REUTERS/Wolfgang RattayGerman Chancellor Angela Merkel is under attack from EU Parliament head Martin Schulz over her position on a potential Greek exit from the euro.Good morning! Here are all the major market stories you need to know about today.
Deflation May Come Today. A lot of analysts now expect that eurozone inflation will fall into negative territory today when the December numbers are released. Consumer price inflation was at just 0.3% in November and the effect of plunging oil prices hasn't been registered fully yet. Those figures are out at 10 a.m. GMT.
Oil Just Won't Stop Tumbling. WTI crude slumped below $48 per barrel for the first time since 2009, and at just $50.30, Brent crude is also toying with dropping below the $50 mark.
But Falling Oil Is Making It Hard For Iraq To Fight ISIS. In December, Iraq exported about 91.1 million barrels of oil, its highest level in any month since 1980. But with oil at $50 a barrel eroding tax revenues, it's nearly impossible to eradicate the Islamic State group from the country or provide basic social services.
The Euro Hit A New Nine Year Low. The euro saw another sharp drop last night, hitting fresh nine-year lows. Further bad data on inflation today could help drive it even further down.
The White House Is Vowing To Veto The Keystone Pipeline. The White House revealed on Tuesday that President Barack Obama would veto congressional legislation to create the Keystone XL Pipeline. "I can confirm for you that if this bill passes this Congress, the president wouldn't sign it," White House Press Secretary Josh Earnest told reporters during his daily media briefing.
German Retail Sales Rose From October But Fell Year-On-Year. Sales rose 1% from October to November, but that still means they're down 0.8% on November last year. In October, retail sales surged, up 1.9% from September. People are paying extra-close attention to figures like retail sales in Germany for signs that Europe's biggest economy is slowing down.
Merkel Is Under Fire From The EU Parliament's President. EU parliament president Martin Schulz, on Wednesday accused German Chancellor Angela Merkel of "irresponsible speculation" over suggestions that Greece may be allowed to exit the euro if the far-left wins elections this month.
China's Q4 Growth Is Expected To Hit A Six-Year Low. China's annual economic growth likely slowed to 7.2 percent in the fourth quarter, the weakest since the depths of the global crisis, a Reuters poll showed, which would keep pressure on policymakers to head off a sharper slowdown this year.
Asian Markets Made Modest Gains. Japan's Nikkei closed up 0.01%, after falling 3.24% from the start of the year. Hong Kong's Hang Seng is currently up 0.42%, and the Shanghai Composite index is up 0.39%.
The Bank Of England Is Facing Criticism Over An Ineffective Governing Body. The Bank of England's court, which officially is in charge of the institution's governance, was kept in the dark and without crucial information during the financial crisis, according to minutes released by the Bank. Lord King, who was governor at the time, told the Financial Times that the Court fulfilled its duties.