Google hits back Tech Eye looks at the giant’s answer to Apple’s new releases
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WWW.WBJ.PL
47.3
The latest manufacturing PMI reading offers more bad news about the outlook for the Polish economy
VOLUME 18, NUMBER 44 • NOVEMBER 5-11, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
LOKALE IMMOBILIA COURTESY OF JONES LANG LASALLE
REAL ESTATE
Since 1994 . Poland’s only business weekly in English
Wanted: leaders Why are Polish politicians such poor leaders? Could they learn anything from business chiefs? 12-13
• Manufaktura sale • GTC offices sold • InterContinental, too 16-18
Plus • US elections • Goodbye, Panda • EU abortion case • Activists targeted? • Warren Buffet’s deal • New Polish soccer boss
In this issue
SHUTTERSTOCK
News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .5-6 Finance & Economics . . . . . . . . . . .7 Politics . . . . . . . . . . . . . . . . . . . . .8-9 Investing in Poland Project . . . . .10 Opinion & Analysis . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 International . . . . . . . . . . . . . .14-15 Lokale Immobilia . . . . . . . . . . .16-18 The List . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . .23
Explosive error
Rafa∏ Grupiƒski
An erroneous report thrusts the 2010 Smolensk catastrophe back into the spotlight 3, 11
WBJ exclusive: The leader of Civic Platform’s parliamentary caucus talks Polish politics
8-9
NEWS
www.wbj.pl
z∏.1.037 billion is how much foreign soccer fans spent in Poland during the Euro 2012 championships, according to the Polish Institute of Tourism.
€30 billion
is how much Gazprom will invest in the development of a new gas deposit in Siberia and the construction of a gas pipe.
2.4% is how much Poland’s GDP will increase in 2012, according to the latest estimate by the European Bank of Reconstruction and Development.
500 is how many garbage disposal companies could be left after local governments take charge, down from the current 4,000.
“The murder of 96 people is a huge crime.” Jaros∏aw Kaczyƒski, twin brother of the late President Lech Kaczyƒski who perished in the 2010 Smolensk plane catastrophe along with 95 others. Mr Kaczyƒski is also leader of Poland’s largest opposition party, Law and Justice.
Figures in focus Holiday spending Average expenditure (in €) of EU27 residents aged 15 and over for holiday trips of at least four nights, 2011, selected countries 8,000 7,000 6,000 *2010 data **Highest in the EU27 ***Lowest in the EU27
5,000 4,000 3,000 2,000 1,000
Make sure and head to WBJ.pl this week for the Polish view on the results of the US presidential elections.
ny
nc Lu xe e mb ou rg **
Fra
*
ma
UK
a tvi
ly* Ita
va
La
Ge r
Lit
Source: Eurostat
Company index
Obama or Romney?
Poland in prosperity index
kia
0 Slo
Remi Adekoya
Quote of the Week
an ia
Poland, “Polish death camps” haven’t helped either. The question though is whether US policy towards Poland would change in the event of a Romney presidency. That seems unlikely. During the final presidential debate in the US, which focused on foreign policy, Mitt Romney largely echoed Barack Obama’s take regarding most issues on that front. The decision of Mr Obama’s administration to shift the US’s foreign policy focus towards the Pacific is one that would likely be continued by a President Romney, who would after all have to face exactly the same economic and geo-political realties that Mr Obama does.
On WBJ.pl
32nd
Poland ranks 32nd in the Legatum Institute’s prosperity index, the fourth of its kind by the British institute. This year, it ranked 142 countries – 32 more than in the previous edition. According to the authors, the study includes 96% of the world’s population and takes into account 99% of the world’s GDP.
when he visited the country in a foreign tour he embarked on this summer, which also took him to the UK and Israel. In Poland, Mitt Romney lavished praise on the country as a model of economic freedom and was received by Solidarity legend Lech Wa∏´sa, who endorsed the Republican candidate. A German Marshall Fund survey taken this year (before Mr Romney’s visit) showed that the Republican had some of his highest support levels in Europe right here in Poland. This is likely due to the fact that many Poles feel Mr Obama does not really care that much about this part of the world. And gaffes the US president has made such as calling Nazi concentration camps in
hu
This week, the whole world will be watching what is arguably the most important election on the planet, namely that for president of the United States of America. As WBJ went to press, polls indicated a tight race, with current President Barack Obama having the tightest of leads in the allimportant swing states and therefore being the slight favorite to win the election. During the campaign, Poland was unexpectedly thrust into the discussion when Republican candidate Mitt Romney accused Mr Obama of “abandoning” Poland in his bid to foster better relations with Russia. Mitt Romney made a point of trying to show how he would treat Poland differently
** an d*
Poland’s prosecution of rock group Behemoth for “blasphemy” puts it out of sync with European values, the European Commission said. It told the EUobserver that EU countries must respect the European Convention on Human Rights. The “right [of freedom of expression] protects not only information or ideas that are favorably received ... but also those that offend,” it said. Behemoth’s lead singer ripped up a Bible and called the Roman Catholic Church a “murderous cult” while on stage. Poland’s Supreme Court said last week that he can be prosecuted for “offending religious sensibilities.”
The US presidential election
Po l
‘Blasphemy’ case
Numbers in the News
an ia*
Treasury Minister Miko∏aj Budzanowski has announced that the nuclear power plant planned by PGE will likely be built, Dziennik Gazeta Prawna reported. He hinted recently that Poland will choose to focus on hydrocarbons, at the expense of nuclear. However, he said last week that “It is not impossible that Inwestycje Polskie [an as-yet nonexistent statecreated venture capital fund] will support the project.” This could represent a financial guarantee for PGE, which is responsible for Poland’s nuclear plans.
IN THE SPOTLIGHT
Ro m
Nuclear go-ahead
NOVEMBER 5-11, 2012
COURTESY OF THE WHITE HOUSE AND GAGE SKIDMORE/WIKIMEDIA COMMONS
2
Adaptorinvest Limited ........5 Globe Trade Centre ..........16 PGE ................................2, 4
Allianz Real
Google ..............................23 PKP ............................13, 17
Estate Group ....................16 Grupa 5 Architekci ......16, 18 Rafako ................................5
Apple ................................23
Calendar
Event:
Location:
This year’s edition of Belgian Days, organized by the Belgian Business Chamber, will be focused on business more than it has been in the past. It will include conferences, forums and a gala dinner. Warsaw
ANR boosts budget
Web:
belgium.pl
8-9
FUTURE 4 BUILD
The state-owned Agricultural Property Agency (ANR) contributed z∏.470 million to the Polish national budget last Tuesday, Puls Biznesu reported, citing the agency’s press office. ●
Event:
Future 4 Build is a green-building conference and exhibition, providing access to information from international and local experts. It is a forum for finding innovative solutions, ideas, meeting new market players and advancing your own business.
Apsys ................................16 Hill International ..............16
November 6-24 BELGIAN DAYS
HB Reavis ........................17
AstraZeneca......................10
14- 16 MAPIC Event:
Location: Web:
MAPIC provides a unique exhibition area and conference series dedicated to retail real estate. Cannes, France mipim.com/mapic
16-18 BOATSHOW 2012 Event:
Location: Web:
This 14th edition of the Sailing and Water Sports Trade Show BOATSHOW 2012 will offer business meetings and other events related to the sector. MT¸ Conference and Exhibition Centre, ¸ódê boatshow.pl
26-27 NEW EUROPE GRI 2012 Event:
Location:
Warsaw International Expocentre EXPO XXI
Location:
Web:
future4build.com
Web:
Join the most senior players in CEE real estate in a selection of over 20 interactive discussions covering the recent trends. Hyatt Regency Warsaw globalrealestate.org/NewEurope2012
Berkshire Hathaway ..........5
UBM ..................................17
HSBC ..................................7 Unibep ..............................18 Ipopema Securities ............5 UniImmo: Deutschland ....16
BRE Bank ..........................9
Buro Happold....................16
JEMS Architekci................18 Union Investment Jones Lang LaSalle..........16 Real Estate ......................16
CalEnergy............................5
Cinema City ......................16
KPMG ..................................6 Warbud..............................16 Leroy Merlin......................16
DekaBank ........................17 Lotos ..................................5 Warimpex ..........................17 Dom Maklerski BOÂ ..........5 Lotos Petrobaltic ................5
Warsaw Stock Exchange ....5
Echo Investment ..............18 Microsoft ..........................23 WestInvest InterSelect ....17 Erste Securities ..................6 Okam Capital ....................18 Euris/Rallye Group ..........16 Orco Property Group ........16
X-Trade Brokers DM ........20
Fiat Auto Poland ................6 PBG ....................................5 ZE PAK ................................5
NEWS
NOVEMBER 5-11, 2012
www.wbj.pl
3
Smolensk disaster
Newspaper report creates political firestorm Last Tuesday Rzeczpospolita, a respected daily, reported that Polish investigators had found traces of explosive materials, including TNT and nitroglycerin, on the wreckage of the TU-154 plane which crashed in Smolensk, Russia in 2010, killing President Lech Kaczyƒski and 95 others. The article, understandably, caused a furor in Poland. The Military Prosecutor’s Office in Warsaw, which is in charge of the Smolensk investigations, responded by saying it would hold a press conference later in the day to address the claims.
Tusk must go But before the prosecutors spoke, Jaros∏aw Kaczyƒski, twin brother of the late president, and leader of opposition party Law and Justice (PiS), called a press conference of his own where he said the “murder of 96 people is a horrible crime.” Mr Kaczyƒski called on Prime Minister Donald Tusk to resign, saying he has “lost
the moral authority to rule.” The PiS leader also suggested that the head of the Polish government was actively blocking the investigation into the Smolensk catastrophe. “We cannot have a situation whereby people who have been obstructing the investigation into this terrible crime for the past 30 months are ruling the country.”
‘No traces’ found But during his press conference, Ireneusz Szelàg, head of the Warsaw Military Prosecutor’s Office, denied the newspaper reports, stating that up until now “no traces” of explosive materials have been found in the plane wreckage. However, he did say that Polish investigators had discovered “materials with a chemical structure similar to that of the kind in high-energy materials, such as, for example, explosive materials.” But only a “layman” would immediately jump to the conclusion that the materials were definitely from explosive materials, Mr Szelàg said. The prosecutor stated that he could not “rule out” that tests would indeed show that explosives traces were present
COURTESY OF WIKIMEDIA COMMONS
An errorneous report brings the Smolensk disaster to the political fore, again
President Lech Kaczyƒski and 95 others perished in the forest near Smolensk in the recovered materials. However, it could take up to six months before the results of those tests are ready, he added.
‘One big lie’ Mr Kaczyƒski described the prosecutor’s statements as “one big lie” and said he believed the newspaper’s report. His party claims it has “its own sources who confirm the Rzeczpospolita reports.” But by then the newspaper itself had started to backtrack from its statements saying it
should not have been so “categorical” in its claims and admitted to having made a “mistake.” The prime minister also spoke on the matter later in the day. Donald Tusk said it was “unacceptable for the leader of the opposition to be levying such charges, charges that could devastate the Polish state, based on an inaccurate newspaper report.” “Today, we heard from Jaros∏aw Kaczyƒski categorical statements about a crime,
murder and the involvement of the [Polish] government at least in obstructing an investigation, all on the basis of a newspaper article, which the prosecutor in charge of the investigation has already denied,” said the prime minister. Mr Tusk then went on to utter a sentence for which he was widely criticized himself. “It is impossible to live in one country with people formulating those kinds of conclusions.” To this Mr Kaczyƒski inquired whether Mr Tusk
wanted him “dead” or “simply banished.” “Those words showed how nervous he is, how much he knows that the truth will soon come out,” is how the PiS leader responded to the prime minister’s words. A Millward Brown/SMG poll taken after the statements showed that while 67 percent of Poles didn’t agree with Mr Kaczyƒski’s words about “the murder of 96 people,” 50 percent also said they didn’t like Mr Tusk’s words about living in one country with people formulating such conclusions. Mr Kaczyƒski has now said he wants to change the prosecutor in charge of the Smolensk investigation. “We have our own sources of information. It wasn’t about anything other than explosive materials … I know one thing, equipment which is very, very rarely wrong discovered explosive materials,” claimed Mr Kaczyƒski. Thirty-six percent of Poles believe Lech Kaczyƒski was murdered in Smoleƒsk, according to the Millward Brown/SMG poll. Only 56 percent rule out the possibility of an assassination. Remi Adekoya
NEWS
www.wbj.pl
Financial results are worsening for JHM Development. In Q3 it had z∏.13.2 million in consolidated revenues compared to z∏.14 million for the same period last year. Operational profits and net profits are z∏.2.5 million and z∏.1.2 million respectively, compared to z∏.3.5 million and z∏.1.5 million last year. The company admitted that it has been facing more competition, Parkiet reported.
PGNiG eyes new collection point Gas monopolist PGNiG is planning to implement a new natural gas collection point on the Yamal-Europe pipeline in the area of Zambrów, in addition to its two existing points in Poland in Lwówek and W∏oc∏awek, Parkiet reported. From there, the group plans to extend a connection to Ostro∏´ka in a move to facilitate the supply of the fuel to northeastern regions of the country.
Proama gains 200,000 customers Nine months since the debut of Proama on the Polish market, the insurance provider has seen no little growth, Puls Biznesu reported. The company, which belongs to Generali PPF Holding, managed to sell a total of 200,000 insurance policies, muchmore than the 50,000 that were initially expected.
Mostostal Export resolves dispute After years of dispute, Mostostal Export has reached an agreement with Warsaw concerning a penalty for delays in the construction of a sports hall in Ursynów. The company faced a fine of almost z∏.74 million, plus interest, which added up to more than z∏.120 million. An agreement with the city brought the amount it has to pay down to z∏.5.5 million. ●
Activism
Polish environmentalists targeted by secret services: reports They have also come under verbal pressure from the treasury minister Polish environmentalists say they are being monitored and visited by secret services for campaigning against coal-fired power plants and shale gas exploration, the EurActiv European news website reported last week. “We have information that we are being watched by the secret services,” an officer for one environmental NGO, who asked to remain anonymous, told the website. “Their agents met environmental activists and asked many questions connected to the energy area.” “Some of the experts working for us were [also] visited by secret service agents, asking about their international relations with foreign organizations or movements,” the source told EurActiv.
