Three Hungarian deals with US companies
Litgrid prepares to develop 2nd interconnection of LitPol Link
Croatia’s central bank: GDP will grow faster we expected
The Polish Radio reports the US State Department likes to close negotiations with the EU on a Transatlantic Trade and Investment Partnership (TTIP) by the end of 2016. The talks have been held for three years.
The Radio quotes Catherine Novelli, US Under Secretary of State for Economic Growth, Energy and the Environment: “Our trade and investment relationship… is the largest in the world – USD3bn of goods and services every single day. And it’s supporting 1.3 m jobs across our countries”. Novelli expressed her belief that all parties should be interested in finalizing it as soon as possible.
But Polish officials do not share the conviction. As the Radio reminds:
- Mateusz Morawiecki, the deputy Prime Minister and Development Minister of Poland, has recently raised doubts about the judicial procedures proposed in the TTIP, especially when it comes to dispute resolution through arbitration tribunals; and
- the Ministry of Agriculture led by Krzysztof Jurgiel informed in May 2016 it would not agree to provisions that may threaten Polish farmers.
Portfolio reports on new Hungarian-American economic agreements. The country’s Minister of Foreign Affairs and Trade Péter Szijjártó paid a 2-day visit to Washington D.C. this week. During the talks with American corporation, think tanks and research institutes Hungarian delegation concluded three business deals that may create new jobs in the country.
Szijjártó revealed a new automotive industry supplier will invest HUF15bn (EUR47.6m) in the country. The project will create 200 new jobs. The other deal is with one of the USA’s largest media corporations. It is said the company has spent HUF20bn on film production in Hungary.
There are about 1,600 American enterprises operating in Hungary employing some 100,000 people. In 2015 the United States reached the status of the second biggest investor in Hungary.
Litgrid, Lithuania’s electricity transmission system operator, wants to develop the second interconnection with Poland – LitPol Link2. It should be of the same capacity as the first one. The company’s officials claim it’s necessary to prepare for synchronization of the electricity networks of the Baltic states and continental Europe.
Baltic Course quotes Karolis Sankovskis from Litgrid’s Strategic Infrastructre Department:
“The second interconnection is necessary for deeper integration of the Baltic states with European electricity networks – it will help to ensure reliable and smooth operations of the system in the synchronized mode”. The company has just announced a tender for a study of the planned project.
As the “Baltic Course” reads, “the link is projected to stretch from a new substation in Marijampole to the Lithuanian-Polish border. A separate study in Poland will be conducted by the Polish transmission system operator, PSE”.
The first 500-megawatt LitPol Link interconnection was launched in early 2016.
The central bank of Croatia revised its forecasts on July 13th, and informed the country’s GDP will grow 2.3 per cent in 2016, the central bank said on July 13. The previous forecasts (of December 2015) was 1.8 per cent. In addition, this expansion should accelerate to 2.5 per cent in 2017.
Intellinews reports: “Despite the political turmoil in the country following the government’s collapse, macroeconomic data for Croatia is still promising, except the ongoing deflation, while the EU and the IMF anchors play their role to keep public finance figures under control. The country’s GDP expanded 2.7 per cent y/y in the first quarter of 2016”.
The incentives for the growth are:
- foreign demand,
- a rise of all elements of domestic demand (the growth of private consumption might be higher than last year, thanks to a faster growth of employment and gross salaries.
At the same time the CPI index is expected to grow by 0.9 per cent in 2016 and by 1.2 per cent in 2017.
What’s up in indexes
BUX (of Budapest) was up 0.95 per cent – increasing from 27573.51 index points Wednesday, July 20th to 27836.10 index points Thursday, July 21st. From year-end it’s up 16.37 per cent.
BET (of Bucharest Stock Exchange) dropped by 0.15 per cent – falling from 6664.72 index points Wednesday, July 20th to 6624.83 index points Thursday, July 21st. From year-end it dropped by 5.42 per cent.
PX (of Prague Stock Exchange) was up 0.62 per cent d/d – increasing from 882.07 index points Wednesday, July 20th to 887.50 index points Thursday, July 21st. From year-end it lost 7.20 per cent.
WIG20 (of Warsaw) was up 0.18 per cent d/d – increasing from 1800.41 index points Wednesday, July 20th to 1803.68 index points Thursday, July 21st. From year-end it lost 2.98 per cent.
OMXT (of Tallinn) was up 0.21 per cent increasing from 1019.77 index points Wednesday, July 20th to 1021.91 index points Thursday, July 21st. From year-end it’s up 13.67 per cent.
OMXR (of Riga) increased from 639.92 index points Wednesday July 20th to 640.45 index points Thursday, July 21st. So it’s up 0.08 per cent d/d and up 7.76 per cent from year-end.
OMXV (of Vilnius) increased from 532.97 index points Wednesday, July 20th to 537.47 index points Thursday, July 21st. So it’s up 0.84 per cent d/d and up 10.59 per cent from year-end.
SAX (od Bratislava) increased from 312.46 index points Wednesday, July 20th to 315.65 index points Thursday, July 21st. So it’s up 1.02 per cent d/d and up 7.97 per cent from year-end.
SOFIX (of Sofia) increased from 452.05 index points Wednesday, July 20th to 457.62 index points Thursday, July 21st. So it’s up 1.23 per cent d/d. From year-end it dropped by 0.71 per cent.
UX (of Kyiv) was up 0.38 per cent d/d – increasing from 713.46 index points Wednesday, July 20th to 716.19 index points Thursday, July 21st. From year-end it’s up 4.42 per cent.
CROBEX (of Zagreb Stock Exchange) decreased from 1747.59 index points Wednesday, July 20th to 1746.23 index points Thursday, July 21st. So it dropped by 0.08 per cent d/d. From year-end it’s up 3.35 per cent.