Archive for February, 2011

A real dip in Fidesz support: Medián

Medián and other more reputable pollsters have been showing a slow but steady decline in the governing party’s popularity. One or two percent every month which is indeed not significant until one adds it up and it turns out Fidesz has lost about 10% of its support since the elections. That is a sizable number of voters, about 600,000 between June 2010 and February 2011. A brave political commentator, László Kéri, predicted that in the next few months another 400,000 will turn away from Fidesz. How he comes up with such a number I have no idea, but we know that people are disappointed. Viktor Orbán’s popularity is still over 50%, but since last May he has lost 15% of his admirers.

People are fed up with politics in general, and only 41% of the representative sample say that they would definitely vote if elections were held this Sunday. A few months after the elections low participation is the rule, but according to Medián it has never been that low in the month of January after an election. Just to give you an example, in 2003 that number was 68% and even in 2007 it was still 50%.

There is also a huge group of people who today have no idea for whom they would vote. Last June it was 25% of the sample; this month it is 35%. The drop of support for Fidesz that has been slow and steady suddenly became dramatic. In one month Fidesz lost 7% of its support in the voting-age population–that is, about half a million people. These people didn’t flock to MSZP, which still stands at only 12%. The number of those who categorically say that they wouldn’t vote for Fidesz has also grown to 35%. On the other hand, Attila Mesterházy cannot be very happy when he hears that in the case of MSZP that figure is 60%!

read more Hungarian Spectrum.

Erste Bank profits rise on lower risk costs, outlook disappoints

Austrian lender Erste Group Bank AG (EBS.VI) Friday reported its 2010 net profit rose 12%, helped by the declining cost of bad Eastern European loans, and said it expects the level of non performing loans to decline in 2011 and accelerate the drop in risk costs.

However, the outlook disappointed analysts, who had hoped for a faster rate of decline in 2011.

For Erste Bank, the third-largest lender in Eastern Europe, billions of euros of added risk costs caused by a steep rise in non-performing and defaulting loans in its Eastern markets was the most severe blow dealt by the global and financial crises. But with the region’s economies now slowly rebounding, investors and observers are also expecting the gradual quality improvement of the loans book to trickle through to the bottom line.

At 1353 GMT, Erste Bank’s shares were trading down 1.1%, or EUR0.4, at EUR37.6, underperforming a 0.3% increase in the Vienna ATX 20 index.

“Some investors may be slightly disappointed by the indicated development in risk provisions going ahead,” UniCredit MIB analyst Thomas Neuhold said, adding that Erste Bank’s published financial results for the fourth quarter and the full year were otherwise broadly in line with expectations.

Erste Bank’s risk provisions for non-performing loans declined 1.2% in 2010, to EUR2.03 billion, it announced Friday. But while this was lower than the EUR2.05 billion expected by six analysts polled by Dow Jones Newswires, the guidance for 2011 slightly missed expectations.

For 2011, the bank expects the drop in risk costs to accelerate to “more than 10% group-wide,” the bank’s chief risk officer, Bernhard Spalt, told Dow Jones Newswires Friday. Excluding Erste Bank’s two currently most troublesome markets, Hungary and Romania, the risk costs decline will be between 10% and 20%, Spalt said.

read more Erste Bank Profits Rise On Lower Risk Costs, Outlook Disappoints – WSJ.com.

Hungary sells another HUF 18 billion in bonds

The non-competitive government bond auctions held by Hungary’s State Debt Management Agency on Thursday afternoon resulted in a further HUF 18.5 billion of issues on top of the amount sold in competitive bids for 3-year, 5-year and 15-year bonds. In contrast with the morning auction which where bid-to-cover ratios were high, none of the amounts offered in the afternoon bid were fully subscribed.

read more PORTFOLIO.HU | Hungary sells another HUF 18 billion in bonds.

EU’s Richest and Poorest Regions

By Stephen Fidler

Which of the European Union’s 271 official regions are the richest and which the poorest in terms of what their populations can buy? In data for 2008 released today, Eurostat uses purchasing power parity calculations to show Inner London, followed by Luxembourg and Brussels, are the most prosperous regions, and Severozapaden in Bulgaria the poorest. The poorest eight regions are either in Bulgaria or Hungary.

The data suggest that average inner Londoner has a purchasing power 3.43 times the EU average and 12.3 times the average resident of Severozapaden, but Eurostat says the numbers may be exaggerated  in places where many people commute in to work–like, presumably, London, Luxembourg and Brussels.

About one in four regions, Eurostat says, have average per capita spending power of 75% below the average.

“Among the 64 regions below the 75% level, fifteen were in Poland, seven each in the Czech Republic and Romania, six each in Bulgaria and Hungary, four each in Italy and Portugal, three each in Greece, France (all overseas departments) and Slovakia, two in the United Kingdom, one in Spain, as well as Estonia, Latvia and Lithuania.”

read more EU’s Richest and Poorest Regions – Real Time Brussels – WSJ.

