Edition:
United Kingdom

Radu-Sorin Marinas

Romania receives Patriot missiles from U.S. to boost defences

17 Sep 2020

CAPU MIDIA FIRING RANGE, Romania The Romanian army received its first shipment of U.S. Raytheon Patriot surface-to-air missiles on Thursday, part of an effort to bolster its defences that has annoyed Russia.

Romania reopens schools under strict rules as coronavirus cases rise

14 Sep 2020

BUCHAREST Romania reopened schools for 2.8 million children on Monday after a six-month closure to fight the coronavirus outbreak, ordering pupils to wear face masks as infections rise.

Romanian government survives no-confidence motion in boost for stability

31 Aug 2020

BUCHAREST Romania's centrist minority government survived a no-confidence motion in parliament on Monday, improving political stability as the country struggles to curb the coronavius epidemic that has pummelled its economy.

CEE MARKETS-Hungary forint extends losses as eyes on Powell speech

27 Aug 2020

By Radu-Sorin Marinas BUCHAREST, Aug 27 Hungary's forint extended losses on Thursday, trading around two-month lows and lagging its regional peers as investors looked ahead to a speech by the U.S. Fed chair expected to unveil a new strategy for price stability. Central Europe's worst-performing currency, having lost more than 7% of its value against the euro this year, the forint has been under recent pressure from dismal Hungarian GDP data, high inflation and loose monetary policy. This week, the National Bank of Hungary kept its base rate unchanged and announced an increase in weekly bond purchases. That had driven yields lower, traders noted. By 1000 GMT, the forint was down 0.1%, trading at 356.02 against the euro. Equilor analysts said earlier that if the 355.86 resistance level was breached, "the 360-level could be reached in one wave." . The Romanian leu was flat at 4.8425 per euro while the zloty was 0.3% up at 4.4064 and the Czech crown up 0.1% at 26.2727. Czech bond yields were a touch lower, with supply remaining limited after debt managers easily sold offered amounts at an auction on Wednesday. "The average price was somewhat higher than our expectations, especially for the 2040 bond, which confirms our view that the finance ministry is able to follow a very moderate pace of issuance due to a lower-than-expected budget deficit," said Komercni Banka trader Marek Lesko. CEE SNAPSHO AT MARKETS T 1150 CET CURRENC IES Latest Previous Daily Change bid close change in 2020 Czech 26.2890 26.3000 +0.04% -3.26% crown Hungary 356.200 355.8800 -0.09% -7.03% forint 0 Polish 4.4092 4.4222 +0.29% -3.47% zloty Romanian 4.8425 4.8405 -0.04% -1.12% leu Croatian 7.5250 7.5263 +0.02% -1.06% kuna Serbian 117.500 117.6000 +0.09% +0.06% dinar 0 Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2020 Prague 908.56 908.5700 -0.00% -18.56% Budapest 35760.2 35915.81 -0.43% -22.40% 1 Warsaw 1839.81 1848.35 -0.46% -14.43% Buchares 8878.74 8835.85 +0.49% -11.01% t Ljubljan 854.14 854.48 -0.04% -7.75% a Zagreb 1613.43 1614.17 -0.05% -20.03% Belgrade <.BELEX15 690.92 691.97 -0.15% -13.82% > Sofia 432.05 437.61 -1.27% -23.95% Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=RR 0.1690 -0.0250 +084bp +0bps > s 5-year <CZ5YT=RR 0.6730 -0.0530 +134bp -1bps > s <CZ10YT=R 1.0310 -0.0180 +149bp +3bps 10-year R> s Poland 2-year <PL2YT=RR 0.1430 -0.0200 +081bp +0bps > s 5-year <PL5YT=RR 0.7530 -0.0210 +142bp +2bps > s <PL10YT=R 1.3490 0.0000 +181bp +5bps 10-year R> s FORWARD 3x6 6x9 9x12 3M interbank Czech < 0.37 0.38 0.42 0.34 Rep PRIBOR=> Hungary < 0.76 0.84 0.90 0.62 BUBOR=> Poland < 0.24 0.24 0.24 0.23 WIBOR=> Note: are for ask prices FRA quotes *********************************************** *************** (Additional reporting by Anita Komuves in Budapest, Jason Hovet in Prague and Alan Charlish in Warsaw; editing by John Stonestreet)

