Daily Report 13.08.2018
Објавено: 13. 08. 2018


NBS: FX reserves in July at EUR 11.4bn
NBS FX reserves stood at EUR 11.4bn at end-July, up by EUR 299.0 mn from end-June. The increase in gross FX reserves in July almost fully resulted from NBS activity in the domestic FX market (inflow of EUR 300 mn as a result of NBS FX purchase interventions). The influence of other flows (inflows and outflows) on FX reserves in July was almost neutral.
Source: NBS

Highway to Republika Srpska and B&H to go through Sid
Serbian President Aleksandar Vucic announced that the project for the highway to Republika Srpska and Bosnia and Herzegovina would include Sid on the route and added that the reconstruction of the Belgrade-Zagreb highway from Batrovci to Kuzmin would begin on Wednesday. He said that the project for the branch of the highway that would go from Sid through Kuzmin to Republika Srpska and B&H, 19 kilometers long, was being prepared, whereas the reconstruction of the highway to Croatia would encompass the section from the Batrovci border crossing to Kuzmin, 22 kilometers long.
Source: Ekapija

New arrangement with IMF conceals electricity price increase
There's still no precise answer to the question of whether the price of electricity in Serbia will go up by the end of the year. The new arrangement with the IMF, signed by the Serbian government, however, says that “an analysis of tariffs for 2018” should be carried out in cooperation with the World Bank by the end of August. In other words, the analysis should show whether the price of electricity is to go up and by how much, Politika reports. According to Eurostat, the price per kilowatt in Serbia is three times lower than the average price in the EU, which amounted to EUR 0.204 in 2017, whereas, in Serbia, it was 0.066. The country features not just the lowest prices in the region, but in Europe as well. Only Ukraine pays less for electricity.
Source: Ekapija


EC approves Slovenia's plan to sell 75% minus one share of NLB by end-2019
The European Commission approved on Friday a new Slovenian commitment package for Nova Ljubljanska Banka (NLB), under which the government will complete the sale of 75% minus one share of the bank's capital by the end of 2019. A first significant sale tranche of at least 50% plus one share will be sold by the end of 2018 and the Slovenian government will reduce its stake in NLB to 25% plus one share by the end of 2019, the European Commission said in a statement.
Source: SeeNews


Dow drops about 200 points as financial crisis in Turkey spooks global markets, Europe markets close lower on Turkey concerns, banks fall, Novozymes down 3%
Stocks fell on Friday as geopolitical concerns pushed the Turkish lira to a record low against the dollar and rattled investors. The Dow Jones Industrial Average dropped 196.09 points to 25,313.14 as Intel declined. The Dow also erased its gains for the month of August and posted a three-day losing streak. The S&P 500 fell 0.7 percent to close at 2,833.28 as financials and materials lagged. The Nasdaq Composite also pulled back 0.7 percent to 7,839.11 and snapped an eight-day winning streak.
The lira briefly fell 20 percent to a record low after President Donald Trump authorized the doubling of metals tariffs on Turkey. The currency later traded down 15 percent against the dollar.
The Consumer Price Index rose 0.2 percent last month, the Labor Department said Friday. Meanwhile, "core CPI" hit 2.4 percent in July, marking its biggest jump since September of 2008.
Intel shares declined 2.6 percent after Goldman Sachs lowered its rating on the chipmaker, citing manufacturing issues.
European stocks closed lower on Friday as investors reacted to corporate earnings, fresh turmoil in Turkey and the ongoing trade war between the U.S. and China.
The pan-European Stoxx 600 ended trade just over 1 percent below the flat line. Several sectors including banks and basic resources finished the week nearly 2 percent lower.
Negative trade came as the euro dropped sharply against the dollar, following reports that the European Central Bank (ECB) is concerned over the impact of a weak Turkish lira on European lenders. The Financial Times said that France's BNP Paribas, Italy's UniCredit and Spain's BBVA could be particularly impacted by the ongoing depreciation of the lira. Most banking stocks ended the session in the red.
Source: CNBC