Hungary Trends – The week in business and finance
See below MTI’s main business and financial news from the previous week:
BUDAPEST ON THE MAP OF THE LUXURY CHOCOLATE MARKET
The historic Damascene Ghraoui Chocolate recently opened its shop on the Andrássy Avenue. The company, which relaunched its business in Hungary after the Syrian civil war broke out in 2011, will be present at the Salon du Chocolat of Paris as a Hungarian brand. Read more HERE.
ECONOMIST PÉTER RÓNA: WITHOUT A FUNCTIONAL WAGE UNION, EUROPE WILL FALL APART
Can the wage union idea be put into practice? Why is the migration crisis less of a pressing problem for the European Union than the wage gap between western and eastern member states? What are the responsibilities of EU leaders in this situation? Is the Hungarian government truly fighting against the colonization of our country as Viktor Orbán claims, and could Fidesz’ “political creatures” fattened up from the taxpayers’ money pull the Hungarian economy out of the slump? These were some of the issues addressed by professor of economics Péter Róna in his lecture held in Kévés Gallery on 2nd October.
THE MOST VALUABLE COMPANIES IN HUNGARIAN HANDS
Forbes.hu made a size-up about the most valuable Hungarian enterprises in all counties. It turned out that the country is hydrocephalic.
HUNGARY ISSUES TEN-YEAR EUR 1BN EUROBOND AT 1.9 PC YIELD
Hungary issued a ten-year EUR 1bn eurobond at a yield of 1.9 percent and used the proceeds from the sale to buy back 1.2 billion dollars of high-interest dollar bonds with short maturities. Buying back the dollar bonds resulted in an immediate interest expenditure of 22 billion forints (EUR 70.3m), but a 51.7 billion forint gain realised on FX swaps means Hungary took away net 29.3 billion forints from the deal, said Government Debt Management Agency CEO György Barcza.
MASTERPLAST TO INVEST EUR 6.7 M AT SERBIAN UNIT
Hungarian building materials maker Masterplast said it will invest 6.686 million euros at its fiberglass mesh plant in Subotica (Szabadka), Serbia, to broaden its production palette and boost capacity. The investment, scheduled to be completed next year, will increase the plant’s production capacity by 20 million sqm to more than 90 million sqm of fiberglass mesh a year.
INDUSTRIAL OUTPUT CLIMBS 6.8 PC IN AUGUST
Hungary’s industrial output rose by an annual 6.8 percent in August, the Central Statistical Office (KSH) said in a first reading of data. Growth accelerated from 0.2 percent in the previous month, when some automotive industry companies had scheduled shutdowns.
RATE-SETTERS READY TO ADD TO UNCONVENTIONAL POLICY TOOLS
The National Bank of Hungary’s Monetary Council is prepared to make additions to its unconventional monetary policy instruments for further easing, the minutes of a monthly policy meeting in September confirmed.
OTP TARGETS 7-8 PC MARKET SHARE IN ROMANIA
OTP Bank, Hungary’s biggest commercial lender, aims to take a 7-8 percent market share in Romania, chairman-CEO Sándor Csányi said at an event in Bucharest. OTP’s market share in the country stands at 3.8 percent at present.
MOL PLANS NEW HQ IN BUDAPEST
Hungary’s MOL will build a 28-storey headquarters in an area under development near Kopaszi Dam, in the south of the capital, the oil and gas company said. London-based Foster and Partners will team up with local partner FintaStudio to build the HQ with a gross area of some 83,000 square meters in the BudaPart development. “We are creating one of central Europe’s most innovative work environments with this building which will attract the talent of the future,” said MOL chairman-CEO Zsolt Hernadi. Check out the visuals and read more HERE.
RICHTER BOARD APPOINTS NEW CEO; BOGSCH TO REMAIN CHAIRMAN
The board of drugmaker Gedeon Richter appointed Chief Operating Office Gabor Orban CEO. He will replace Erik Bogsch, who asked to be relieved after holding the position for 25 years. Bogsch will remain chairman of the board and will also assume the newly created position of executive chairman, focusing on commercial activities as well as international, public and government relations for the company.
MAXON UNDERTAKES HUF 4.2 BN EXPANSION AT HUNGARY PLANT
Switzerland’s Maxon is building a 4.2 billion forint expansion at its electric motor base in Veszprem western Hungary. The government is awarding Maxon Motor Hungary a 1 billion forint grant for the investment which will create 102 jobs. The plant will supply parts to NASA for its next mission to Mars.
Source: MTI/Daily News Hungary