Dr. Platon , Monokroussos, Chief Market Economist, Deputy General Manager, Eurobank Ergasias S.A.,
HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The US Senate is likely to vote on its version of the tax reform bill today, initially planned for Thursday, as Republicans are still trying to accommodate objections of a last three of the 52 Republican Senators. The delayed Senate voting pushed the USD slightly lower while the GBP has been among the main G10 outperformers this week amid increased optimism that the UK and the EU will likely reach an agreement on the withdrawal issues at the December 14-15 EU Summit and Brexit negotiations could move on to the next phase. Turning to core bond markets, retracing part of the sell-off late on Thursday, yields of USTs were lower early on Friday while German Bund yields also declined in reaction to disappointing euro area inflation data. Looking at the remainder of the day, key data releases include the UK manufacturing PMI and the US manufacturing ISM both for November while focus remains on the ongoing discussions in Germany for the formation of a new “grand coalition” as well as developments related to the US tax reform.
GREECE: According to Greek government sources, a staff-level agreement is likely at the December 4th Eurogroup. Consequently, the Greek government will have to legislate or otherwise implement any pending items so that the review can be successfully completed at the January 22nd Eurogroup. According to IMF Spokesperson Gerry Rice, the stand-by arrangement of the IMF for Greece would become effective contingent on the provision of debt relief to ensure that Greece’s economic situation is sustainable and that an agreement on debt relief can be reached in spite of the delays in the formation of a government in Germany. According to the European Commission business and consumer survey data, in November 2017 economic sentiment improved marginally to 98.4 from 98.3 in October.
SOUTH EASTERN EUROPE
SERBIA: Q3 real GDP growth was confirmed at a preliminary reading of 2.1%YoY, according to final data released yesterday.
Viewers can log herebelow and read the full report: Daily Overview December 1 2017 (1)
