Search results for

Here are the results of IFLR's annual analysis of the biggest financial and product trends of the past year.

But proposed exchange believes it will not harm plans to bring new volumes and efficiencies to the FX market.

FDI inflow rises by 18.2% ytd to USD 19.9bn in Jan-Sep. FDI inflow rose by 18.2% or USD 3,071.717mn in Jan-Sep to reach USD 19,911.803mn, as of Oct 1. The net growth of the foreign capital investment in Jan-Sep amounted to USD 2,890.925mn. In particular, companies invested USD 3,238.744mn. The largest volumes of the foreign capital were invested in the economy of Kyiv (USD 5,006.8mn), Dnipropetrovsk oblast (USD 1,891.7mn), and Donetsk oblast (USD 975.2mn). The largest volume of investments as of Oct 1 was recorded in the financial sector (USD 2,106.3mn), the wholesale and intermediate trade (USD 2,007.5mn), real estate operations (USD 1,441.9mn), metallurgy and metal works (USD 1,390.0mn), food industry and processing of agricultural products (USD 1,242.3mn). In 2005 the volume of FDI rose by 81% y/y and amounted to USD 16,375.210mn as of Jan 1, 2006 .

BiH presidency chair Radmanovic expects large FDI inflow. During the two-day regional economic forum for Southeast Europe held in Montenegro, BiH presidency chair Nebojsa Radmanovic stated that he expected large inflows of FDI in the country, fuelled by already launched telecommunication and oil industrial companies’ privatisation, as well as thanks to the anticipated investments into the energy sector, FENA reported. Thus, Radmanovic said, BiH economic expansion will be streamlined, exports encouraged, new jobs opened, while at the same time, economy growth potential streamlined thanks to the inflow of new and modern technologies and know-how. In addition, because of the still lagging behind transport infrastructure in the country, BiH is ready to participate in joint projects for improving it, Radmanovic noted. Last but not least, BiH authorities would focus on improving the competition and business environment in the country by reinforcing BiH institutions capacity and efficiency in order to attract more foreign investors and encourage entrepreneurship.

NBH governor Jarai: CPI to be top concern, but rate hike not only option. CPI inflation is expected to be the “number one” concern at the upcoming meeting of the Monetary Council on Monday (Nov 20), NBH governor Zsigmond Jarai said in Frankfurt as quoted by Reuters. We recall that inflation accelerated to slightly higher-than-expected 6.3% y/y in October from 5.9% in September. However, Jarai stressed that he was not saying that base rate hike was the only option, most likely referring to the recent HUF strengthening as the forin reached yet another 8-month high on Thursday. Overall we see the tone of the governor much more balanced than earlier rather “hawkish” statements, which increases the chances for “on hold” decision on Monday. As recalled Jarai along with his deputy Henrik Auth were the only 2 members who voted for a 50bps hike at the October’s sitting. On a different note, the governor once again criticised the updated convergence programme saying that it was difficult to see reforms in it. He added that the NBH was “sceptical” that the country would be able to meet the Maastricht criteria by 2011.

Reuters poll: MC to hike base rate by 25bps on Nov 25. The Monetary Council (MC) will hike the base rate by 25bps to 8.25% at its sitting on Monday (Nov 20), according to the consensus forecast of analysts polled by Reuters . Out of the 23 respondents, 14 shared that view, while the remaining 9 said that rates would be put on hold. The median forecast of the analysts showed that the base rate would peak at 8.25%, which is 25bps below the median forecast in the October’s Reuters monthly poll. We recall that at the last rate-setting meeting the MC discussed 3 options – on hold, 25bps and 50bps and decided on the middle variant. There are all preconditions that another heated session will take place on Monday. On hand the “hawks” would point to accelerating headline and core inflation (ay 6.3% and 4.4% in November, respectively), while the “doves” will put forward the recent strengthening of the forint, lower-than-expected first estimate on Q3 GDP as well as moderation in wage inflation after August’s surge.

Entities reach temporary accord on indirect tax receipts distribution. RS and FBiH finance ministers Aleksandar Dzombic and Dragan Vrankic reached temporary agreement on the coefficients for distributing the indirect tax receipts from the single account at the Indirect Tax Authority (ITA), FENA informed quoting RS finance ministry spokesperson Radmila Mihic. According to the accord reached, RS would receive 31.2% of the indirect taxes revenues, FBiH – 65.7% and District Brcko – 3.1%. However, these coefficients would be applied only for November with the sole aim of unblocking the single account, Mihic noted. We recall that on Nov 1 ITA has halted once again the allocation of indirect tax revenues from the single account to FBiH, RS and Brcko District, as Dzombic and Vrankic have failed to agree on the coefficients for allocation in November and December.

