Daily news - 02.10.2019
Published: 02. 10. 2019

SLOVENIA

Companies moving to fill void created by Adria Airways

The Belgian air carrier Brussels Airlines, part of Lufthansa Group, announced it would restore its Brussels-Ljubljana route a day after Slovenian carrier Adria Airways filed for receivership. Travel agency Nomago also decided to organise several charter flights to mitigate the effects of Adria collapse on conference tourism. (STA)

With EUR 56m investment, Krka doubles R&D capacities

Krka, the Novo Mesto-seated pharmaceuticals group, has launched a new research and development centre to nearly double its R&D, and control and analysis capacities. (STA)

INTERNATIONAL MARKETS

Global shares slip to one-month low after U.S. manufacturing shock

Global shares fell to one-month lows on Wednesday after U.S. manufacturing activity tumbled to more than a decade low, sparking worries that the fallout from the U.S.-China trade war is spreading to the U.S. economy. A slowdown in U.S. economic growth would remove one of the few remaining bright spots in the global economy and come just as Europe is seen as close to falling into recession. (Reuters)

Trump blasts Fed after manufacturing data stokes fears of sharp slowdown

U.S. President Donald Trump once again lashed out at the Federal Reserve on Tuesday, this time in the wake of weak data on the manufacturing sector, saying the central bank has kept interest rates “too high” and that a strong dollar is hurting U.S. factories. Trump’s comments came on the heels of a report from the Institute for Supply Management on Tuesday showing U.S. manufacturing activity plunged to its weakest level in a decade last month, amid concerns about the trajectory of the U.S.-China trade war. ISM said comments from manufacturers “reflect a continuing decrease in business confidence,” and also noted that “global trade remains the most significant issue,” suggesting Trump’s hardline approach to trade is a bigger worry for them than U.S. interest rates or dollar strength. (Reuters)

European shares drop on growth fears, London slides on fresh Brexit drama

European shares opened lower on Wednesday, with London stocks lagging the most on fresh Brexit drama, while global growth fears intensified after several dismal factory reports were released across the bloc and the United States.
The FTSE 100 index .FTSE slipped 0.5%, the largest drop across European regions and ahead of UK Prime Minister Boris Johnson's talks with Brussels as he prepares to unveil his final Brexit offer later in the day.
Investors were still reeling from the shock of dismal U.S. and euro zone factory data on Tuesday, which saw the pan-European STOXX 600 index and the euro zone index .STOXXE log their biggest one-day drop in two months. (Reuters)

Surprise drop in U.S. crude stocks lifts oil prices

Oil rebounded from several days of falling prices after industry data showed a surprise drop in U.S. crude inventories and offset weak economic readings in the United States that have depressed global stock markets Brent crude LCOc1 rose 47 cents, or 0.8%, to $59.36 a barrel by 0657 GMT, claiming back some of the ground lost over the past three sessions. U.S. West Texas Intermediate crude CLc1 was at $54.29 a barrel, up 67 cents or 1.3%.
Front-month WTI prices settled down for a sixth straight session on Tuesday, their longest losing streak this year, after U.S. manufacturing activity dived to a 10-year low as U.S.-China trade tensions weighed on exports. (Reuters)

Sterling sags as traders doubt Johnson Brexit offer will lead to deal

Sterling was weighed down on Wednesday by fears that Prime Minister Boris Johnson’s proposal to replace the Irish border “backstop” will not lead to a Brexit separation agreement with the European Union. Johnson is expected to disclose his final Brexit offer to the EU later in the day and to make clear that if Brussels does not engage with the proposal, Britain will not negotiate further and will leave on Oct. 31. A media report in the Telegraph newspaper on Tuesday said Johnson was planning to propose leaving Northern Ireland in large parts of the EU single market until at least 2025, but take the province out of the EU customs union along with the rest of the United Kingdom.
The proposal would be aimed at replacing the so-called backstop — an insurance policy to prevent the return of a hard border on the island of Ireland — that has become the biggest hurdle to securing an agreement with Brussels. (Reuters)

SERBIA

Serbian Deposit Insurance Agency to sell EUR 1.82bn NPL package

Serbian Finance Minister Sinisa Mali says the announced sale of a second package of non-performing loans will successfully solve the long-time issue of bankrupt banks. The Serbian Deposit Insurance Agency on Monday published an ad to assign a 1.82 bln euro portfolio of receivables of eight bankrupt banks in exchange for compensation by public collection offers. He said 240 mln euros worth of NPLs from the first package had been sold in June in the first such transaction in 18 years. (Tanjug)

NBS, SORS: Import keeps climbing faster vs export in 8 months 2019

According to the Statistical Office data, euro-denominated export of goods increased in August by 4.1% y-o-y, while import decreased by 3.0%. In the period January–August this year, relative to the same period last year, the export of goods expanded by 6.9%, as a result of the rising manufacturing and agricultural product exports (6.2% and 22.7%, respectively). In the same period, the import of goods grew 8.7%, around two-thirds of this growth relating to the import of equipment and intermediate goods for investment and industry purposes. (Ekapija)

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