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Monetary base rises by 3.8% m/m to HUF 2,632.3bn in October. The monetary base rose by 3.8% m/m to HUF 2,632.2bn in October, according to the preliminary data of the central bank. The main growth driver was monetary financial institutions’ overnight deposits, which added HUF 76.7bn m/m to HUF 99.8bn. The other two components of M0 also increased – currency in circulation was up by HUF 7.8bn, while MFIs’ current account balances rose by HUF 12.6bn to HUF 618.5bn in October. The NBH commented that the surge in overnight deposits was linked to credit institutions’ temporarily liquidity problems and thus it was unlikely to be sustained. The annualised m/m growth of M0 accelerated to 24.8% in October compared to 20.6% in September. The central bank added that the net position of the government deteriorated by HUF 125.3bn in October on the back of HUF 129.2bn decline in the sub-sector’s deposits and HUF 3.9bn drop in the loans outstanding.

Investment fund assets decline by 0.3% m/m to HUF 2,542bn at end-October. Investment fund assets declined by 0.3% m/m to HUF 2,542bn at end-October, according to the latest statistics of the Hungarian Association of Fund and Asset Managers (BAMOSZ). The decline was triggered by net withdrawals of HUF 25bn, while HUF 18bn in yields only partially compensated for that drop. We note that in the previous 2 months investment fund assets sharply increased as economic agents put their money prior to the enactment of the capital gains tax hike from 0% to 20%. Money market funds remained leader as they accounted for 30.9% of the overall assets after increasing by 0.9% m/m. Real estate funds, which have enjoyed strong interest recently, accounted for 23.4% of the assets after booking 1.8% m/m decline. We note that the drop was triggered by large outflow of some HUF 14bn, while yields stood at HUF 3.2bn in October. The sharpest decrease was recorded by bond funds, down by 3.1% m/m to HUF 292bn, due to the combined effect of HUF 12bn in withdrawals and HUF 2.2bn in yields. Strong yields of the share fund assets paced 0.7% m/m increase to HUF 290bn in this group ( HUF 3.2bn in yields more than offset HUF 0.9bn withdrawals).

First there was Pop Idol, then American Idol, and now, Internship Idol.

First there was Pop Idol, then American Idol, and now, Internship Idol.

Head of Global Currencies and Commodities at JPMorgan has suddenly resigned.

Akenerji plans USD 73mn investment in Akocak power plant. Akenerji announced it plans to invest USD 73mn for its Akocak hydroelectric power plant in Trabzon , until the end of 2008. Akenerji started the investment in September and aims to produce electricity by the end of 2008. When completed, the plant will have an annual electric production capacity of 257 GWH. Akenerji had shut down part of its power plants in Agust due to rising costs for natural gas inputs.

Czech CEZ to replace Orbis in blue-chip WIG 20 index after Dec 15. The Czech energy group CEZ is to enter the blue-chip WIG 20 stock exchange index after the Friday session on Dec 15, so de facto on Dec 18. It will replace Orbis on the WIG20, the stock exchange announced in a communique on Friday. There will also be changes in the MID-WIG index from that date. CEZ debuted on the Warsaw bourse on Oct 25 and boosted the capitalization of the WSE by approximately 15%. The value of foreign companies' shares on the WSE thus increased by more than 70%. ISB, tom

Head of Global Currencies and Commodities at JPMorgan has suddenly resigned.

Tax administration revenues go up by 5.8% y/y in Jan-Oct. The revenues of the tax and customs administration amounted to SKK 201.7bn in Jan-Oct, increasing by 5.8% y/y, the Tax Directorate spokeswoman Adriana Pleskova reported. This represented 90.7% of the annual target, compared to a 91.7% collection rate for the same period of last year. The tax revenues increased by 5.7% y/y, boosted by strong indirect tax and corporate income tax revenue. The revenues from the VAT were up by 6.8% y/y due to the higher-than-expected growth of the private consumption spending. At the same time, the excise tax rate hike on tobacco products was already registered in the budget revenues, raising the proceeds from the tax by 6.5% y/y for the period. In total, the indirect tax revenues met the plan at 87.9%, which suggests that some overperformance might be expected for the year as a whole. The revenues from the corporate income tax already exceeded the annual plan by 3.2% as they were up by 9.2% y/y, reflecting the strong profitability of the real sector companies. The non-tax revenues amounted to SKK 5.2bn for the period, rising by 10% y/y and representing 78.3% of the plan for the year.

How Linklaters has gained from more innovative convertibles.

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BiH attracts EUR 350mn FDI in Jan-Sep. BiH has attracted EUR 350mn (KM 684.5mn) worth of FDI in Jan-Sep, which is higher than the FDI volume attracted in full-2005, BiH Foreign Investment Promotion Agency director Haris Basic announced as ONASA informed. Basic expects that the FDI amount in full-2006 could plausibly reach KM 1bn with the finalisation of investments in progress, Basic said alluding at the privatisation of telecommunication and oil segments in RS. In the meantime, the Organisation for Economic Development and Cooperation (OECD) has pointed out that in order for BiH to attract larger investments with greater value-added, BiH authorities should continue their rigorous fight against corruption and organised crime, encourage competition, as well as regional trade and cooperation with its neighbouring countries. Furthermore, Bosnian institutions and administrative capacity should be reinforced so that a fruitful business environment is established.