Edition:
International

Gergely Szakacs

Hungary's new opposition PM candidate wants stronger ties with EU

Oct 18 2021

BUDAPEST Hungary should strengthen ties with the European Union, put its economy on a path to adopting the euro currency and join the European Public Prosecutor's Office to root out corruption, the opposition's joint prime ministerial candidate told Reuters.

Analysis-Central banks and governments in eastern Europe at odds amid inflation

Oct 18 2021

BUDAPEST A surge in price growth in eastern Europe has opened a rift between central banks that have launched rate hikes to battle inflation and populist governments trying to defend a strong economic recovery.

Outsider Marki-Zay to stand against PM Orban in 2022 after winning run-off

Oct 17 2021

BUDAPEST Small-town conservative Peter Marki-Zay, a political outsider with no party affiliation, will go head-to-head with Prime Minister Viktor Orban next year for leadership of Hungary after on Sunday winning an opposition run-off primary.

Outsider Marki-Zay hopes to blunt Orban's attacks in 2022 Hungarian election

Oct 17 2021

BUDAPEST Peter Marki-Zay, the small-town mayor who will take on Prime Minister Viktor Orban in Hungary's 2022 election, figures his conservative, family-man persona will leave nationalist Orban floundering in next year's vote.

POLL-Hungary central bank to maintain slower hiking pace as inflation rises

Oct 13 2021

* reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/cb-polls?RIC=HUINT%3DECI poll data

UPDATE 1-CEE MARKETS-Zloty rallies on surprise Polish rate increase

Oct 06 2021

(Updates after Polish rate hike) By Krisztina Than and Gergely Szakacs BUDAPEST, Oct 6 The zloty jumped over 1% to a three-week high against the euro after the National Bank of Poland unexpectedly raised interest rates, joining its central European peers in tightening monetary policy to fend off rising inflationary pressure. At 1344 GMT, the zloty was 1.4% stronger versus the euro, with the NBP's surprise 40-basis-point increase in its benchmark rate to 0.5% reversing its early losses and immediately lifting the Polish currency into the black for 2021. All of the analysts in a Reuters poll had expected rates to remain on hold on Wednesday. Most economists had not expected the NBP to start raising rates before the first quarter of 2022. "It is very surprising that the MPC did not wait until November, despite insisting that there was no risk that inflation was temporary, so they had either contradicted their rhetoric of previous months or changed their views entirely," said Piotr Bielski, head of research at Santander Bank Polska. "The key question is whether this signals further gradual increases or whether there will be a pause after this hike, not a small one after all," he said. "I would assume, however, that it is the latter, we raise rates substantially, and then we will see how the situation is." The Polish index of banking stocks gained as much as 4.2%. Other central European currencies and stocks mostly fell on