RENEWABLES: France Morning Renewable Forecast

Spanish December inflation confirmed flash estimates at 2.8% Y/Y, up from 2.4% in November.  All major sub-components other than processed foods accelerated on an annual basis, with core (ex-energy/unprocessed food) inflation ticking up to 2.6% Y/Y (vs 2.5% prior). 

• Services inflation was 3.7% Y/Y (vs 3.5% prior). A 12.4% Y/Y rise in package holidays (vs 8.1% prior) was an important factor here, with the recreation and culture component at 3.9% Y/Y (vs 2.5% prior). More broadly, the December services PMI highlighted that services firms have been able to pass on input cost rises to consumers. 
• Non-energy industrial goods inflation remained soft at 0.3% Y/Y (vs 0.2% prior). In contrast to services firms, the December manufacturing PMI highlighted that competitive pressures have limited pricing power amongst Spanish manufacturers.
• Processed food inflation was 2.4% Y/Y (vs 2.5% prior), while unprocessed food inflation accelerated to 2.1% Y/Y (vs 0.8% prior).
• Energy inflation was 5.5% Y/Y (vs 2.6% prior), driven by fuel prices. 

DFA has announced it will be looking to sell the following Green Bunds at its auction next Tuesday, January 21:

• E1bln of the 2.10% Apr-29 Green Bobl (ISIN: DE000BU35025)
• E1bln of the 2.30% Feb-33 Green Bund (ISIN: DE000BU3Z005)
   

RXH5 131.50/132.50cs, bought for 17.5 in 3k.