Shakira, Sting, Portishead pop headliners in Hungary in ’11

Latin pop star Shakira, British rock musician Sting and English trip hop group Portishead are to play in Hungary this year, organisers said on Tuesday.

Twice Grammy award-winning and seven times Latin Grammy award-winning singer Shakira will bring her The Sun Comes Out World Tour to Budapest’s Papp Laszlo Sport Arena on May 5, Live Nation told MTI. The 34-year-old star has sold some 60 million albums worldwide, making her the highest selling Colombian artist of all time. She has previously played in Budapest in March 2007.

Sting, who has received sixteen Grammy awards for his work, will return with his Symphonicities show which he already presented in Budapest, in November 2010. Sting will play hos most famous songs accompanied by a symphonic orchestra at the Papp Laszlo sport arena on June 30, Live Nation said.

The 60-year-old singer will play in Hungary for the seventh time, the first appearance being at the 1988 Human Rights Now! world tour held under the banner of Amnesty International.

This year’s lakeside Balaton Sound festival, held in Zamardi between July 7 and 10, will feature such international acts as Portishead from Bristol, the Washington D.C.-based lounge and downtempo group Thievery Corporation and British electronic group Underworld. Dutch trance superstars Tiesto and Armin van Buuren will be among the international DJs to spin disks at the Balaton Sound festival.

via Shakira, Sting, Portishead pop headliners in Hungary in ’11 – Caboodle.hu.

Huawei eyes giant investment in Hungary

Chinese telecoms equipment maker Huawei is planning to announce a huge investment in Hungary worth billions of forints, the daily Népszabadság reported.

According to the paper, the company is planning to upgrade its regional manufacturing and distribution center in the country. The multibillion forint investment is set to create hundreds of jobs. Senior government officials have already conducted talks on the matter with the company last autumn.

Huawei declined to confirm the report saying there is yet to be a final decision on going forward with the project. Other sources, however, said that bilateral negotiations have been concluded and an official announcement is coming in a matter of days.

via Huawei eyes giant investment in Hungary | The Budapest Business Journal on the web | bbj.hu.

Hungary’s young doctors to issue ultimatum to government

Hungary’s young doctors plan to follow the example of their Czech colleagues and give an ultimatum to the government unless concrete measures are announced by April to improve their living conditions, dailies Magyar Nemzet and Nepszabadsag reported on Tuesday.

via Hungary’s young doctors to issue ultimatum to government – Caboodle.hu.

Hungary retail sales drop 1.7% yr/yr, 0.7% on the month in December

Hungary’s calendar year-adjusted retail sales volume in December fell 1.7% yr/yr after decreasing 0.3% in November, the Central Statistical Office (KSH) said.

The twelve-month drop was the third one in a row after a 0.7% fall in October and followed three months with 0.2% to 0.7% increases. In July, retail sales rose yr/yr for the first time since March 2007.

Retail sales fell 2.3% over the year from 2009.

read more Hungary retail sales drop 1.7% yr/yr, 0.7% on the month in December | The Budapest Business Journal on the web | bbj.hu.

Home construction down 35% in 2010

Home construction dropped in Hungary last year: the 20,823 new homes built in the country were 35% fewer than in 2009, the Central Statistical Office KSH said.

read more Home construction down 35% in 2010 | The Budapest Business Journal on the web | bbj.hu.

Hungary: Ruling on Gay March a Human Rights Victory

The Budapest Metropolitan Court’s decision on February 18, 2011, to allow an extended route for a gay pride march was an important victory for freedom of assembly in Hungary, Human Rights Watch said today. The Budapest police had denied permission to extend the route for the march, planned for June 18.

“The court’s decision was a victory not only for the  community of lesbians, gays, bisexual and transgender people, but for the right of all Hungarians to freedom of assembly,” said Boris Dittrich, acting director of the lesbian, gay, bisexual and transgender rights program at Human Rights Watch.

The Metropolitan Court of Budapest overturned the February 11 decision of the Budapest police to deny an application by Rainbow Mission Foundation, a lesbian, gay, bisexual, and transgender (LGBT) organization, to extend the route of the 2011 Budapest Gay Pride March to the parliament building.

Rainbow Mission Foundation made a formal request to the police in September 2010 to hold the gay pride march in June 2011. Because the police did not deny the request within two days, it was automatically approved under national law. In February, the organizers of the event decided to extend the route to end at Parliament Square, but the police denied their request. The court refuted the police claims that the extended route of the march would unduly obstruct traffic.

In 2008, the police had denied a permit for a gay pride march on similar grounds but withdrew its objections following a letter from 15 LGBT organizations and the rejection by Gábor Demszky, the Budapest mayor at that time, of the claim that the parade would unduly obstruct traffic. Approximately 450 lesbians, gays, and supporters gathered in the city center for the event.

During the march, though, several LGBT people were subjected to physical and verbal abuse, and crowds of counter-demonstrators threw explosive devices, eggs, cobblestones, and bottles at the participants. As a result 10 people were injured and 45 detained.

read more Hungary: Ruling on Gay March a Human Rights Victory | Human Rights Watch.