European stocks close subdued as Fed rate cut expectations grow; US markets closed
European stocks ended subdued Thursday after weaker-than-expected U.S. economic data gave investors cause to anticipate that the Federal Reserve will cut interest rates at its upcoming July meeting. The pan-European Stoxx 600 ended Thursday’s trade marginally higher with, telecoms leading gains with a 0.8% climb while utilities stocks fell 0.9% at the close.
Reuters reported that Deutsche Bank is preparing a sweeping 5 billion euros ($5.6 billion) overhaul in the coming days that will see the ax fall heavily on its investment banking business. Deutsche shares traded 0.4% higher during the afternoon session.
Serbia to start construction of 400 kilometers of new highways in 2019 – Works on connection with Pristina to begin as well
This year, Serbia will start building 400 kilometers of new highways as part of a new investment cycle to be initiated, announced Serbian Deputy Prime Minister and Minister of Construction Zorana Mihajlovic. This wouldn't be possible if we were not politically and financially stable – Mihajlovic said on RTS, the ministry announced. She pointed out that the construction of the Morava Corridor from Pojate to Preljina, of the highway to B&H from Sremska Raca to Kuzmin and the highway and high-speed route Ruma-Sabac and Sabac-Loznica would all begin in the summer.
Chinese company to invest USD 300 million in modernization of Smederevo steel mill by 2021
Serbian President Aleksandar Vucic met with a delegation of HBIS Group headed by its president Yu Yong. Vucic said that he was satisfied with the fact that HBIS Group had stable operations in Serbia, achieving the planned level of production in a very demanding and competitive steel market, the president's cabinet announced. Yu Yong said that Serbia had become the most demanded destination for foreign investments thanks to the reforms it had carried out and the constant growth of its economy. He announced that, over the next two years, the investment cycle worth USD 300 million for the modernization of the production at the Smederevo steel mill would be completed.
Fiscal Council: 0.5% fiscal deficit well set
The draft Fiscal Strategy for 2020, with projections for 2021 and 2022, envisions a well-set fiscal deficit of 0.5% of GDP and macroeconomic stability, the Serbian Fiscal Council said at a press conference Thursday. "The draft sets an appropriate, low fiscal deficit that guarantees macroeconomic stability and represents a good foundation for drawing up a budget," said Fiscal Council President Pavle Petrovic. These objectives are good if the government stands by its document, he said. Under the draft strategy, the public debt is to be reduced by 2 pp of GDP a year and approach the level of 45% of GDP in 2022, he noted.