WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The majority of European bourses were modestly weaker in early trade on Monday amid renewed concerns about the growth prospects of the world’s second largest economy. The latest bout of risk aversion favored the safe-haven appeal of the JPY while commodity-related currencies, including the AUD, remained under pressure.
GREECE: Speaking in a joint press conference after his meeting with his French counterpart Michel Sapin in Paris on Sundayevening, Greece’s Minister of Finance Yianis Varoufakis was quoted as saying that the Greek government is calling for a “breathing space” until the end of February to finalize its detailed proposals on reforms, the humanitarian crisis and public debt. On his part, France’s Minister of Finance seemed to share the view over the need of a “new contract” in the form of pro-growth policies. Along similar lines, US President Barack Obama was quoted as saying in an interview to CNN y-day that “austerity is not effective” and that “at some point there must be a strategy of growth”.
SOUTH EASTERN EUROPE
SERBIA: Real GDP fell by 1.6%YoY in Q4 2014, according to the flash estimate, with the pace of annual decline lessening from a 3.6%YoY drop registered in the prior quarter.
BULGARIA: According to the latest NSI data, the Producer Price Index on Domestic Market declined by 0.9%YoY in December, reversing a 2-month positive trend witnessed in October and November.
CESEE MARKETS: The majority of emerging stock markets fell in European trade on Monday amid renewed global growth concerns in the wake of downbeat macroeconomic data from China. On the other hand, regional currencies broadly firmed, favoured by the USD’s modest weakening.
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