HUNGARY: NBH Expected to Keep Both Rates and Guidance Unchanged
Nov-18 08:12
- The NBH is widely expected to keep the base rate on hold at 6.50%, sticking to its ‘cautious and patient’ approach to monetary policy as headline inflation continues to run above target. All 20 analysts surveyed by Bloomberg expect the base rate to be left unchanged.
- The rate decision itself will be announced at 13:00GMT/14:00CET, followed by the release of the policy statement and Governor Mihaly Varga’s press conference at 14:00GMT/15:00CET. See our full preview, with a summary of sell-side analyst views, here.
- Prime Minister Viktor Orban said Hungary will delay a hike in the excise tax on fuel to July 2026 from January. The move will reduce tax income by about HUF 20bn ($60mn) and will be financed by increased windfall taxes on banks – which was announced last week. Pre-election spending prompted an upward revision to the government's deficit goals for this year and next. Other pledges from Orban’s cabinet include a 14th month pension payment to retirees and tax breaks for SMEs.
- Average gross wages for businesses with at least 5 employees rose 9.5% y/y in September, above estimates of +8.9% and August’s +8.7%. Wages rose 0.5% on a month-on-month basis compared to a prior -1.6%. No other data releases are scheduled for this week.
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LOOK AHEAD: US Week Ahead Headlined By Delayed CPI Report On Friday
Oct-17 20:51
- The September US CPI report will be released on Friday, delayed amidst the government shutdown but with the BLS making a special exception on social security payment considerations.
- Bloomberg consensus looks for headline CPI inflation at a rounded 0.4% M/M after 0.38% back in August and for Y/Y inflation to firm two tenths to 3.1% for what would be its highest since May 2024.
- Core inflation is seen at a rounded 0.3% M/M after 0.35% in August (exceeding the median unrounded estimate of 0.31%) and 0.32% in July. It’s expected to see core CPI inflation hold at 3.1% Y/Y having in August increased to its highest since February.
- Core details should see focus on both goods and services angles: underlying goods inflation has clearly firmed in recent months on tariff pressures although the median increase has currently seen a peak back in June, whilst services will be watched for any spillover after some strong recent non-housing readings.
- The report will come within the FOMC blackout period ahead of the Oct 28-29 decision, with a 25bp cut fully priced and likely needing a large surprise to alter this.
- As for broader inflation details, Fed Chair Powell this week confusingly suggested that we will have the September PPI report but the BLS had previously said “No other releases will be rescheduled or produced until the resumption of regular government services”.
US DATA: Latest Jobless Claims Estimates During The Shutdown
Oct-17 20:30
As noted earlier, MNI estimates initial jobless claims at a seasonally adjusted 218k in the week to Oct 11 and continuing claims at a seasonally adjusted 1929k in the week to Oct 4.
- To give a better idea of sensitivity around these estimates, which rely on estimates for some missing states, we note the below analyst estimates:
- Goldman Sachs have a central estimate of 217k for initial claims in a range of 211-225k, whilst they see continuing claims at 1917k in a range of 1885-1930k.
- JPMorgan meanwhile also see 217k for initial claims whilst they see continuing claims as having held constant at 1927k.
NATGAS: Venture Global in Talks with Ukraine for more LNG Deliveries, Reuters
Oct-17 20:28
Ukraine is seeking more cargoes from Venture’s Plaquemines facility as the embattled nation approaches the winter heating season, according to Reuters sources
- Venture is in talks with Ukraine’s DTEK to procure more LNG cargoes after a year of gas infrastructure attacks by the Russians.
- Venture Global CEO Michael Sabel met with President Volodymyr Zelenskiy on Thursday October 16.
- DTEK signed an agreement in 2024 for an undisclosed amount of LNG from the facility, as well as 2 mtpa from Calcasieu Pass Phase 2 currently under construction.
- Plaquemines currently has spare capacity to deliver more cargoes to Ukraine on the spot market, per Reuters.
- Plaquemines now sends out the second highest LNG volume in the US, with feedgas demand averaging 3.45 bcf/d according to MNI figures.