Wednesday as global sentiment soured with a jump in oil prices fuelling inflation concerns. Amid a strong recovery, consumers in Central Europe are facing some of the highest inflation in the European Union, prompting interest rate hikes in the Czech Republic and Hungary since June, including the biggest move up by the Czech central bank in 24 years. The Romanian central bank also hiked rates on Tuesday. The Hungarian forint was down 0.3%, trimming its early losses, while the Czech crown was 0.2% weaker, Both units had been supported by the tightening stance of their central banks. However, the forint has retreated after gains that started on Friday when Deputy Central Bank Governor Barnabas Virag flagged a further 15-basis-point rate hikes. "The forint's drop is likely due to a rise in core yields, we had seen the forint weaken when global yields rise," a dealer in Budapest said, adding that although the central bank's promise to continue its tightening provided support for the forint, this faded amid the global gloom on Wednesday. The leu held steady but some analysts said it may resume its falls amid uncertainty after Romania's parliament toppled the nine-month-old minority government of Prime Minister Florin Citu. CEE SNAPSHO AT MARKETS T 1544 CET CURRENC IES Latest Previou Daily Change s bid close change in 2021 EURCZK Czech <EURCZK 25.4000 25.3400 -0.24% +3.26% = crown => EURHUF Hungary <EURHUF 358.500 357.510 -0.28% +1.18% = forint => 0 0 EURPLN Polish <EURPLN 4.5540 4.6170 +1.38% +0.11% = zloty => EURRON Romanian <EURRON 4.9460 4.9474 +0.03% -1.64% = leu => EURHRK Croatian <EURHRK 7.5090 7.5075 -0.02% +0.51% = kuna => EURRSD Serbian <EURRSD 117.540 117.580 +0.03% +0.03% = dinar => 0 0 Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2021 .PX Prague 1363.34 1362.32 +0.07% +32.73 00 % .BUX Budapest 53236.7 53369.7 -0.25% +26.43 1 8 % .WIG20 Warsaw <.WIG20 2358.30 2364.72 -0.27% +18.87 > % .BETI Buchares 12630.0 12613.4 +0.13% +28.80 t 9 3 % .SBITO Ljubljan <.SBITO 1159.57 1164.79 -0.45% +28.72 P a P> % .CRBEX Zagreb <.CRBEX 2033.61 2032.58 +0.05% +16.92 > % .BELEX Belgrade <.BELEX 802.70 802.65 +0.01% +7.23% 15 15> .SOFIX Sofia <.SOFIX 571.37 573.55 -0.38% +27.67 > % Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year <CZ2YT= 2.0890 -0.0080 +278bp -1bps RR RR> s CZ5YT= 5-year <CZ5YT= 2.1540 0.0090 +270bp +0bps RR RR> s CZ10YT <CZ10YT 2.1200 -0.0110 +231bp -1bps =RR 10-year =RR> s Poland PL2YT= 2-year <PL2YT= 1.2470 0.1540 +194bp +15bps RR RR> s PL5YT= 5-year <PL5YT= 1.8380 0.0970 +239bp +9bps RR RR> s PL10YT <PL10YT 2.3380 0.0840 +252bp +8bps =RR 10-year =RR> s FORWARD 3x6 6x9 9x12 3M interba nk Czech <CZKFRA 2.78 3.05 3.15 1.86 Rep ><PRIBO R=> Hungary <HUFFRA 2.32 2.66 2.90 1.80 ><BUBOR => Poland <PLNFRA 1.05 1.52 1.96 0.25 ><WIBOR => Note: are for ask FRA prices quotes ******************************************** ****************** (Reporting by Krisztina Than and Gergely Szakacs, additional reporting by Jason Hovet in Prague; Editing by Kim Coghill and Emelia Sithole-Matarise)

