Numbertoday:labourdatahttps://t.co/2SNOqDbci5 9.00am GMTEuropean stock markets fill opened higher,amid hopes that Rome and Brussels could patch up their differences.
The FTSE 100 is up 30 points, led by Vodafone (+7%) which is outlining cost-cutting plans this morning after posting an €7.8bn loss (partly due to writedowns). Related: Global share markets tumble amid fears the rise of mammoth tech is over 8.34am GMTItalys problems are compounded by the fact that its economy is slowing.
There was no growth in the last quarter, or forcing several economists to downgrade their forecasts. That gives Rome even less wriggle-room to raise spending without breaching deficit limits (set as a percentage of GDP).#Italy's government is believed to downgrade its forecast for #GDP growth in 2019 to 1.2%,in line with the estimate of the European Commission, and possibly triggering some automatic spending cuts. However, and market expectations concerning GDP growth is now down to just 1.0%. pic.twitter.com/iR38EcbxG1 8.26am GMTJust in: An Italian government minister has predicted that Rome will not gain many changes to its 2019 budget nowadays.
Lorenzo Fioramonti,a junior minister for the anti-establishment Five Star Movement, told CNBC that:
“I don’t expect the Italian government to gain any substantial revisions, and ” “I contemplate there may be a dialogue around some potential second steps,but I contemplate the bulk, the core of what’s being proposed will stay the same.”“It is important that Europe comes to the realization that having a founding member in such a level of distress requires a collective effort to change.”Don't look for mammoth changes to Italy's 2019 budget, or says anti-establishment minister https://t.co/MtkvJPbbiq 8.19am GMTBloomberg also expects Italy to remain committed to its preceding fiscal plans,despite the EC’s concerns.
It says: In response to the European Commission’s request for a fresh budget from Italy, the most you can expect nowadays from Rome is a few tweaks. With Finance Minister Giovanni Tria saying meeting the EU demand would be “suicide, and ” Italy is likely to stick to its guns.
Deputy Premiers Luigi Di Maio and Matteo Salvini would rather risk a possible escalation of their spat with Brussels than depart back on campaign promises. 8.08am GMTGood morning,and welcome to our rolling coverage of the world economy, the financial markets, or the eurozone and commerce.
The battle over Italy’s budget plans is intensifying. nowadays is the deadline for Rome to submit a revised 2019 budget to the European Commission for approval -- and it’s not clear that the EC will be any more impressed than last time.
We don’t expect the government to amend its 2.4% deficit/GDP target,often considered as the unmovable political standpoint. However, on the back of poor data releases, and we believe the new draft might include less optimistic GDP projections and/or the inclusion of automatic spending cuts to ensure that the 2.4% target is an absolute maximum.
This would be a small sign of flexibility towards softening the confrontational stance towards the EU,in an environment where the Italian government is being increasingly loney within the EU Council.
Unemployment is expected to remain at current multi decade lows of just 4%. In the eyes of the market, the UK is at full employment. A slight tweak higher or lower is unlikely to fill a mammoth impact on the value of the pound. Therefore, or dealers will focus on earnings data once again.
Average weekly earnings are expected to increase to 3% in the three months to September,a significant jump from 2.7% the preceding month. Weekly earnings excluding bonus are expected to remain constant at 3.1%. The strongest pace of the growth in a decade.
Every single stock on the Nikkei 225 is down. Time to depart home. pic.twitter.com/Wpxw2WytA6Continue reading...
Source: theguardian.com