‘Unprecedented attack’ Meanwhile, more than 20 environmental groups recently sent a joint letter to Polish Prime Minister Donald Tusk, complaining of an “unprecedented attack” on civil society organizations. The letter was written in response to an October inter-
Some 90 percent of Poland’s electrical energy comes from coal view by Minister of Treasury, Miko∏aj Budzanowski, in which he seemed to put verbal pressure on environmental NGOs, and in particular on ClientEarth. “There is a limit of responsibility on the part of these kinds of organizations, and in my opinion this was exceeded,” said Mr Budzanowski, the Polish Press Agency (PAP) reported. In their letter to the prime minister, the environmentalists quote Mr Budzanowski’s
words as follows: “This kind of organization should accept that there are limits to its activities. In my opinion they have passed their limit. If I were ClientEarth … I would reconsider doing any further work against PGE.” The Treasury could not be reached for clarification. The minister was commenting on the efforts of ClientEarth to block the construction of a 1,800-megawatt coal-fired plant in Opole, southern Poland, by a consortium of Pol-
ish firms. State-owned utility PGE, which is leading the project, had a permit for the project revoked by the Voivodship Administrative Court because of protests from ClientEarth. However, The Supreme Administrative Court overturned the cancellation of the permit in early October. “It is good that the [Supreme Administrative Court] quashed the decision by the [Voivodship Administrative Court] in connection with building the power plant in
Opole,” said Mr Budzanowski. “The sum of events over the last two years … shows that, de facto, this organization is working against the public interest of the state … in two areas, both in terms of energy supplies for Poles and for the detriment of the entire construction industry,” he added. The environmentalists’ letter reads, “By equating the interests of private companies with those of the public, Minister Budzanowski’s comments go to the heart of the role of civil society in Poland.” The letter calls on Prime Minister Tusk to “defend a transparent dialogue with representatives of non-governmental organizations.” The state energy program is aimed at decreasing Poland’s reliance on Russian gas, while the country is also under pressure to reduce its CO2 emissions. Poland, which has blocked the EU’s carbon reduction road map several times, relies on coal for 90 percent of its electrical supply. Companies are also searching for shale gas in Poland, the extraction of which requires the use of the controversial method of hydraulic fracturing. Gareth Price
Human rights
Poland condemned, fined in abortion rape case The Polish state has been punished by the ECHR for not providing a rape victim with “unhindered” access to abortion The European Court of Human Rights (ECHR) last week condemned Poland’s treatment of a 14-year-old rape victim who sought to have an abortion. The ECHR ordered the Polish state to pay the victim €61,000 in compensation for failing to provide the girl with “unhindered” access to an abortion, the court said in its ruling. Once she reported to the police that she had been raped, the prosecutor initially charged her with “unlawful sexual intercourse.” After hospitals in Lublin, where the victim is from, and
hospitals in Warsaw refused to give her an abortion, the victim finally managed to go ahead with the termination in Gdaƒsk, 500 kilometers away from her home, after the Ministry of Health intervened in the case.
Mounting pressure “The Lublin hospital issued a press release to the effect that it would not perform an abortion in [the victim’s] case ... in the meantime, a doctor told [the victim] that the hospital was facing pressure by various people not to perform the abortion and that it has received numerous e-mails criticizing the [victim’s] decision,” the ECHR wrote in its statement. In addition, the victim received text messages from a priest, and from anonymous senders, trying to convince her to change her mind about ter-
minating the pregnancy. In the meantime a Polish court ordered the victim to be placed in a juvenile detention center as an interim measure in proceedings against her mother, who was accused of trying to convince her daughter to have an abortion against the daughter’s will. In their ruling, which is subject to appeal, a panel of judges at the ECHR found that there had been numerous breaches of the girl’s rights. These included, according to the court: The violation of Article 8 of the European Convention on Human Rights – the right to respect for private and family life – as regards the determination of access to lawful abortion and as regards the disclosure of the applicant’s personal data, as well as violation of article 5 – the right to liberty and security – and article 3 – the prohibi-
SHUTTERSTOCK
JHM Development’s results worsen
NOVEMBER 5-11, 2012
SHUTTERSTOCK
4
Polish pro-life protesters tion of inhuman and degrading treatment. The court ruled that the victim should have had unhindered access to a lawful abortion and that the details of her case should not have been made public by the hospital in
Lublin. Poland’s abortion laws are among the strictest in Europe; terminations are only permitted in the cases of rape, incest or when the life of the mother is endangered. Izabela Depczyk
BUSINESS
NOVEMBER 5-11, 2012
www.wbj.pl
Construction
Privatizations
PBG CEO resigns ZE PAK sees lukewarm debut on WSE Investors took the news badly, with the company’s shares dropping more than 25 percent on the WSE
The electricity producer’s share price stayed flat after the first day of trading
Wies∏aw Ró˝acki, the now-former CEO of Polish construction firm PBG, resigned from the position last Monday. He told reporters that he had made the decision because PBG had lost control over its key subsidiary, Rafako, after a series of transactions were concluded that he did not authorize. Mr Ró˝acki also criticized an agreement made between
COURTESY OF THE WARSAW STOCK EXCHANGE
Poland’s second biggest energy-from-coal producer, Zespó∏ Elektrowni Pàtnów-AdamówKonin (ZE PAK), saw a lukewarm debut on the Warsaw Stock Exchange last Tuesday. The firm’s share price ended its opening day at z∏.26.20, exactly where it had begun, and decreased towards the end of the week, finishing at z∏.25.30. The IPO consisted of over 26 million state-owned shares, comprising some 50 percent of the company’s capital. The offer came to some z∏.680 million. Analysts had been skeptical about the IPO, and the share price’s struggle to rise above the subscritpion price seemed to validate their doubts. “This is not the best time for energy companies on the stock market,” ¸ukasz Bugaj, an analyst at brokerage house Dom Maklerski BOÂ, said prior to ZE PAK’s debut. He added that ZE PAK is not a particularly well-known or attractive company for
5
Over 26 million ZE PAK shares were sold investors. Additionally, the company’s outlook for the coming years is not terribly impressive, he said. Individual investors bought up more than three million shares, while institutional investors purchased over 22 million shares. After the IPO the company’s biggest shareholder, billionaire Zygmunt Solorz-˚ak, now indirectly holds over 50 percent of the company’s shares.
Mr Solorz-Zak announced that the company would likely change its development strategy in order to increase its involvement in the gas-energy sector. The new strategy would entail that only two out of ZE PAK’s four electricity plants of will be producing electricity from coal. ZE PAK is the 16th company to debut on the WSE this year. Its market capitalization amounts to z∏.1.36 billion. Izabela Depczyk
PBG and Cyprus-registered Adaptorinvest Limited, which, according to him, was not justified from a business perspective. He said it could be destructive to PBG and its creditors. “I must emphasize that the existence of the contract for the provision of financial advisory services with [the] company ... [Adaptorinvest Limited] is in my opinion completely unjustified economically in terms of the PBG SA group, its shareholders as well as creditors,” he said. After Mr Ró˝acki’s resignation, PBG announced that Pawe∏ Mortas had filled the vacated position.
Investors took the news negatively. After Mr Ró˝acki announced his decision, the group’s shares plummeted by more than 25 percent on the Warsaw Stock Exchange. The stock price rebounded only slightly later on Monday, but still closed down 23.64 percent. PBG had over 6,000 employees in the first half of 2012. In June, the company filed for bankruptcy after overextending itself due to its involvement in construction projects for the Euro 2012 soccer tournament. At the time, it was indebted to 12 different banks to the tune of some z∏.1.7 Izabela Depczyk billion.
Lotos stocks soar as Warren Buffett announces deal The stock price of Polish stateowned oil refiner Grupa Lotos soared last week as US investor Warren Buffett announced that CalEnergy would explore gas deposits along with Lotos Petrobaltic in the Baltic Sea. CalEnergy belongs to Berkshire Hathaway, Mr Buffet’s company, while Lotos Petrobaltic is a subsidiary of
Grupa Lotos. “We will start drilling next year. This will allow us to make a decision about definitive plans concerning the extraction from this deposit,” said Pawe∏ Olechnowicz, Lotos’s president. Analysts are positive about CalEnergy’s involvement with Lotos. “Deposits in Lotos’s port-
folio are significant, so its worth exploring them,” Konrad Anuszkiewicz, from Ipopema Securities, told Puls Biznesu. Warren Buffett has an estimated fortune of $44 billion, according to Forbes, which ranked the 82-year-old as the third-richest person in the world in its 2012 World BilAK, GP lionaires list.
6
BUSINESS
www.wbj.pl
NOVEMBER 5-11, 2012
Fiat Auto Poland has announced that it will cease producing the Fiat Panda Classic at its plant in Tychy, in Poland’s Silesia voivodship, before the end of the year. Panda Classic is one of Fiat’s most popular car models. In its official statement, Fiat explained its decision, saying “the reason for shutting down Panda production in Tychy is a result of the fact that in 2013 car approval laws will be chang-
ing, and the Panda Classic does not meet the specified requirements.” Experts, however, have expressed skepticism as to the reason given by the company. “Most likely this is a political decision,” Samar, an automotive market research company, wrote in a statement. Samar explained that for the past several months media outlets have been reporting that the success of
the Panda Classics made in Poland has undermined the popularity of Fiats produced in Italy, causing the sale of Italian-made, more expensive Pandas to drop. “Small demand for the new Panda produced in Italy and the continuously high demand for the old version [produced in Poland] lead to the company’s decision to cease the production” Wojciech Drzewiecki, chairman of Samar, told daily
Pharmaceutical market
Polska The Times. Fiat denied these claims in its statement. Although Fiat’s decision has not come as a surprise, what is worrying, Samar added, is that the company still hasn’t decided what will be produced in Tychy in its place. Samar said there is a risk that the company could be planning to exit Poland altogether. Izabela Depczyk
COURTESY OF FIAT
Fiat to cease production of Panda Classic in Poland
Experts worry that the Italian car-maker could be planning to end production in Poland altogether
Fashion
Pharmaceutical market to shrink Louis Vuitton to debut on Polish at least 5 percent: report market: reports The Reimbursement Act is behind the fall, say experts Sales of medicine and other pharmaceutical products in Poland will total around z∏.26.6 billion for the year 2012, according to data collected by Pharma Expert, Parkiet reported. This translates into a 5-6 percent fall compared to the previous year. Piotr Kula, head of Pharma
Expert, believes that the main cause is the new prescription drug-refund legislation, which has been in force since the beginning of the year. The new refund regulations have enforced fixed margins based on the cheapest medicine available in a given classification group. This means that pharmacists have no interest in selling more expensive pharmaceuticals. In addition, a new list of refunded medication is published every month, forcing a
change of price and revaluation of existing stock, Mr Kula explained. The negative dynamic should balance out in 2013, said Marek Czachor, analyst at Erste Securities. The falling prices of refunded medication will be compensated by higher prices for over-the-counter products. For that reason, up to 3 percent growth can be anticipated in the market next year, Mr Czachor concluded. RA
It is reportedly preparing to locate in the capital’s vitkAc shopping mall Louis Vuitton is getting ready to open its first store in Poland, Rzeczpospolita reported last week. Although representatives of the well-known French luxury brand have declined to comment, unnamed sources approached by the daily confirmed that a two-floor Louis
Vuitton boutique is being prepared in Warsaw’s vitkAc shopping mall. The reported launch of the brand on the Polish market comes on the heels of a general growth trend in the popularity of luxury goods in Poland. In the years 2005-2010, the Polish market for luxury consumer goods rose by 50 percent in real terms. KPMG defines around 606,000 Poles as “wealthy,” meaning they earn more than
z∏.15,500 a month. That number has nearly tripled in the past 10 years. Louis Vuitton is one the world’s leading fashion houses, offering goods such as luxury trunks and leather goods, shoes, watches, jewelry, accessories, sunglasses, and books. The vitkAc shopping mall, located in the Wolf Bracka building on ul. Bracka in Warsaw, houses fashion boutiques as well as restaurants and a delRA, GP icatessen.
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FINANCE & ECONOMICS
NOVEMBER 5-11, 2012
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Manufacturing
EBRD cuts growth forecast Poland’s manufacturing for Poland
PMI beats expectations, but still negative Poland’s manufacturing PMI, a measure of sentiment in the industry, rose 0.3 points in October from the previous month to 47.3. However, the reading was still the secondlowest in Poland’s seven-month sequence of readings below 50. Readings above 50 indicate expansion, while those below 50 indicate contraction. The market consensus forecast had been for a reading of 46.7 points, so the figures were somewhat heartening in that light. Nevertheless, in its report accompanying the figures, HSBC, which produces the survey in cooperation with Markit, had little positive to say. “Output, new orders and purchasing activity all continued to fall in October, albeit at slower rates than in September,” the report read. “Manufacturers continued to erode their backlogs, and cut workforces at the
fastest rate in three years. Meanwhile, inflationary pressures in the sector remained weak as both output and input prices declined over the month.” The report also said that the main reason for the deterioration in the business climate was a contraction in the volume of new business received – the ninth consecutive month such a contraction had occurred. Agata Urbanska, an economist for Central & Eastern Europe at HSBC said that the
reading portends more negative numbers to come for the remainder of the year, and added that interest rate cuts from the National Bank of Poland are likely. “We expect that the increasingly more pronounced economic slowdown will be met with a response from monetary policy. We expect the central bank to start an interest rate cutting cycle in November,” she said in a statement. Andrew Kureth
An uptick in a downward trend Poland's manufacturing PMI reading, October 2010-October 2012 60
the IMF and the World Bank) that have cut their growth forecasts for the country. For 2013, it cut its forecast to 2.2 percent growth, rather than the 2.4 percent it had predicted in July. According to the EBRD, all
the economies within the Central and Eastern Europe region will grow slower than it had forecast earlier this year. However, Poland and Bulgaria will stand out as countries who won’t suffer from difficulties on the credit AK market, the bank said.
