WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: At yesterday’s long-awaited news conference, US President-elect Donald Trump failed to provide details on his proposals during the election campaign over hefty tax cuts and sizable infrastructure spending. In reaction to the above, the USD weakened in European trade on Thursday and US Treasuries firmed. In other news, the Italian Constitutional Court rejected a request by the largest union CGIL for a referendum on the reintroduction of Article 18 that makes it nearly impossible for firms with more than 15 employees to lay off workers. Looking ahead, today’s calendar is limited to US jobless claims, a speech by Fed Chair Janet Yellen before a group of educators and the accounts from the ECB’s December monetary policy meeting.
GREECE: The Euroworking Group (EWG) that is scheduled for today will reportedly assess the status of the prior actions attached to the 2nd programme review and determine the next steps ahead as well as the potential timing of the return of the of the ECB/EC/IMF/ESM mission to Athens in view of the January 26 Eurogroup. With a view to furthering the negotiations between Greece and the institutions that have come to a standstill mainly due to their differences on the projected fiscal gap for the period 2018-2020, the Greek FinMin discussed yesterday with his French counterpart a proposal with additional measures to be implemented as part of the contingent fiscal mechanism that will be activated if the general government balances in 2018 and beyond fall short of the 3.5%-of-GDP primary surplus target. On the data front, the headline consumer price index (CPI) in December 2016 was flat on an annual basis after 45 months of deflation.
SOUTH EASTERN EUROPE
CESEE MARKETS: Emerging market assets received some support earlier today from the USD’s retreat. The latter helped the Turkish lira take a breather after hitting historical lows yesterday. Today’s focus is on the NBS monetary policy meeting and CPI data for December in Serbia.
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