Money Buzz! Europa

Category: Economy

  • Leonardo Badea (BNR): Financing through the local capital market is one of Romania’s opportunities

    Leonardo Badea (BNR): Financing through the local capital market is one of Romania’s opportunities

    ”The effective promotion of the Romanian capital market to the status of emerging secondary market by FTSE Russel financial evaluation agency is the result of the worthy efforts in recent years of the entire local community involved in its development.

    The effects are both direct (the inclusion of local companies in a series of international indices pursued by a class of larger investors compared to those present on our market so far), but especially indirect, mainly reputational and with long-term structural implications.

    Especially in the current context where all economies are in fierce competition for funding, effective entry into a higher category of capital markets is equivalent with an additional anchor in supporting the process of financial integration and European convergence, as well as with improved access to foreign capital. Acquiring the status of an emerging secondary capital market increases the attractiveness for foreign investors of locally issued financial instruments, from which will benefit both the private segment of the economy and public sector bond issuers. At the same time, it could facilitate the funding of the public-private partnerships.

    The more the Romanian economy will be open to financing through the capital market, the more significant the benefits of the new status acquired by it will be and the more visible the positive transformations will be. The step that the Romanian capital market is taking now has the premises to facilitate the effort of economic recovery and modernization of the country, if more and more entrepreneurs and local administrations will have the courage and ingenuity to turn their development ideas into projects that are economically feasible, transparent, with strong governance and through which to provide an attractive partnership for capital market investors.

    In my opinion, financing through the local capital market, which today has become an emerging secondary market, is one of the great opportunities for Romania’s development in the near and medium future, along with financing through European funds”.

  • Passenger car registrations in Europe: -32% in the first eight months

    Passenger car registrations in Europe: -32% in the first eight months

    Over the first eight months of 2020, EU demand for passenger cars contracted by 32.0%. In total, 6.123.852 new cars were registered across the European Union from January to August, almost 2.9 million less than during the same period last year.

    In total, 6,123,852 new cars were registered across the European Union from January to August, almost 2.9 million less than during the same period last year.

    Among the EU’s largest markets, Spain saw the biggest decline (-40.6%) so far this year, followed by Italy (-38.9%), France (-32.0%) and Germany (-28.8%).

    During the month of August the EU car market posted a stronger decline (-18.9%) again, although less dramatic than earlier in the year.

    With the exception of Cyprus (+14.1%), all countries in the region recorded losses compared to August 2019.

    Looking at the four major EU markets, Italy performed best, with a slight drop of 0.4%, while the strongest declines were seen in Germany (-20.0%) and France (-19.8%).

    Data was provided by The European Automobile Manufacturers’ Association (ACEA).

  • Austria: balance of trade deficit at €0.12 bn in June 2020

    Austria: balance of trade deficit at €0.12 bn in June 2020

    The value of imports of goods was at €11.61 bn in June 2020, a decrease of 5.1% compared to June 2019, as Statistics Austria reports.

    The strongest decrease was recorded with Germany.

    At the same time, exports of goods decreased by 5.4% to €11.49 bn, with Italy and Hungary particularly affected.

    The balance of trade thus showed a deficit of €0.12 bn.

    In the period January to June 2020, total imports amounted to €69.65 bn and total exports added up to €68.51 bn, according to preliminary results by Statistics Austria.

    Compared to the corresponding period of the previous year, Austrian imports decreased by 13.0% and Austrian exports declined by 11.7%.

    The global ITGS balance (Austrian International Trade in Goods Statistics balance) showed a deficit of €1.14 bn.

  • Slovakia trade balance: surplus of EUR 166,6 million this year

    Slovakia trade balance: surplus of EUR 166,6 million this year

    In January-June 2020, Slovak foreign trade balance was in surplus in the amount of EUR 166,6 million (by EUR 750,2 million lower than in the corresponding period last year).

    Goods in the amount of EUR 33 839 million were exported from the Slovak Republic. Compared with corresponding period of 2019, the total export decreased by 16,9 %.

    In terms of goods, the highest decrease was recorded in export of motor cars and other motor vehicles principally designed for transport of persons by EUR 2 550,1 million, parts and accessories of motor vehicles by EUR 479 million, monitors and projectors, reception apparatus for television by EUR 460,4 million, flat-rolled products of iron or non-alloy steel, hot rolled by EUR 222,5 million and new rubber tires by EUR 200,1 million.