Cyprus calls for €50 billion cut to EU budget Cyprus, which currently holds the rotating EU presidency, has proposed cuts of some €50 billion from the European Commission’s proposed 2014-2020 budget. Cyprus reportedly wants to lower the available funding to 2.35 percent of an EU member
state’s GDP, from the 2.5 percent proposed by the European Commission. The cuts would reduce the amount Poland is expected to receive from the EC’s proposal – which the European Parliament has already said should be increased, rather than cut.
The EU budget proposal put forward by the EC in 2011 assumes spending for the next seven years at more than €1 trillion. According to the EC, Poland would be the largest beneficiary of this plan, receivAK ing €75 billion.
Cameron under pressure on EU budget 50
40 Oc t. No '10 v. De '10 c. ' Jan 10 . Feb '11 . Ma '11 r. Ap '11 r. ' Ma 11 y Jun '11 .' Jul 11 Au . '11 g. Se '11 p. Oc '11 t. No '11 v. De '11 c. Jan '11 . Feb '12 . Ma '12 r. Ap '12 r. Ma '12 y Jun '12 .' Jul 12 Au . '12 g. Se '12 p. Oc '12 t. ' 12
Output, new orders and purchasing activity all continued to fall in October
The European Bank for Reconstruction and Development (EBRD) says Poland’s economy will grow by 2.5 percent in 2012, as opposed to the 2.9 percent it had predicted in July – making it only the latest in a slew of organizations (including
Source: HSBC, Markit
UK Prime Minister David Cameron faced opposition from the Labour Party and a rebellion from his own backbenchers in the House of Commons last week, over proposals to maintain 2014-2020 EU expenditures at the same level as the 2007-2013 budget.
Mr Cameron’s proposal to freeze expenditures was defeated in the Commons, with MPs calling for a realterms cut in EU spending. The result is not binding on the government, and Britain – a net contributor to the budget – will only be forced to
make a final decision on the budget in around a year’s time. A lot rides on the EU budget for Poland, which has been the biggest recipient of EU largess during the current budget period.
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Many grads unemployed One in eight Poles with a university degree is unemployed. In large cities, this proportion reaches one in four. At the end of September, employment offices registered 235,400 unemployed university graduates, according to the Ministry of Labor’s latest statistics. That’s almost 20,000 more than in June. Never has there been as many unemployed university graduates at the end of a third quarter, Dziennik Gazeta Prawna reported.
Polish policeman dies during Sandy Artur Kasprzak, a New York policeman of Polish origin, died while saving his family while Sandy stormed through the city, Wyborcza.pl reported. When his house started flooding, the 28-year-old policeman decided to take his family to the attic. When everyone was safely upstairs, he went to check the basement. He never came back. Mr Kasprzak’s body was found in the morning. ●
NOVEMBER 5-11, 2012
Politics
A view from the ruling party WBJ sat down with Rafa∏ Grupiƒski, head of the Civic Platform party’s parliamentary caucus, to talk about its strategy for handling the economic crisis, divisions within the party, Poland’s foreign policy stance and why he wants Jaros∏aw Kaczyƒski to stand before the State Tribunal Remi Adekoya: There has been some confusion on the matter recently, so could you please explain what kind of party Civic Platform (PO) is exactly? Rafa∏ Grupiƒski: PO is a centrist party with conservative, Christian roots, while at the same time it is decidedly liberal in economic matters. It is a party that has its distinct factions on social issues, one conservative, the other liberal. Our party dominates the whole of the political center in Poland. A few weeks ago, 40 conservative PO MPs voted to support a much-criticized legislative proposal aimed at making Poland’s abortion laws more restrictive. But in a more recent vote on the same legislation, just 14 PO MPs sup-
ported it. Why the change of heart? Were they scared into submission by party bosses? It was enough that we explained to them the political plan of the Solidarity Poland party, which proposed that abortion legislation. After that first vote you mentioned, the head of the party’s parliamentary caucus came out publicly and said he was happy that he had succeeded in dividing PO. That showed the instrumental approach to the legislation by its proponents. But some of our MPs are not so experienced when it comes to political games carried out with the help of ideology. So you think those MPs were simply being naive? The truth is also that in such matters, MPs who want to vote according to their moral
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COURTESY OF RAFA¸ GRUPI¡SKI
8
Mr Grupiƒski describes Civic Platform as dominating the whole of the political center in Poland instincts sometimes do so thinking “hmm … this will be a political problem but hopefully the bill still won’t pass even if I support it.” And then it turns out a faulty bill passes and there are political problems. Politics is a team sport and MPs must realize that in parliament, everything is political. The only thing in parliament is politics. Poland needs PO united, not divided. What plans does your party have for this parliamentary term? The first is to counter the crisis and the accompanying economic slowdown. We need actions that will create opportunities for entrepreneurs and liquidate the barriers they face. We need actions to enable exports to the east, such as solving the issue of insurance for such transactions. The second priority is strengthening Poland’s position abroad. The third priority is improving the quality of the education system in Poland and strengthening cooperation between institutions of higher education and business. We want to build an innovative economy by improving the quality of our education system. Why is the prime minister now talking about spending hundreds of billions of z∏oty on public investment programs, whereas not so long ago he was talking about the need for belt-tightening? This is indeed a change in tac-
tics when it comes to tackling the crisis. You see, 2013 and parts of 2014 will be transition years between two EU budgets. It will be a period when public investment slows down and when new tenders will be in the preparatory phases. At the same time, the national government and local governments will still have to pay off the loans they took out in order for Poland to cofinance ongoing EU projects. And so we need a to take the offensive to plug that investment gap and keep the
know, we have to divide into two speeds because we have our own separate problems to solve.” Before we start envisioning what Europe should be in the future, we have to take care of what it is today. Do other non-euro zone EU members share Poland’s view in this matter? Probably, yes, although the UK is playing its own game, as it has been doing since the EU was created. However, I hope that on crucial issues like the
“Politics is a team sport and MPs must realize that in parliament, everything is political” economy going in that tough period.
2014-2020 budget, decisions will be made unanimously.
What should Poland’s role in Europe be, and should Europe become a federation, as suggested by Foreign Minister Rados∏aw Sikorski? Today, what is more important is for divisions not to be created within the EU, such as that between euro zone countries and the rest. These are negative tendencies because the EU’s strength stems from internal solidarity. We must fight to keep solidarity in Europe and to keep it unified at every level. We can’t have a situation where politicians say: “more Europe in Europe but, you
If Poland does not receive the z∏.300 billion in EU funds that your government has promised, do you think that will be regarded as a failure? Regarding EU funds, it is most likely we will not be able to achieve all our aims, although I am not worried about not achieving that figure you mentioned. But I do think it is important to stress that Poland is a country which is not only interested in taking from the EU. I do not think there is anybody in Poland who thinks it is a bad thing that Poland is in the EU and in NATO. And I
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Vladimir Putin ill?
don’t think anybody will start to think so if we get a little less than we said at the beginning. Of course, though, if we get less than the z∏.300 billion, we can expect many negative comments from the opposition. But the ordinary citizen is more interested in issues that affect him directly, like how much gas costs at the station and not whether Poland receives z∏.300 or z∏.330 billion from the EU.
Polish-German relations today are good but are you satisfied with Polish-Russian relations? I think that thanks to our actions, there has been a significant improvement in those relations. Relations were terrible when we took over in 2007. Today, we have returned to state visits. There is more trade between our countries. Institutions are being created to improve bilateral relations. Vladimir Putin paid his respects to the victims of the Katyƒ massacre. But from the point of view of energy policy, there is ongoing disagreement about conditions for us. And there is also the case of the Smolensk catastrophe which in the eyes of some discredits relations between our two countries. And the absolutely unjustified and crazy theories about Russia having murdered the Polish president definitely don’t help in building relations. So you are saying PolishRussian relations are better than most Poles think they are? They are much better than they used to be. When Donald Tusk became prime minister in 2007, opinion polls showed that 80 percent of Poles wanted an improvement in PolishRussian relations. And that’s not because of some sentimentality towards Russia, but simply because Poles wanted to feel safer here in Poland. We have definitely improved those relations in the past five years. In the immediate days following the catastrophe when
Although there is no official confirmation, it appears that Russian President Vladimir Putin is experiencing serious health problems, Gazeta Wyborcza reported. The president’s spokesman, Dmitry Peskov, gave reassurances that there is no reason for worry. But the Russian daily Vedomosti reported that since October 7, when Mr Putin celebrated his 60th birthday, he has left his residence only once.
Poland not immune from recession
COURTESY OF RAFA¸ GRUPI¡SKI
The opposition is very critical of the government’s foreign policy, describing it as weak and ineffective. Does it ever cross your mind that they may be right? No, it doesn’t. I remember Law and Justice’s (PiS) foreign policy [when they ruled in the years 2005-07]. Most of the opposition shares our stance on foreign policy. In fact, only PiS is a euroskeptic party, and increasingly so. This is of course a problem because the leader of that party plays on anti-German and anti-Russian sentiment in Poland. That does not help in building an atmosphere of agreement and it does not support the government in its foreign policy.
9
The possible rise in popularity of PiS is a very serious problem, says Mr Grupiƒski there was a solemn atmosphere of unity in Poland, did you believe then that something would change in Polish politics? I am a keen observer of the political scene and I didn’t, for a minute, believe that something would change. I know [PiS leader] Jaros∏aw Kaczyƒski too well and the way he sees politics. I have observed him for many years and I was absolutely certain that he would use the catastrophe as a political weapon once he recovered from the shock of the death of his twin brother. What do you think will shape the political situation in Poland in the near future? The possible rise in popularity of PiS is a very serious prob-
If the crisis spreads further, it could help radicals here in Poland, like for example radical labor unions. A lot depends on how the government tackles the negative tendencies in Europe but in this globalized world, sometimes a single entity is unable to defend its borders. Do you think there has been an irreversible change in the way your party is perceived by voters and by the media? Everybody seems to be criticizing PO of late. I think that even those of our voters who are now critical of us and have joined the ranks of the undecided, will come back if we work hard and the danger of radicals coming back to power is real. In such a situation, I don’t think our
“In this globalized world, sometimes a single entity is unable to defend its borders” lem. I hope nobody in Poland will have to go through the trauma of a PiS-led government again like they had to from 2005 to 2007. Mr Kaczyƒski will not give up power so easily a second time. But he said once that he wouldn’t give up power and then he did ... When he made that statement that he would not give up power that had been captured, he was over-confident of winning the next parliamentary election. He won’t make that mistake a second time. What are the threats to Polish politics you see coming from the outside?
party would be ineffective in preventing the radicals from PiS from coming back to power. The question is whether the left will be able to rebuild. Today, it is weak but if it were to rebuild, it would be a real alternative for people who want a calm government. You have said you want PiS leader and former PM, Jaros∏aw Kaczyƒski, to stand before the State Tribunal. Why? Here in Poland, we remember Jaros∏aw Kaczyƒski’s rule all too well. I think the State Tribunal should hear the case of the former prime minister who breached the constitu-
tion issuing an executive order that gave then-Justice Minister Zbigniew Ziobro power over other ministers. That is an obvious and unjustifiable breach of Poland’s constitution and he should stand before the State Tribunal for that. I believe that from the point of view of our country’s development as a state, it is
very important that we do not leave some actions unquestioned, so that nobody decides to do that, or even worse, in the future. So when will the petition be ready? It is ready. Right now, we and the opposition parties that support it are collecting signatures on the issue. ●
Despite diminishing fears about a collapse of the euro zone, Poland is not immune from recession. Economists from BRE Bank say they don’t expect a “technical recession” of two quarters of negative growth each, but they do expect Poland’s year-onyear GDP to fall in the first half of 2013, Rp.pl reported. This will be accompanied by an economic slowdown, a decrease in job creation, and an increase in unemployment. ●
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INVESTING IN POLAND PROJECT
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s part of its mission to support foreign investment in Poland, Warsaw Business Journal aims to recognize companies that have made a large, positive contribution with their investments in Poland. To accomplish this goal, WBJ is organizing a competition for “Investment of the Year,” to be presented at the Investing in Poland Gala ceremony in November 2012.
A
Nominees for the awards have been chosen by selected chambers of commerce partners. Below we present the profile of an investment by AstraZeneca, nominated by the British Polish Chamber of Commerce. ●
Biopharmaceutics
The company expects to create approximately 140 jobs through the z∏.39 million investment British and Swedish biopharmaceutical company AstraZeneca has invested z∏.39 million to create an R&D center, called the Research & Devel-
opment Head unit (HUB), in Poland. The center is one of five R&D centers run by AstraZeneca and the firm’s only such facility in the Central and Eastern European region. The HUB is to provide space for the planning and execution of clinical trials across all the major therapy areas and phases of the drug development process. The unit
About AstraZeneca AstraZeneca is a global, integrated biopharmaceutical company. It discovers, develops, manufactures and markets prescription medicines for six important areas of health care, which include some of the world’s most serious illnesses: cancer, cardiovascular, gastrointestinal, infection, neuroscience, and respiratory and inflammation. The company employs around 57,200 people (46 percent in Europe, 31 percent in the Americas and 23 percent in Asia-Pacific) and is active in over 100 countries with a growing presence in emerging markets including China, Brazil, Mexico and Russia. It invests over $4 billion in R&D each year. ●
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is also the main center for the company’s Clinical Operations services. The R&D center is expected to provide 120 new jobs by the end of 2012, and an additional 20 jobs are planned for 2013.
