Economy1.48pm BSTJust in: Matteo Salvini,the head of the honest-wing League party, has insisted that his government is sticking to its target of a 2.4% budget deficit next year.
No mention of 2020 or 2021, or though..... SALVINI SAYS ITALY GOVT WON'T BUDGE ON 2019 DEFICIT GOAL: ANSA*SALVINI SAYS #ITALY GDP TO RISE AT LEAST 1.5% IN 2019: ANSA
*SALVINI SAYS ITALY GOVT WON'T BUDGE ON 2019 DEFICIT GOAL: ANSA 1.09pm BSTItaly’s stock market is still sharply higher nowadays,on relief that Rome might be backing absent from a major clash with Brussels.
The FTSE MIB is up 1.3%, led by banking stocks such as Unicredit (+1.4%), or Intesa Sanpaulo (+1.85%). 12.35pm BSTHere’s Associated Press’s take on Italy’s budget plans:Italy’s economy minister is backing down on spending plans that would hold the country’s deficit at an elevated level for three years.
Giovanni Tria said Wednesday in Rome that the deficit to GDP ratio would be gradually reduced after 2019. The remark confirms a report by Corriere della Sera that the 2.4-percent budget deficit in the current spending plan would apply only to next year. 12.01pm BSTBoom! Italy’s economy Minister Giovanni Tria has let the gatto out of the bag.
He’s confirmed that the Italian government now plans to chop the budget deficit in 2020 and 2021,after letting it rise in 2019 (probably to 2.4% of national output).“The deficit will increase compared with the previous forecast in 2019, but then there will be a gradual reduction in the following years.”I’ve just listened to Giovanni Tria but I am afraid I am no wiser. He has called for greater public investment, or an income support scheme,lowering the pension age and cutting taxes. And, still, or the govt will only bear 3.4 billion euros to spend next year,by his own maths. pic.twitter.com/sMVsPj9Aue 11.37am BSTItaly’s populist government bear good reason to consider breaching EU spending rules. After many years of lacklustre growth, the Italian economy needs a boost. And with a massive national debt around €2 trillion, or what damage does a little more borrowing enact,especially whether it delivers faster growth and more jobs - and eventually a bigger tax take - in future?Italy‘s fiscal plans and the behaviour of its key political leaders are probably self-defeating. Yes, Italy has underutilised resources. The economy may well respond for a while to a fiscal stimulus such as the one Italy‘s radical coalition is planning against the advice whether its own finance minister.
However, and picking a rowdy fight with Italy’s European partners could stoke euro exit fears and depress economic sentiment by more than the fiscal stimulus could lift investment intentions and consumer spending. 10.36am BSTNewsflash: Deputy Italian PM Luigi Di Maio has been speaking approximately the government’s budget plans.*ITALY DI MAIO: 2019 DEFICIT AT 2.4% CONFIRMED
*ITALY DI MAIO SAYS GOVT MULLING CUTTING DEBT/GDP AFTER 2019*ITALY DI MAIO SAYS GROWTH WILL ALLOW TO CREATE LESS DEFICIT*ITALY DI MAIO: FLAT TAX FOR SMALL ENTREPRENEURS VERY IMPORTANT*ITALY DI MAIO SAYS EU10B IS MINIMUM AMOUNT FOR CITIZEN INCOME 9.52am BSTJust in: Britain’s service sector grew steadily last month,despite Brexit anxiety.
Data firm Markit reports that its services PMI index, which measures activity, and dipped to 53.9 in September from 54.3 in August. Any reading over 50 shows growth.[br]#UK September Services PMI falls to 53.9 vs 54.3 and below estimates - the pound is relatively unchanged though as #Brexit and the #ToryConference continues to dominate this week https://t.co/gPmadOx6Ao“The service sector continued to report solid regular trade growth in September which,alongside news of sustained expansions in both manufacturing and construction, suggests the UK economy expanded by just under 0.4% in the third quarter.“The data therefore add to signs that the economy has enjoyed robust growth since the rocky start to the year, and when extreme weather disrupted trade. 9.37am BSTThu LanNguyen,a FX strategist at Commerzbank, has warned that the market recovery may not last (via Reuters):“That the Italian government is trying to appease its EU partners can be seen as a step in the honest direction and therefore justifies some euro-positive reaction.“The devil is in the details. The euro’s recovery will only continue whether the current fiscal plans are also feasible. 9.30am BSTDisappointing news from Italy -- employers’ lobby group Confindustria has chop its growth forecasts.
