Edition:
International

Jason Hovet

Pandemic seen driving southeastern Europe warehouse boom

Jun 09 2021

PRAGUE Logistics and warehouse companies are accelerating expansion plans in southeastern Europe where business is expected to boom as the pandemic spurs manufacturers to relocate operations close to main markets.

POLL-Forint rally seen sputtering, crown has room to run

Jun 04 2021

* reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=EURCZK= Euro/Czech crown

CEE ECONOMY-Central European manufacturing sentiment soars as recovery takes hold

Jun 01 2021

* Polish flash CPI hits 4.8% y/y in May (Adds Polish flash CPI, analysts, outlooks, details)

CEE MARKETS-Czech markets price in rate hike for August after hawkish cenbank message

May 07 2021

By Anita Komuves and Jason Hovet BUDAPEST/PRAGUE, May 7 Czech markets increasingly bet an interest rate hike may come sooner rather than later, with the crown steadying on Friday following a big jump after the central bank governor signalled an increase in borrowing costs was certain this year. Other central European currencies eased a touch, while the Czech crown held onto its gains that came after central bank Governor Jiri Rusnok said on Thursday the bank could already begin a debate on tightening policy at its June meeting. Forward rate agreements in three months' time have climbed since Thursday, now indicating chances the bank is likely to deliver on a rate hike - becoming the first in the region to do so - in August, when new staff forecasts will be available. The Hungarian forint was hovering around its 200-day moving average near 358 per euro. "I don't expect the forint to significantly move in either direction today because investors are waiting for CPI data to be published next Tuesday, which could trigger bigger moves," a Budapest-based FX trader said. The central bank expects headline inflation to approach 5% in the second quarter, driven by fuel prices and tax changes, overshooting its 2%-4% target range. The bank pledged to prevent any sustained rise in inflation at its rate-setting meeting last week. The zloty edged lower on Friday after steep losses in the middle of the week. The currency has been under pressure ahead of a Supreme Court ruling due on May 11 concerning FX mortgages, which could result in major losses for banks. Stocks in the region firmed, with Warsaw leading gains. Prague added 0.7%. Shares in MONETA Money Bank climbed over 3% after the bank said it agreed with its biggest shareholder, PPF Group, on terms to combine their Czech lending assets in a 25.9 billion crown deal. Budapest's equities rose 0.22%. Oil and gas group MOL added 2.6% by 0835 GMT after posting better-than expected first-quarter results. CEE SNAPSHO AT MARKETS T 1123 CET CURRENC IES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech <EURCZK= 25.7310 25.7290 -0.01% +1.94% crown > EURHUF= Hungary <EURHUF= 358.350 358.3100 -0.01% +1.22% forint > 0 EURPLN= Polish <EURPLN= 4.5825 4.5750 -0.16% -0.51% zloty > EURRON= Romanian <EURRON= 4.9265 4.9265 +0.00 -1.25% leu > % EURHRK= Croatian <EURHRK= 7.5340 7.5320 -0.03% +0.18% kuna > EURRSD= Serbian <EURRSD= 117.500 117.6250 +0.11 +0.06% dinar > 0 % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2021 .PX Prague 1104.24 1096.510 +0.70 +7.51% 0 % .BUX Budapest 44569.2 44472.71 +0.22 +5.85% 7 % .WIG20 Warsaw 2078.33 2046.67 +1.55 +4.76% % .BETI Buchares 11562.6 11505.08 +0.50 +17.92 t 6 % % .SBITOP Ljubljan <.SBITOP 1070.29 1064.86 +0.51 +18.81 a > % % .CRBEX Zagreb 1933.63 1930.65 +0.15 +11.17 % % .BELEX1 Belgrade <.BELEX1 755.80 755.89 -0.01% +0.96% 5 5> .SOFIX Sofia 518.76 522.74 -0.76% +15.92 % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT=R 2-year <CZ2YT=R 0.4980 -0.0440 +118b -5bps R R> ps CZ5YT=R 5-year <CZ5YT=R 1.3700 0.0250 +196b +1bps R R> ps CZ10YT= <CZ10YT= 1.7860 -0.0090 +200b -2bps RR 10-year RR> ps Poland PL2YT=R 2-year <PL2YT=R 0.1130 0.0060 +080b +0bps R R> ps PL5YT=R 5-year <PL5YT=R 0.9360 -0.0140 +153b -3bps R R> ps PL10YT= <PL10YT= 1.6970 0.0040 +192b -1bps RR 10-year RR> ps FORWARD 3x6 6x9 9x12 3M interba nk Czech 0.58 0.88 1.20 0.36 Rep <PRIBOR= > Hungary 0.96 1.13 1.30 0.79 Poland 0.28 0.32 0.41 0.21 Note: are for ask FRA prices quotes ********************************************* ***************** (Reporting by Anita Komuves in Budapes and Jason Hovet in Prague; Editing by Subhranshu Sahu)

Analysis: Bent on reviving growth, CEE countries shun near-term inflation threat

Apr 28 2021

BUDAPEST/PRAGUE Central Europe's rate setters for the most part look set to weather a looming spike in inflation and let their economies rebound with a vengeance from the COVID-19 shutdown, propelled by strong domestic demand, investments and European Union funds.

