Daily Report 22.08.2019
Datum objave: 22.08.2019
Dow jumps more than 200 points, Target and Lowe's surge on strong earnings; European stocks close higher as investors await Fed minutes
Stocks rose on Wednesday as strong quarterly results from retailers such as Target and Lowe's lifted investor sentiment. The Dow Jones Industrial Average closed 240.29 points higher, or 0.9%, at 26,202.73. The S&P 500 gained 0.8% to close at 2,924.43. The Nasdaq Composite jumped 0.9% to 8,020.21. The major indexes held on to their gains even after the bond market flashed a recession signal in the last hour of trading.
Target shares surged more than 20% to a record after the retailer posted second-quarter results that topped analyst expectations. The company's same-store sales, a key metric for retailers, expanded by 3.4%. Analysts expected growth of 2.9%.
Lowe's jumped 10.4% on its second-quarter earnings report. CEO Marvin Ellison said the company capitalized on strong "holiday event execution and growth in Paint and our Pro business to deliver strong second quarter results."
European stocks closed higher Wednesday as investors awaited minutes from a meeting of the U.S. Federal Reserve, while President Donald Trump suggested he was weighing measures to boost the world’s largest economy.
The pan-European Stoxx 600 closed provisionally up over 1.1% , autos leading gains with a 1.7% jump as all sectors and major bourses traded firmly in positive territory.
Shares of Renault and Fiat Chrysler Automobiles both gained after an Italian press report suggested contact between executives at both firms has never ceased and a merger remains on the cards. Renault stock climbed 3.7% while Fiat Chrysler was up 3.3%.
Government plans to reduce tax burden on wages
The Serbian government is planning to reduce the tax burden on wages by a minimum 1 pct this year, Finance Minister Sinisa Mali announced Tuesday, adding that the objective was to reduce the burden on wages every year to make the Serbian economy more competitive. The burden on wages was 63 pct two years ago and has now been reduced to 62 pct, and the trend will continue, he said in an appearance on Pink TV.
Agreement with CRBC on construction of Fruska Gora Corridor to be signed by Spring 2020
Funds from the National Investment Plan (NIP), worth around EUR 12 billion will be also allocated for realization of important projects including Novi Sad – Ruma motorway, known as Fruska Gora Corridor. The delegation of the Provincial Government, led by Igor Mirovic brought around 40 projects with building permits to the meeting in Belgrade. The projects will be realized in the next five years with the financial support from the Government of Serbia. Investment value of the Fruska Gora Corridor, per earlier data, amounts to around EUR 400 million. The section to be constructed is extremely burdened by traffic. Around 8,500 vehicles passes over it on the daily, 20 % of which are heavy-duty vehicles.
Knjaz Milos acquired by Mattoni 1873, PepsiCo
Mattoni 1873 and PepsiCo on Tuesday completed an acquisition of a 100 pct stake in Serbian mineral water and non-alcoholic beverages producer Knjaz Milos. The transaction, which has been approved by the antitrust commission, includes an acquisition of Knjaz Milos's production facilities in Serbia, as well as the Knjaz Milos, Aqua Viva, Guarana, ReMix Knjaz, Tube and Gusto brands, among others. Knjaz Milos was previously owned by the Mid Europa Partners investment fund.
Daily Report 20.09.2019
20.09.2019 | S&P 500 closes flat, hovering near record high; European markets close higher amid Fed easing; Bank of England holds rates; Serbian GDP up 4.4% in July; EIB ready to fund projects in Serbia's new investment cycle; FINT: Serbia's renewable energy sources potential totals 50,000 GWh
Daily Report 19.09.2019
19.09.2019 | Stocks close flat as Fed fails to clearly signal more rate cuts in 2019; European markets close slightly higher ahead of Fed rate decision; Serbian businessman possible mystery buyer of Kras shares – paper; German SMEs coming to Serbia; Botsan-Kharchenko: Good news about TurkStream
Daily Report 18.09.2019
18.09.2019 | Stocks rise slightly ahead of the Fed’s decision on interest rates; European stocks close slightly lower as oil plummets; Fed meeting in focus; NIS stocks rise on BELEX following dividend payout; China's Huawei eyes development of data centre in Serbia; Countercyclical buffer rate for the Republic of Serbia kept unchanged
Daily Report 17.09.2019
17.09.2019 | Dow snaps 8-day winning streak on fears spiking oil will slow the global economy; European stocks close lower amid geopolitical tensions; oil shares spike 3%; KMBN: Privatization of Komercijana attracted three banks and one fund; 120 mln euros of budget funds for Morava Corridor; As early as of December, the average salary will amount to 500 euros"
Daily Report 16.09.2019
16.09.2019 | Dow notches 8-day winning streak, nears record on growing optimism around US-China trade; European stocks close higher after aggressive ECB stimulus; banks up 2%; Declining industrial output in eurozone affecting Serbia; Gov't sets 2020 minimum monthly wage at 30,022 dinars; EBRD to credit small and medium companies in Serbia with EUR 160 million
Daily Report 13.09.2019
13.09.2019 | Dow posts 7-day winning streak, inches closer to record after tariff delay and ECB rate cut; European stocks close higher as ECB launches new stimulus plan; NBS: Key policy rate kept on hold; SORS: Annual inflation in august at 1.3%; Agreement worth EUR 100 million signed with EIB on construction of Nis-Merdare highway
Daily Report 12.09.2019
12.09.2019 | Dow jumps more than 200 points, closes above 27,000 for the first time since July; European stocks close higher ahead of central bank meetings; NBS: FX reserves in August at EUR 13bn; Serbia, Czech Republic sign agreements on cooperation; Talks underway about Czech company coming to Serbia
Daily Report 11.09.2019
11.09.2019 | Stocks close little changed as tech shares and Ford weigh on the market; European stocks erase earlier losses to close slightly higher; KMBN: Bids for sale of shares of Komercijalna Banka opened – Second selection phase in November; Minimum wage in Serbia to be RSD 30,022 from 2020; Serbia attracts 1.9 bln € worth of FDI in first half of 2019
Daily Report 10.09.2019
10.09.2019 | Dow posts 4-day winning streak amid trade optimism; European stocks close mainly lower as investors eye Brexit battle and stimulus hopes; Agreement on construction of Nis-Pristina highway to be signed on Thursday – Construction of section to Plocnik to begin in 2020; China's Zijin Mining Co to build new plant in Majdanpek; NIS to payout cash dividend on 16th September
Daily Report 09.09.2019
09.09.2019 | Stocks close little changed after disappointing jobs report, but rise for a second straight week; Europe closes higher as investors monitor Brexit uncertainty; KMBN: Serbia to buy Komercijalna banka shares owned by EBRD, IFC - four non-binding bids had been received; Moody’s Upgrades Serbia’s Rating Outlook; Mali, Petrovic discuss draft 2020 budget