WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major European equity markets moved lower in early trade on market woes that UK Prime Minister Theresa May will likely point at a keynote speech later today (11:45 GMT) that the UK is set for hard Brexit in order to regain control of immigration and end the jurisdiction of the European Court of Justice for UK law. Major government bonds gained with UK sovereign paper outperforming. In FX markets, JPY was among the main outperformers favored by its safe-haven appeal.
GREECE: Both German FinMin Wolfgang Shaueble and ESM Managing Director Klaus Regling stated in separate interviews that if the IMF were to depart from Greece’s bailout programme, a new programme would have to be designed which would require the approval of the Bundestag. Following the green light by the Court of Audit yesterday, the sale agreement of the 100% stake of the state-run Trainose to Ferrovie dello Stato Italiane S.p.A. for €45mn is expected to be signed tomorrow.
SOUTH EASTERN EUROPE
BULGARIA: Inflation entered in December in a positive territory for the first time since September 2015. In more detail, consumer prices rose by 0.6% MoM/0.1% YoY from 0.0% MoM/-0.5% YoY in November.
CESEE MARKETS: Most emerging market assets were modestly weaker earlier today as caution prevailed ahead of a speech by British Prime Minister Theresa May on Brexit. On the other hand, the Turkish lira received some respite following additional Central Bank action this week.
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