringement proceedings by the European Commission against the non-compliant Member State.

The diabetes medication Ozempic is sold out in many pharmacies throughout Portugal because it is being used for cosmetic weight loss purposes, along with another diabetes medication. 

Two pharmaceuticals that were created to help with type 2 diabetes, semaglutide and dulaglutide, are increasingly being prescribed and sold to people who do not have the disease but want to lose weight.

In more recent years, studies and reports have shown the efficacy of the two drugs in helping with weight loss. As a result, the number of off-label prescriptions (those given to non-diabetics) increased exponentially.

The speed, and ease, with which the drugs act on the body are the major reason for the adherence. By using the injectable pen to lose weight, individuals can see results much faster, whilst not having to force their diet that much.

It is relevant to note that apart from the supposed efficacy of the medications, for the time being, in Portugal, there is no drug for weight loss that is partially reimbursed by the state.

So, anyone who wants to resort to pharmaceuticals to lose weight will have to pay their full price. Unless the person is able to get an off-label prescription for the diabetes medications. Because they are what they are, the Portuguese authorities make them 10 times cheaper than what they actually were.

The unsustainable and unexpected surge of the demand for these two drugs led to a break of stock that is leading diabetics to search for alternatives. In Portugal, many pharmacies report that the quantities sent by manufacturers are not enough. There are more and more people wanting to use the medication, and less quantity of it available.

In some places, there are already waiting lists that, of course, shall prioritize those who actually suffer from diabetes.

This problem is not new. The shortage of semaglutide (Ozempic) was reported last year, and was expected to end this year. However, it remains. There is neither a decrease of the demand nor an increase of the supply.

According to the relevant authorities, the manufacturing laboratories do not signal the pharmaceuticals as being out of stock and are not doing what they should to solve the shortage issue.

When it comes to off-label prescriptions and the somewhat newly found cosmetic use for the medications, the general population should be more aware of the possible side effects. According to more recent studies, these drugs can have very serious gastrointestinal side effects, including inflammation in the pancreas and obstructions of the digestive system.

In the U.S., the Food and Drug Administration (FDA) already asked the manufacturers to include a warning label about the risk of intestinal blockage. If there is clear information stating that the risk is bigger than the reward, especially for those who do not suffer from diabetes, maybe there can be a decrease in the demand.