Edition:
United Kingdom

Marton Dunai

Orban says he discussed missiles and natural gas with Trump

17 May 2019

BUDAPEST Hungarian Prime Minister Viktor Orban on Friday said he had discussed the purchase of mid-range air defence missiles at a meeting with U.S. President Donald Trump on Monday.

UPDATE 1-Hungary central bank wants to help boost corporate bond market

12 Apr 2019

BUDAPEST, April 12 Hungary's central bank will start buying corporate bonds in July to help transmit its monetary policy to the economy more efficiently and foster a big expansion in the corporate bond market, deputy governor Marton Nagy said on Friday.

Hungary will not soften laws to allow Soros college to stay

10 Apr 2019

BUDAPEST Hungary will not relax rules for international universities despite pressure from the European Union and offers from Germany to mediate in a row over a college founded by U.S. billionaire George Soros, the government spokesman said on Wednesday.

Hungarians start European news agency with pro-Orban content

09 Apr 2019

BUDAPEST A group of Hungarian business leaders and politicians close to Prime Minister Viktor Orban have founded an international news agency in London whose coverage will focus on central and eastern Europe.

Hungarians start European news agency with pro-Orban content

09 Apr 2019

BUDAPEST A small group of Hungarian business leaders and politicians close to Prime Minister Viktor Orban have founded an international news agency in London that aims to cover news especially in central and eastern Europe.

Hungarians start European news agency with pro-Orban content

09 Apr 2019

BUDAPEST, April 9 A small group of Hungarian business leaders and politicians close to Prime Minister Viktor Orban have founded an international news agency in London that aims to cover news especially in central and eastern Europe.

CEE MARKETS 2-Forint slides as central bank tightening is one-off

26 Mar 2019

* Forint underperforms as c.bank adopts cautious approach * NBH increased o/n deposit rate, announced liquidity cut * Hungarian bonds tread water after rally, IRS tad lower By Sandor Peto and Marton Dunai BUDAPEST, March 26 The forint eased close to a percent versus the euro after the Hungarian central bank (NBH) said the move to tighten monetary conditions in its meeting on Tuesday was a one-off, and will be followed by new steps only if inflation trends justify it. Hungarian government bond and swap yields and forward rate agreements fell, reflecting fading expectations for further interest rate increases. The NBH has been regarded as one of the most dovish central banks this decade, but started to gradually shift towards more hawkish rhetoric last year. Its main interest rate is still at a record low and real interest rates in Hungarian markets are among the lowest in the world, pushed deep into negative by a rise in inflation. The forint traded at 318.8 versus the euro at 1449 GMT, down 0.8 percent. Despite its biggest daily fall in almost three years, the forint has stayed the region's best-performing currency this year, with 0.7 percent rise from 2018. In the two months following mid-January, it had surged almost 4 percent to 11-month highs at 312.65 versus the euro. It has been boosted by expectations a rise in the NBH's core inflation measures above 3 percent, the midpoint of its target range, would prompt monetary tightening. Those expectations were knocked back in the past week by global economic growth worries, expectations for a Federal Reserve rate cut and a delay in euro zone monetary tightening. Other Central European currencies changed little. Hungarian government bond yields fell as markets priced out further rate hikes. "The market's assessment is that this rate hike was a one-off," one Budapest-based fixed income trader said. "The market got what it had expected, without a credibility loss, and the fall of yields reflects that. Decline remains the trend now," the trader added. CIB Bank analyst Sandor Jobbagy said a cut in the liquidity provided by the bank to markets via its fx swaps, also announced on Tuesday, was more important than the symbolic interest rate adjustment, which affected only the overnight rate. "This was the first rate hike since December 2011, but the higher overnight rate is still below recent market rates therefore the liquidity measures will have a more significant market effect," Jobbagy wrote in a note to clients. "That said the interest rate step was symbolic regarding normalisation of monetary policy and the beginning of tightening, therefore the significance of the higher overnight rate outstrips the unchanged base rate." CEE SNAPSHOT AT MARKETS 1549 CET CURRENCI ES Latest Previous Daily Change bid close change in 2019 Czech 25.7570 25.7510 -0.02% -0.19% crown Hungary 318.8000 316.1500 -0.83% +0.72% forint Polish 4.2924 4.2927 +0.01% -0.07% zloty Romanian 4.7565 4.7556 -0.02% -2.15% leu Croatian 7.4200 7.4175 -0.03% -0.13% kuna Serbian 117.9000 117.9800 +0.07% +0.34% dinar Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2019 Prague 1076.97 1076.330 +0.06% +9.16% 0 Budapest 41856.84 41605.17 +0.60% +6.94% Warsaw 2318.22 2312.79 +0.23% +1.83% Bucharest 8049.90 7954.29 +1.20% +9.02% Ljubljana 874.64 871.83 +0.32% +8.75% Zagreb 1791.58 1793.30 -0.10% +2.45% Belgrade <.BELEX15 730.05 730.16 -0.02% -4.15% > Sofia 582.48 582.80 -0.05% -2.02% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=RR 1.8470 -0.0790 +241bps -9bps > 5-year <CZ5YT=RR 1.8160 0.0320 +224bps +3bps > 10-year <CZ10YT=R 1.8680 0.0170 +189bps +2bps R> Poland 2-year <PL2YT=RR 1.6760 -0.0810 +223bps -9bps > 5-year <PL5YT=RR 2.2000 -0.0010 +263bps -1bps > 10-year <PL10YT=R 2.8600 0.0040 +288bps +0bps R> FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep < 2.12 2.15 2.14 2.02 PRIBOR=> Hungary < 0.34 0.48 0.56 0.13 BUBOR=> Poland < 1.73 1.73 1.74 1.72 WIBOR=> Note: FRA are for ask prices quotes ************************************************** ************ (Reporting by Sandor Peto; Editing by Mark Potter and Ed Osmond)

Europe's centre-right suspends Hungary's ruling party

20 Mar 2019

BRUSSELS The European Parliament's main centre-right grouping voted on Wednesday to suspend Hungarian Prime Minister Viktor Orban's ruling Fidesz Party until further notice amid concerns that it has violated EU principles on the rule of law. | Video

In or out? EU's conservative bloc faces crunch decision on Hungary's Orban

19 Mar 2019

BRUSSELS/BUDAPEST Hungarian Prime Minister Viktor Orban will attend a meeting of conservative officials from across Europe that may decide whether his party will stay in the main EU center-right political group where he has been accused of authoritarianism.

Hungary's Orban hopes EU vote brings strong leaders and nation states

15 Mar 2019

BUDAPEST Hungarian Prime Minister Viktor Orban said on Friday that he wanted European Parliament elections in May to give Europe "strong leaders" who would strengthen nation states "so that Europe once again belongs to Europeans".

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