italian bonds

Italy’s Response To French Spending May Hurt Euro

Christmas came early this year in France as President Emmanuel Macron handed out gifts to his constituents like an end of the year bonus and a €100 increase of the minimum wage, explicitly not paid by employers. However, the European Union may not join in the celebrative Christmas conga as this spending spree will send the French budget deficit far north of what European budget rules allow.


Italy's economy entering a crucial period in its Euro membership

The ‘antiestablishment’ pact in Italy augurs a rise in the country’s public deficit

Paula Sampedro (Link Securities) |There are various fronts open on the political front during this week. Specifically, the Italian political parties La Liga (extreme rightwing) and the Movimiento Cinco Estrellas (anti-establishment) are expected to present their programme for government to the country’s president Sergio Mattarella, after reaching an agreement to form a new government in Italy.

 


Italian-Spanish bonds yield spread reaches highest level since 2014

Italy’s sovereign debt has become a bargain due to the country’s upcoming referendum (December 4th) which may compromise Renzi’s government. Yield premium investors demand to hold 10-year securities versus similar Spanish debt soared to its highest closing level in almost two years in October, according to Bloomberg data.