Money Buzz! Europa

Category: Prague

  • Air Liquide sold its Czech Republic and Slovakia entities to Messer

    Air Liquide sold its Czech Republic and Slovakia entities to Messer

    In accordance with the agreement initially announced on January 28, 2020, Air Liquide has closed the sale of its entities in Czech Republic and Slovakia to Messer.

    The French company started operating in Slovakia in 2000 and Czech Republic in 2001. Both locations total 53  employees, with office locations in Prague and Trnava.

    Air Liquide follows a strategy to review regularly its asset portfolio and focus its expansion in key regions in order to increase its geographic density and therefore enhance performance.

    The company is present in 80 countries with approximately 67,000 employees and serves more than 3.7 million customers and patients.

    Messer is a supplier of industrial gases, with business on 30 European and Asian countries. The company headquarters are located in Bad Soden (Germany).

    Messer is selling gases for industrial use like oxygen, nitrogen, argon, carbon dioxide, hydrogen, helium, shielding gases and gases for medical use.

  • The employment rate in Czech Republic exceeded 75% for the first time since 2018

    The employment rate in Czech Republic exceeded 75% for the first time since 2018

    Total employment in the Q1 2020 decreased by 28.1 thousand persons, year-on-year (y-o-y) and reached 5.277.4 thousand persons. The number of the unemployed, according to the International Labour Organisation (ILO) methodology, dropped by 3.6 thousand persons, y-o-y.

    The general unemployment rate stagnated at 2.0%. The number of the economically inactive aged 15+ years has significantly increased, by 58.7 thousand.

    In the Q1 2020, the average number of employed persons increased by 1.1 thousand persons, compared to the Q4 2019.

    The number of working persons aged 15+ years decreased by 28.1 thousand persons, y-o-y, i.e. by 0.5%, to 5 277.4 thousand persons.

    The number of working males decreased by 4.9 thousand persons and the number of working females decreased by 23.2 thousand persons.

    The number of employees decreased by 21.5 thousand to 4 389.9 thousand.

    Concurrently, the total number of the self-employed decreased by 6.4 thousand persons due to a drop in the number of the self-employed with employees by 13.7 thousand.

    The deepest decrease of the self-employed with employees was in wholesale and retail trade and repair of motor vehicles and motorcycles and at the same time in the age group of 45–54 years.

    The employment rate (percentage of working persons in the age group 15–64 years) has been exceeding 75% for the first time in the history of independent Czech Republic since the middle of the year 2018.

    In the Q1 2020, the rate decreased by 0.2 percentage point (p. p.) to 74.8% compared to the Q1 2019. The male employment rate decreased by 0.1 p. p. to 81.6% and the female employment rate dropped by 0.3 p. p. to 67.8%.

  • Unemployment rate in Czech Republic was only 2.0% in March

    Unemployment rate in Czech Republic was only 2.0% in March

    • The general unemployment rate of the aged 15–64 years in Czech Republic reached 2.0% in March 2020 and decreased by 0.1%, year-on-year.
    • The male unemployment rate attained 1.8%;
    • The female unemployment rate reached 2.2%.

    The employment rate of the aged 15–64 years reached 74.5% in March 2020 and decreased by 0.7% compared to that in March 2019. The male employment rate was 81.3%; the female employment rate was 67.4%, both seasonally adjusted.

    The employment rate of persons aged 15–29 years, seasonally adjusted, was 46.5%, in the age group 30–49 years it attained 88.6%, and in the age group 50–64 years it got to 76.2%.

    The economic activity rate of the aged 15–64 years reached 76.0% and declined by 0.8% compared to that in March 2019. Following the seasonal adjustment, the male economic activity rate (82.8%) exceeded the female economic activity rate by 13.9%

    “Over a half of March was already affected by measures taken against the coronavirus spreading including temporary closure of many enterprises and schools. Many workers thus could not perform work activities and part of them were home quarantined or stayed at home receiving a carer’s allowance. It has not influenced employment or unemployment; however, it was significantly reflected in statistics of time worked”, Dalibor Holý, Director of Labour Market and Equal Opportunities Statistics Department of the Czech Statistical Office, noted.

  • Neeco services are available in 160 countries around the globe

    Neeco services are available in 160 countries around the globe

    • Neeco services are now available in more than 160 countries around the globe.
    • Clients have a partner field workforce of 26,000 engineers, certified professionals and consultants at their disposal.
    • This enables the company to swiftly carry out even large and complex projects, to install IT equipment at 53 diplomatic offices in various countries for the Ministry of Foreign Affairs of a well-known Arab country. 

