Daily Newsletter
13 July 2018
Summary
Macroeconomic News (3) |
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The industry grew slower in May, compared to April, an indication that the economy will not do as well this year as in 2017. The May growth rate was 1.2%, compared to 3.6% in April. Top |
Food prices down 0.24% in June
Food prices dropped 0.24% in June, compared to May. However, the annual growth rate was 3.86%. The biggest price drops were reported for potatoes (5.9%), eggs (3.82%) and fresh fruit (3.41%), according to the National Statistics Institute (INS). Top |
EC says Romania's annual inflation rate to reach 4.4% this year
The European Commission has lowered the growth forecast for the Romanian economy from 4.5% to 4.1%. The inflation rate is estimated to reach 4.4% by the end of the year, far above BNR's 2.5% target. "The main factor pushing the economic growth down is the contraction of private consumption driven by the pressure exerted by inflation on real disposable income," noted the report. Top |
Financial News (3) |
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Societe Generale shares dropped 26.5%
The market value of Societe Generale, the majority shareholder of BRD, dropped 26.5% in the past 12 months, while the CAC Banks index slid 23.11%. Investors punished the banks for their first quarter results, pushing Societe Generale along a fast downward track. The bank's shares fell from EUR 46 to EUR 36 between April and July. Top |
Bankers warn they would keep interest rates low as long as necessary
The eurozone reference interest rate will remain at an all-time low as long as it takes to resurrect the inflation rate and the European Central Bank's hints should not be taken as firm decisions, according to the transcript of the ECB monetary policy meeting. Top |
Csaba Balint, OTP Bank: "We expect the three-month ROBOR rate to reach 3.5% in 2019"
The three-month ROBOR rate, which is used to calculate the adjustable interest rates of RON-denominated loans, could drop to 3.1% by the end of this year. However, the rate will climb to 3.5-3.6% in 2019 and 4% in 2020, according to Csaba Balint, a macroeconomic analyst with OTP Bank. Top |
Investment News (1) |
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Monza and Enayati Group invest EUR 50 million in new medical project
The Monza group and the Enayati Group have signed a strategic partnership for developing the Revera Medical City, one of the biggest private medical projects in the country. The two companies will invest EUR 50 million in the new medical project, which will be located in Bucharest's Baneasa area. Top |
Legislative News (1) |
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President signs S&L banking law
The new S&L banking bill that the Parliament passed in mid-June was signed into law by President Klaus Iohannis. The two existing S&L banks, BCR Banca pentru Locuinte and Raiffeisen Banca pentru Locuinte, need only the implementation guidelines in order to resume their activity and start attracting new clients. Top |
Politics (2) |
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PM Dancila stressed Romania's hopes for successful term
Prime Minister Viorica Dancila stated that she had stressed during her trip to Brussels Romania's hopes for a successful term as President of the EU Council. The PM presented at the beginning of Thursday's Cabinet meeting a report on the results of her two-day trip to Brussels, where she met with the heads of the European Commission. Top |
President Klaus Iohannis told the media on Thursday that he had had nothing to do with Liviu Dragnea's sentencing. The president added that the PSD leader had "bought too big a hat", can't handle the situation and ran out of political arguments, which is why he's resorting to personal attacks. Top |
Social (1) |
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Cabinet approves student food program
The Cabinet issued an order on Thursday approving the allocation of RON 571.99 million from the state budget for the 2017-2023 School Program. The program will affect an estimated 2.18 million students. Top |