Professor Péter Kondor, Department of Economics, Central European University, Budapest won the Smith Breeden Award of the American Finance Association. The prestigious recognition arrived for his article 'Risk in Dynamic Arbitrage: The Price Effects of Convergence Trading', published in The Journal of Finance. Professor Kondor analyzed the reasons of the long-term decline of certain stock prices and the hesitation of investors, even though the low prices offer them a great opportunity in the future. Please, follow the link under the Books and Publications section below.
Hungary's National Development Agency (NFU) will compensate recipients of European Union development funding for higher costs resulting from the weakening of the forint, under a decree issued by the National Development and Economy Ministry in the latest issue of official gazette Magyar Közlöny.Winners of development funding, whose grant money is insufficient to cover the cost of their investment because of a weaker forint, may apply for compensation before taking receipt of the last part of the funding. However, there are several strings attached. Contracts in foreign currency for equipment or technology and its delivery must account for at least one-quarter of the entire project cost. The rise in costs resulting from the weaker forint must be at least 4 pct of total costs or no less than HUF 5 million, and more than 80 pct of the project's cost must be covered by grants.
In November, the trade balance showed a surplus of HUF 115 billion (EUR 411 million), the balance improved by HUF 91 billion (EUR 334 million) compared to the same month of 2008. In November 2009, according to first estimates, exports amounted to HUF 1,560 billion (EUR 5,788 million), while the value of imports reached HUF 1,445 billion (EUR 5,377 million). The Euro value of exports fell by 3 pct and that of imports fell by 9 pct over the equivalent month of the preceding year. The share of the European Union Member States was 80 pct in exports and 67 pct in imports.Over the course of January-November 2009, the value of exports was HUF 15,408 billion (EUR 54,824 million), while that of imports totaled up to HUF 14,224 billion (EUR 50,628 million) according to preliminary results. In Euro terms, the exports decreased by 20 pct and the imports fell by 27 pct. The trade balance showed a surplus of HUF 1,185 billion (EUR 4,196 million), which means an improvement of HUF 1,222 billion (EUR 4,434 million) as compared to the deficit of HUF 38 billion (EUR 238 million) in the same period of the previous year.
Hungary's Finance Ministry estimates that excise duty rises in July and January are causing consumption of goods on which the duty is levied to fall 3.5-10 pct, business daily Napi Gazdaság reported on January 11.The ministry projected the duty increases would cause tobacco consumption to fall by 7 pct, alcohol consumption by 5 pct and vehicle fuel consumption by 3.5 pct.
According to Swedish travel trade paper Travel News, Budapest is among the most popular destinations of the first decade of the millennium. The list, based on the sales of the largest Swedish travel agency network, Ticket, places Grand Canary as the top resort, followed by Alanya, Crete and Mallorca, while among the cities, London, Paris and Barcelona are the most popular, followed by Rome, Prague and Budapest.
In the first three quarters of 2009 the deficit of the general government sector amounted to HUF 711 billion, 3.7 pct of GDP, and increased by HUF 270 billion, 1.4 pct of GDP compared to the same period of the previous year, which was due to increasing expenditures and decreasing revenues. The deficit in the third quarter of 2009 came to HUF 243 billion, 3.8 pct of GDP. The deficit increased by HUF 132 billion, 2.1 percentage points of GDP compared to the third quarter of 2008.According to data compiled in compliance with the methodological guideline of the system of national accounts (ESA95) revenues of the general government sector amounted to HUF 8 783 billion, expenditures to HUF 9 494 billion and the deficit to HUF 711 billion in the first three quarters of 2009.London- and Prague-based European emerging markets specialist Wood & Co. said that "even ambitious targets can be met notwithstanding difficult economic conditions" (MTI-Econews), while Edward Parker, Fitch Ratings, commented on the upcoming general elections that "we would expect [potential winner opposition party Fidesz] to largely continue with the fiscal retrenchment".
Industrial producer prices involving both domestic and export sales prices were 0.5 pct higher than in the previous month, and 0.3 pct higher than a year before.Domestic sales prices of industry increased by 0.5 pct in November 2009 compared to the previous month, and decreased by 0.9 pct compared to November 2008.Export sales prices of industry measured in HUF went up by 0.5 pct compared to October 2009 and by 1.2 pct compared to November 2008.
Wizz Air, the largest low fare-cost airline in Central and Eastern Europe carried 7.8 million passengers in 2009 representing 33 pct growth year over year.In the course of 2009, the company opened a new base in Prague adding up to a total of eleven bases in Central and Eastern Europe; took delivery of 7 additional brand new aircrafts bringing the fleet to 27 Airbus A320s; and launched 40 new routes, resulting in a network of 147 destinations.
During the year of the global crisis, Hungary's development-supporting government agency has closed 27 deals. In 2008, with the giant EUR 825 million Mercedes investment, the end of year balance reached EUR 1.55 billion, and the agency is expecting approximately EUR 1 billion in 2010.Negotiations are already on their way and dozens of major investors confirm their intention to open their plants, service centers and facilities in Hungary. Among them, the Minnesota-based bioethanol company Fagen plans to purchase land from Cargill in Central Hungary. Cargill, being an agricultural investor, would produce the corn for the plant.
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Bloomberg Hungary, Gazprom to Sign South Stream Agreement, Népszabadság Says"The Hungarian state development bank, and Russian energy firm OAO Gazprom plan to sign an agreement today to set up a joint venture to operate the Hungarian segment of the planned South Stream gas pipeline, Népszabadság reported." Click here to read Reuters Hungary Could Have Euro in Next Four Years - PM"Hungary could adopt the single European currency in the next four years if the new government formed after elections due in April remains committed to tight fiscal policy, Prime Minister Gordon Bajnai said on Sunday." Click here to read
The Journal of Finance Risk in Dynamic Arbitrage: The Price Effects of Convergence Trading Smith Breeden Award for the article by Professor Péter Kondor, Central European University "I develop an equilibrium model of convergence trading and its impact on asset prices. Arbitrageurs optimally decide how to allocate their limited capital over time. Their activity reduces price discrepancies, but their activity also generates losses with positive probability, even if the trading opportunity is fundamentally riskless." Click here for more information Orientations An Anthology of East European Travel Writing, ca. 1550-2000The book edited by Wendy Bracewell, Senior Lecturer in History, School of Slavonic and East European Studies, University College London, is the first volume of the three-part set of East Looks West.Click here for more information
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