Berlusconi out of Parliament
ROME | By La Stampa via Presseurop | The Senate voted to strip Silvio Berlusconi of his senator’s seat on November 27 following his conviction for tax fraud in August, reports La Stampa.
Italy
Italian Banks: Ongoing improvements, but uncertainty remains
LONDON | By Barclays analysts | We discuss the Italian economic and financial situation based on data and analysis contained in the November 2013 Bank of Italy Financial Stability Report. Following almost two years of recession in Italy, positive growth should resume in Q4 this year. After a likely 1.8% GDP contraction this year, we forecast a 0.8% expansion in 2014.
Spanish and Italian inflation wrap-up: Services and food driving inflation down
LONDON | By Barclays analysts | Taking into account today’s downward revision in Spanish HICP, we now revise our October French HICP forecast from -0.2% m/m (0.6% y/y) to -0.1% m/m (0.7% y/y). The Italian final October HICP inflation rate was revised up by 9bps to 0.76% y/y. We note that historical subcomponents indices have been revised since the beginning of the year (although not the headline index). This nonetheless does not alter our view that euro area HICP inflation rate should come in unchanged at 0.7% y/y. If anything, we see slight downside risk to our 116.99 HICP ex tobacco projection.
Fragile recovery under way in Italy, but pace likely to remain slow
LONDON | By Barclays analysts | Industrial production data in September were slightly weaker than we expected, adding further downside risks to our expectation that Italy’s GDP growth was flat in Q3.
The twilight of Il Cavaliere
TURIN | By Marcello Sorgi at La Stampa via Presseurop | Silvio Berlusconi, repudiated by some of his associates, who forced him to back the vote of confidence in the Enrico Letta government, and in the process of being ousted from the Senate – a committee is to decide on October 4 whether he should be stripped of his seat – Il Cavaliere is moving towards an inevitable exit from the political stage.
Ciao, Berlusconi, Ciao
MADRID | By Tania Suárez | Angelino Alfano, Berlusconi’s deputy and secretary of People of Freedom, defied “Il Cavaliere” and urged the party to unite behind Prime Minister Enrico Letta on Wednesday. It seems the end of Berlusconi’s political leadership is nearer now that all five ministers from the PDL are stepping down. But he won’t leave without a fight.
Italy: Confidence improves, but challenges remain
LONDON | Barclays Reasearch | The market’s confidence has increased, but we still see important challenges that weigh on Italy’s outlook. Political instability is the main risk that could hamper Italy’s ability to tackle these issues.
Telefonica and Telecom Italia: Peace Of Mind Worth $437M
The Corner Team | The deal for Spain’s Telefonica to raise its stake in Telco and control Telecom Italia will be ready before Friday, according to Economía Digital. An operation that prevents Carlos Slim, through America Movil, or American competitor AT&T from taking positions in the Italian market. Telefónica’s peace of mind is worth 324 million euros ($437 million).
Telefonica in Talks to Buy Telecom Italia
The Corner Team | Spanish Telefónica is in talks to become the main shareholder of Telco, Telecom Italia’s holding company, which is struggling with a millionaire debt and a fiercely competitive market, Dow Jones reports. The proposal under discussion would have Telefónica increasing its stake to 70% before next week.
Berlusconi and the blackmail of a nation
By Tim Parks via Presseurop | ‘Vote me out of jail, or I will bring the country down with me’. This is the message Il Cavaliere has just sent to the Italian government, ahead of a Senate decision on whether he will lose his seat after being convicted of tax fraud. Such blackmail speaks volumes about the state of Italy in 2013, says British writer Tim Parks.