Share of NPLs reduced to 5.21%
The share of NPLs in total loans in the Serbian banking sector was reduced to 5.21 pct at the end of June, National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic said Wednesday. It is the lowest level of NPLs since monitoring of the indicator began, Tabakovic told a press conference, adding that the share of NPLs had been at 5.4 pct in May. Gross foreign exchange reserves reached 12.1 bln euros at the end of June while net reserves stood at over 10 bln euros - their highest level since monitoring began, she said at the presentation of the central bank's 2018 annual report on the stability of the financial system.
Serbian industrial output 6.1 pct down in June
Serbian industrial output was 6.1 pct down in June compared to the same month last year, the national statistical office RZS said in a statement Wednesday. The June industrial output was 2.5 pct down compared to the 2018 average. The largest impact on the fall of industrial production in June 2019 compared to June 2018 came from the divisions of production of refined petroleum products, production of food products, manufacture of machinery and equipment n.e.c., production of beverages and printing and reproduction of recorded media, the RZS said.
NBS has no need to take IMF advice
National Bank of Serbia Governor Jorgovanka Tabakovic on Wednesday said that, considering the stability of the national currency and the citizens' confidence in it, there was no reason to take an IMF advice to allow greater fluctuations of the dinar exchange rate. When asked by a reporter to comment on an IMF recommendation to allow slightly higher fluctuations of the exchange rate in both directions, she said the central bank would take advice from any international financial institution, including the IMF, if there were reasons for that.
Dow drops 250 points after Powell hints rate cut not the start of a trend; European stocks close higher as investors await Fed decision
Stocks dropped on Wednesday as Federal Reserve Chair Jerome Powell dampened hopes for further rate cuts later this year. The Dow Jones Industrial Average traded 250 points lower after falling as much as 478 points at one point. The S&P 500 and Nasdaq Composite both dropped 0.7%. The Fed cut rates by 25 basis points, matching market expectations. The central bank cited “global developments ” along with “muted inflation” as reasons for easing monetary conditions.
Apple reported Tuesday evening earnings per share and revenue for the previous quarter that topped analyst expectations, sending the stock up 5% on Wednesday. The company also issued better-than-expected revenue guidance for the fourth quarter.
European stocks closed higher Wednesday as investors awaited an interest rate decision from the U.S. Federal Reserve. The pan-European Stoxx 600 climbed 0.2%, with the majority of sectors and major bourses in positive territory. The FTSE 100 in London was the outlier in Europe, slipping 0.6% as the pound moved away from recent lows.
Earnings remain in focus as a slew of major European corporates reported results Wednesday. Credit Suisse reported a net income of 937 million Swiss Francs ($945 million) for the second-quarter of this year, beating expectations. The bank’s shares climbed more than 2%.
Air France KLM shares traded more than 8% higher after its second-quarter earnings and the announcement that members of its pilots’ union had voted in favor of the development of a new low cost airline, Transavia France.