Looking at the issuance performance so far this year, CEE countries have done a very good job. Several countries have already covered this year’s issuance plan and many others have also reached a high number. Slovakia seems to be lagging
Currencies fell last week in the region, but the stronger the yield declines of bond markets, the more robust the weakening in the currency that took place. We saw that regional markets reacted not much to international market developments (Saudi
Recently-published flash estimates of GDP growth in Central and Eastern Europe (CEE) depict a rather supportive picture of economic activity in the second quarter (Q2) (Exhibit 1). Undoubtedly, the quarterly growth clip decelerated somewhat, but remained laudable with Poland up
While markets are trying to digest what the ECB’s new measures may mean in the longer run, CEE will see first monthly indicators from the real economy from August, as Poland will release important figures that could provide important insight
Strong domestic demand shields CEE from German slowdown – for now Slowdown is expected for CEE, but growth difference vs. Euro Area could remain substantial Volatility to stay elevated on CEE FXFI markets
The US dollar’s strength did not do CEE currencies much good and while there were, in some cases, local factors behind the fall (especially in Hungary, where the HUF hit an all-time low), the decline in regional FX could mostly
Which weapon will be drawn next? The trade dispute continues to dominate financial market activity. Which weapon will be drawn next? Will China also raise tariffs in retaliation after the recent escalation by the US, or perhaps even block exports
The moment of truth could come this week, as 2Q19 GDP releases could indicate how much the German manufacturing slowdown plagued CEE growth. This could easily have implications for regional currencies and rates, too. Last week’s positive performance of the
CESKE DRAHY Earnings Developments The year 2018 has seen accelerating growth for CD. The ongoing transformation of CD into a modern, efficient, competitive and customer-focused railway mobility Group is supported by large investments and a strong Czech economy. Group revenues
CEE currencies became more attractive as the lack of room to ease rates domestically met with decreasing rate expectations on major markets. The Czech koruna seems to be the slight exception, as rate expectations are also easing there, given the
Given the demographic challenges, reliance on the PAYG system implies lower benefits for pensioners, a need to increase social contributions or retirement age in the future. As a decision is needed in a matter for decades rather than immediately, the
Fixed Income | CEE Domestic demand should soften the slowdown in GDP growth Not all CEE countries have managed to build sufficient fiscal space Czech and Hungarian central banks to tighten monetary conditions this year
Accelerated credit growth in CEE should not cause any headaches. Current growth rates are well below the 20-30% pre-crisis credit growth dynamics. Debt to GDP ratios are also rather low. As interest rates remain low, central banks carried out macro
Market outlook The EURRON was finally put under control last week. It was clearly benefiting from the more dovish FED together with other regional currencies, but domestic factors might have also been at play, including recent statements by the finance
At the beginning of the new decade, CEE countries are likely to face a number of challenges as far as economic growth and convergence are concerned. Although the current EU funding programming period ensures the CEE region a solid flow
Government bond yields should drift higher in 2019 Only Czech National Bank is to increase rates this year We expect sovereign rating upgrades in several CEE countries
GDP growth to decelerate in 2019 due to weaker external environment Hard Brexit and trade wars remain main risk for growth in CEE Checklist of most important events in CEE to be watched in 2019
Market outlook All CEE currencies except for the Serbian dinar gained last week. While the koruna, forint, zloty and leu benefited the most from the EURUSD development, the appreciation of the Croatian kuna seems to have been driven by strong
Market outlook Currencies showed a mixed performance in CEE last week. The Polish zloty pared earlier losses, as investors seem to have swallowed the corruption scandal to some extent. Currently, the EURPLN is close to our forecast. In Hungary, however,
Credit Markets Weekly Most recent US measures were not entirely surprising So far, the European credit markets have not reacted to the recent development in the trade conflict between USA and China. In fact, spreads have even narrowed slightly. This
Market outlook The best regional performer was the Czech koruna, boosted not just by rate hike comments, but perhaps also by increasing hopes that the prospects of a large-scale trade war are fading. The forint only benefited towards the end
GDP growth still favorable on average in second quarter Limited-scale trade war could be manageable for CEE CEE could still bear high wage growth, but increasing pressure to reform
Week ahead Next week (September 21), a flash estimate of the manufacturing sentiment of the Eurozone, Germany and France will be published for September. The sentiment slightly declined in August, due to the worsening of the trade conflict and the
Outlook CEE currencies mostly fell last week, amid renewed tensions in Turkey and Argentina, although Friday saw some positive correction. The Hungarian forint suffered the most, while the CZK seems to have benefitted from increased expectations of additional hike(s) from
CEE currencies were hit last week, due to the deterioration in international sentiment. The EURHUF breached historical highs (above 330); the forint was the most vulnerable, as the ultra-dovish MNB policy amplified international woes. Without a change in the MNB’s
The integration of #ESG criteria often has a greater impact for emerging countries. Find out why in an interview with our expert #Karine_Jesiolowski (via @allnews_ch).
Fresh #StarkieBlog! https://t.co/YZrzQpIlIQ
Low interest rates drive housing market -> https://t.co/XjhuRim2P7 #Interest #mortgages via @ABNAMROeconomen