    The highest increase was recorded in export of structure and their parts of iron and steel by EUR 48,1 million and medicaments for sale at retail by EUR 40,3 million.

    As for the most significant trade partners, export to Germany and the United Kingdom decreased by 18,9 %, Czechia and France by 17,3 %, Poland by 9,4 %, Hungary by 11,6 %, Austria by 13,9 %, Italy by 25,7 %, the USA by 39,6 %, Spain by 27,9 %, Romania by 20,7 % and the Netherlands by 8,1 %.

    In terms of the main economic groupings, export to the EU countries decreased by 16,5 % (it represented 79,5 % of the total export of the SR) and to the OECD countries by 17,1 % (it represented 87,9 % of the total export of the SR).  

    Goods in the amount of EUR 33 672,4 million were imported to the Slovak Republic with a year-on-year decrease of 15,4 %.

  • 6 out of 10 countries with highest national debt-to-GDP ratio are EU nations

    6 out of 10 countries with highest national debt-to-GDP ratio are EU nations

    Data presented by Buy Shares shows that six European Union countries make up the top ten nations with a highest National-to-GDP ratio.

    From the research, Japan has the highest ratio at 268.21%.

    U.S. debt continues to spike 

    Greece is second with a ratio of 214.29% while the Itlay is third at 156.92%. The United States has the fifth highest debt-to-GDP ratio at 136.69% while the United Kingdom is tenth at 100.87%.

    The Buy Shares report also overviewed countries with the highest GDP and also the highest national debt.

    As of September 3rd, the United States has the highest GDP $19.54 trillion followed by China at $14.57 trillion. Japan’s GDP almost five times less compared to the US at $4.53 trillion.

    Under national debt, the United States is on top with $26.71 trillion. The debt is almost double compared to second-placed Japan with a debt of $12.15 trillion.  China has the third highest national debt globally at $7.32 trillion.

    The US national debt continues to spiral to historical levels threatening the economy. According to the research report:

    The U.S. is among countries that pumped more money into the economy to mitigate the impact of the coronavirus pandemic.

  • Less people on minimum income scheme in Austria

    Less people on minimum income scheme in Austria

    A total of 267.683 persons were supported by the minimum income scheme (“Mindestsicherung”) in 2019, as Statistics Austria reports.

    After the strong annual growth until 2016 and a stagnation in 2017, the number of supported persons decreased by 21.963 (-7.6%) compared to the previous year.

    The total expenditure (subsistence, housing needs, protection in case of sickness) in 2019 amounted to €913 million (-28 million or -3.0% compared to 2018).

    The major part thereof (€607 million) was spent in Vienna. This corresponds with the fact that also most recipients lived in Vienna (64%, annual average).

    The minimum income scheme comprises benefits to ensure people’s means of subsistence and housing needs, and to afford protection in case of sickness, pregnancy and childbirth.

  • Poland gross domestic product decreased by 8.2% in the second quarter

    Poland gross domestic product decreased by 8.2% in the second quarter

    Gross domestic product (GDP) in the second quarter of 2020 was lower by 8.2% year-on-year comparison against the growth of 4.6 % in the correspording quarter of 2019.

    In the 2nd quarter of 2020 seasonally adjusted gross domestic product (GDP) (constant  prices, reference year 2010) was lower by 8.9% than in the previous quarter and 7.9% lower than in the 2nd quarter of the previous  year.

    The presented preliminary estimate of GDP for the 2nd quarter of 2020 includes effects of COVID-19 and the introduction of government measures to prevent the consequences of the epidemic.

  • Serbia gross domestic product decreased by 9.2% in the second quarter

    Serbia gross domestic product decreased by 9.2% in the second quarter

    According to seasonally adjusted GDP data, gross domestic product decreased by 9.2% in the second quarter of 2020, compared to the previous quarter.

    In the second quarter of 2020, compared to the same quarter of the previous year, significant real fall in the gross value added was recorded in the section of wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage and accommodation and food service activities – 16.7%, the section of industry and water supply, sewerage, waste management and remediation activities – 7.7%, and the section of professional, scientific and technical activities; administrative and support service activities – 20.6%.

    Significant real growth in the gross value added was recorded in the section of information and communication – 5.4% and the section of public administration and defence; compulsory social security; education and human health and social work activities – 7.1%.

    Real growth was noted only for the general government final consumption expenditure – 8.9%.

