Possible wage taxation cut to 46% in the next five years
The president of the Chamber of Commerce of Serbia, Marko Cadez, said on December 14, 2018, that the business sector had made an initiative for a more substantial wage taxation cuts and that the possibility of cutting wage liabilities from 62% in 2019 to 46% over the next five years would be considered. He said at the CCIS’ meeting that there was an initiative for the income tax to be cut.
NBS: Mid-term inflation expected at 2.5-3.0%
According to the latest NBS inflation survey, one year ahead inflation is expected at 2.5-2.6%, from both corporate and financial sector. Mid-term inflation, two years ahead, is seen at 2.5%, according to the corporate sector, while financial institutions expect it at 3%, the same report says.
Standard & Poor’s upgrades Serbia’s outlook
Standard & Poor’s (S&P) revised its outlook on Serbia to positive from stable, and affirmed its ‘BB/B’ long- and short-term foreign and local currency sovereign credit ratings. The outlook revision reflects Serbia’s strong economic growth and the results of monetary policy in terms of preservation of price and financial stability. S&P particularly emphasises the steps taken by the central bank to augment the credibility and effectiveness of its monetary policy in the inflation targeting regime. Inflation expectations are well-anchored, the exchange rate regime remains relatively flexible and the financial sector has been put on stronger footing, with NPLs declining significantly and lending growth gathering pace.
Petrol plans to open 18 new gas stations in the Balkans in 2019
Petrol Group is aiming for sales revenues of EUR 5.6 billion and a net profit of EUR 96.7 million in 2019, as well as the opening of 18 gas stations, bringing the total number of their gas stations in the Balkans to 515. At the end of 2019, its retail network should feature 515 gas stations, of which 320 in Slovenia, 113 in Croatia, 40 in Bosnia and Herzegovina, 16 in Serbia, 15 in Montenegro. In line with its strategy, Petrol Group intends to invest EUR 101 million in capital assets in 2019.
S&P 500 drops more than 2% to new low for 2018, Dow dives 500 points, Europe closes lower amid fears of a global growth slowdown
Stocks tanked on Monday, pushing the S&P 500 to a new low for the year amid growing concerns that the Federal Reserve's plan to raise interest rates could be too much for the economy and stock market to handle. The S&P 500 fell as much as 2.5 percent to 2,530.54, surpassing its February intraday low of 2,532.69. The broad market index finished the session down 2 percent at 2,545.94, its lowest close for the year. The Dow Jones Industrial Average lost 507.53 points to close at 23,592.98, bringing its two-day losses to more than 1,000 points. Shares of Amazon and Goldman Sachs led the declines.
Shares of Goldman Sachs fell 2.7 percent Monday after Malaysian authorities filed criminal charges against the bank and two former partners in connection with the 1MDB financial scandal. The company is under fire for its role in helping raise $6.5 billion through three bond offerings for 1Malaysia Development Bhd (1MDB), which is the subject of investigations in at least six countries.
European stocks closed lower on Monday, amid escalating concerns of a sharp slowdown in global growth. The pan-European Stoxx 600 closed provisionally down 1.14 percent, with almost all sectors and every major bourse in the red.
Shares of Zalando slumped to the bottom of the Stoxx 600, pressured by the broader downturn in retail stocks. H&M also fell, despite reporting that sales growth in the September-November period rose 6 percent from the previous year. Zalando dipped 11.63 percent while H&M slipped 8.53 percent.