NBS: Annual inflation in June at 2.3%
According to Statistical Office data, in June the monthly inflation rate equalled 0.4%, on account of the seasonally expected price hikes of travel packages, petroleum products and unprocessed food. Annual inflation continued to move within the target tolerance band, measuring 2.3% in June. For the fourth month in a row, core inflation (CPI excluding the prices of food, energy, alcohol and cigarettes) amounted to 0.8% y-o-y in June, confirming that inflationary pressures remain low.
NBS: No change in key policy rate
At its yesterday’s meeting the NBS Executive Board voted to keep the key policy rate unchanged at 3.0%. The Executive Board’s decision is based primarily on the outlook for inflation and its underlying factors, as well as on the effects of monetary policy easing thus far. After touching this year’s low in April, inflation has been moving steadily towards the target, measuring 2.3% in June, consistent with expectations. Inflation is expected to move within the target band until the end of the projection period, i.e. over the next two years.
TIGR: Tigar Pirot starts production of 15,000 pairs of boots for Finnish army
Tigar Pirot has started producing 15,000 pairs of boots, worth EUR 660,000, for the Finnish army, the company announced today. The job of producing summer and winter footwear for the Finnish army for 2018 and 2020 was won at a tender by Berner-Nokian, the strategic buyer of the Pirot company, but the footwear is to be produced in Serbia.
Polish LOT to purchase Croatia Airlines?
The Croatian government has invited Polish airliner LOT to initiate the negotiations about the takeover of a “substantial stake” in Croatia Airlines. Polish media report that the first meeting between the two sides will take place this summer. If LOT were to take over another airliner, it would mark our further expansion – the LOT spokesperson said.
Nasdaq rises to all-time high as Amazon and Facebook hit records, European markets close higher after latest trade war jolt
The major stock indexes rebounded Thursday as a rally in some of Wall Street's largest technology names carried the Nasdaq Composite to an all-time high at the start of the corporate earnings season. The tech-heavy Nasdaq rose 1.4 percent to 7,823.92 as Facebook and Amazon, both reached all-time highs. Microsoft and Alphabet also hit intraday records. The Dow Jones Industrial Average rose 224.44 points to close at 24,924.89, while S&P 500 gained 0.9 percent to 2,798.29 with tech and industrials outperforming.
On the earnings front, Delta Air Lines reported better-than-expected quarterly results. Analysts expect second-quarter earnings to have grown by 20 percent on a year-over-year basis, according a FactSet forecast.
From the macro side, weekly jobless claims fell to 214,000 last week and the consumer price index rose at its fastest pace in six years.
European stocks closed higher Thursday as investors consolidated steep losses from the previous session when heightened fears of an escalation to the U.S.-China trade war soured sentiment. The pan-European Stoxx 600 rose throughout the afternoon's trade to close up by 0.8 percent, with all major bourses and most sectors in positive territory.
Media was the best performing sector on Thursday, rallying to close 2.3 percent higher. Earlier in the day, the U.K. government cleared the way for Twenty-First Century Fox's bid to buy European pay-TV platform Sky, for which it is competing against U.S. rival Comcast. Sky ended the day 3.4 percent to the upside.