Long-term foreign and local currency sovereign credit ratings on Serbia kept at BB
Fitch Ratings and Standard & Poor's rating agencies affirmed their ‘BB’ long-term foreign and local currency sovereign credit ratings on Serbia, with stable outlook. These agencies particularly underlined years-long preservation of price stability and significant improvement in Serbia’s external position, as well as increased resilience to external shocks, owing to strong exports growth. S&P estimates that inflation is likely to stay within the 3±1.5% target band in the medium-term and expects the current account deficit to remain at a sustainable level over the medium-run as well.
Nikola Tesla Airport schedules GM for July 9 – Concession approval main item on the agenda
The Supervisory Board of the Nikola Tesla Airport has called an extraordinary GM for July 9, with the adoption of the decision on the approval of the concession as the main item on the agenda, whereby shareholders will be able to withhold their approval and request a share buyout. As stated in the draft of the agenda, the decision by which the concession for financing, development/construction and reconstruction, maintenance and management of the Nikola Tesla Airport infrastructure is approved is a decision on the disposal of high-value property, and opposing shareholders will accordingly have the right to buy out the shares.
Etihad not to withdraw from Air Serbia – Flights from Belgrade to Beijing and Canada possible
Serbian Minister of Construction, Transport and Infrastructure Zorana Mihajlovic stated that Etihad was not withdrawing from Air Serbia, in which it has a 49% stake, whereas 51% belongs to the Government of Serbia. Mihajlovic stated for the Sunday issue of Politika that there was also a plan for the launch of new services from Belgrade to Beijing and Canada in 2018.
MK Group still interested in Budvanska Rivijera – Five-star hotels planned as well
MK Group, owned by businessman Miodrag Kostic, is still interested in becoming the majority owner of the Hotel Group Budvanska Rivijera, RTCG reports. At the moment, MK Group, in partnership with Stratex, owns 30% of the shares of Budvanska Rivijera, which has been included by the Government in this year's privatization plan. MK Group says that they have big plans for Budvanska Rivijera, which, if realized, will place Budva on the world tourism map.
Dow posts 5-day losing streak on lingering US-China trade tensions, European markets close lower as trade tensions rise, VW shares slip on Audi boss arrest
Stocks fell on Monday as a potential trade war between the U.S. and China — the world's largest economies in the world — left Wall Street rattled. The Dow Jones industrial average dropped 102 points, with Intel as the worst-performing stock in the index. The Dow also extended its losing streak to five days. The S&P 500 fell 0.2 percent, with telecom lagging, while the Nasdaq composite meanwhile, pared losses to close flat as tech shares rose and Amazon hit an all-time high.
In corporate news, shares of Disney fell 1.6 percent after being downgraded by Pivotal Research Group analyst Brian Wieser. In a note, Wieser said its battle for key Twenty-First Century Fox assets has placed the company in an unwinnable situation.
Intel dropped 3.4 percent after Northland Capital Markets downgraded the stock to underperform from market perform, citing growing competition from AMD and Nvidia and predicting slower sales growth in its data center business.
European markets closed lower Monday after President Donald Trump announced new tariffs against China. The pan-European Stoxx 600 ended provisionally down by 0.79 percent on Monday with all sectors except Oil and Gas lower on average.
In autos news, the boss of Volkswagen's luxury brand Audi was arrested Monday in relation to the German carmaker's emissions test cheating scandal. Rupert Stadler was taken into custody following concerns from a German judge that he might hinder the ongoing investigation. By the end of trade, VW shares were lower by 2.8 percent.
In the Food & Drink sector, Heineken announced it would invest $58.4 million this year to update its British pubs.