WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: USD gained some ground in European trade on Friday, recovering part of the prior session’s losses mainly due to the lack of details from US President-elect at his first news conference over his incoming administration’s policies on income taxation and infrastructure spending. JPY was among the main underperformers while GBP came under renewed pressure on mounting woes over a “hard Brexit”. On the data front, focus today is on US December’s retail sales which are expected to indicate that private consumption remains an important driver of the US economic activity.
GREECE: The Euroworking Group (EWG) that convened yesterday did not determine the timing of the return of the ECB/EC/IMF/ESM mission heads to Athens on the grounds that more progress needs to be made on the contentious issues of the negotiations. The Greek FinMin Euclid Tsakalotos expressed confidence that “there is positive momentum, all parties are looking for a solution and not many are looking to create problem”. Greece’s general government gross financing needs are projected to reach €16.9bn in 2017 and €9.6bn over the period January-August 2018 with the most challenging month of 2017 in terms of debt service costs being July, with respective amortization and interest payments expected to amount to c. €7.4bn.
SOUTH EASTERN EUROPE
CYPRUS: According to Central Bank of Cyprus data, banks have demonstrated mixed performance in the achievement of their respective NPFs restructuring targets in Q3-2016.
CESEE MARKETS: Emerging market assets treaded water earlier today, consolidating near recent levels, with most poised to end the week in the black. In the FX markets, the Turkish lira retreated anew in morning European trade, giving up part of yesterday’s gains. In other news, the National Bank of Serbia stayed put on its monetary policy and maintained the benchmark rate at the current record low level of 4.00% on Thursday.
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