    Neeco was consequently able to deliver and install approximately 1.000 pieces of hardware at 53 sensitive diplomatic sites around the world for the Ministry of Foreign Affairs of a well-known Arab country.

    The challenging part of all international projects is their implementation, which often takes place in very different environments. “One has to know the specifics of the countries where projects are implemented. This is only possible through partnerships with local providers. This is the core of our success,” concludes Petr Opravil, Senior Solution Architect of Neeco.

    Although all Neeco’s engineers had to have security clearance in advance due to the sensitive diplomatic environment, each installation job took only around a week to complete.

    The company has branches in the United States, United Kingdom, France, Russia, India, Singapore and Hong-Kong.

    Consequently, setting-up new business operations in New York, Prague, Mumbai, Cairo and Mexico City within a month is the kind of task Neeco is able to accomplish.

  • Overall confidence in the Czech Republic economy decreased in April

    Overall confidence in the Czech Republic economy decreased in April

    • Overall confidence in the economy remarkably decreased in April, show the latest survey published by the Czech Statistical Office.
    • The composite confidence indicator decreased by 19.6% to 74.8%, m-o-m.
    • Business confidence fell by 19.3% to 73.8% compared to March.
    • Consumer confidence indicator decreased by 20.4% to 80.1%, m-o-m.
    • The composite confidence indicator (economic sentiment indicator) that is stated by basic indices and the individual composite indicators have the sharpest decrease from the beginning of the survey.

    In industry, in April, confidence indicator decreased by 16.6 points to 72.0, the sharpest decrease from the beginning of the survey. Expectations of the employment decreased, too. Stocks of finished goods increased compared to March. Expectations of total economic situation development for the next three as well as six months are worse. The most significant barrier of production is insufficient demand; it was stated by 45% of respondents approximately. Approximately 22% of respondents choose barrier: other. According to the businessmen in the industry sector, the situation around coronavirus and government measure impact their business activities. Overall, confidence in the industry is significantly lower, y-o-y.

    Manufacturing industry

    The production capacity utilization in manufacturing industry decreased to 69.4%, q-o-q. It is the lowest value in the regular quarterly survey in the manufacturing industry from the beginning of the survey.

    Respondents estimate they have work secured by contracts for 10.4 months, which is less than in the previous quarter.

    Investment

    From the investment survey (the survey was realized from March. Some companies did not reflect the situation around the coronavirus), companies expect a decrease in the investment activity in 2020.

    This decrease is around 15 %, y-o-y. They invest in the renewal of the current production equipment and extension of the capacity utilization. The investment to the new technologies is the lower.

    Construction sector

    Confidence in construction decreased by 11.7 points to 107.3, m-o-m. The assessment of total demand for construction work decreased compared to March. Expectation about employment decreased significantly. Expectations of total economic situation development are worse.

    The most significant barrier of production is still lack of staff; it was stated by 37 % of respondents approximately. The second significant barrier of production is insufficient demand; it was reported by 22 % of respondents almost. Finally, confidence in construction is lower, m-o-m.

    Trade

    In trade, in April, confidence indicator decreased by 14.4 points to 85.4 (the sharpest decrease from the beginning of the survey). The assessment of the overall economic situation of the respondents decreased, m-o-m. The stocks increased slowly. Expectations of total economic situation development for the next three decreased significantly. Finally, confidence in trade is lower, y-o-y.

    Services

    In selected services (incl. banking sector), confidence decreased by 23.7 points to 70.5 (the sharpest decrease from the beginning of the survey). The assessment of the current economic situation of the respondents decreased compared to March. Assessment of demand decreased. 

    Expectations of total demand for the next three months fell. Expectations of overall economic situation development for the next three as well as six months decreased significantly.

    A third of the respondents choose the ”other” barrier, which includes the government measures connecting the coronavirus. Overall, confidence in selected services is significantly lower, y-o-y (the sharpest y-o-y decrease from the beginning of the survey).

  • Czech banks and covered bonds will benefit from central bank’s coronavirus response

    Czech banks and covered bonds will benefit from central bank’s coronavirus response

    Czech National Bank (CNB) implemented a series of proactive measures to assist Czech banks weathering the negative economic effects of the coronavirus outbreak, a credit positive. The measures include a 50 basis point (bp) cut in the two-week repo rate to 1.75%, lowering the Lombard rate to 2.75% and the discount rate to 0.75%, and postponing a planned increase in the countercyclical buffer (CCyB) rate.

