Today in Davos – the World Economic Forum
Record levels of car production in Slovakia and Czech Republic
Andrejs Vaivars, spokesman for Latvian Prime Minister Māris Kučinskis, confirmed that Latvia is ready to sign the agreement at the Baltic prime ministers’ meeting in Tallinn on January 31st.
Meanwhile, Lithuanian Prime Minister Saulius Skvernelis said on January 16th that he is unsure if he would sign the document as his government had not had enough time to study it in detail.
In November, Baiba Rubesa, CEO of Baltic joint venture, RB Rail, said that all three Baltic States should finally reach an agreement, which would make it easier to prove to the European Commission that the project was making headway and secure funding for the project after 2020.
The Rail Baltica project seeks to re-establish a direct link between the Baltics and the European railway network. The project is expected to ease regional integration by means of a railway connection from Helsinki that would link Tallinn, Riga, Kaunas, Warsaw, and Berlin. It will have over 1600 km and is expected to be completed by 2020. Construction of the Rail Baltic project and its related infrastructure is projected to cost approximately EUR4.8bn.
We wrote about the difficulties in reaching the agreement between Baltic States here.
Today the World Economic Forum starts with a special address by Theresa May, Prime Minister of the United Kingdom. May is expected to tell the leaders gathered in Davos that “Britain is open for business”.
Other main topics include discussions on “Jobs and the Fourth Industrial Revolution” as automation and digitization are having an enormous impact on labor markets around the world; further discussions on the future of Europe; and a closer look at protectionism.
Polish Deputy Prime Minister Mateusz Morawiecki, who leads Polish delegation in Davos, continues his meetings with the most innovative companies, such as Google, IBM and Apple. But he also wants to talk to more traditional sectors, mainly the automotive one. „I want to bring greenfield investors to Poland,” he said TVN Biznes i Świat, private Polish television network.
Czech Republic and Slovakia
Car production in the Czech Republic increased by 8 per cent in 2016 compared to the previous year, and it was a record figure of 1.344 million cars. Production increases were recorded by all three of the Czech Republic’s major car production companies.
The biggest producer, Škoda Auto, recorded the highest increase in production, by 12.5 per cent, to 765,171 cars. The Hyundai increased its production by five percent to 358,400, and Kolín-based joint venture TPCA boosted its output by 220,611 cars, Radio Praha reports.
Exports of Czech car producers increased last year by 8.6 per cent to 1.6 million vehicles, while domestic sales rose by 4 per cent to 104,163 vehicles.
Also Slovakia broke its car production record. The Slovak Automotive Industry Association estimates that Volkswagen Slovakia, Kia Motors Slovakia and PSA Groupe Slovakia produced more than 1.04 million cars in 2016. In 2016, Kia Motors Slovakia near Žilina manufactured 339,500 cars and PSA Groupe Slovakia in Trnava 315,050 cars. Production of Volkswagen in Bratislava is estimated at 385,450 units.
More on Czech car production.
More on Slovak car production.
What’s up in indexes
BUX (of Budapest) increased from 32,782.00 index points Tuesday, January 17th to 32,841.00 index points Wednesday, January 18th. It was up 0.18 per cent d/d and up 41.68 per cent y/y.
BET (of Bucharest) increased from 7,152.56 index points Tuesday, January 17th to 7,178.34 index points Wednesday, January 18th. It was up 0.25 per cent d/d and up 19.26 per cent y/y.
PX (of Prague) increased from 923.27 index points Tuesday, January 17th to 925.93 index points Wednesday, January 18th. It was up 0.29 per cent d/d and up 6.69 per cent y/y.
WIG20 (of Warsaw) decreased from 2,015.28 index points Tuesday, January 17th to 2,005.65 index points Wednesday, January 18th. It was down 0.48 per cent d/d and up 19.44 per cent y/y.
OMXT (of Tallinn) decreased from 1,092.40 index points Tuesday, January 17th to 1,088.09 index points Wednesday, January 18th. It was down 0.39 per cent d/d and up 23.04 per cent y/y.
OMXR (of Riga) decreased from 743.40 index points Tuesday, January 17th to 743.26 index points Wednesday, January 18th. It was down 0.02 per cent d/d and up 24.85 per cent y/y.
OMXV (of Vilnius) decreased from 564.81 index points Tuesday, January 17th to 563.20 index points Wednesday, January 18th. It was down 0.29 per cent d/d and up 16.44 per cent y/y.
SAX (of Bratislava) has not changed and remained at the level of 315.70 index points on Wednesday, January 18th. It was up 4.11 per cent y/y.
SOFIX (of Sofia) decreased from 606.46 index points Tuesday, January 17th to 606.42 index points Wednesday, January 18th. It was down 0.01 per cent d/d and up 35.94 per cent y/y.
UX (of Kiev) increased from 848.75 index points Tuesday, January 17th to 857.39 index points Wednesday, January 18th. It was up 1.02 per cent d/d and up 30.32 per cent y/y/.
CROBEX (of Zagreb) increased from 2,078.59 index points Tuesday, January 17th to 2,079.52 index points Wednesday, January 18th. It was up 0.04 per cent d/d and up 31.91 per cent y/y.