Daily Newsletter - 13 November 2017


Macroeconomic News (4)

Romanian bond yields have reached the highest level of the past three years 

Romania's government bond yields reached Friday the highest levels of the past three years, following the data showing that inflation had risen in October above the rhythm anticipated by analysts, Reuters informs. The annual inflation rate, measuring the evolution of consumption prices for this year, grew in October at 2.63%, the highest level since August 2013, when it had been 3.67%, provided that fuels marked up by 3.47% in October compared to September, pursuant to the data published Friday by the National Institute of Statistics (INS), informs.


The Ministry of Finance prepared the second budget rectification: Where (more) funds were cut from, where additional funds were allotted 

The second budget rectification of the year will direct the most money to the Ministry of Labor (RON 632m) and to the local budgets (RON 612m) and will be based on the record economic growth estimation of 6.1% for this year, according to a press release of the Ministry of Finance. "The economic results up to now argue the possibility of a 6.1% economic growth, compared to 5.6% estimated in the elaboration of the first budget rectification and to 5.2%, estimation taken into consideration when the budget for 2017 was elaborated. Thus, the estimated nominal GDP increased from RON 837.2bn to RON 842.5bn", the cited source says.


Lazea (NBR): A net minimum wage of 300 euros/month is sustainable for the economy; its rise should have a break 

A net minimum wage of 300 euros/month is, probably, sustainable for the Romanian economy and contributes to diminishing the gap between the richest and the poorest Romanians, but its rise should have a break, for now, Valentin Lazea, the chief-economist of the National Bank of Romania (NBR), considers.


New orders in the manufacturing industry rose 11.3% in nine months 

The new orders in the manufacturing industry rose 11.3% in nominal terms in nine months of 2017, compared to the same period of last year, according to the data of the National Institute of Statistics. The increase was due to the growths recorded in the consumer durables industry (+27.7%), in the intermediary goods industry (+15.7%), in the capital goods industry (+9.1%) and in the everyday consumer goods industry (+3.5%), Agerpres writes.


Financial News (2)

Banca Transilvania says it will buy Bancpost by the end of the month 

Banca Transilvania (stock symbol TLV), the second credit institution on the Romanian market in assets, announces that, along with Eurobank, the main shareholder of Bancpost, have carried out exclusive negotiations for the potential acquisition of Bancpost, ERB Retail Services IFN and ERB Leasing IFN in Romania, the date when the agreement is to be signed being estimated for the end of November the latest, writes.


ADRIAN VASILESCU ABOUT THE EVOLUTION OF THE EXCHANGE RATE: "We cannot draw a conclusion after these days" 

The evolution of the exchange rate in the past days does not allow us to draw a conclusion, more time being needed for descrying its trend, and the analysts who make forecasts regarding its evolution are "star gazers", Adrian Vasilescu, strategy advisor at the National Bank of Romania, contends.


Investment News (1)

Hidroelectrica to inaugurate the hydropower plant from Bretea next month, a 58m euros investment 

The energy producer Hidroelectrica, one of the most profitable state companies, will inaugurate the hydropower plant from Bretea, in Hunedoara county, on Strei river, next month, following a 58m euros investment, the general director of the company, Bogdan Badea, stated Friday for "It will be inaugurated in December, there were works that should have been finished. Works are performed quickly. This is the first plant built through a public investment after many years", Bogdan Badea said.


Politics (2)

TSD Congress - Gabriel Petrea, TSD reelected leader. Tudose: Don't sell your dreams! Dragnea: You may contribute to the eradication of two historic illnesses - amateurishness and imposture. Read philosophy, read the great economists, literature! 

Prime minister Mihai Tudose told the young people present Sunday at the Congress of the Social Democrat Youth for electing their president, not to sell their dreams and make so that to be proud of what they did. In his turn, Liviu Dragnea urged TSD members to respect the values PSD is based on, such as progress, evolution and solidarity, and show they can make "society move" before getting to hold a high-ranked position, because only thus and only they can contribute to the eradication of two historic political illnesses - amateurishness and imposture. The minister of Social Dialogue was reelected Sunday to lead TSD, with 2121 votes, out of 2123, two ballot papers being cancelled.


Busoi (PNL): The motion of no confidence must gather the opposition around PNL and amplify the splits from PSD 

The motion of no confidence must gather the opposition around PNL and amplify the splits from PSD, the PNL vice president, Cristian Busoi, considers, according to a press release sent Sunday by Agerpres. "First, the strategic goal of the motion is a powerful signal to stop the Dragnea-Tudose Government's economic policies. The maximal political goal that can be achieved, if all political forces outside PSD from the Parliament wake up and understand that Romania's future is in danger, is the fall of the Government and a first signal of the real political force of the Opposition aggregated around PNL", the communication shows.