SLOVENIA
Strapped for cash, Adria Airways suspends operations
Strapped for cash, Slovenian carrier Adria Airways suspended virtually all its flights for Tuesday and Wednesday, causing frustration among passengers and prompting calls for help from the government. The latter is adamant not to give money to the company under the existing owner, German turnaround fund K4 Invest.
Economy Minister Zdravko Počivalšek has reacted to the deepening crisis at Adria Airways by saying that the only thing that could save the air carrier was a well thought-out restructuring plan, agreed with the creditors, but added that under the given owner, the state would not invest a single euro in the company.
Source: STA
Path clear for passage of bill protecting bailed-in bank creditors
The National Assembly paved the way for the passage of a bill providing recourse for junior creditors affected by the 2013 state-sponsored bailout of banks as it completed the second reading of the bill on Tuesday having processed all the amendments submitted at committee two weeks ago.
Source: STA
Sentiment indicator deteriorated at the monthly level
In September 2019 the value of the sentiment indicator (at 4.8 percentage points – p.p.) decreased by 1.2 p.p. compared to August 2019 (at 6.0 p.p.).
The monthly decrease in the sentiment indicator was influenced by the confidence indicator among consumers (by 0.8 p.p.), the confidence indicator in manufacturing (by 0.4 p.p.) and the confidence indicator in retail trade (by 0.2 p.p.). The services confidence indicator had a positive influence (by 0.2 p.p.), while that in construction had no impact.
Source: SURS
Manufacturing confidence indicator lower at the monthly and at the annual level
In September 2019 the manufacturing confidence indicator decreased by 1 percentage point (p.p.) compared to the previous month and by 3 p.p. compared to September 2018. It was 1 p.p. below the long-term average. At the monthly level the production expectations indicator improved (by 3 p.p.). The stocks of finished products indicator and the overall order books indicator worsened (by 4 p.p. and 3 p.p., respectively).
Source: SURS
INTERNATIONAL MARKETS
US stocks fall as Democrats call for impeachment
US stocks were in the red as investors weighed the rising possibility of impeachment
proceedings being brought against President Donald Trump.
Wall Street’s benchmark S&P 500 fell 0.8 per cent, its steepest decline in a month. The Nasdaq
Composite dropped 1.5 per cent, and the Dow Jones Industrial Average was down 0.5 per cent.
Stocks extended their declines around midday Tuesday after Nancy Pelosi, the Democratic
speaker of the House of Representatives, said she would make an announcement related to a
possible impeachment inquiry. Democrats have called for the party to pursue allegations Mr
Trump, in a conversation with the Ukrainian president, sought foreign interference in the 2020
election.
Source: FT
Banks Flood the Fed With Demand for Two-Week Loans
Banks on Tuesday flooded the Federal Reserve Bank of New York with demand for new two-week loans—more than twice what the central bank was offering—in a sign banks could need more cash than Fed officials anticipated.
Source: WSJ
U.S. consumer confidence falls in September, trade fears dominate
U.S. consumer confidence ebbed in September as an escalation in trade tensions fanned concerns about business and labor market conditions, a potentially worrying signal for consumer spending, which has been driving the economy.
The relatively downbeat survey from the Conference Board on Tuesday mirrors other confidence surveys and could renew financial market fears of a recession that had been assuaged somewhat by strong August retail sales, industrial production and housing data.
Source: Reuters
Judges annul Brussels’ tax ruling against Starbucks
EU judges have struck down a European Commission order for Starbucks to pay €30m in back taxes to the Netherlands, in a blow for Brussels’ state-aid enforcer Margrethe Vestager.
Source: FT
Nike results top view despite ‘volatile’ environment
Athletic clothing and gear maker Nike on Tuesday reported upbeat quarterly results as its digital transformation and efforts to sell more products directly to consumers paid off despite a “volatile macroeconomic and geopolitical environment”.
Source: FT
