WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: As was widely expected, the ECB left its key interest rates unchanged at its monetary policy meeting on Thursday and provided details on its asset-backed securities (ABSs) and covered bond purchasing programs. For countries that have a credit rating below BBB- and would normally not be eligible under the ECB’s collateral rules, e.g., Greece and Cyprus, ECB President Mario Draghi said in the post meeting press conference that the Central Bank will accept assets provided that they will be under an EU program.
GREECE: Unnamed high-level government officials were quoted as saying in local press that ruling coalition leaders are confident that the government will survive a vote of confidence in Parliament, reportedly expected to take place at midnight next Friday.
SOUTH EASTERN EUROPE
SERBIA: Budget revision to be slightly delayed.
ROMANIA: The MoF published the October bond issuance calendar late on Thursday, envisioning a total of RON 3.6bn sales.
BULGARIA: Bulgaria’s caretaker government approved a draft update of the 2014 Budget, envisioning a deficit of 4% of GDP on a cash basis.
CESEE MARKETS: Emerging stock markets staged a modest rebound in European trade on Friday, with volumes remaining light as several indices in the region were closed for holidays. Nonetheless, market caution prevailed ahead of the US non-farm payrolls report later on Friday.