WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: After falling sharply in the wake of the Republican sweep victory in the US Presidential election, US long-dated Treasuries showed signs of tentative stabilisation over the last couple of sessions. In FX markets, US strength remains a key theme. Fed Funds futures are currently assigning a probability of 94% compared to 84% before the US Presidential election.
GREECE: In his visit to Athens yesterday the USA President spoke against austerity and expressed the view that a solution must be found to deem Greece’s public debt sustainable. At the same time he acknowledged the progress that has already been achieved but stressed the importance for the country to stay on the path of reform. Replying to a relevant question by a Greek MEP, Daniele Nouy, Chair of the Supervisory Board of the ECB (SSM) reportedly stated that as a large portion of NPLs are corporate, they could be handled with priority over household ones, in order to delay auctions of first residencies and give people some leeway to settle their debts. Mrs. Nouy added that an SSM task force is currently working on specific guidelines on how to address the issue of NPLs which will be submitted to banks and regulatory authorities by end November.
SOUTH EASTERN EUROPE
CYPRUS: According to the flash estimate, GDP growth expanded by +2.9%/+2.8% YoY on a non-seasonally adjusted and seasonally adjusted basis respectively in Q3-2016.
ROMANIA: The third quarter flash GDP estimate came in below market expectations, raising fresh concerns over the sustainability of the growth acceleration in 2016-2017. According to the release, real GDP on an unadjusted basis slowed to +4.4% YoY in Q3-2016 down from +6.0% YoY in Q2-2016 vs +3.6% in Q3-2015.
Viewers can log herebelow and read the full report: Daily Overview November 16 2016