Global reach The company says the investment is innovative because it is the first unit in this industry in the region which coordinates projects that are delivered all over the world. The majority of employees are leaders, experts and specialists in their field and have the opportunity to develop their careers through working at the new facility. The investment is also considered sustainable by the company, which touts its longterm impact on Poland. “[The] Organization is continuously extending [its] range
COURTESY OF ASTRAZENECA
AstraZeneca invests in Polish R&D center
The research and development center HUB is AstraZeneca’s only such facility in the CEE region of activities and central services ... as both part of organizational development and productivity improvement projects,” Patryk Mikucki, the director at the HUB, wrote in a statement. The expected beneficial impact is mainly related to the opportunity for employees at the company to develop their competencies, and especially their global project manage-
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ment skills. The center provides multitasking work in an international environment, with exposure to different cultures and collaboration beyond borders with different partners and vendors. The project is the first of its kind in the biopharmaceutical industry in Poland, according to AstraZeneca. Moreover the whole process of developing and supervising the invest-
ment was handled by Polish managers. “We strongly believe that we set an example for other companies, not only pharmaceutical ones, that Poland is a great place for investment and not only because of the cost advantage but also due to the high level of managerial and leadership competencies available here,” said Mr Mikucki.
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NOVEMBER 5-11, 2012
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A silly opposition
A
ll hell broke loose last Tuesday after one of Poland’s most respected newspapers, Rzeczpospolita, reported that Polish investigators had found traces of explosive materials on the wreckage of the TU-154 plane which crashed in 2010, killing President Lech Kaczyƒski and 95 others. For those who have always believed that the late president was murdered on the orders of the Kremlin, the fact that a mainstream newspaper now seemed to be echoing their sentiments must have come as no small satisfaction. Over a third (36 percent) of Poles believe the Smolensk catastrophe was in fact an assassination, according to a Millward Brown SMG/KRC poll released last week. A further 8 percent say “they don’t know” if it was an assassination or not. This means some 44 percent of Poles either already believe or could be persuaded to believe that
Vladimir Putin and his henchmen ordered their president killed. After the news broke, the Military Prosecutor’s Office, which is in charge of the Smolensk investigations, said it would hold a press conference later in the day to address Rzeczpospolita’s claims.
Jaros∏aw Kaczyƒski’s brother. Then came the Military Prosecutor’s press conference, during which he essentially denied the newspaper report although, in all fairness, he said it could not be “ruled out” that tests would indeed show that explosives traces were present in the materials Polish investigators had recovered. It was however, categorically stated that up till now “no traces” of such materials had been found.
Shooting from the hip But Jaros∏aw Kaczyƒski, twin brother of the late president, and leader of opposition party Law and Justice (PiS), wasn’t able to wait that long. He promptly called a press conference of his own where he spoke of the “murder of 96 people” and said that Prime Minister Donald Tusk has “lost the moral authority to rule.” The PiS leader went as far as to imply that the PM was actively “obstructing the investigation” into the Smolensk catastrophe. For good measure, the implication was left in the air that Mr Tusk might have even been involved in the death of
Looking silly Mr Kaczyƒski described these statements as “one big lie” and said he believed the Rzeczpospolita reports. But by now the newspaper itself had started to backtrack from its statements saying it should not have been so “categorical” in its claims. And then, finally, the prime minister spoke. As usual in such situations, Donald Tusk played the role of the calm but decided statesman, saying quiet-
11
Remi Adekoya
ly that it was “unacceptable for the leader of the opposition to be levying such charges, charges that could devastate the Polish state, based on an inaccurate newspaper report.” Bang! Enemy down. After that Mr Kaczyƒski and his party could only look silly. But PiS seems to take pride in its silliness and, hours later, party spokesperson, Adam Hofman, was saying publicly that PiS has “its own sources who confirm the Rzeczpospolita reports.” The original reports that is, not the retraction the newspaper made. So that means PiS now believes a newspaper report that the newspaper itself is disavowing.
Major mistakes When it emerged a couple of weeks ago that Mr Kaczyƒski’s party had overtaken the ruling Civic Platform (PO) in the polls, a pro-PiS political commentator wrote on Twitter, par-
aphrasing Dr. House: “Ok, now just tell me how you are going to f**k this up.” For the past month, PiS has been trying to shed its image of a rabblerousing, radical party that is only interested in Smolensk and not in dull, earthly matters such as unemployment or the economy. As polls showed, the party had achieved some success in this endeavor. That was a good thing for Poland because the ruling party needs strong competition snapping at its heels so it stays sharp. However, once again Jaros∏aw Kaczyƒski has proved that he has a short fuse. And that’s not the kind of person voters tend to trust with power. Jaros∏aw Kaczyƒski has managed to f**k it up-again. ● Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl
More leadership for more Europe Carlo Secchi
T
he debate about improving economic governance within the euro zone is shedding new light on the system’s weaknesses. It was already evident when the Maastricht Treaty was signed in 1992 that a monetary union without something similar in the fiscal domain would be unsustainable in the long run. Then, for the common currency’s first decade, that fundamental flaw was papered over. Now the euro zone – with a centralized monetary policy, run by the European Central Bank, alongside 27 national fiscal policies – has come to look like a mockery of economic common sense. Early on, important states like France and Germany stopped taking seriously the European Union’s Stability and Growth Pact (SGP), which was supposed to guarantee fiscal discipline and coordination among the member states.
Obligations ignored With the euro’s introduction boosting intra-European trade and lowering inflation in many member states, fiscal obligations were simply ignored. The euro quickly became the world’s second-most important currency, and it proved to be a shield against external financial turbulence. Optimism soared and prudence fled – reflected in premature euro zone membership for countries like Greece, as well as in the gap between the pace of EU
enlargement and that of institutional integration. In other words, Europe’s decisionmakers ultimately overlooked the basic requirements of a monetary union in a heterogeneous economic area: • A sizable common budget for the provision of public goods. • Fiscal transfers from more prosperous areas to lagging or distressed regions. • Some form of mutualization of public debt, carried out under stringent rules. • Above all, a central bank with all of the prerogatives and instruments needed to serve as lender of last resort. Satisfying these conditions would, of course, lead to fully-fledged political union, but the process could be gradual, starting with a banking union, a fiscal union, or a central bank with lender-of-last-resort status – a functionalist approach that might be more politically viable. Some will oppose greater solidarity nonetheless, disregarding the elementary fact that enhanced interdependence in a monetary union requires it, and ignoring the Lisbon Treaty’s affirmation of Europe’s “social market” model.
Stop-and-go process A monetary union that does not benefit all of its participants will not survive for long. After the euro zone’s sover-
eign-debt crisis erupted, defaults were avoided by establishing the European Financial Stabilization Mechanism (since replaced by the European Stability Mechanism), and by crafting a more pragmatic and reinforced role for the ECB (acting with the European Commission and the International Monetary Fund). And a new “fiscal compact” foresees enshrining member states’ commitment to budget balance – and to reducing public debt to within 60 percent of GDP in 20 years – in their constitutions. But any assessment of European economic governance must acknowledge the slow, contradictory nature of intergovernmental decision-making, in which a misconceived notion of national interest, together with upsurges in popular anti-EU sentiment and electoral pressure, has led to a stop-and-go process, punctuated by financial-market swoons. Viewed in these terms, the European political class has clearly failed to exercise leadership. The challenge now is twofold: how to cope with the financial crisis while creating a safer economic future through better governance. Excessive emphasis on fiscal rigor, unaccompanied by measures to stimulate growth, has reinforced recessionary trends, placing additional strain on national budgets and debt/GDP ratios. That drives up affected governments’ borrowing costs further,
fueling a downward spiral.
today’s globalized economy sovereignty is more apparent than real.
A lasting solution Any lasting solution requires Europeans to acknowledge that they now face a common problem that can be resolved only by greater cohesion and financial solidarity. The ECB must become a genuine central bank for Europe. The European banking system must be turned into a banking union with the ECB responsible for prudential supervision. The fiscal compact must be implemented quickly, and progress on harmonizing fiscal policies should continue. But fiscal discipline must be accompanied by policies that promote growth, without which balanced budgets and debt reduction cannot be achieved. The Europe 2020 strategy, approved two years ago in part to improve economic governance, is a good starting point, offering the basis for the “growth compact” that some EU governments have sought. The path to improved European economic governance leads through the EU’s political institutions, with “more Europe” presupposing further strengthening of the European Parliament and the European Commission, and the abolition of veto powers in the European Council. The argument that strengthening Europe’s common institutions would reduce national sovereignty appears very weak, for the simple reason that in
Courage needed Parallel with these changes, European leaders must publicly acknowledge that if the euro collapses, Europe will quickly revert to competitive devaluations, intra-EU protection, and “beggar-thy-neighbor” policies, all of which were evident in the 1970s and 1980s. European public opinion must be made aware that increasing interdependence means that the exchange-rate stability and gradual completion of the single market implied by the euro really do benefit all participants. Europe’s political class needs to find the courage to take the next steps toward a closer union. The small price that nation-states will have to pay is negligible compared to the likely consequences of inaction. Carlo Secchi, a former member of the European Parliament, is professor of European economic policy at Bocconi University in Milan, vice president of the Institute of International Political Studies (ISPI) in Milan, and chairman of the Italian Group of the Trilateral Commission. Copyright: Project Syndicate/Europe’s World, 2012. project-syndicate.org europesworld.org
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NOVEMBER 5-11, 2012
Politics
The business of leadership ¸ukasz Cioch to” than “anticipate, plan and prevent” mode – again, in stark opposition to business. Petty scandal-mongering over issues like the Amber Gold collapse and travel-agency bankruptcies, as well as years of parliamentary deadlock over issues such as the in vitro fertilization procedure, at a time of global economic crisis no less, can leave voters exasperated. Fortunately for Poland, EU funds have blunted the impact of the crisis so far.
SHUTTERSTOCK
Politics and the media
Polish politicians tend to get caught up in the media circus
Should political leaders in Poland draw lessons from global-business strategy and leadership philosophy, or are these two different worlds with opposite objectives? Government strategy is often complex and difficult to understand. In politics especially, focus and simplicity are often lacking – the very opposite of the biggest success stories in global business innovation. Does it have to be that way? It would be understandable for a voter to feel confused, if not dejected, in today’s Poland. Endless debates and political spectacles, with no meaningful purpose, objective or plan (except political) have dominated the political arena for years now, with few questions asked. Is this what voters had in mind? Even before the Smolensk catastrophe, Poland’s far-right parties found refuge in confining their electoral mandate to counter-productive fights with increasingly dubious tactics. In a postSmolensk world, Poland’s political stage is flooded with marches, demonstrations and far-right religiosity exploited for political purposes. Politics has always been more comfortable in a “react
Pandering to the media, key to any political process, has reached the stage where an average Polish citizen would be justified in believing that politicians have long abandoned their allegiance to public service. In some cases, even parliamentary premises seem to have lost their status as a workplace, hosting instead endless political soap-operas and Sunday-morning talk shows. Coupled with constant power struggles and chronic attention-seeking at both an individual and party level, the situation is sadly evocative of anything but a mature politics. It is hardly unusual that issues which are irrelevant from an economic standpoint dominate the media landscape for months. However, for politicians, such issues are often exploited to divert voters’ attention away from matters that require real work, commitment and collaborative thinking – matters which often come with significant political risks in an environment that does not encourage risk-taking.
Focus vs. ego In a competence-based comparison between business and politics, the latter is inevitably disadvantaged, and, most importantly perhaps, far from aware of it. As much as business relies on meritocracy, complete dedication and commitment, politics is a complex interplay of ego, tactics, plotting and team-building. It favors sharp political instincts over hands-on experience in management or field-specific competence. For this reason alone, bilateral negotiations between politicians and businesses usually end up with the business side of the table not only achieving more focused results but feeling better motivated, better trained for the role, and incentivized on a performance basis.
Occasionally, this competence-motivation gap results in spectacular miscalculations and failures to understand even the most basic equation of business and politics, let alone act wisely on sound costbenefit premises. To take one of the biggest, yet underappreciated examples, over 70 percent of the steel industry in Poland was privatized in a single transaction in 2003. From the seller’s perspective, this privatization was concluded at the worst possible moment, months ahead of one of the biggest booms in the steel market in decades. Signs of promising market sentiment were already being reported across the global media landscape. This single privatization is an excellent example of what differentiates a mature economy from an emerging one and political thinking from a business approach.
Leaders or followers? Andrzej Jacaszek, the managing director at the ICAN Institute and a former deputy finance minister, combines both long-standing experience in public-sector management and an impressive record in private entrepreneurship and various leadership roles. Discussing the fundamentals of leadership, he stresses the fact that Poland’s freemarket economy is relatively young and does not have the benefits enjoyed by a much longer free-market tradition of countries such as Germany, Switzerland or the UK. The same applies to innovation, business leadership and knowhow. “The very notion of leadership has undergone a dynamic evolution over the last 50 years. Earlier, leadership was largely about personality and individual charisma. Today, business leadership requires a far more complex set of qualities,” he said. “In business, every decision has to be considered following a cost-benefit analysis. Unlike in politics, ideology is far less important. The key questions – who is the beneficiary of my strategy, what kind of service am I contributing, and how am I going to deliver it? – are never absent from this analysis.”
Strategy the key According to strategy expert Richard Rumelt, politics and business both notoriously confuse “what one thinks of as strategy” and what “passes for strategy in many companies,
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NOVEMBER 5-11, 2012
politicians’ mouths, government agencies, school systems.” His yardstick for defining strategy? People are surprised when they see one. That’s because, particularly in politics, people almost subconsciously expect leaders to set opaque goals and promise to achieve everything at once: better education, the best health care, cheap energy. Voters have grown accustomed to expect leaders to want to have it all and indulge in vacuous promises. How these goals are to be achieved becomes the real question, before any focused action is taken. Against this background, Polish politics is a beauty pageant defined by camera-addiction and a plethora of increasingly speculative opinion polls, not to mention the twin assistance of deliberate populism and a chronic lack of strategic thinking beyond purely political goals, let alone goodwill. The notions of public service and a collaborative, prioritized approach are increasingly absent from the debate.
