Daily Report 16.05.2019
Objavljeno: 16. 05. 2019

Price of electricity not to increase yet

Since last week, when the delegation of the International Monetary Fund (IMF) arrived to Belgrade, the media have been speculating that one of the recommendations will be to increase the price of electricity by 5%. The World Bank's analysis has confirmed that Serbia has the cheapest electricity in Europe. As RTS says, there has been no discussion about increasing the price per kilowatt in the negotiations between the IMF and the Government yet, and EPS has not filed a request for a price increase either. The arrangement with the IMF is of advisory character, the talks will take two weeks and there is still the possibility of recommending to EPS to increase the price of electricity within the continuation of reforms. 
Source: Ekapija

NBS FX reserves at 11.33 bln euros in April, up by 906 mln
Gross National Bank of Serbia (NBS) FX reserves amounted to 11.336 bln euros at the end of April 2019, rising by as much as 906.4 mln euros y-o-y, NBS said. The FX reserves covered 178 pct of the money supply (M1) "or more than five months’ worth of the country’s imports of goods and services (almost twice the level prescribed by the standard on the adequate level of coverage of the imports of goods and services by FX reserves).
Source: Tanjug

Serbian Q1 2019 exports up 10.4%
Serbia's exports in Q1 2019 were 10.4 pct up, rising more than had been planned for the entire year, Milan Trajkovic, deputy head of the National Bank of Serbia (NBS) Economic Research and Statistics Department, said Wednesday. Asked by reporters to comment on the European Commission's decision to revise downward its 3.5 pct GDP growth forecast for Serbia for this year to 3.1 pct due to a slowdown of Serbia's major trade partners, Trajkovic said the main reason for this was an EC estimate that Serbian exports would slow down in 2019.
Source: Tanjug

Dow rises more than 100 points, erasing 190-point drop, as Trump delays auto tariffs; European stocks close higher
Stocks rose on Wednesday on news that President Donald Trump plans to delay the implementation of auto tariffs. The Dow Jones Industrial Average closed up 115.97 points at 25,648.02 after falling as much as 190 points earlier in the session. The S&P 500 gained 0.6% to end the day at 2,850.96 while the Nasdaq Composite rose 1.1% to 7,822.15.
Other stocks lifting the market included Boeing and Alphabet. Boeing shares rose 0.8% after the Federal Aviation Administration said it expects the aerospace giant to submit its software fix for the 737 Max plane soon. Alphabet, meanwhile gained 4.1% after Deutsche Bank raised its price target on the tech giant to $1,400 from $1,300.
U.S. retail sales fell 0.2% in April, the Commerce Department said Wednesday. Economists polled by Dow Jones expected an increase of 0.2%.
Overnight, data released in China showed industrial production rose by 5.4% in April on a year-over-year basis, notching the slowest pace of growth since May 2003. Economists polled by Refinitiv expected an expansion of 6.5%. Chinese retail sales also disappointed economists.
The pan-European STOXX 600 closed provisionally 0.39% up in trade. Autos jumped 2.02 percent higher after initially being the weakest sector.
Three sources told CNBC the administration will delay those levies by up to six months. The news, which was first reported by Bloomberg News, sent auto stocks higher. Porsche, BMW and Daimler all enjoyed rises of around 3%.
Meanwhile, in a substantial piece of corporate news, reports Tuesday suggested Italian bank UniCredit has stepped up preparations to bid for Commerzbank, just weeks after talks a deal with previous suitor Deutsche Bank fell through. Commerzbank shares traded 2.9% lower Wednesday afternoon.
Source: CNBC