Serbia's c-bank cuts key repo rate to 2.5%
Serbia's central bank, NBS, said on Thursday it will cut its key repo rate to 2.5% from 2.75%. The inflation rate is expected to remain in the 1.5%-4.5% target band, NBS said in a statement. The central bank cut the key repo rate by 0.25 of a percentage point to 2.75% in July to help guide inflation to the target band. Serbia's average annual consumer price inflation slowed to 1.5% in June, from 2.2% in May, according to the latest official data available. On a monthly comparison basis, Serbia's consumer price index (CPI) fell by 0.3% in June, after decreasing by 0.3% in May.
Turnover through instant payments in July RSD 8 billion
The value of turnover through the National Bank of Serbia's instant payment reached RSD 8 billion in July. The average daily value of turnout through IPS was 260 million dinars, the Central Bank announced. The average daily payment number was 15,599, with an average transaction execution time of 1.1 seconds. Via this system, which operates in 24 hours 365 days a year, 483,565 payments were made in 31 days in July.
Investment cycle to result in 5% GDP growth
A new 10 billion euro investment cycle will allow Serbia's economy to grow further and GDP growth in the coming years to reach over five percent, said Serbian President Aleksandar Vucic, adding that he expects foreign direct investment to come up to 3.8 billion euros. Speaking about the new investment cycle on TV Prva, Vucic said that it will be financed by the growth of its own funds, which are actualizing due to a better economic situation. The budget of the City of Belgrade for the next year will be twice as big, Vucic said, recalling the difficult reforms, referring to 2014 as the year when the most difficult economic reforms were implemented. "We are on a great path now," Vucic said, emphasizing that the average salary in Serbia will be between 500 and 510 euros by the end of the year.
Stocks rally, pushing S&P 500 into positive territory for the wild week; European stocks close higher as sharp fall in global bond yields stabilizes
Stocks rose on Thursday, erasing most of the steep losses from earlier in the week, as global bond yields rebounded while investors digested better-than-expected trade data out of China. The Dow Jones Industrial Average closed 371.12 points higher, or 1.4% to 26,378.19. The S&P 500 advanced 1.9% to 2,938.09 while the Nasdaq Composite surged 2.2% to 8,039.16.
Tech shares led the gains Thursday, with the sector surging 2.9%. AMD was the best-performing stock in the sector, jumping 16.2% as investors cheered the release of a second-generation chip for data centers.
Disney shares also contributed to the gains, rising 2.3% after an analyst Credit Suisse upgraded the media giant to outperform from neutral. The analyst expects the company will have a successful launch of Disney+, the company’s streaming service.
Strong data out of China helped calm Wall Street down. China said exports rose 3.3% on a year-over-year basis in July. Economists polled by Reuters expected exports to fall by 2%.
European stocks closed higher on Thursday amid stabilizing bond yields and better than expected Chinese export data. The pan-European Stoxx 600 was up 1.4% at the closing bell, with China-exposed basic resources stocks leading the gains with a 2.3% climb.
Sportswear giant Adidas posted a second-quarter net profit of 531 million euros and backed its 2019 guidance, but reported disappointing second-quarter sales. Adidas shares were down 2% at the end of the session.
Deutsche Telekom reported an increase of 7.1% for core profits, in line with expectations, and shares of Europe’s largest telecommunications provider slipped 0.5% on the results.
Carlsberg shares rose by 11% after the Danish beer company upgraded its 2019 earnings expectations.