The lesser evil Unlike what is considered standard practice in the world of private business, politicians’ fundamental comfort zone continues to drift further and further from focused, prioritized problem-solving towards spin-doctoring, propaganda and below-the-belt power games, especially in vital areas that will define the country’s long-term future: education, economy, entrepreneurship and energy, to mention just a few. In two decades, Poles have seen waves of mediocrity and incompetence sweep through the country’s key administrative posts. The result? Poland is a country with huge reserves of talent and determination, but with little in the way of fundamental ability to innovate and re-define itself in a post-
1989 reality. Poland mostly attempts to replicate what other countries have done well, but under completely different circumstances. The instinct to follow rather than lead, to subdue rather than inspire, to bully rather than instill confidence, has been very successful at impeding entrepreneurship and innovation in their embryonic stages. The result is that those who should believe in themselves do not, and those who should not, do – a fact perhaps best reflected in
“An average Polish citizen would be justified in believing that politicians have long abandoned their allegiance to public service” today’s politics. Poland is a country with a history of unswerving dedication to independence and autonomy, against all odds. And yet the fact that it does not boast a single leading international business brand is nowhere to be found on Polish political leaders’ strategic agenda.
A broken record Living in a comparatively young free-market democracy, Poles may be too busy breadwinning to demand better from their politicians. Over the years of being stuck in the same hypnotic pattern, Poles seem to have grown sadly accustomed to the peculiar repetitiveness of the political menu – like boarding the same shabby, overcrowded PKP train again and again, for lack of a better option. Back in the 1980s, Poles demonstrated – with great bravery – their far-reaching discontent with the system. Today’s politics requires similar determination in re-establishing the core standards of
what public service should be about. Even though in-fighting and hypocrisy are as much part of politics as bluffing is part of poker, the caliber of issues Poland faces today calls for a revolution at the very grassroots of Polish politics. Those who wish to see this happen could do worse than apply the concept of a strategic business plan to achieve this end. And yes, business and politics are incompatible. A situation where a company’s top executives fill their days at work plotting, openly spreading negativity and undermining the very fundamentals of corporate leadership, let alone indulging in criminal allegations and weakening the very pillars of the corporate structure, is plainly inconceivable. This is not what they are hired and paid for – not what their “voters” (in this case decision-makers) agreed to. In business, such situations are dealt with at a much earlier stage, long before they mature into a chronic, repetitive pathology. Criticism is allowed but not as empty rhetoric but a credible counter-proposal with, most importantly, clear proof of good intentions and compliance with job description. Poland has every reason to demand far less negative energy from its politicians and far more good will and collaborative thinking, reflected, among other things, in the quality of simple person-toperson communication. Perhaps in the future, casting a “none of them live up to the standards of the job” vote, should be given more attention. Asking voters in all post1989 elections to choose between black and white, in a reality where grays is all there is, is not a solution, nor a fair demand. Far more accountability, good faith, collaborative confidence and positive energy, is. ●
The language of strategy Waiters, tour guides, taxi drivers, like hundreds of other professions, have found two decades of Polish free-market democracy a sufficient stimulus to learn enough English for their immediate job purposes. Ironically, the same cannot be said for the country’s top statesmen, even those whose political selfplacement skills have been otherwise impeccable. Like the remaining State Treasury assets awaiting privatization, they remain magically immune to performance evaluation and accountability, in this and many other respects. Instead, they are masters at adaptation and political survival. At a time when English is barely a foreign language across the EU, it is hardly a farfetched hope that people whose top public jobs to a large extent consist of daily communication across multiple settings, should indulge voters by addressing a simple, intuitive expectation that the country’s leaders
should at least be capable of communicating independently – particularly when Poland’s image abroad is at stake. Of course, a fluent command of English is by no means synonymous with the skills required to run a country’s administration. However, the lack of it, especially after 20 years of political mingling at the international level, is no doubt a telling symbol of a decline in the quality of leadership Forget members of Poland’s national parliament. If all of Poland’s members of the European Parliament started speaking English overnight, it might be considered Poland’s single best political innovation since Solidarity. Its impact on the country’s image would likely surpass the millions poured into advertising and promotion, especially if those campaigns reflect the “language problem” as eloquently as the official slogan of Euro 2012: “Feel like at home.” ●
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Hollande implies debate on EU deficit targets Last Monday French President Francois Hollande suggested that a debate on the European Union’s deficit targets could be in store in the near future, while at the same time insisting that his country was on track to meet current goals. Mr Hollande said that his government would meet the EU target of 3% deficit-to-GDP next year, even though many experts are skeptical.
Treasury to sell non-core assets After a review of Poland’s largest state-owned firms, the Treasury Ministry has decided to sell the companies’ noncore assets, Dziennik Gazeta Prawna reported. The decision comes after audits of Poland’s 19 largest state-owned firms were conducted. The newspaper reported that the ministry has created an initial list of firms that will be put up for sale soon. ●
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Eastern European politics
Looking east Olaf Osica, director of the Centre For Eastern Studies, talks to WBJ about the political landscape after elections in Lithuania, Ukraine and Georgia, the role of the Eastern Partnership and the dilemmas facing the Eastern policy Ewa Boniecka: Political changes are taking place in Eastern Europe, following parliamentary elections in Lithuania and Georgia there has been great interest in the parliamentary election in Ukraine. What impact could these elections have on the Eastern policy of the EU and Poland? Olaf Osica: I object to putting all those countries into one political basket, since they are different countries, with different circumstances surrounding their respective elections, so they have different meanings from a European perspective. In Lithuania, which is a member of the EU, the election just brought about a change to the government and not to its position in the European Union. The outcome of the elections in Georgia, with its loca-
tion in the Southern Caucasus and territorial problems that remain unresolved following the 2008 war with Russia, leads to questions about broader aspects of its future policy. At the same time Georgia and Ukraine are participants in the Eastern Partnership program, which offers cooperation with the European Union and support for those countries’ European aspirations. But we have to wait and see how the situations in Georgia and Ukraine develop as a result of their elections. Thus we do not know now what impact those elections could have on the Eastern policy of Poland and the EU. Could the outcome of the election in Lithuania – where an alliance comprising the Social Democratic Party, the Labor
Party and the party of an impeached former president, has taken power – bring about changes to Polish-Lithuanian relations? While talking about possible improvements to PolishLithuanian relations, I will not mix hope with politics. We will see whether the new government is interested in changing the country’s approach to the rights of the Polish minority in education, in the matter of allowing the writing of their names in original Polish characters, and also in some other areas. And if that does not happen, we will be in the same situation as before. And it is also a question of whether the Electoral Action of Poles in Lithuania (AWPL) caucus in parliament will be involved in dealing with the general problems of the country, not concentrating solely on the problems of the Polish minority, and so will have an influence on shaping Lithuanian policy. But to treat the Polish participation in the Lithuanian parliament as a vehicle for improving Poland’s relations with Lithuania is, in my opinion, a narrow attitude. We have to develop good relations with the whole country, the whole society, and build a close Polish-Lithuanian partnership in the European Union, where [they] have many common interests. Media speculation suggests Georgia’s new leadership could turn to the East, to Russia, and less to Poland and the European Union. How do you react to this? First of all, Georgia is an independent country and the last elections were fully democratic, as was the change of government. So Georgia will decide what policy to choose for itself. Relations between Georgia and Poland are based on certain perspectives, on Georgia joining the European community in the future. The question is, what is Russia trying to achieve in its policy towards Georgia? Georgia expects to be treated as a partner, not a
satellite. We will see if the outcome of the election changes the situation. Now it seems to me that Russia is happy with the outcome of the Georgian elections. But the question is whether and how Russia is inclined to develop serious relations with Georgia, when a significant part of
fields such as ... visa regimes, developing economic cooperation, social dialogue, business contacts and getting eastern countries to move closer to the EU. But I think that we need to look at this program in the broader perspectives of the European Union’s activity. We
“We cannot simply insist that we want Ukraine to become a member of the European Union, because the country is not ready yet.” Georgia’s territory was taken by Russia in the 2008 war. That is influencing EU policy towards Georgia. Nevertheless, we want to encourage and support the European aspirations of Georgia, so it is not a change of European policy towards Georgia, it is Russia who might change its policy towards Georgia. How do you see the capacity of the Eastern Partnership to influence developments in countries located to the East of the EU, in light of the divergent views of EU members concerning relations with Russia? First of all, Russia is very much welcome to participate in the Eastern Partnership, but it is Moscow’s decision. The point is that the Eastern Partnership is not anti-Russian. On the contrary, we have involved Russia in some small part of that program – establishing the free movement of people in the region of Kaliningrad. It is a decision made by the European Union and Russia in the framework of the Eastern Partnership. I want to point out that, initiated by Poland and Sweden and launched as an official plank of the EU’s policy four years ago, the Eastern Partnership is now a well-recognized vehicle which aims to build the EU’s engagement with Eastern Europe and the Southern Caucasus. We want to achieve, step by step, cooperation in a variety of
The Eastern Partnership The Eastern Partnership is a European Union project, launched by Poland and Sweden, that provides an institutional forum for discussing issues such as free trade deals, strategic partnership agreements and visa agreements, with the EU’s eastern neighbors. It aims to improve political and economic relations between the EU and post-Soviet states considered to be of “strategic importance,” with a particular focus applied to the promotion of human rights and the rule of law. The Partnership comprises Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine and the European Union. ●
have developed an Eastern policy aimed at spreading stability and democracy in the Eastern part of the European continent, and this policy is bringing about some positive results. If we look at the impact we have on Eastern Europe and compare it with the situation in other parts of the world, we see that we have achieved more than the EU has achieved in other areas. Yes, we do have problems in the east, we may disagree with those countries, be dissatisfied with their performance, but they are our as partners. In the framework of the Eastern Partnership we concluded an Association Agreement between the EU and Ukraine together with an agreement concerning the Deep and Comprehensive Free Trade Area. It is initialized, not yet signed and ratified, but it is there. We have several processes going on concerning an association between the EU and Moldova, Georgia and Armenia. This shows that EU integration with Eastern Europe is progressing, not against Russia, but I would say beyond Russia, as cooperation between the EU and Russia has its own framework. So I would not confuse the Eastern Partnership process, which has its own path and procedures, with EU relations with Russia. It is a common observation that the EU is now so focused on the financial crisis and on changes to its political architecture that it is averse to discussing enlargement in the east. How do you assess this from a Polish point of view? We now face economic problems in the EU and we do not have enough time, energy and financial resources to push forward all the elements of eastern policy. But even while we do not always speak with one voice here, and the idea that 27
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Euro 2012: over z∏.1 bln spent
Some would say that it is a minimalist policy ... It is not minimalist, it is a realistic policy. We are waiting for our eastern partners to respond to our concrete proposals and for their policy towards the European Union. You stressed some time ago that Poland and the EU should conduct a “carrot and stick” policy towards eastern countries, and you also said that regardless of which political party has been in power in Poland during the last 20 years, the basic policy towards
COURTESY OF THE CENTRE FOR EASTERN STUDIES
members agree on everything is not possible to implement, the EU has an active eastern policy, and this is the most important thing. How do you see the role of Poland in pushing forward eastern policy in the present circumstances – could Poland fulfill all of its expectations and ambitions in this domain? We are expecting something which is not possible, but we are exercising all mechanisms to push the Eastern Partnership forward and the European Commission has acknowledged and valued our role. But we can only do as much as our eastern partners are ready to accept. Look at Ukraine and its domestic agenda, where we can only do what they are ready to accept. The Eastern Partnership is not a colonial policy and the countries involved in it are our partners. We offer them concrete reform proposals and cooperation in many fields: judicial, human rights protection, economic performance, education and human exchanges, and so on, but they are partners who respond to those overtures as they like and are therefore interested in some and uninterested in others.
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Poland’s Institute of Tourism says that foreigners spent over z∏.1 billion in Poland during the Euro 2012 soccer championships that took place in Poland and Ukraine this past summer. The institute’s deputy chairman, Krzysztof ¸opaciƒski, said that in June, some 650,000 foreigners visited Poland to watch the games. Those who stayed for just one day spent on average z∏.354, while those who stayed overnight spent z∏.1,541, on average. In June, the institute had forecast that foreigners would spend z∏.980 million in Poland during the tournament.
The Eastern Partnership “is not a colonial policy and the countries involved in it are our partners,” stresses Olaf Osica the East has remained the same. Do you still hold such views? Yes, I believe that the policy of carrot and stick has some uses, and I think that Poland’s policy towards the east may have a different melody under different governments, but basically it has been, and will be, the same. This is so because the aim is the same: spreading democracy and free market economics there and moving these countries closer to Western standards in all fields and ways of life. Different governments try to achieve these aims in different ways, but there is no point in pretending that they do not take into account whether our partners respond to our basic policy. We do what we can in the given circumstances, so, for instance, we cannot simply insist that we want Ukraine to
become a member of the European Union, because the country is not ready yet. Do you think that the EU’s attitude towards Eastern Europe could be affected by the strategic and geopolitical ambitions of Russia? Russia can only gain when its partners become richer, more stable and predictable. It is not us who are forcing Ukraine, Georgia and Moldova to integrate with the EU against Russia. We all know that Ukraine, Georgia and Moldova need close relations with both the European Union and Russia. What we say, however, is that Europe has more to offer in such areas as growth, social security and freedom.
membership of the EU? Again, the problem is whether Russia will see it that way. I don’t see any contradiction in integration with Europe and close, beneficial cooperation with Russia. The EU’s eastern partners have to make only one choice: that of reforming their states and economies, or not making that effort. Here lies the main difference and a source of tension for the partners. Russia does not expect them to reform but offers credit and financial support. The EU makes financial support dependent on reforms. They therefore have to choose between short-term policy gains and long-term national interests.