CEE MARKETS-FX up, mirrors euro gains; zloty shrugs off COVID-19 spike

04 Aug 2020

By Radu-Sorin Marinas BUCHAREST, Aug 4 The Polish zloty and the Czech crown led Central European currency gains on Tuesday, mirroring the euro's firming against the dollar, while shrugging off a spike in new coronavirus infections in the region's biggest economy. The euro, which strengthened 5% at the dollar's expense last month, inched up 0.2% on the day, with analysts predicting a faster economic recovery of the euro zone compared with that of the United States. The euro zone is Central Europe's main trading partner. "Equities in the U.S. yesterday ended up in green, so that set up the mood for today, and the euro/dollar going higher also helps. With euro/dollar going higher the zloty has really strengthened," a Warsaw-based currency trader said. Poland on Tuesday reported another record daily increase in new cases, with 680 infections, after a spike driven by outbreaks amongst miners and after public gatherings. The new record comes as Poland considers introducing stricter restrictions. By 0950 GMT, the Polish zloty and the Czech crown firmed by 0.45% each to 4.3980 and 26.1750 respectively. Hungary's forint inched up 0.1% at 344.67, while the Romanian leu lingered at 4.8350. The Hungarian central bank (NBH) said on Tuesday that it planned to "jump-start" the green bond market in the country, which will require a range of incentives by the bank and also other regulators. All stock indices rose in the region, with Prague rising for a second consecutive session by more than 0.7%. Warsaw and Bucharest's blue-chip index rose 0.5% each, while Budapest was up 0.4%. CEE SNAPSHOT AT 1140 MARKETS CET CURRENCIES Latest Previous Daily Change bid close change in 2020 Czech 26.1850 26.3000 +0.44% -2.88% crown Hungary 344.5000 344.8300 +0.10% -3.88% forint Polish 4.4030 4.4180 +0.34% -3.33% zloty Romanian 4.8340 4.8330 -0.02% -0.95% leu Croatian 7.4680 7.4743 +0.08% -0.30% kuna Serbian 117.5200 117.6200 +0.09% +0.04% dinar Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2020 Prague 898.58 892.1800 +0.72% -19.46% Budapest 34648.52 34620.25 +0.08% -24.81% Warsaw 1813.93 1804.38 +0.53% -15.63% Bucharest 8472.07 8431.74 +0.48% -15.09% Ljubljana 846.72 844.15 +0.30% -8.55% Zagreb 1579.44 1581.87 -0.15% -21.71% Belgrade 667.18 666.01 +0.18% -16.78% Sofia 436.05 436.59 -0.12% -23.25% Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year 0.0890 0.0410 +080bps +5bps 5-year 0.3740 -0.0060 +110bps +1bps 10-year <CZ10YT=RR 0.8360 0.0090 +137bps +3bps > Poland 2-year 0.1340 -0.0060 +085bps +1bps 5-year 0.6660 -0.0220 +139bps -1bps 10-year <PL10YT=RR 1.2600 -0.0460 +180bps -3bps > FORWARD 3x6 6x9 9x12 3M interba nk Czech Rep <P 0.33 0.32 0.35 0.34 RIBOR=> Hungary <B 0.61 0.60 0.60 0.60 UBOR=> Poland <W 0.19 0.16 0.16 0.23 IBOR=> Note: FRA are for ask prices quotes ****************************************************** ******** (Additional reporting by Alan Charlish in Warsaw; Editing by Maju Samuel)

Reluctant to work in infected German slaughterhouse, Romanian goes home to raise goats

07 Jul 2020

CALMATUIU, Romania Romanian Alberto Gogu worked exhausting shifts in freezing temperatures at Germany's biggest meat-packing plant. An outbreak of coronavirus infections there only made things worse.

