WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Tracking losses in the majority of Asian equity markets today, major European bourses were weaker in early trade on Monday on the view that the Fed may embark on a tightening cycle earlier than expected in the wake of the upbeat US February’s employment report.
GREECE: In an effort to persuade his euro area counterparts to give the green light for an early (partial) disbursement of the pending loan tranche of €7.2bn, Greece’s Minister of Finance Yanis Varoufakis will present at today’s Eurogroup a package of reforms aiming to; (i) activate a Fiscal Council to monitor, among other, the government’s fiscal policy; (ii) improve the Budget’s Organic Law and preparation process; (iii) establish a new inspection body to assist in the fight against VAT evasion; (iv) improve collection of tax arrears and social security contributions; (v) adopt immediate measures to address the domestic humanitarian crisis; (vi) boost budget revenue through a new licensing framework for online gaming services; and (vii) overhaul the provision of public services so as reduce bureaucracy and improve the domestic business environment.
SOUTH EASTERN EUROPE
SERBIA: State-owned Telekom Srbija said on Friday that Lazard Freres SAS was the sole bidder for the advisory role in the company’s privatization.
ROMANIA: Focus today is on the MoF’s primary market auction for RON 500mn of Jun 2019 T-bonds.
BULGARIA: According to the latest NSI data, the modest rebound in economic activity continued in 2014, with real GDP growth coming in at 1.7% from 1.1% in 2013.
CESEE MARKETS: In line with the trend in major Asian and European stock markets, the majority of EM stock marketskicked off the week on a negative footing, weighed down by speculation that the Fed may start hiking interest rates earlier than previously expected after recently released upbeat labour data from the US. On the flipside, CEE currencies broadly advanced in view of today’s launch of the ECB’s QE programme. In the local rates markets, government bonds were mixed after coming under pressure last week in the wake of the US NFP report and the Polish MPC meeting where the Central Bank signaled the end of the current monetary easing cycle.