Do you think it is possible for them to have good relations with Russia and aspire to
What is your assessment of the Centre for Eastern Studies’ influence on Poland’s pol-
itics and public debates. Are your reports taken into account by the government and opposition parties? The Centre for Eastern Studies (OSW) is an independent public institution that provides analysis and predictions for the state’s institutions, but also for the wider public. In the beginning, the OSW focused exclusively on Eastern Europe. Today we follow the whole of Poland’s neighborhood from Germany and the Baltic to the Black Sea, plus the Caucasus, Turkey and Central Asia. As far as our impact is concerned, it is hard to measure. We are a consultancy, so we provide answers to questions asked by those who make decisions. And we’ve been doing this for over 20 years, which means that we have a role to play. ●
Spain won’t seek EU aid – yet Spanish Prime Minister Mariano Rajoy has said that his government “understands that it is not essential at this time” to seek aid from the European Union to protect “the general interests of the Spanish people.” Mr Rajoy added that it was a “good thing” that the possibility of approaching the European aid mechanism is there, but at the moment Spain will not do so. “It’s an instrument that is there and the fact that it’s there is very important, it sends a message about the irreversibility of the euro,” he said. ●
Warimpex and UBM have concluded talks with the buyer of Warsaw’s InterContinental
Echo Investment has BREEAMcertified its planned Park Rozwoju offices in the capital
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W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t
Robyg buys more land in Warsaw Warsaw Stock Exchangelisted developer Robyg has signed preliminary purchase agreements concerning a number of plots in the capital’s Wilanów district that will allow the company to build approximately 600 apartments. The plots are located on Warsaw’s Al. Rzeczpospolitej and total approximately four hectares. Together they are valued at z∏.29.9 million, with the transaction expected to be finalized by the end of the year. Robyg is now involved in two residential projects in Wilanów. ●
In this issue Manufaktura sale . . . . . . .16 Platinium Business Park .16 InterContinental sold . . . .17 HB Reavis buys land . . . . .17 Park Rozwoju in Warsaw 18 InCity apartments . . . . . . .18 Property-related stocks . .18
Union Investment finalizes acquisition of Manufaktura mall in ¸ódê The largest retail transaction in Poland this year is valued at €390 million Union Investment Real Estate completed the acquisition of the Manufaktura shopping center in ¸ódê for the UniImmo: Deutschland open-ended investment on October 31. The sellers were Euris/Rallye Group and Apsys, the latter of which will continue to manage the mall. The deal was announced this summer and is now finalized. The transaction, valued at €390 million, covers over 91,000 sqm of the 112,000 sqm of space in Manufaktura, with the DIY store and the cinema having remained the property of Leroy Merlin and Cinema City, respectively. The agreement is the largest single retail asset deal that has been recorded in the Polish property market so far this year. Maurice Bansay,
president and founder of Apsys, called it a “demonstration of long-term interest by investors in regional shopping centers in Polish cities.” Union Investment’s acquisition of Manufaktura is also one of the most impressive and largest deals in the European retail real estate market in 2012, stated Agata Seku∏a, head of retail investment for Central Europe at Jones Lang LaSalle, which advised the buyer in the transaction. “[The transaction] is a clear sign that Poland is perceived as a stable market with strong fundamentals and development prospects and enjoys favorable investor sentiment, even in these times of global economic uncertainty,” Ms Seku∏a said in a statement. Developed at the site of a former textile factory, the Manufaktura mall opened for business in May 2006. The investment houses 307 retail
The deal covers 91,000 sqm of space and entertainment units and features “very good”
BREEAM certification of energy efficiency and environ-
mental performance. Adam Zdrodowski
Office
GTC completes sale of four office buildings in Warsaw The sale of the fifth building in the Platinium Business Park complex should be finalized in Q1 2013 Subsidiaries of Warsaw Stock Exchange-listed developer Globe Trade Centre (GTC) and Allianz Real Estate Group have signed a final agreement concerning the sale of four office buildings in the Platinium Business Park complex in the Polish capital. The value of the transaction, which was finalized on October 31, amounts to €139 million and reflects an invest-
ment yield of 6.7 percent. It is expected to bring GTC €44 million of free cash, the company said in a statement. The developer and Allianz signed a preliminary agreement covering five buildings in the Platinium Business Park complex in June, with the sale of the fifth facility expected to be finalized in the first quarter of next year, generating an additional €16 million of free cash. The Platinium Business Park investment is located at the intersection of ul. Wo∏oska and ul. Domaniewska in Warsaw’s Mokotów district and comprises five completed buildings that offer a total of
approximately 56,000 sqm of leasable space. The development is currently almost fully leased out. Regardless of the sale transaction with Allianz, GTC may develop a sixth building within the complex which would deliver approximately 13,000 sqm of space. GTC has recently announced it has secured a LEED Gold Gold certificate of energy efficiency and environmental performance for the fifth Platinium Business Park phase. The building is the second office facility, after Corius in Warsaw, developed by GTC to have obtained the certification. Completed in June this
year, Platinium V was designed by the Grupa 5 Architekci studio and comprises approximately 11,000 sqm of space. Warbud was the general con-
tractor of the building, while Buro Happold and Hill International were involved in the LEED certification process. Adam Zdrodowski
COURTESY OF ADVANCED PUBLIC RELATIONS
Builders have finished installing a steel peak that has allowed the under-construction Z∏ota 44 skyscraper in downtown Warsaw to reach its final height of 192 meters, making it the tallest purely residential tower in the European Union. The skyscraper was designed by the renowned PolishAmerican architect Daniel Libeskind and is being built by real estate developer and investor Orco Property Group. It will comprise 266 apartments which are scheduled to be delivered in mid-2013.
Shopping centers
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Z∏ota 44 EU’s tallest residential tower
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The value of the transaction was €139 million
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Hotels
HB Reavis completes Warsaw’s InterContinental acquisition of PKP land hotel changes hands in the center of Warsaw Warimpex and UBM have concluded negotiations with a fund of the DekaBank group
will certainly be an attractive offer for potential tenants,” Mr Frňka said. The scheme will be located close to Warsaw’s main railway station and the Z∏ote Tarasy shopping mall. Over the last two years, HB Reavis acquired five plots with a total area of nine hectares, Mr Frňka said. He added that the company plans to build a combined 330,000 sqm of office space valued at €1.1 billion on the land it has purchased.
COURTESY OF WARIMPEX
imately 6,000 sqm of retail and service space, towards the end of 2014. “The investment on ul. Chmielna will be a unique facility, meeting the highest standards,” Stanislav Frňka, CEO of HB Reavis Poland, said in a statement. The planned project will provide class-A space and is expected to be BREEAM certified. “A project in an exquisite location, at the intersection of two important roads, Al. Jana Paw∏a II and Al. Jerozolimskie,
Warsaw’s InterContinental opened in 2003 of the operating company until 2027, we have secured future profit potential,” UBM CEO Karl Bier said in a statement. The lease structure has already proven its value in many hotel transactions. It brings the seller liquidity for new investments and provides the new owner with a fixed return that is independent of
market risk and the operation of the hotel, Mr Bier added. The InterContinental hotel in Warsaw opened for business in 2003 and is one of the most iconic elements of the capital’s skyline. The skyscraper comprises 414 rooms, suites and apartments and its 43rd and 44th floors house a wellness center. Adam Zdrodowski
COURTESY OF PZ STUDIO
Real estate companies Warimpex and UBM have concluded their negotiations with WestInvest InterSelect, a real estate fund belonging to the DekaBank group, concerning the sale of the InterContinental hotel in downtown Warsaw. The transaction is expected to be closed towards the end of the year. The value of the agreement, which could yet rise, depending on the performance of the facility, amounts to more than €100 million. “The successful conclusion of this deal is a positive signal from the transaction markets and again affirms our commitment to the Polish market. This investment is now having a positive effect on our earnings and liquidity position in 2012,” stated Warimpex CEO Franz Jurkowitsch. The sellers will be leasing the hotel back under a fixed agreement and will run it under the InterContinental brand until 2027. “By retaining ownership
Commercial space developer HB Reavis and Polish State Railways (PKP) have finalized an agreement for the sale of 1.71 hectares of land in downtown Warsaw on which the developer plans to build an office complex with 100,000 sqm of leasable space. The value of the transaction amounted to z∏.171 million. HB Reavis is planning to launch construction on its development on the plots on the capital’s ul. Chmielna, which will also include approx-
HB Reavis wants to build a 100,000-sqm office complex on the plot
Adam Zdrodowski
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Office
Construction on the first phase of the Park Rozwoju scheme is set to launch this month Warsaw Stock Exchange-listed developer Echo Investment has secured a “very good” BREEAM certificate of energy efficiency and environmental performance for its planned Park Rozwoju office project in the Polish capital. “Certifying projects at
Echo Investment is a natural consequence of the evolution of office buildings and our efforts to create really good projects,” Igor Grabiwoda, director of the team of architects at the company’s office and hotel department, said in a statement. The planned Park Rozwoju scheme will be located on ul. Konstruktorska in Warsaw’s Mokotów district. The development will comprise
ect, whose design has been prepared by the Warsaw-based JEMS Architekci studio and which will be built in two phases. Construction on the first of them is expected to commence this month and finish in the second quarter of 2014, while work on phase two could launch in the second or third quarter of 2013 and finish in Q2 2015.
two office buildings offering a total of 32,000 sqm of office space. The buildings will feature green courts and will be connected by a canteen. The investment will include underground and above-ground parking spaces for a total of 740 cars, numerous green areas and an outdoor gym. Echo Investment is now preparing to launch construction on the Park Rozwoju proj-
Adam Zdrodowski
COURTESY OF ECHO INVESTMENT
BREEAM certificate for new Echo Investment project in Warsaw
The scheme will deliver 32,000 sqm of space
COURTESY OF OKAM CAPITAL
Okam to launch phase two of InCity apartments in Warsaw
The whole investment will comprise 483 apartments
Developer Okam Capital is set to launch construction on the second phase of its InCity multifamily residential project in Warsaw in January next year. It will deliver an additional 97 apartments in the third quarter of 2014, said Arie Koren, managing director of the company. The InCity scheme is located on ul. Siedmiogrodzka in the capital’s Wola district. On completion, the development will comprise a total of 483
homes built in four phases, with the whole investment scheduled to be ready by the end of 2017. The estate has been designed by the Grupa 5 architectural studio and Unibep is the general contractor of the first three phases of the complex. The first housing units in the project will be delivered at the end of 2013. According to Mr Koren, the decision to launch the second phase of InCity results
from good sales in the first phase of the scheme, in which more than 60 percent of the 164 apartments have already been offloaded. Apart from InCity, Okam is now also developing Dom w Dolinie Trzech Stawów, a luxury residential investment located in the Silesian capital of Katowice. In the pipeline are developments including projects in downtown ¸ódê and Kraków, Mr Koren said. Adam Zdrodowski
Property-related stocks Security
Closing price on Oct 31
% change (week)
52-week low
BUDIMEX CELTIC
52-week high
% change (year)
Total shares
Market value (z∏. mln)
54.15
3.93
45.85
88.35
7.09
12.90
6.28
19.38
71.55
25,530,098
1,382.45
19.01
34,231,466
242.70
DOMDEV
29.20
-4.04
23.51
42.80
25.04
24,715,272
721.69
ECHO
4.79
1.27
3.05
4.81
3.44
420,000,000
2,011.80
ELBUDOWA
113.80
2.80
87.00
120.00
100.00
4,747,608
540.28
ENERGOPLD
0.38
-2.56
0.17
2.52
2.45
70,972,001
26.97
ERBUD
14.00
-1.75
11.33
23.20
19.60
12,677,956
177.49
GANT
3.40
-3.13
3.35
9.85
7.35
20,120,000
68.41
GTC
8.22
3.40
5.20
11.40
10.98
319,372,990
2,625.25
HBPOLSKA
0.03
0.00
0.01
1.43
0.75
210,558,445
6.32
JWCONSTR
3.71
0.27
3.37
8.40
6.10
54,073,280
200.61
LCCORP
1.15
-2.54
0.85
1.48
0.98
447,558,311
514.69
MARVIPOL
9.30
-1.90
6.20
11.00
7.25
36,923,400
343.39
MIRBUD
1.43
17.21
0.98
2.68
2.41
75,000,000
107.25
MOSTALWAR
13.10
-3.11
11.30
25.00
21.00
20,000,000
262.00
MOSTALZAB
1.19
-0.83
0.81
1.80
1.14
149,130,538
177.47
ORCOGROUP
9.80
-15.88
6.36
19.55
17.90
107,840,962
1,056.84
PBG
4.63
-15.82
3.36
92.00
62.00
14,295,000
66.19
PLAZACNTR
2.05
-8.48
1.93
2.94
1.88
297,181,703
609.22
POLAQUA
4.31
-10.21
3.30
8.18
7.50
27,500,100
118.53
POLIMEXMS
0.56
-12.50
0.48
2.04
1.60
521,154,076
291.85
POLNORD
12.45
-2.05
10.49
19.85
11.03
23,798,439
296.29
RANKPROGR
10.95
6.41
7.10
16.97
9.60
37,145,050
406.74
ROBYG
1.39
9.45
1.08
1.75
1.10
257,935,500
358.53
RONSON
0.74
0.00
0.61
1.15
1.00
272,360,000
201.55
TRAKCJA
0.86
2.38
0.65
1.72
1.39
232,105,480
199.61
ULMA
41.80
4.42
37.20
74.80
62.90
5,255,632
219.69
UNIBEP
5.20
2.36
3.60
6.28
6.08
34,021,684
176.91
WARIMPEX
3.68
13.58
2.64
5.30
5.43
54,000,000
198.72
ZUE
7.12
1.86
5.07
8.50
8.98
22,000,000
156.64
DAILY EXECUTIVE DIGEST Poland A.M. gives you the biggest Polish stories of the day. Have the most valuable news delivered to your inbox each weekday morning.
