WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS:. This week is filled with important events including; (i) the FOMC September 16-17 where the Central Bank is likely to adopt a slightly more hawkish tone following a bulk of firmer-than-expected US macro data in recent weeks; (ii) the first T-LTRO that will be conducted on Thursday, September 18; and (iii) the Scottish referendum set for Thursday, September 18. Recent polls suggested that, while the likelihood of secession seems to have somewhat declined lately, the outcome remains too close to call.
GREECE: S&P upgraded Greece’s sovereign credit rating by one notch, to B with stable outlook. In the accompanying statement, the rating agency cited that the Greek government has made a substantial fiscal adjustment and is expected to maintain primary fiscal balances of about 2.0% of GDP for the next few years./ According to the latest BoG data, credit to domestic non-MFIs residents by domestic MFIs excluding the Bank of Greece, shrunk for the 38th consecutive month in July.
SOUTH EASTERN EUROPE
SERBIA: According to local media reports on Friday Serbia plans to raise $750mn via the issuance of a new Eurobond by year-end.
ROMANIA: The MoF holds a primary market auction for RON 400mn of 7Y bonds (Jun 2021) later today, expected to produce an average yield of around 4.20-30%.
BULGARIA: Trade deficit shrank by 46.4%YoY in July,
CESEE MARKETS: Emerging stock markets extended last week’s losses in European trade on Monday, weighed down by concerns about the prospects of the Chinese economy and market anxiety ahead of this week’s FOMC meeting as well as an independence referendum in Scotland. Most CESEE currencies were little changed after coming under pressure last week on mounting expectations about a more aggressive than previously expected monetary policy tightening path by the Fed.
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