WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Tensions between Madrid and Catalonia are escalating. According to comments by Catalan president Carles Puigdemont yesterday, the Catalan Parliament is expected to discuss the outcome of the independence referendum on Monday and the issue of unilateral declaration of independence will likely be on the agenda. Against this background, Spain’s sovereign paper remained under selling pressure on the view that prolonged tensions between Madrid and Catalonia would likely raise questions about the stability of Spain’s minority government and the country’s growth prospects. In FX markets, the GBP was among the main underperformers on heightened political uncertainty following PM Theresa May’s speech at the Conservative Party conference yesterday, which raised speculation over a potential leadership challenge in the near-term. Looking at the day ahead, focus is on developments in Spain and the minutes from the last ECB Governing Council meeting amid expectations for a tapering announcement at the forthcoming meeting onOctober 26th.
GREECE: Year-to-Aug 2017 General Government (GG) arrears stood at EUR6.0 billion from EUR5.4 billion the previous month (+10.9% mom). The GG arrears increase was mainly due to the increase by EUR0.6 billion of the tax refund arrears.
Viewers can log herebelow and read the full report: Daily Overview October 5 2017