S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l
THE LIST
NOVEMBER 5-11, 2012
www.wbj.pl
19
Financial Services
Debt Collection Companies Ranked by revenue from debt collection in 2011
www.bookoflists.pl
Ownership: Polish / Foreign
Text and voicemail reminders; field negotiators visits
RAVEN Krupa & Staƒko Law Firm
WND
8 916 1998
Piotr Krupa - 15.7%; Generali OFE - 5.1%; ING OFE - 5.1% Polish Entreprise Fund IV - 24.8%
Pragma Finanse - 42.1%; Dom Maklerski BDM S.A. - 0,01%; Dom Inwestycyjny Magnus - 29,44%; IPOPEMA Towarzystwo Funduszy Inwestycyjnych SA - 5,86%; TFI Tomasz Boduszek President PZU - 9,63%; employees and associates0,97%; other shareholders - 11,58% None
Kruk SA ul. Legnicka 56, 54-204 Wroc∏aw 1 71 790-2800/71 790-2867 info@kruksa.pl www.kruksa.pl
271.3 162.1 126.5 101.2
274.0 164.3 128.6 103.9
Consumer and business debt collection; debt monitoring; active debt buying; debt securitization; business information exchange
✓ ✓
✓ ✓
✓ ✓
Pragma Inkaso SA ul. Czarnohucka 3, 42-600 Tarnowskie Góry 2 32 450-0100/32 450-0199 biuro@pragmainkaso.pl www.pragmainkaso.pl
42.5 23.4 23.9 14.8
120.1 123.1 88.1 53.7
Debt collection; active debt buying; factoring; funding for supplies/production; foreign debt collection
✓ ✓
✓ ✓
✓ ✓
WND
Own law firm
WND
2 64 2002
P.R.E.S.C.O. GROUP SA Al. Jana Paw∏a II 15, 00-828 Warsaw
41.1 45.1 32.3 22.0
41.1 WND 26.9 31.0
Active debt buying
✓ ✓
✓ ✓
✓ ✓
WND
Several
PKO BP S.A., BNP Paribas Bank Polska S.A., Credit Agricole Bank Polska S.A., Polkomtel S.A., Compensa TU S.A.
2 133 1998
Krzysztof Piwoƒski - 40.6%; Wojciech Andrzejewski - 40.7% None
EGB Investments SA ul. Kraszewskiego 1, 85-240 Bydgoszcz 4 52 376-7676/52 524-4330 egb@egb.pl www.egb.pl
23.7 15.5 14.0 13.4
28.8 18.7 16.8 18.3
Contracted debt collection; preventive actions and payment monitoring; securitized debt services; active debt buying; skip traicing; claims submitions to InfoMonitor BIG
✓ ✓
✓ ✓
✓ ✓
Personal meetings
Niewiarowska & Polaƒski Legal Advisors
Allianz Polska; HDI Asekuracja; AEGON; Benefia; Pocztowe Towarzystwo Ubezpieczeƒ Wzajemnych
1 179 1995
Krzysztof Matela - 25.77%; Jolanta Ma∏gorzata Niewiarowska - 25.04%; Mezzo Capital - 8.71%; other shareholders - 16.2% Donovan Worlwide - 23.56%
Kancelaria Prawna Lexus Sp.k. ul. Opatowicka 130, 52-028 Wroc∏aw 5 71 374-7400/71 374-7401 kancelaria@lexus.net.pl www.lexus.net.pl
20.6 19.7 12.5 6.7
20.9 19.9 12.6 6.7
Debt collection; payment monitoring; legal services; legal advisory; mediations with creditors; consulting
✓ ✓
✓ ✓
✓ ✓
Text and e-mail reminders; direct debt collection; vehicles collection; property assesment; EPU
“Lexus” Law Office
WND
1 WND 2002
Mariusz Bobolewski - 4%; Rafa∏ Jarych 32%; Piotr Rabiega - 32%; Krzysztof Soko∏owski - 32% None
19.5 14.0 10.0 11.6
19.5 14.2 11.8 12.4
Debt support; active debt buying; securitization; economic reports
✓ ✓
✓ ✓
✓ ✓
Verification of financial status
EOS & M.Witoƒ Law Firm sp. k.
WND
2 WND 1998
None EOS International BVG mbH - 100%
Koksztys Kancelaria Prawa Gospodarczego Sp.k. 7 Al.Armii Krajowej 61, 50-541 Wroc∏aw 713351450/71 335-1540 kancelaria@koksztys.pl, www.koksztys.pl
9.3 8.4 7.5 WND
10.8 10.3 9.4 WND
Legal services; conciliatory debt collection; in-court debt collection; debt collection enforcement; field operations; business reports
✓ ✓
✓ ✓
✓ ✓
Field collection; placement of debtors in InfoMonitor BIG; business reports and business valuation; legal audit; legal advice and opinions; tax law; procurement
Own law firm
Millennium Bank; Getin Bank; Netia; BNP Paribas Bank; Agora
10 230 1999
Gra˝yna Koksztys; Amadeusz Krawczyk None
Amadeusz Krawczyk
Kaczmarski Inkasso Ma∏gorzata Kaczmarski, Przedsi´biorca 8 ul. Armii Ludowej 21, 51-214 Wroc∏aw 71 785-0001/71-785-0100 biuro@kaczmarski.pl, www.kaczmarski.pl
6.4 4.3 WND WND
56.8 41.6 WND WND
Conciliatory debt collection; incourt debt collection; debt collection enforcement; business information exchange; debt monitoring; preventive services; training
✓ ✓
✓ ✓
✓ ✓
Co-operation with KRD BIG; claims exchange
Joanna Smalewska-Kirsch Legal Advisor
WND
1 WND 1992
Ma∏gorzata Kaczmarski - 100% None
Waldemar Soko∏owski
Alektum Inkasso Sp. z o.o. ul. Kiliƒskiego 30, 50-264 Wroc∏aw 9 71 722-6880/71 722-6871 info@alektum.pl www.alektum.com
5.1 2.8 2.3 1.3
5.1 3.3 WND WND
WND
✓ ✓
✓ ✓
✓ ✓
EPU
G. Bobrowski & Partners Law Firm
WND
1 35 2006
None Alektum Inkasso AB - 100%
Grzegorz Bobrowski
Kancelaria Prawna - Inkaso WEC SA ul. Piotrkowska 270, 90-457 ¸ódê 10 42 681-7474/42 681-7470 biuro@kancelariawec.eu www.kancelariawec.eu
1.8 1.2 0.8 0.6
2.1 1.3 0.8 0.6
Debt management; debt collection; payment monitoring; legal advice; training; factoring
✓ ✓
✓ ✓
✓ ✓
Claims exchange
-
Centroodlew; Makromed; Antracyt; Polnag; Alfa Trans
8 40 1995
Remigiusz Brzeziƒski - 46%; Sylwia Patusiak-Brzeziƒska - 20% None
Remigiusz Brzeziƒski
Cash Flow SA ul. Perla 14, 41-300 Dàbrowa Górnicza 11 32 763-2000/32 763-2020 biuro@cashflow.com.pl www.cashflow.com.pl
1.5 6.3 7.0 34.0
3.5 7.3 17.9 64.0
WND
✓ ✓
✓ ✓
✓ ✓
WND
WND
WND
2 24 1997
WND Lune Capital Limited 32,85%, Tarisso Investments Limited 38%
Grzegorz Gniady
Grupa Kapita∏owa Po∏udnie-Zachód Sp. z o.o. 12 ul. Hubska 96, 50-502 Wroc∏aw 71 334-5415/71 334-5430 biuro@pz.com.pl, www.pz.com.pl
1.2 1.1 1.2 1.1
1.2 1.1 1.2 1.1
Contracted debt collecton; redemption of debt; redemption of notes of interest; mass debt collection
✓ ✓
✓ ✓
✓ ✓
WND
WND
WND
1 17 1998
Piotr Filosek - 90%; Marcin Gacek - 10%; ¸ukasz Fil - 10% None
Piotr Filosek
WND 13.0 12.8 10.7
WND 15.6 15.6 12.3
B2B debt collection; B2C debt collection; credit and leasing debt collection; active debt buying; scoring; preventive actions
✓ ✓
✓ ✓
✓ ✓
Field operations
WND
WND
2 78 1999
WND
Coface Poland Credit Management Services Sp. z o.o. Al. Jerozolimskie 136, 02-305 Warsaw NR 22 465-0000/22 465-0055 office@coface.pl www.coface.pl
WND WND WND WND
WND WND WND WND
Domestic and export debt insurance; domestic and export factoring; debt collection B2B; business intelligence
✓ ✓
✓ ✓
✓ ✓
Payment monitoring; field debt collection; debt collection mediation; property ageements
Stefaniuk & Partners
WND
7 222 1992
WND Coface Central Europe Holding
Jaros∏aw Jaworski
Euler Hermes Collection Sp. z o.o. ul. Domaniewska 50B, 02-672 Warsaw NR 22 385-4655/22 385-4699 info@eulerhermes.pl www.eulerhermes.pl
WND WND WND WND
WND WND WND WND
Debt collection; debt monitoring; claims exchange; business reports; detective reports; branch analysis
✓ ✓
✓ ✓
✓ ✓
WND
Euler Hermes Mierzejewska
WND
5 188 1999
WND Euler Hermes Kreditversicherungs
Maciej Harczuk
Jatex Finanse Sp. z o.o. ul. Dworcowa 12, 41-902 Bytom NR 32 281-0761/32 281-0830 marketing@jatex.com.pl www.jatex.com.pl
WND WND 5.3 3.5
WND WND 12.0 8.5
Payment monitoring; factoring; debt collection; debt managment; legal services; business department training
✓ ✓
✓ ✓
✓ ✓
WND
-
LOT; PKN Orlen; Samsung Electronics Polska; Whirlpool Polska; Electrolux Poland
1 WND 1994
Jerzy Korcz - 41.3%; Krzysztof Korcz 41.3%; Maciej Stachowicz - 17.4% None
Jerzy Korcz
Rank
Court / Enforcement proceedings
Selected clients
Pre-enforcement / Letters
Name of partner law firm
Phone calls / Out of court
Other
Number of branch offices / Total number of employees / Year founded in Poland
Debt collection methods Company name Address Tel./Fax E-mail Website
Revenue from debt collection (z∏. mln)
Total revenue (z∏. mln)
Main activities
2011 / 2010 / 2009 / 2008
3 22 697-6455/22 352-0004
presco@presco.pl www.presco.pl
6
NR
EOS KSI Polska Sp. z o.o. Al. Jerozolimskie 123A, 02-017 Warsaw 22 318-5600/22 318-5603 sales@eos-ksi.pl, www.eos-ksi.pl
SAF SA ul. Lenartowicza 188, 41-216 Sosnowiec 32 368-3000/32 3683030 saf@saf.com.pl
Notes: WND = Would Not Disclose. Research for the List was conducted in October 2012. Number of employees and ovnership structure are as of October 2012. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed. NR = Not Ranked, information provided in 2011
Top local executive / Title
Piotr Krupa President
Krzysztof Piwoƒski President
Krzysztof Matela President
Mariusz Bobolewski; Rafa∏ Jarych; Piotr Rabiega; Krzysztof Soko∏owski
Anna Paczuska President
Director
Director
Board Member
President
President
President
Marcin Gàszczak President
President
President
To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2012, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.
20
MARKETS
www.wbj.pl
NOVEMBER 5-11, 2012
Stocks report
world stock indices DJIA
NASDAQ
13,232.62 (Nov 1 close)
S&P500
3,020.06 (Nov 1 close)
-0.97% (for the week)
FTSE100
1,427.59 (Nov 1 close)
-1.12% (for the week)
DAX
5,861.90 (Nov 1 close)
-1.02% (for the week)
-0.97% (for the week)
An unusual week
NIKKEI225 7,335.67 (Nov 1 close)
8,946.87 (Nov 1 close)
-1.85% (for the week)
1.21% (for the week)
CHANGE: 6.74%
CHANGE: 14.02%
CHANGE: 11.79%
CHANGE: 2.84%
CHANGE: 20.74%
CHANGE: 4.52%
(year to Nov 1)
(year to Nov 1)
(year to Nov 1)
(year to Nov 1)
(year to Nov 1)
(year to Nov 1)
52-week high: 13,661.90
52-week high: 3,196.93
52-week high: 1,474.51
52-week high: 5,989.10
52-week high: 7,478.53
52-week high: 10,255.20
52-week low: 11,231.40
52-week low: 2,441.48
52-week low: 1,158.66
52-week low: 5,075.20
52-week low: 5,366.50
52-week low: 8,135.79
Andrew Nawrocki WBJ market analyst It was an unusually low-volume period last week, with Hurricane Sandy causing US stock markets to close for two-straight days – Monday and Tuesday – the first time since 1888. Europe, too, had a shortened week due to All Saints’ Day on Thursday, causing volumes to be minimal throughout the week. Monday set the tone, with volumes barely reaching z∏.300 million on Poland’s most important index, the blue-chip WIG20. Europe found itself in the red for most of the day, with the DAX closing nearly half a percent down, while London and Paris closed roughly three quarters of a percent lower. Both the WIG and WIG20 managed to fair better, closing about 0.2 percent lower. Worst hit were shares of TPSA.
Major indices WIG
43,232.44 (October 31 close)
WIG20
2,317.56 (October 31 close)
31.10
30.10
29.10
26.10
25.10
24.10
23.10
22.10
19.10
18.10
17.10
16.10
15.10
31.10
30.10
29.10
26.10
25.10
24.10
23.10
22.10
19.10
18.10
17.10
16.10
2,300
15.10
2,340
43,000
12.10
2,380
43,400
11.10
43,800
10.10
2,420
09.10
44,200
08.10
2,460
05.10
2,500
44,600
04.10
45,000
12.10
52-week low: 2,035.80
11.10
Change year to October 31: 5.63%
10.10
52-week low: 36,653.28
09.10
52-week high: 2,417.32
Change year to October 31: 12.82%
08.10
Change for the week: 0.17%
05.10
52-week high: 44,550.12
04.10
Change for the week: 0.17%
Top 5 ZASTAL B3SYSTEM ENERGOPOL REGNON KBDOM
Closing 1.97 0.83 8.20 0.05 0.16
% change (week) 52-week high 89.42 2.05 36.07 1.86 33.55 8.69 25.00 0.38 23.08 0.27
52-week low 0.69 0.46 4.41 0.04 0.10
Top 5 LOTOS PKNORLEN TVN GTC BHW
Closing 33.65 43.80 7.00 8.22 92.95
% change (week) 11.24 4.06 3.70 3.40 3.16
52-week high 33.98 46.30 12.85 11.77 96.90
52-week low 21.30 31.44 5.90 5.13 64.00
Bottom 5 ELKOP EUROMARK IDMSA MEDIATEL ORCOGROUP
Closing 0.18 0.19 0.20 1.48 9.80
% change (week) -37.93 -17.39 -16.67 -16.38 -15.88
52-week low 0.16 0.18 0.19 1.08 5.90
Bottom 5 TPSA BRE TAURONPE BOGDANKA BRS
Closing 12.06 301.20 4.41 120.00 0.53
% change (week) -7.26 -3.21 -2.65 -2.60 -1.85
52-week high 18.56 329.20 5.61 130.60 0.95
52-week low 11.90 233.00 4.10 103.80 0.48
52-week high 0.42 2.39 2.21 2.56 19.85
Currency report
Election gain?