CEE MARKETS-Forint extends losses on hints of fresh rate cut

29 Jun 2020

By Radu-Sorin Marinas BUDAPEST, June 29 Hungary's forint extended last week's losses on Monday, underperforming the region, after a central banker said there was more scope for easing after a surprise interest rate cut last week. By 0930 GMT, the forint, central Europe's worst-performing currency so far this year, was down 0.18% to trade at 355.75 to the euro, close to two-month lows. The Polish zloty, the Romanian leu and the Czech crown were virtually unchanged, in thin trading. "The FX market is rather worried that the forint will be wholly exposed to volatility as soon as the next risk off move hits EM assets," Commerzbank analysts said in a note. They added that with another 15 basis point rate cut now being priced in for July, the forint weakened towards the end of last week and "is likely to continue to underperform in the months ahead." Deputy Governor Barnabas Virag said on Friday the National Bank of Hungary may cut its base rate by another 15 basis points in July, adding that market pricing of further aggressive rate easing was exaggerated. CEE SNAPSHOT AT 1135 MARKETS CET CURRENCIES Latest Previous Daily Change bid close change in 2020 Czech 26.7670 26.8000 +0.12% -4.99% crown Hungary 355.7500 355.1000 -0.18% -6.92% forint Polish 4.4605 4.4620 +0.03% -4.58% zloty Romanian 4.8440 4.8417 -0.05% -1.15% leu Croatian 7.5720 7.5575 -0.19% -1.67% kuna Serbian 117.5400 117.5600 +0.02% +0.03% dinar Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2020 Prague 922.21 920.8800 +0.14% -17.34% Budapest 36285.41 36360.44 -0.21% -21.26% Warsaw 1759.91 1759.43 +0.03% -18.15% Buchares 8610.96 8603.86 +0.08% -13.69% t Ljubljan 854.74 857.37 -0.31% -7.68% a Zagreb 1596.12 1590.84 +0.33% -20.88% Belgrade 663.51 660.40 +0.47% -17.24% Sofia 454.08 455.15 -0.24% -20.08% Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year 0.1010 0.0380 +081bps +5bps 5-year 0.3520 -0.1070 +106bps -11bps <CZ10YT=RR 0.8100 0.0350 +128bps +3bps 10-year > Poland 2-year 0.1500 -0.0030 +086bps +0bps 5-year 0.7500 0.0190 +146bps +1bps <PL10YT=RR 1.3690 -0.0110 +184bps -2bps 10-year > FORWARD 3x6 6x9 9x12 3M interban k Czech <P 0.29 0.29 0.31 0.34 Rep RIBOR=> Hungary <B 0.61 0.55 0.49 0.74 UBOR=> Poland <W 0.22 0.23 0.24 0.26 IBOR=> Note: are for ask prices FRA quotes ***************************************************** ********* (Additional reporting by jason Hovet in Prague; Editing by Kirsten Donovan)

Drought-hit Romanian wheat crop should still meet Egypt tenders

18 May 2020

BUCHAREST Romania's wheat output is expected to fall sharply this year due to a prolonged drought, but the Black Sea exporter should still amass enough of a surplus to offer in Egypt's international grain tenders, farmers and experts said on Monday.

UPDATE 1-Drought-hit Romanian wheat crop should still meet Egypt tenders

18 May 2020

BUCHAREST, May 18 Romania's wheat output is expected to fall sharply this year due to a prolonged drought, but the Black Sea exporter should still amass enough of a surplus to offer in Egypt's international grain tenders, farmers and experts said on Monday.

