NBS keeps key policy rate at 2.5%
At its meeting yesterday, the NBS Executive Board voted to keep the key policy rate at 2.5%. In making the decision, the Executive Board was guided primarily by the outlook for inflation and other macroeconomic indicators in the domestic and international environment and the past monetary policy easing. The Executive Board stresses that inflation will be kept under control in the coming period, as was the case so far. Inflation slowed down to 1.3% y-o-y in August, on the back of a further reduction in the contribution of fruit and vegetable prices in the new agricultural season. That inflationary pressures are subdued is also indicated by core inflation, which remains low and stable, and by the one- and two-year ahead inflation expectations of the financial and corporate sectors standing in the lower part of the target band – the NBS announced.
Serbia's end-August budget surplus at 46.6 bln dinars
Serbia registered a 46.6 bln dinar budget surplus at the end of August 2019, the Ministry of Finance has said. Revenues totalled 828.2 bln dinars, with expenditures at 781.6 bln dinars. In August alone, a 1.9 bln dinar budget deficit was registered, with tax revenues (80.8 bln dinars) accounting for most of the total revenues of 90.9 bln dinars. A general government fiscal surplus of 37.2 bln dinars and a primary fiscal surplus of 122.3 bln dinars were registered in January-August 2019. Under an annual plan, a 13.7 bln dinar general government deficit was planned for the period, meaning that the achieved result is 50.9 bln dinars better than planned, the Ministry said in a statement.
EU removes Serbia from “gray list” of tax havens
The Council of Ministers of the European Union has removed Serbia from the “gray list” of tax havens, as it has determined that the country complies with all commitments on tax cooperation and that it has carried out all the necessary reforms toward the harmonization with the EU tax principles. The explanation of the decision says that Serbia ratified the OECD Multilateral Convention on Mutual Administrative Assistance ("MAC") on August 30, 2019, as announced today on the Council's official website.
Dow rises more than 100 points after Trump tweet stokes trade-deal hopes; European stocks close higher as investors gear up for US-China trade talks
Stocks rose on Thursday after President Donald Trump said he will meet with Chinese Vice Premier Liu He on Friday, raising hope the two countries could make progress on the trade front. The Dow Jones Industrial Average advanced 154 points, or 0.6%. The S&P 500 gained 0.7% while the Nasdaq Composite climbed 0.6%. At its session high, the Dow was up 257.30 points, or 0.98%.
European stocks closed higher Thursday following a choppy session, with investors looking ahead to trade talks between the U.S. and China. The pan-European Stoxx 600 closed provisionally 0.8%, after fluctuating for much of the session. Trade-sensitive sectors autos and basic resources led the gains, adding over 2% and 3% respectively.
In terms of individual stocks, luxury goods maker LVMH climbed more than 5% after strong results, pulling fellow luxury brand Christian Dior over 4% higher.
On the other end, Danish bioscience company Chr. Hansen tumbled 9% after missing profit expectations, while Dutch health technology company Philips also fell about 9% after warning it will miss its 2019 margin goal.