WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In FX markets, the USD retained a firm tone in European trade on Friday and US Treasury yields remained in an upward trend on the prevailing view over increased inflationary pressures on the assumption that US President-elect’s policies over trade protectionism and sizable fiscal stimulus will be eventually enacted. Fed funds futures currently fully price-in a 25bps rate hike at the December monetary policy meeting and assign a probability of higher than 50% for an additional tightening of around 50bps by the end of 2017. In France, the Republican Party Presidential candidate will be elected on Sunday at the second-round of the center-right primary elections between Mayor of Bordeaux Alain Marie Juppé and Former PM François Fillon.
GREECE: A number of actions still remain open in the context of the 2nd programme review pertaining to the labour market reform, the medium term fiscal strategy, privatisations, energy reform and the out-of-court workout. In an interview, Eurogroup President Jeroen Dijsselbloem stated that from what has become known so far talks in the context of the 2nd programme review are constructive and progress is being made. On debt relief he added that medium-term measures are ready to be implemented if needed for 2018 when the programme comes to an end and reaffirmed the institutions’ stance to help Greece manage its debt.
SOUTH EASTERN EUROPE
ROMANIA: The Constitutional Court ruling on the CHF loan conversion was postponed for January 18th.
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