Axel Springer agrees to buy 25% of Dogan TV. Dogan Yayin Holding announced that Axel Springer, a German media company, agreed to buy a 25% stake in Dogan TV for EUR 375mn (USD 480mn). Axel Springer will be represented with two members in the company’s seven-member board. The transaction will be finalized after Axel Springer completes due diligence and necessary permissions are obtained. Axel Springer will make the payment in one instalment. Competition in the Turkish media sector has intensified. Last year, Dogan TV acquired Star TV, privatized by Saving Deposit Insurance Fund (SDIF), for USD 305.6mn. In July, US-based News Corporation and Ahmet Ertegun, chairman of Atlantic Records, bought major stake in TGRT TV for USD 82mn. According to reports from local media this week, Canwest is also holding talks for Cukurova Group’s media companies, namely the daily Aksam and Show TV. Reportedly CanWest wants to buy the entire stake in Aksam and 20% of Show TV. CanWest had purchased four radio channels that were previously owned by Uzan Group from the SDIF.

Central bank registers weak demand in reverse repo auction. The central bank registered weak interest in the regular reverser repurchase auction held on Wednesday. The bank accepted all bids worth HRK 6.2mn (EUR 0.85mn) and the average repo rate remained flat at 3.50%. A week ago, the submitted bids amounted to a total of HRK 960.9mn. The decline should be attributed to the relatively high liquidity on the market at present.

Indian public sector banks' reduce their net non-performing assets. The Financial Times reported that most of India's 26 public sector banks (PSBs) are implementing various recovery schemes in an effort to reduce their net non-performing assets (NNPAs). The NNPAs of the PSBs declined to INR 130.88bn in H1/2006-07 (April-September), a y/y decline of 10.42% from INR 146.11bn in the corresponding period last year. The gross NPAs also decreased by 12.3% y/y to INR 397.32bn. The average NNPAs to net advances ratio declined to 1.03% in H1/2006-07 from 1.53% in the corresponding period of 2005. Title: India, Net non-performing assets – Apr – Sept 2006 Ratio of NNPAs Top five banks Apr- Sept-2005 Apr- Sept-2006 Dena Bank 3.92% 2.89% Central Bank 2.79% 2.22% UCO Bank 2.62% 2.02% United Bank 2.44% 2.44% SB of Indore 1.32% 1.82% Source: RBI

Assets in mutual funds, management companies reach EUR 16.7bn at end-September. Domestic investors’ assets in mutual funds and assets management companies reached CZK 473.4bn (EUR 16.7bn) at end-September, the Association for the Capital Market (AKAT) statistics showed as CTK reported. Still, y/y comparison is not possible as AKAT for the first time published statistics for both asset management for individual clients and assets in mutual funds. Thus the new methodology provides for recording one client assets only once. According to the previous methodology gross volume of assets reached CZK 562.8bn, of which institutions and individuals had assets worth CZK 232.6bn invested individually, CZK 217.9bn in domestic funds and CZK 112.3bn in foreign funds. At end-Sep the biggest assets manager was the Ceskoslovenska obchodni banka (CSOB) group with CZK 126.8bn, followed by Ceska sporitelna group with CZK 125.5bn; ING managed assets mounting to CZK 74.6bn, Komercni banka for CZK 59.9bn and Winterthur for CZK 33.6bn. AKAT controls 99%-share in deals in foreign funds and an 80%-share in the management of client portfolios.

NBU: Inflation to exceed 10% y/y in 2006. According to NBU, inflation will make up more than 10% y/y in 2006. In Jan-Oct 2006, inflation has already reached 8.7% ytd. And taking into account the seasonal spike-up of prices and announced increase of tariffs for regulated administratively services, prices will add at least 1.3% to that. But most likely, it will be considerably more. Keeping inflation within the target is possible only in case of a moratorium on the increase of tariffs for housing services until the end of 2006. The National Bank informs about its intention to try to constrain inflationary pressure by using its own instruments of credit and FX rate policy. In particular, NBU will try to boost the role of interest rates. On the other hand, EconMin keeps the inflation growth forecast at the level of up to 10%. The state budget for 2006 is developed based on an 8.7% inflation forecast. Government forecasts a slowdown of inflation in 2007 to 7.5% compared to 10.3% in 2005.