Other indices sWIG80
9,818.53 (October 31 close)
NewConnect
35.24 (October 31 close)
WIG-Banki
6,252.07 (October 31 close)
SOURCE: WSE
31.10
30.10
29.10
26.10
25.10
24.10
23.10
22.10
19.10
18.10
17.10
16.10
15.10
31.10
30.10
29.10
26.10
25.10
24.10
23.10
22.10
19.10
18.10
17.10
16.10
6,200
15.10
34.0
12.10
6,260 11.10
6,320
34.4
10.10
6,380
34.8
09.10
35.2
08.10
6,440
05.10
35.6
04.10
6,500
12.10
52-week low: 5,163.30
11.10
Change year to October 31: 12.79%
10.10
52-week low: 33.85
09.10
52-week high: 6,495.06
Change year to October 31: -15.06%
08.10
Change for the week: 0.15%
05.10
52-week high: 43.83
04.10
Change for the week: -1.53%
36.0
Adam Narczewski X-Trade Brokers DM SA
31.10
30.10
29.10
26.10
25.10
24.10
23.10
22.10
19.10
52-week low: 8,218.71
18.10
15.10
52-week high: 10,536.29
12.10
11.10
31.10
30.10
29.10
26.10
25.10
24.10
23.10
22.10
19.10
9,700
18.10
2,300
17.10
9,800
16.10
2,340 15.10
9,900
12.10
2,380
11.10
10,000
10.10
2,420
09.10
10,100
08.10
2,460
05.10
10,200
04.10
2,500
10.10
Change year to October 31: 14.11%
09.10
52-week low: 2,076.52
08.10
Change year to October 31: 9.93%
05.10
Change for the week: 0.67%
04.10
52-week high: 2,561.94
17.10
2,407.77 (October 31 close)
Change for the week: 0.18%
16.10
mWIG40
Tuesday proved no more exciting, with markets essentially regaining losses from the day before, uncertain where to move due to the US being closed. The big mover of the day was unquestionably Lotos, with shares surging over 5 percent due to the company posting better-than-expected Q3 results. Wednesday – Halloween in some countries – did little to rattle markets. Equities were once again little changed, despite – on the whole – negative macroeconomic news being released both in Germany and overseas. Shares of GTC rose nearly 1 percent. On Friday, the WIG rose 0.81 percent while the WIG20 jumped 1.23 percent, partly due to a healthy US jobs report. ●
Currencies did not experience big movements and volatility was fairly low last week. Much of this could be attributed to Hurricane Sandy, which hit the US East Coast. US markets were closed for Monday and Tuesday, the first time in 124 years, because of the weather. It also seems that, at this point, a strong impulse will be needed to move markets. The US Federal Reserve introduced QE3 while the European Central Bank is ready to intervene on the bond market – with the upcoming US election perhaps about to provide the necessary boost. Macroeconomic data is still not showing signs of a recovery. Moreover, the sellout signal was given by the release of rather mediocre quarterly earnings reports.
So far markets have resisted the temptation of a bigger corrective movement. The EUR/USD rebounded from levels below $1.29, reaching a weekly high of $1.3020 but the closer to the weekend, the more power the dollar regained. The outlook for the dollar is positive, since, statistically, US elections (no matter who wins) trigger appreciation of the greenback. Little happened on the z∏oty market. Traders expect an interest-rate cut in November, the only question is by how many basis points. All this, and the expected dollar appreciation, could trigger a depreciation of the z∏oty in the weeks to come. This past week the z∏oty regained some value with the EUR/PLN declining to z∏.4.11 and the USD/PLN to z∏.3.19. ●
currency rates 3.9821 02.11
SOURCE: NBP
3.9878
4.0337 30.10
31.10
4.0362 29.10
4.0158 26.10
25.10
02.11
31.10
30.10
29.10
26.10
3.9720
4.0
0.1020
0.1017
0.1018
0.1021
0.1020
PLN-100JPY
4.1
3.9
25.10
3.4249
3.4109 02.11
0.101
0.1021
PLN-RUB
0.103
31.10
3.4279 30.10
3.4310 29.10
26.10
3.4240 25.10
5.1265
5.1455 02.11
3.40
3.4336
PLN-CHF
3.44
31.10
5.1433 30.10
5.1605 29.10
5.1341 25.10
02.11
26.10
3.1965
3.1806 31.10
5.1
5.1751
PLN-GBP
5.2
3.2036 30.10
3.2145 29.10
26.10
3.1851 25.10
4.1350
4.1169 02.11
3.1
3.2119
PLN-USD
3.3
31.10
4.1450 30.10
4.1472 29.10
26.10
4.1430 25.10
4.1
4.1543
PLN-EUR
4.2
SPORTS
NOVEMBER 5-11, 2012
Soccer
www.wbj.pl
21
Soccer
Boniek outlines Boruc in hot water PZPN plans The newly elected president of the Polish Football Association, Zbigniew Boniek, last week set out his initial plans for changes to the way the country’s leading soccer body will operate. The former Juventus and Roma midfielder’s first move will likely prove a popular one with fans. He has decided to reduce ticket prices for the country’s upcoming match against 2010 World Cup semifinalists Uruguay. Tickets for the friendly match, which takes place at the PGE Arena in Gdaƒsk on November 14, will now cost as little as z∏.60, while members of the national team supporters club will also receive a further discount of 10 percent. Tickets were previously priced at z∏.120, a figure which Mr Boniek described as, “not a small amount, if a father wants to go to a match with two sons.”
EAST NEWS
The new president of the Polish Football Association has already reduced ticket prices
PZPN’s new boss, Zbigniew Boniek “We made the decision to reduce the amount, because I want 40,000 people at our games, not 20,000 as against Moldova … watching the team can not be more expensive than going to watch James Bond at the cinema,” he said in an interview for TV network nSport. The former Poland international also said his other key objectives are to improve the state of the country’s youth set up, whilst also uniting the
organization that governs it. But speaking about his own motives for taking the job, Mr Boniek, who has been based in Rome since the 1980s, said, “I did not come to get rich. I have my own business and I make money. For me, being president is a mission, a very difficult task, which is not only up to me, but I know that I have the ideas and experience to lead Polish soccer.” David Ingham
Controversial former Polish international goalkeeper Artur Boruc found himself in trouble once again last week when he was accused of swearing and throwing a water bottle at fans of his new club, Southampton. The 32-year-old, who previously played for Celtic and Fiorentina, was making only his second appearance for the Premier League new boys when the incident occurred. His new club lost 2-1 to Tottenham Hotspur with Boruc at fault for the second goal. Following alleged criticism from the home fans behind the goal he is said to have reacted angrily, with one fan claiming in the British press that the Pole had a “tantrum” before throwing the bottle. However, following an internal investigation by the club the Pole was not charged with any offense by Southampton. This is not the first time the keeper has been in trouble with authorities, as he previously found himself at the center of a religious argument during his time at Celtic. During an Old
SHUTTERSTOCK
The Polish goalkeeper is alleged to have thrown a bottle at his own supporters
Artur Boruc, playing for Poland Firm derby the goalkeeper almost caused a riot when he blessed himself with the sign of the cross directly in front of Protestant Rangers fans, a ges-
ture which was seen at the time as an act of sectarianism. However, following an investigation, the Pole was cleared by Scottish David Ingham police.
22
LIFESTYLE
www.wbj.pl
NOVEMBER 5-11, 2012
Concert
Exhibition
Georgian soul
Indian art deco Art beyond time. Stefan Norblin (1892-1952) Until January 31, 2013 Wilanów Poster Museum Stanis∏awa Kostki Potockiego 10/16 Warsaw
Katie Melua Katie Melua November 12 Sala Kongresowa Pl. Defilad 1 Warsaw Georgian-born singer Katie Melua is famed for her soulful voice and easy listening compositions, which have helped her sell millions of records and gain a legion of fans worldwide. Ms Melua, whose sound
and career have been influenced by a childhood which saw her leave her war-torn homeland to live near the Falls Road in Belfast, first came to public attention in 2003 with her debut release “Call Off the Search.” The singer then found greater success when her next album, “Piece by Piece,” which contained the hit “Nine Million Bicycles,” went
multi-platinum in both the UK and US. Her new release “Secret Symphony” sees the singer tackling a different sound with her vocals and guitar accompanied by a classical orchestra. Tickets for the event are available now, priced at z∏.150. David Ingham
For more information, log on to kongresowa.pl
COURTESY OF THE WILANÓW POSTER MUSEUM
COURTESY OF WIKIMEDIA COMMONS
The Wilanów Poster Museum is currently hosting an exhibition of the work of the late Polish art deco artist Stefan Norblin. It includes the first large-
scale presentation in the capital of the artist’s work from the inter-war period. Among the work on display will be posters, portraits of eminent personalities of the time, and examples of the artist’s graphic design and interior creations. Of particular importance in his life was the period during World War II when Mr Norblin
was based in India and become the court painter for Umaid Singh, the Maharaja of Jodhpur. Part of the current exhibition will focus on Mr Norblin’s work during this period which included giving the Maharaja’s palace its distinct art deco feel while also incorporating elements of Indian mythology in the design. David Ingham
LAST WORD
NOVEMBER 5-11, 2012
www.wbj.pl
23
Tech Eye
Well that was quick. Following its October 16 announcement of the iPad mini and the 4th-gen iPad (among other things), Apple had the limelight to itself for less than a week. And then stuff happened. Windows 8 was released, for example, along with a slew of new Windows 8-luvin’ mobile devices like Microsoft’s Surface tablet and Nokia’s Lumia 920 smartphone. Google quickly followed suit, introducing two new devices – a Nexus 4 smartphone and a Nexus 10 tablet – as well as The Nexus 10 adjusting the Nexus 7 tablet and unveiling Android 4.2, a so this week we’re sticking with relatively prosaic update to the OS. Google. And finally Hurricane Sandy To quickly address the Nexus 7, came along and completely ker- not much has changed. Google and snozzled the east coast of the Unit- co-developer Asus have retired the ed States, stealing media attention 8GB version, dropping the 16GB from both Microsoft and Google, model to the $199 price point. and probably providing Apple’s PR There’s now a 32GB Nexus 7 ($249) team with schadenfreude-y satisfac- and a 32GB, 3G-enabled version is tion. on the way ($299). Anyway, there are enough new For its part, the Nexus 7’s new big gadgets entering the market to fill a brother – the Nexus 10 – is a lithe, whole issue of WBJ. But the stingy powerful 10.1-inch device that editor-in-chief is unwilling to give Google has developed with Samsung. Techeye more space (he muttered Expect it to take a bite out of Apple’s about covering “real news” ... pffft), dominance of the 10-inch market.
COURTESY OF GOOGLE
Google throws down the gauntlet (and some new gadgets)
The Nexus 4 Why is that? Well, the device is well-designed, for one thing, and boasts features that rival or trump even the latest model iPad. There’s an attractive 2,560 x 1,600 resolution display with 300 pixels-perinch (compared to the iPad’s 264 PPI). And it’s powered by a dualcore 1.7GHz processor (the iPad’s A6X clocks in at around 1.3GHz). The Nexus 10 is also thinner and lighter. Price is probably the characteristic most in the Nexus 10’s favor. The 16GB model costs $399, while the 32GB version is $499; both are $100
cheaper than comparably kitted 4thgen iPads. Still, Apple needn’t worry about losing its crown to the Nexus 10, at least not yet. Google’s tablet is WiFionly for now and it’s limited to 16 and 32GB storage options. There’s also the whole “world’s most valuable brand” thing, as well as the iPad’s sales momentum. We probably shouldn’t disregard that. Let’s move on to the Nexus 4, though. This 4.7-inch smartphone is the lovechild of LG and the technologically promiscuous Google. It’s less of a threat to Apple, for two reasons:
first, the smartphone market is far more fragmented than the tablet market; and second, the iPhone 5 has better hardware. Here’s what Google’s new smartphone has going for it: • Larger size (this may not be a plus for some consumers, and the iPhone 5 has a crisper display in any case). • A quad-core 1.5GHz Snapdragon processor (it remains to be seen whether this trumps Apple’s A6 chip). • 2GB of RAM (double what the iPhone 5 offers). That’s about it. The iPhone 5, meanwhile, is smaller and lighter, with plenty of power, a gorgeous display and 4G capability (versus 3G for the Nexus 4). So Apple’s flagship smartphone remains the best-in-class product for now, but the American innovator is undoubtedly feeling squeezed in all its markets. After all, it’s been a while since it’s lost the limelight so quickly. ●
Ever wanted to nibble on the world’s most valuable brand? Let us know: techeye.wbj@gmail.com
Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl
Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl
Fibak Gallery ul. Krakowskie PrzedmieÊcie 5 www.galeriafibak.pl
Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art. Galeria 022, DAP, Lufcik pl ul. Mazowiecka 11a www.owzpap.pl Le Guern Gallery ul. Widok 8, Galeria 65 www.leguern.pl ul. Bema 65 www.galeria65.com Museum of Galeria Appendix 2 Independence ul. Bia∏ostocka 9 Aleja SolidarnoÊci 62 www.appendix2.com www.muzeumniepodleglo sci.art.pl Galeria Asymetria ul. Nowogrodzka 18a National Museum in www.asymetria.eu Warsaw Al. Jerozolimskie 3 Galeria Foksal ul. Foksal 1-4 www.mnw.art.pl www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl
Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl
Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl
Pracownia Galeria Wilanów Palace ul. Emilii Plater 14 Museum and Wilanów www.pracowniagaleria.pl Poster Museum ul. St Kostki Potockiego Rempex Art and 10/16 Auction House www.milanow-palac.pl ul. Karowa 31 www.postermuseum.pl www.rempex.com.pl Royal Castle Pl. Zamkowy 4 www.zamekkrolewski.com.pl
Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl
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