Nord Stream 2, Turkish inflation, Romania’s budget

The Danish government’s decision to approve the Nord Stream 2 gas pipeline this week is widely seen as a victory for Russia, who could potentially halt energy supplies to Ukraine. But with the disapproval of the US, this has raised the secure of retaliation which could prompt additional sanctions on Russia. Meanwhile, the Turkish central bank’s projections for lower inflation next year look optimistic and we think the MPC will be forced to reverse course on easing. Finally, Romania’s fiscal deficit deteriorated further in September and the public finances are looking increasingly like a cause for concern.