According to reports out yesterday, Greece will struggle to make repayments to the IMF and ECB this year. Stating they will not have liquidity problems for the public sector but will definitely have problems in making debt repayments to the IMF and ECB in July. These remarks come a day after the Eurogroup of finance ministers agreed to a four month bailout extension for Greece. Greece has to pay an IMF loan of 1.6B Euros that matures in March and 7.5B Euros in maturing bonds held by the ECB in July and August.
The European Commission yesterday gave France until 2017 to get its budget deficit below an EU imposed limit, sparing France a fine after it missed a second deadline to put finances in order. France has argued against Germany’s push for austerity at a time of high unemployment for the country. The European commission also spared Italy and Belgium a fine for increasing public debts.
German consumer sentiment jumped to its highest level in more than 13 years heading into March as low oil prices benefited households, freeing up cash for them to spend on other things. That was the highest reading since Oct. 2001 and topped the Reuters consensus forecast of 9.5 points. Private consumption has overtaken exports as Germany's main engine of growth and may keep boosting the economy after the country's biggest labour union, clinched a 3.4 percent rise in wages for 3.7 million workers. GfK also said consumers were brushing off ongoing tensions between the West and Russia over Ukraine and tensions with Greece over its bailout program.
GBP- 09:30 : UK GDP YoY expected to stay the same at 2.7%
USD- 15:30 :US Inflation (Jan) expected to fall from 0.8% to -0.1%
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