Eurozone presses Greece on reforms

Good morning,

- FOMC member John Williams said he views 2015 as an appropriate time for the central bank to start raising rates.

- Euro, Yen May Rise if Fed Comments Rekindle 2015 Rate Hike Bets.

- $NZD was the best performing major vs $USD on Monday with +0.95% spot-returns while the $JPY was the worst performing with -0.46% returns.

- Since July 09 2015, Japanese economic news flow has been increasingly underperforming relative to economists' expectations. -Citi

-RBA: $AUD adjusting to significant declines in commodity prices. Economic, financial conditions to inform policy stance. Sees inflation consistent with target next 1-2 years. Economy growing at rate below longer-term average. Monetary policy needs to be accommodative, board judged leaving cash rate unchanged was appropriate (Australian Econ: RBA Cash Rate Target 2.00% (Oct 06) vs 2.00% expected and 2.00% (Sep 01).

- Fear of the markets is that contracting growth in the BRICS countries may have spillovers in the rest of the world.

- Mr. Bernanke in WSJ op-ed recounts stimulus, says "Fed will continue to do what it can, but monetary policy can no longer be the only game in town."

- ECB's Benoit Coeure: It's important for new Greek government to implement August Pact, attractiveness of $EUR 'not in any way reduced'.

- Eurozone finance ministers have urged Athens to swiftly implement the tough reforms at heart of its huge bailout as new forecasts showed Greece's economy stuck in recession well into 2016. Meeting in Luxembourg for the first time since Tsipras was re-elected in snap elections on September 20, eurozone finance chiefs agreed on a list of reforms to be swiftly implemented by Athens to unlock a slice of its huge 86 billion-euro ($A135.76 billion) EU bailout. The finalising of the list came as Athens unveiled a draft budget which showed a recovery only kicking in in the third quarter of 2016.

- There is no alternative to fulfilling the commitments that have been taken with the European Union,' said Pierre Moscovici, the European Commission's top economic official.

- The cost of holidays for Britons escaping the winter could become more expensive as a slowdown in domestic economic growth pushes out the Bank of England interest rate hike expectations further out, weighing on the pound. The latest data suggests activity in the key services sector slowed down to an almost 2 and a half year low at the end of third quarter, according to a closely-followed Purchasing Managers’ Index (PMI) compiled by Markit. The PMI printed 53.3 for the month of September, disappointing expectations of a 56.6 reading and down sharply from 55.6 in August.

- The government must bring forward the referendum on EU membership to next year or it will risk an accidental Brexit from voters using the poll to take an anti-government line, warns one of Britain’s leading business groups. On Tuesday, the Institute of Directors (IoD) said Britain leaving the EU is “at least a 50-50 possibility”, and will use its annual convention to urge prime minister David Cameron not to wait until 2017 to hold the vote.“If, after deliberation, the public votes to leave Europe, our members will have to accept it, and the period of uncertainty for business that will follow. They will be less philosophical if carelessness and domestic discontent led to an accidental Brexit.”

- Major news for today: US 2-year Treasury Yield, US Factory Orders, ECB Draghi speaks, FOMC Member Williams Speaks, USD Trade Balance.

Have a great day!