UPDATE 1-CEE MARKETS-Crown falls on deeper than expected rate cut, other FX up

07 May 2020

(Updates with Czech rate cut) (.) By Radu-Sorin Marinas BUDAPEST, May 7 Central European currencies edged up on Thursday, mirroring a recovery of the euro, although a deeper than expected rate cut by the Czech central bank dragged the crown down to the week's lowest levels. The euro inched up after three days of losses, but traders remained cautious amid concern over the European Central Bank's stimulus scheme following a German court ruling this week. The euro zone is Central Europe's main trading partner. By 1320 GMT, the Czech crown had reversed earlier gains, trading 0.3% lower at about 27.2 per euro. The Polish zloty and the Hungarian forint were 0.2% up on the day. The Romanian leu was flat. The Czech National Bank (CNB) cut its main interest rate by a bigger-than-expected 75 basis points on Thursday, the third in a series of big reductions as it seeks to soften the economic blow of the coronavirus outbreak. The move brings the two-week repo rate to 0.25%. Markets had largely expected a 50 basis point cut. "The CNB is likely to keep all doors open, with everyone likely to pay close attention to what it might have to say regarding the extended possibilities for asset purchases," analysts at Commerzbank said. The CNB cut rates by 125 basis points in two moves in March to bring the key rate to 1.00%, reversing more than two years of tightening. Some central bankers have talked about the CNB being able to eventually cut to technical zero - a level of 0.05% that it maintained in 2012-2017 as part of an ultra-loose policy. The Czech parliament approved a bill last month granting the monetary authority wider powers to buy assets in financial markets, although the bank has said it does not plan to use its new powers at the moment. Regional stocks rose in line with other emerging markets after stronger-than-expected Chinese export numbers boosted hopes China can rebound quickly and help revive global growth in the aftermath of coronavirus-related shocks. Prague led regional stocks higher together with Bucharest's with a 0.8% increase, followed by Warsaw with 1.8% and Budapest with 0.3%. CEE SNAPSHOT AT MARKETS 1523 CET CURRENCIES Latest Previous Daily Change bid close change in 2020 Czech 27.1700 27.1320 -0.24% -6.40% crown Hungary 350.0000 351.0000 +0.29% -5.39% forint Polish 4.5488 4.5557 +0.15% -6.43% zloty Romanian 4.8255 4.8280 +0.05% -0.77% leu Croatian 7.5670 7.5673 +0.00% -1.61% kuna Serbian 117.5100 117.5700 +0.05% +0.05% dinar Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2020 Prague 880.21 872.7100 +0.86% -21.10% Budapest 34613.93 34557.17 +0.16% -24.89% Warsaw 1595.35 1567.98 +1.75% -25.80% Bucharest 8161.45 8106.93 +0.67% -18.20% Ljubljana 797.54 797.83 -0.04% -13.86% Zagreb 1527.12 1538.99 -0.77% -24.30% Belgrade 662.02 664.54 -0.38% -17.42% Sofia 445.75 448.37 -0.58% -21.54% Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year 0.3920 -0.1320 +115bps -12bps 5-year 0.7790 0.0490 +151bps +7bps 10-year <CZ10YT=RR 1.1700 -0.1060 +169bps -9bps > Poland 2-year 0.5590 0.0180 +131bps +3bps 5-year 1.0840 0.0260 +182bps +4bps 10-year <PL10YT=RR 1.5510 -0.0130 +207bps +1bps > FORWARD 3x6 6x9 9x12 3M interba nk Czech Rep <P 0.30 0.30 0.29 0.89 RIBOR=> Hungary <B 1.17 1.12 1.08 1.08 UBOR=> Poland <W 0.31 0.32 0.35 0.68 IBOR=> Note: FRA are for ask prices quotes ****************************************************** ******** (Additional reporting Jason Hovet in Prague, Alan Charlish in Warsaw; editing by Kirsten Donovan)

World News