S&P cuts Poland’s GDP growth forecast
Ukraine gas stocks down 22 per cent
Hungarians will have to work in retirement
Unofficially, as the Czech Radio writes, 2016 was a very good year for the Czech arms industry, based on the financial daily E15’s report. The exports have gone up for four years straight, in part influenced by the sale and lease of Czech L-159 fighter jets. The total amount of exports was CZK11.5bn (EUR425.4m).
Jiří Hynek, the head of the Defense and Security Association of the Czech Republic said: “The L-159 fighter jets were very important for us in the past but they still represented only 15 per cent of all exports in the Czech arms industry. About 60 per cent of exports are in aviation, 30 per cent in military vehicles, and the rest are rifles, ammunition and other firearms, electronic systems and so on.”
The number one buyer was Saudi Arabia, second Germany, the United States, Algeria, Slovenia and other European countries. 30 per cent of exports goes to the EU, 27 per cent to the Middle East, Asia 14 per cent, Africa 10, and the US around 8 percent.
Rating agency Standard and Poor’s has cut Poland’s GDP growth forecast for last year to 2.8 per cent and to 3.2 per cent for next year. The Polish Radio reports that S&P, one of the “big four” rating companies, also decided to keep Poland’s rating unchanged at BBB+ but raised the country’s outlook to stable.
In January last year, Standard & Poor’s lowered Poland’s rating to BBB+ from A- and changed its outlook to negative. The Fitch and Moody’s agencies are expected to issue ratings for Poland on Friday.
Also the World Bank reduced Poland’s GDP growth from previous 3.2 per cent down to 2.5 per cent in 2016. The bank also trimmed its 2017 GDP growth forecast to 3.1 per cent from the previous 3.4 per cent and its 2018 forecast to 3.3 per cent from 3.5 per cent before. The World Bank forecast growth of 3.4 per cent for 2019.
Gas stocks in Ukraine’s underground storage facilities declined by 22.2 per cent or 3.272 billion cubic meters (bcm) to 11.460 bcm since October, when the current heating season began, writes Interfax.
According to Ukrtransgaz (operator of Ukraine’s pipelines and storage facilities) statement, Ukraine withdrew 86.33 million cubic meters (mcm) from underground storage on January 8th, and a total of 533.38 mcm in the first eight days of January (66.67 mcm/day on average).
Interfax takes into account the most likely temperature scenario in January, and assumes that current import and domestic production volumes are maintained and predicts that Ukraine will enter February with 9.4-10.1 bcm of gas in underground storage.
As of January 8th, 2017, daily imports of gas were 48.312 mcm, of which 40.583 mcm from Slovakia, 3.534 mcm from Hungary and 4.195 mcm from Poland. Ukraine has not imported gas from Russia since November 2015.
69 per cent of Hungarians, surveyed by K and H Bank, said they expected to work after they retire. This ratio, according to the Daily News Hungary, had increased from 61 per cent last year. K and H Bank’s Péter Kuruc said that nearly 80 per cent of respondents expect a worse or even far worse living standards when they retired and only 22 per cent had some savings for this time of life.
According to the survey, 78 per cent of respondents in the 30-plus age group said they expected the current pension system to fail, while 70 per cent of respondents in their 40s and 41 per cent of those in their 50s held the same view.
What’s up in indexes
BUX (of Budapest) increased from 32,854.00 index points Monday, January 9th, to 33,032.00 index points Tuesday, January 10th. It was up 0.54 per cent d/d and up 378.21 per cent y/y.
BET (of Bucharest) increased from 7,248.21 index points Monday, January 9th, to 7,252.54 index points Tuesday, January 10th to. It was up 0.06 per cent d/d and up 9.71 per cent y/y.
PX (of Prague) decreased from 935.72 index points Monday, January 9th, to 926.08 index points Tuesday, January 10th. It was down 1.03 per cent d/d and up 0.81 per cent y/y.
WIG20 (of Warsaw) increased from 2,009.19 index points Monday, January 9th, to 2,023.64 index points Tuesday, January 10th. It was up 0.72 per cent d/d and up 18.77 per cent y/y.
OMXT (of Tallinn) decreased from 1,093.90 index points Monday, January 9th, to 1,079.84 index points Tuesday, January 10th. It was down 1.29 per cent d/d and up 21.56 per cent y/y.
OMXR (of Riga) increased from 738.02 index points Monday, January 9th, to 739.07 index points Tuesday, January 10th. It was up 0.14 per cent d/d and up 23.99 per cent y/y.
OMXV (of Vilnius) decreased from 565.15 index points Monday, January 9th, to 561.75 index points Tuesday, January 10th. It was down 0.60 per cent d/d and up 15.36 per cent y/y.
SAX (of Bratislava) has not changed and remained at 318.66 index points Tuesday, January 10th. It was up 7.87 per cent y/y.
SOFIX (of Sofia) increased from 595.74 index points Monday, January 9th, to 609.06 index points Tuesday, January 10th. It was up 2.24 per cent d/d and 34.07 per cent y/y.
UX (of Kiev) increased from 793.92 index points Thursday, January 5th, to 801.47 index points Tuesday, January 10th. It was up 0.95 per cent d/d but up 21.04 per cent y/y/.
CROBEX (of Zagreb) increased from 2,036.13 index points Monday, January 9th, to 2,056.04 index points Tuesday, January 10th. It was up 0.98 per cent d/d and up 25.68 per cent y/y.