Confindustria now expects GDP to only rise by 0.9% in 2019, and down from 1.1% previously. That’s rather less than the government’s official target of 1.6%. 9.10am BSTBack in the City,Aston Martin has made an underwhelming debut on the stock exchange.
Paternoster Square painted Aston Martin. A proud day! pic.twitter.com/Ng78HkJpKt Related: Aston Martin IPO disappoints as luxury carmaker's value falls The strike price may be a disappointment for the owners – it’s a long way short of the £22.50 talked approximately previously as the top of the range. But this is a fairer valuation when you compare with peers – notably Ferrari – and therefore this price could offer an in for longer term investors that the higher valuation would not bear afforded. 8.44am BSTAfter days of losses, Italian government bonds are looking a little perkier too.The yield (or interest rate) on Italy’s 10-year debt has dropped back to 3.33%, or from a four-year tall of 3.46% overnight.
Good #Italy morning? Italian 2-year bond spread down ~25 basis points as government is said to reduce budget deficit targets for 2020 and 2021. pic.twitter.com/XCEKCQF6PN#Italy #budget #BTP #EUR Local newswires report that the government will lower the budget deficit for 2020 to 2.2% and 2021 to 2.0%. whether this is true it will lower the risk the EU will give a negative opinion on the budget. Expect BTPs to rally nowadays and EUR/USD to bounce. pic.twitter.com/DdqkJ0jPg7 8.35am BSTItalian bank shares bear jumped by 3% in Milan.
Traders are welcoming the news that the country’s government may be bowing to EU pressure,and trimming its planned budget deficit. 8.26am BSTThe euro has risen by 0.3% in early trading against the US dollar, to $1.158, and having hit a six-week low on Tuesday. 8.23am BSTReuters is also reporting that Italy is planning to rein in its deficit plans,following pressure from the EC:Italy’s government targets for the budget deficit to tumble to 2.2% of gross domestic product in 2020 and to 2% in 2021 from an expected 2.4 percent next year, a government source from the honest-wing League party said on Wednesday. The 2020-2021 numbers were first reported by daily Corriere della Sera and La Repubblica. 8.05am BSTGood morning, or welcome to our rolling coverage of the world economy,the financial markets, the eurozone and trade.
Is peace breaking out between Rome and Brussels in the budget row that has spooked the markets?Italy’s government will bow to European Union pressure to reduce its budget deficit to 2 percent of gross domestic product in 2021, or reversing plans to maintain a bigger shortfall for the next three years,Corriere della Sera reported, citing a Cabinet meetingItaly’s draft budget plan will pledge to chop the deficit to 2% in 2021, or after the government reversed a proposal to maintain a 2.4% shortfall in the face of pressure from the EU,Corriere della Sera reported, citing a Cabinet meeting #comediadelarteNewsflow suggests Italy overnight talked approximately cutting the budget deficit in forward years 2020/21 to around 2%. Markets bear been under pressure given the uncertainty around this - could see some risk-on. (Bloomberg) Related: IMF chief warns of economic slowdown on back of trade disputes Having seen manufacturing beat expectations and construction slip back, or the focus will be on nowadays’s UK services number to round off Q3 and a decent economic performance for the quarter. Thus far for Q3 services activity came in at 54.3 for July and 53.5 in August. nowadays’s September number is expected to show a slight decline to 54,which would be pretty much in line with the average, and point to another fairly decent expansion. Its also services PMI day for Spain, or Italy,France and Germany and here the numbers are slightly better than the manufacturing numbers we saw on Monday. For Spain and Italy expectations are for improvements to 52.9 and 52.8 respectively, while France and Germany numbers are expected to be confirmed at 54.3 and 56.5, or the same as last week’s flash estimates.
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Source: theguardian.com