Slump in S&P sales momentum suggests boost from tax cuts is fading fast; Weaker U.S. loan demand as delinquencies rise; sharp drop in leveraged loan, cov-lite issuance; Bank profitability remains under pressure, notably in Europe, Japan; U.S. banks reliant on trading, fee income; Banks’ exposure to domestic sovereign risk still an issue in several advanced economies; insurers also exposed; Venezuela: opposition team signals tough line on creditors

Small output gap estimates for the Euro periphery make little sense, because they embed an assumption of negative trend growth post-2008. We derive Euro periphery output gaps which are consistent with Phillips curve evidence and help explain why core inflation has remained so low on the periphery.

Georgia has shown impressive resilience during the period of an economic slowdown in the region. The government’s Four Point Plan is expected to remove structural bottlenecks and support strong growth. However, the economy remains vulnerable to regional developments and external shocks.