Pro-EU Dobrev wins first round of primary to take on Hungary's Orban

Oct 01 2021

BUDAPEST A 49-year-old lawyer who favours closer ties with the European Union pledged to unseat Viktor Orban as Hungary's prime minister, after she won the first round of a contest that will produce his challenger in an election next year.

CEE MARKETS-Forint hits eight-week low as c.bank shifts rate hikes to lower gear

Sep 24 2021

By Gergely Szakacs BUDAPEST, Sept 24 Hungary's forint hit an eight-week low against the euro on Friday, extending its losses for a third straight session, after the central bank slowed the pace of rate rises despite lifting its inflation forecasts. At 0801 GMT, the forint was down 0.3%, leading losses in central Europe and giving up a large part of its gains posted this year. The Hungarian and Czech central banks both started raising rates in June, boosting the forint and the crown by some 3% versus the euro ahead of Tuesday's Hungarian rate meeting, when the bank raised rates by a smaller-than-expected 15 basis points to 1.65%. Despite raising its inflation forecasts for this year and the next, the National Bank of Hungary (NBH) said it would hike rates further in 15-basis-point steps, slowing the pace of tightening after three successive 30-basis-point hikes. The forint fell over 1% versus the euro since Tuesday, paring its gains for the year to 1.6%. The crown's gains, meanwhile, still exceed 3% this year as the debate among Czech rate setters is shifting towards faster tightening. "The NBH is in a bind as it would need to continue raising rates due to high inflation, however, they cannot hike too much further as that could trigger a backlash," a currency dealer in Budapest said. "The elections are coming, many people are indebted and big rate rises would probably not be good news for them," the trader said, adding that potential spillover risks from the Evergrande crisis and rising energy prices also weighed on sentiment. Earlier on Friday, Hungarian Prime Minister Viktor Orban said he aimed to speed up an extra month of payment to pensioners as he ramped up a pre-election spending spree ahead of what promises to be a closely-fought ballot early next year. Last week, Orban also eased repayment rules for retail credit card loans and overdraft credit as part of an extended debt moratorium, making banks charge lower interest rates on such borrowing. The Polish zloty fell 0.2% in early trade, while the crown was 0.1% weaker. Budapest stocks also underperformed the region with a 0.45% retreat as all blue-chip shares were mildly in the red. CEE SNAPSHO AT MARKETS T 1001 CET CURRENC IES Latest Previou Daily Change s bid close change in 2021 EURCZK Czech <EURCZK 25.4100 25.3940 -0.06% +3.22% = crown => EURHUF Hungary <EURHUF 356.950 355.740 -0.34% +1.62% = forint => 0 0 EURPLN Polish <EURPLN 4.6160 4.6080 -0.17% -1.23% = zloty => EURRON Romanian <EURRON 4.9505 4.9510 +0.01% -1.73% = leu => EURHRK Croatian <EURHRK 7.4938 7.4955 +0.02% +0.72% = kuna => EURRSD Serbian <EURRSD 117.510 117.605 +0.08% +0.05% = dinar => 0 0 Note: calculated from 1800 daily CET change Latest Previou Daily Change s close change in 2021 .PX Prague 1308.80 1307.55 +0.10% +27.42 00 % .BUX Budapest 51714.4 51946.8 -0.45% +22.82 7 6 % .WIG20 Warsaw <.WIG20 2316.17 2320.51 -0.19% +16.74 > % .BETI Buchares 12476.3 12395.2 +0.65% +27.24 t 5 8 % .SBITO Ljubljan <.SBITO 1173.89 1163.61 +0.88% +30.31 P a P> % .CRBEX Zagreb <.CRBEX 1981.75 1976.03 +0.29% +13.94 > % .BELEX Belgrade <.BELEX 799.68 798.71 +0.12% +6.82% 15 15> .SOFIX Sofia <.SOFIX 562.60 561.58 +0.18% +25.71 > % Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT= 2-year <CZ2YT= 1.8960 0.0190 +258bp +1bps RR RR> s CZ5YT= 5-year <CZ5YT= 1.9770 0.0120 +255bp +0bps RR RR> s CZ10YT <CZ10YT 2.0010 0.0020 +223bp -3bps =RR 10-year =RR> s Poland PL2YT= 2-year <PL2YT= 0.5750 -0.0620 +126bp -7bps RR RR> s PL5YT= 5-year <PL5YT= 1.5240 0.0320 +209bp +2bps RR RR> s PL10YT <PL10YT 2.0860 0.0520 +232bp +2bps =RR 10-year =RR> s FORWARD 3x6 6x9 9x12 3M interba nk Czech <CZKFRA 2.20 2.53 2.78 1.15 Rep ><PRIBO R=> Hungary <HUFFRA 2.18 2.36 2.50 1.74 ><BUBOR => Poland <PLNFRA 0.47 0.78 1.05 0.24 ><WIBOR => Note: are for ask FRA prices quotes ******************************************** ****************** (Reporting by Gergely Szakacs; Editing by Rashmi Aich)

Hungarian cenbank slows pace of tightening, plans more hikes to curb inflation

Sep 21 2021

BUDAPEST (Reuters) -Hungary's central bank raised its base rate on Tuesday by a smaller-than-expected 15 basis points to 1.65% and pledged similar hikes in the coming months to curb inflation, while it also reduced its bond purchases further.

Hungary PM launches election campaign with $2 billion tax refund for families

Sep 20 2021

BUDAPEST (Reuters) -Hungary's government will refund $2 billion of income tax to families in early 2022 and also plans a big hike in the minimum wage, right-wing Prime Minister Viktor Orban told the opening session of parliament on Monday, setting the stage for next year's election.

World News

N.Korea test fires submarine-launched ballistic missile, S.Korea says

SEOUL (Reuters) -North Korea fired a submarine-launched ballistic missile (SLBM) from off its east coast on Tuesday, South Korea's military said, pulling Japan's new prime minister off the campaign trail https://www.reuters.com/world/asia-pacific/japan-kicks-off-election-campaign-support-ruling-ldp-dips-2021-10-19 and overshadowing the opening of a major arms fair https://www.reuters.com/world/asia-pacific/nkorea-threatens-upstage-skorea-defence-expo-with-duelling-military-show-2021-10-14 in Seo