    The CNB enhanced banks’ access to liquidity by having repurchase (repo) auctions three times a week (instead of once a week). Czech banks can borrow central bank funds at the new 1.75% two-week repo rate, down from 2.25% previously, allowing them to cover shortterm financing needs if needed.

    The banks hold large pools of liquid assets to collateralize repo transactions and to protect them from potential funding squeezes in stressed market conditions. The CNB’s action followed European Central Bank (ECB) recommendations on 12 March.

    The implemented measures give the banks more flexibility to increase lending and a bit more leeway to absorb pressure on asset quality from the coronavirus’ extraordinary shock on the Czech economy, the full extent of which will be unclear for some time.

    Banks’ recently favorable operating conditions are deteriorating and a broad range of economic disruptions, especially in the automotive sector, will likely slow economic growth, particularly in the first half of this year.

    The CNB also encouraged banks – at their discretion – to assist struggling borrowers by postponing loan repayments. The Czech Banking Association agreed on three-month payment deferment to support retail borrowers whose income is reduced by the current situation.

    This optional measure, which some Czech banks already offer and may include the deferred principal and interest payments, allows borrowers to avoid default and allows banks to avoid immediate credit losses. Ultimately, however, a longer economic disruption will adversely affect loan quality.

  • Domino’s Pizza opens first store in the Czech Republic

    Domino’s Pizza opens first store in the Czech Republic

    Domino’s Pizza is opens its first store in the Czech Republic. Residents of Brno can now enjoy hot, made-to-order pizza in-store or delivered to their doorstep by Domino’s, through a partnership with master franchisee Daufood Czech Republic S.R.O.

    “I am so proud of the team that helped bring the global Domino’s brand to the Czech Republic,” said Jose Marti, chief executive officer of Daufood. “We look forward to sharing our delicious products, excellent customer service and prompt delivery with the citizens of Brno.”

    The first location is in the Vinohrady area of Brno, and features the new pizza theater design, a refreshing and inviting interior, stylish seating, as well as a front row seat to watch all the action of pizza-making. A second location will be opening in Brno’s city center, with additional locations planned for next year.

    “Establishing ourselves in the Czech Republic provides an excellent opportunity for our brand to continue its global momentum,” said Joe Jordan, Domino’s executive vice president of international. “With a terrific, proven master franchisee like Daufood, we are confident that Domino’s will be able to establish itself as the pizza delivery brand of choice in Brno.”

    Domino’s now operates in more than 85 markets worldwide, with more than half of its global retail sales coming from international stores.

  • Hard Rock Hotels will open in Prague, probably in 2023

    Hard Rock Hotels will open in Prague, probably in 2023

    Hard Rock Hotel Prague, opening in 2023, is located within the wider city center. The hotel will have 523 rooms and suites, will boast great views overlooking Letna Park and the Prague Castle from the hotel’s sophisticated rooftop Sky Bar.

    Alongside the Sky Bar, the 6th-floor will be home to an elegant specialty restaurant, with south-facing terraces overlooking the Vltava river valley, set to become the most desirable destination bar and restaurant duo in Prague. Views of the hotel’s three-storey ‘Feature Wall’, a 5,900 sq-ft soundwave of moving light, can be enjoyed at Lobby Bar and the corridors will be laden with carefully curated music memorabilia. While all day dining will be offered at Sessions, a stylish restaurant which will feature an ingredient driven menu. Guests can also venture to Constant Grind Coffee & Bar, which will serve coffee and light bites during the day and transform into a lively cocktail bar at night.

    As well as a rooftop swimming pool and a full-service Rock Spa, other brand-signature highlights will include a Body Rock Fitness Centre, Rock Shop, Biz Business Center and the brand-signature Rock Star Suite.

    In-room programs include music-infused yoga program Rock Om and The Sound of Your Stay, where guests will have complimentary use of Fender guitars, amps and headphones. The project will include an 1,800 capacity ballroom for live entertainment and meeting spaces totalling 59,000 sq-ft, while the external Woodstock Lawn will be used for exhibitions, social events and more, for as many as 3,000, truly showcasing the brand’s music-inspired offerings.

    Hard Rock Hotels will open in Madrid, Dublin and Budapest

    Hard Rock Hotel Prague is the latest in a series of hotel announcements from the brand, following the recent opening of Hard Rock Hotel Maldives, the 30th hotel in the portfolio, and Seminole Hard Rock Hotel & Casino, the world’s first Guitar Hotel.

    The brand look forward to an exciting array of openings in 2020 including Hard Rock Hotel Dublin, Hard Rock Hotel Madrid, Hard Rock Hotel Amsterdam and Hard Rock Hotel Budapest.