AUSTRIA: Liberal NEOS Leave Coalition Talks Saying 'No Progress Possible"
Jan-03 10:06
The liberal NEOS party formally withdrew from coalition talks with Chancellor Karl Nehammer's conservative Austrian People's Party (ÖVP) and the centre-left Social Democrats (SPÖ), citing lack of progress and inflexibility in negotiations. This leaves the ÖVP and SPÖ with the option of seeking to form a gov't with the environmentalist Greens, or forming a two-party 'grand coalition'.
- Reuters reports comments from NEOS chair Beate Meinl-Reisinger claiming "In recent days we have had the impression that in central issues in the coalition talks no more progress could be made." Meinl-Reisinger: "Despite intensive negotiations, no breakthrough could be made in coalition talks with the two other parties, and they often said no to our proposals."
- The ÖVP has governed with the Greens since 2019, but relations have frayed and a poor performance by the latter in the 2024 election was seen as a possible end to their inclusion in gov't. An ÖVP-SPÖ coalition would hold 92 seats in the 183-member National Council, exactly on the majority threshold. Meinl-Reisinger says that the NEOS "assured other parties that in parliament we will support those plans that we have already agreed on".
- The far-right Freedom Party of Austria (FPÖ) won for the first time a plurality in the September federal election. However, it was unable to find willing allies to form a governing coalition. Early opinion polling already indicates a strengthening in support for the FPÖ having been shut out of gov't.
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GILT AUCTION RESULTS: 4.00% Oct-31 Gilt
Dec-04 10:04
| 4.00% Oct-31 Gilt | Previous | |
| Amount | GBP4.00bln | GBP3.50bln |
| Avg yield | 4.155% | 3.988% |
| Bid-to-cover | 2.91x | 3.42x |
| Tail | 0.8bp | 0.2bp |
| Avg price | 99.078 | 100.072 |
| Low price | 99.033 | 100.059 |
| Pre-auction mid | 93.509 | 100.052 |
| Previous date | 16-Oct-24 |
MNI: EUROZONE OCT PPI +0.4% M/M, -3.2% Y/Y
Dec-04 10:00
- MNI: EUROZONE OCT PPI +0.4% M/M, -3.2% Y/Y
EUROZONE DATA: PPI In-Line with Consensus
Dec-04 10:00
Eurozone PPI in October printed in-line with consensus again at -3.2% Y/Y (-3.4% prior) and 0.4% M/M (vs -0.6% prior). This is the eighteenth consecutive month of deflation.
- The in-line reading was driven by Y/Y increases in four out of the five sub-components (some less negative and some more positive). The only exception was capital goods which remained stable at 1.3% Y/Y.
- Energy producer prices fell at a slower pace of 11.2% Y/Y (vs -11.5% in September) with monthly prices rising 1.4% M/M (vs a fall of 1.9% in September).
- Intermediate goods producer prices also fell at a slower pace of 0.5% Y/Y (vs -0.8% in September) - the lowest rate of decline in 2024 so far.
- Durable consumer goods prices rose 0.7% Y/Y (vs 0.5% prior) - the fastest growth rate since June 2024.
- Non-durable consumer goods also increased 1.8% Y/Y (vs 1.5% prior) - the second highest reading of 2024.