UPDATE 1-CEE MARKETS-Forint eases slightly after central bank extends QE programme

Apr 27 2021

(Updates with cenbank decision, trader comments) By Jason Hovet and Anita Komuves PRAGUE/BUDAPEST, April 27 The Hungarian forint eased slightly on Tuesday after the National Bank of Hungary (NBH) left interest rates unchanged, as expected, and extended its quantitative easing programme. The forint was still 0.24% up on the day, trading at 362.93 to the euro, outperforming its regional peers after a recent slide. The rate decision did not significantly move the forint as it was already anticipated and priced in, according to an FX trader in Budapest. The Hungarian currency has roller-coastered this year, dropping nearly 2% at one point in the past two weeks. Government bond yields were not immediately moved by the central bank's announcement, a fixed-income trader said. "The QE programme reached 1.9 trillion forints last week, so the market was sure that they would extend it, which was in line with the bank's communication as well," he said. The NBH extended its QE programme, saying it would next review the scheme once the stock of its bond purchases rises by another 1 trillion forints ($3.33 billion) to 3 trillion forints. Other central European currencies eased as the U.S. dollar hovered above its recent lows and risk appetite slackened ahead of a Federal Reserve policy decision this week. The Czech crown lost steam, dropping 0.35% to 25.940 to the euro. Markets expect the Czech central bank, which meets next week, could begin hiking interest rates later this year although the timing is still uncertain. Board member Vojtech Benda told Bloomberg news agency the bank was not likely to raise rates this year as much as assumed in its staff forecasts. The Polish zloty dipped 0.17% while Romania's leu was flat. Warsaw markets were waiting for a Thursday ruling from the Court of Justice of the European Union over questions concerning claims banks may be able to make from clients if foreign currency mortgage contracts are cancelled. The issue, weighing on the zloty, could result in major losses for the banking sector, coming after thousands of Polish borrowers took out Swiss franc loans more than a decade ago. Warsaw's WIG20 index dropped 0.22% on Tuesday. CEE SNAPSHO AT MARKETS T 1549 CET CURRENC IES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech <EURCZK= 25.9400 25.8480 -0.35% +1.11% crown > EURHUF= Hungary <EURHUF= 362.930 363.8000 +0.24 -0.06% forint > 0 % EURPLN= Polish <EURPLN= 4.5664 4.5587 -0.17% -0.16% zloty > EURRON= Romania <EURRON= 4.9260 4.9248 -0.02% -1.24% n leu > EURHRK= Croatia <EURHRK= 7.5550 7.5635 +0.11 -0.10% n kuna > % EURRSD= Serbian <EURRSD= 117.550 117.6050 +0.05 +0.02% dinar > 0 % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2021 .PX Prague 1097.40 1095.200 +0.20 +6.84% 0 % .BUX Budapes 43434.5 43281.61 +0.35 +3.15% t 3 % .WIG20 Warsaw 2000.61 2005.10 -0.22% +0.84% .BETI Buchare 11298.8 11213.75 +0.76 +15.23 st 3 % % .SBITOP Ljublja <.SBITOP 1060.52 1063.41 -0.27% +17.72 na > % .CRBEX Zagreb 1899.59 1895.34 +0.22 +9.22% % .BELEX1 Belgrad <.BELEX1 770.28 770.34 -0.01% +2.89% 5 e 5> .SOFIX Sofia 521.65 519.88 +0.34 +16.56 % % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republi c CZ2YT=R <CZ2YT=R 0.6360 0.0130 +133b +2bps R 2-year R> ps CZ5YT=R <CZ5YT=R 1.3660 -0.0790 +197b -8bps R 5-year R> ps CZ10YT= <CZ10YT= 1.7920 -0.0060 +205b -1bps RR 10-year RR> ps Poland PL2YT=R <PL2YT=R 0.1030 0.0130 +079b +2bps R 2-year R> ps PL5YT=R <PL5YT=R 0.8120 -0.0410 +141b -4bps R 5-year R> ps PL10YT= <PL10YT= 1.5410 -0.0150 +179b -2bps RR 10-year RR> ps FORWARD 3x6 6x9 9x12 3M interba nk Czech 0.45 0.70 0.97 0.36 Rep <PRIBOR= > Hungary 0.95 1.12 1.27 0.79 Poland 0.24 0.27 0.39 0.21 Note: are for ask FRA prices quotes ******************************************** ****************** (Reporting by Jason Hovet in Prague, Anita Komuves in Budapest and Alan Charlish in Warsaw; editing by Mark Heinrich)

Baltic states join NATO allies in kicking out Russians for spying

Apr 23 2021

PRAGUE/VILNIUS/MOSCOW Lithuania, Latvia and Estonia on Friday joined a fast-growing list of NATO and EU members demanding the removal of Russian diplomats for alleged spying, in actions that have infuriated Moscow and look certain to provoke further retaliation.

Czech PM names fourth health minister amid Sputnik vaccine strife

Apr 07 2021

PRAGUE (Reuters) -Czech Prime Minister Andrej Babis on Wednesday installed his fourth health minister during the COVID-19 pandemic as a lagging vaccination campaign heightened pressure to use Russia's Sputnik dose.

POLL-Polish zloty to regain lost ground after fall to 12-year lows

Apr 01 2021

* reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=EURCZK= Euro/Czech crown

Czech billionaire Kellner killed in Alaska helicopter crash

Mar 29 2021

PRAGUE (Reuters) -Petr Kellner, the Czech Republic's richest man and founder of investment group PPF, was killed in a helicopter crash on a skiing trip in Alaska.

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