    Real fall was registered for all other aggregates: the household final consumption expenditure – 8.0%, the non-profit institutions serving households (NPISH) final consumption expenditure – 4.7%, gross fixed capital formation – 11.9%, the exports of goods and services – 20.7% and the import of goods and services – 19.3%.

  • Italy GDP decreased by 12.8 per cent in the second quarter of 2020

    Italy GDP decreased by 12.8 per cent in the second quarter of 2020

    In the second quarter of 2020 Italian Gross Domestic Product (GDP) decreased by 12.8 per cent to the previous quarter and by 17.7 per cent in comparison with the second quarter of 2019.

    Compared to previous quarter, final consumption expenditure decreased by 8.7 per cent, gross fixed capital formation by 14.9 per cent, imports and exports by 20.5 per cent and 26.4 per cent respectively.

    Compared to the second quarter of 2019, final consumption expenditure decreased by 13.7 per cent, gross fixed capital formation by 21.6 per cent, imports by 26.8 per cent, and exports by 33.1 per cent.

    The carry-over annual GDP growth for 2020 is equal to -14.7 per cent.

  • Austria: Total production quantity of animal products at 4.86 million tons

    Austria: Total production quantity of animal products at 4.86 million tons

    Austria’s agriculture produced about 910.300 tons of meat calculated in carcass weight (the same compared to the previous year), 3.82 million tons of cow, sheep and goat milk (-1%), 2.09 billion eggs (+1%) and 4.400 tons of fish (±0%), as Statistics Austria’s supply balance sheets show.

    Thus, the total production quantity of animal products consisted of 4.86 million tons in 2019 (-1% against 2018).

    Domestic consumption amounted to 832.600 tons of meat (93.8 kg per capita), 729.600 tons of drinking milk (82.2 kg per capita), 2.15 billion eggs (242 pieces per capita) and 69.900 tons of fish (7.9 kg per capita).

    To meet domestic demand, 377 200 tons of meat (+2%), 68 200 tons of drinking milk including yoghurt (+5%), 125 800 tons of cheese (+4%) and 74 400 tons of fish (+1%) were imported.

    517 500 tons of meat (+3%), 532 500 tons of drinking milk (+2%) and 153 200 tons of cheese (+1%) were exported during the same period.

    The degree of self-sufficiency was 170% for drinking milk, 113% for cheese, 109% for meat, 86% for eggs and 69% for butter.

    The total agricultural foreign trade volume (for both crop and animal sector) amounted to 25.0 bn euros (imports: 12.7 bn euros; exports: 12.3 bn euros).

    This corresponds to a share of 8.0% of the total foreign trade volume (311.3 bn euros).

  • The annual growth rate of total deposits in Greece increased to 7.7%

    The annual growth rate of total deposits in Greece increased to 7.7%

    The annual growth rate of total deposits in Greece increased to 7.7% from 4.6% in the previous month, latest Bank of Greece data shows.

    The monthly net flow was positive by €3,139 million, compared with a positive net flow of €270 million in June 2020.  

    InJuly 2020, deposits placed by the private sector increased by €3,322 million, compared with an increase of €448 million in the previous month; the annual growth rate increased to 9.5% from 8.4% in the previous month.

    Corporate deposits increased by €2,653 million, compared with an increase of €398 million in the previous month; the annual growth rate increased to 24.8% from 19.3% in the previous month. 

    Deposits placed by households and private non-profit institutions increased by €669 million, compared with an increase of €50 million in the previous month; the annual growth rate stood at 6.0%, unchanged from the previous month.

  • U.S. GDP biggest quarterly slump in last 70 years at 32.9%

    U.S. GDP biggest quarterly slump in last 70 years at 32.9%

    Data presented by Buy Shares indicates that the United States’ real GDP slumped by 32.9% during Q2 2020. The drop was the worst in about seventy-three years.

    Over the last 70 years, notable slumps were recorded at the end of Q1 1958 when the real GDP declined by 10%.

    During Q2 of 1980, there was also a major drop of 8%. In the wake of the recession at the end of Q4 2008, the real GDP declined by 8.4%.

    The Buy Shares research also overviewed the real US GDP figures over the last decade where the highest figure was recorded in 2019 at $19.09 trillion.

    By Q1 2020, the GDP dropped to but $19.01 trillion. 

    By Q2 2020, the real GDP dropped by 9.5% to about $17.2 trillion. Over the last ten years, the lowest GDP was recorded in 2010 at $15.59 trillion.