WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: OPEC members finally reached a final agreement at yesterday’s meeting in Vienna to cut production by about 1.2mb/d as of January 1st from 33.6mb/d currently, the first reduction in the last eight years. Reacting to the OPEC agreement, oil prices moved sharply higher with Brent crude oil testing levels near $53/br earlier today, the highest in nearly two years. Against this background, major bond yields moved higher with long-dated paper undeforming.
GREECE: According to the local press, an agreement in principal on the conditionality underlying the 2nd programme review is quite possible at the December 5th Eurogroup as the Greek government and official creditors have managed to bridge their differences on most of key open issues./ An international press report suggested that, according to an ESM working document, the short term relief measures that will be presentenced to euro area finance ministers next week are projected to reduce Greece’s public debt by 21.8% of GDP until 2060 cumulatively, assuming that Greece fully implements the current bailout programme. /The Ministry of Environment and Energy issued a press release yesterday informing that the Greek government failed to reach an agreement with Azerbaijan’s state energy company regarding the sale of a 66% stake in natural gas grid operator DESFA.
SOUTH EASTERN EUROPE
SERBIA: According to the final quarterly national accounts data for Q3 2016 released yesterday, real GDP growth was revised marginally higher to 2.6%YoY from a flash estimate of 2.5%YoY.
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