Home » Money

European Central Bank is not yet ready to intervene in Italy

02 June, 2018, 10:50 | Author: Samuel Sharp
  • GETTY•EU PARLIAMENTItaly news Marco Zanni MEP claims euro's days are'finished amid Italy's deep political crisis

ANALYST TAKE: "If a government can be formed that receives the stamp of approval from Mattarella and is therefore seen as not posing a threat to Italy's place in the eurozone, then this will come as a relief to markets in the near-term", said Craig Erlam, senior market analyst at OANDA.

Italy advanced swiftly toward a populist government on a second try Thursday, after the leaders of the anti-establishment 5-Star Movement and the right-wing League announced a compromise deal aimed at overcoming the president's objections.

The Spike in Europe's inflation figures could revive expectations of an eventual rate hike by the European Central Bank if market concerns about politics in Southern Europe diminish further.

Premier-designate Carlo Cottarelli, a former International Monetary Fund official, was expected to submit his list of ministers to President Sergio Mattarella in Rome, two days after an attempt by two populist parties to form a government foundered on the president's rejection of their anti-euro economy minister.

The "call" trade was undertaken on the September bund futures contract Wednesday, and will require enormous haven flows, most likely stemming from Italy abandoning the euro under a populist government, triggering a near-calamitous collapse in the common currency.

U.S. Treasury yields saw their biggest one-day drop in two years and the dollar gained ground against the euro.

Prices for United States government bonds surged as investors shifted money from stocks into lower-risk investments.

Traders are catching their breath after the unprecedented Italian bond slump spilled over into global risk assets.

That has eased fears of fresh Italian elections, a vote some say would effectively be a referendum on Italy's euro membership.

Eurostat, the European Union's statistics agency, said consumer prices were up by an annual rate of 1.9 percent in May, way ahead of April's 1.2 percent. The Kospi in South Korea jumped 0.7 percent to 2,438.96 and shares in Southeast Asia were mixed.

Japan's Nikkei 225 stock index dropped 1.5 percent to 22,018.52. It lost 1.7 percent to $67.04 a barrel on Thursday.

"It comes as no surprise that we are seeing Italian markets suffer heavily, with the FTSE MIB hitting a 10-month low, and the two-year (Italian) bond yield topping two percent for the first time since 2013".

U.S. S&P500 mini futures rose 0.5 percent, but market holidays in the world's two biggest financial centers - London and NY - could make trading slow and illiquid for the day.

The Japanese Yen caused the Topix Index to fall for the seventh straight session, the longest such streak since September 2016. Brent crude, used to price worldwide oils, rose 0.6 percent to $75.80 per barrel in London.


  • New Jersey Police Release Body Camera Footage of Violent Beach Arrest

    New Jersey Police Release Body Camera Footage of Violent Beach Arrest

    Weinman pour the alcohol out, without issuing any violations and then he terminates the recording", said police in a news release. The officer then says, "You're about to get dropped". "I was partly wrong in a way but I was scared".
    US to impose limits on some Chinese visas

    US to impose limits on some Chinese visas

    Regulators also promised to cut auto import duties from 25 percent to 15 percent on many vehicles effective July 1. Commerce Department told lawmakers it was ending an earlier push to ban Chinese phone giant ZTE.

    Bethesda Teases New Fallout Release

    Something related to " Fallout " is being teased ahead of E3 by the developer of the action role-playing game franchise. A similar teaser has been posted on Bethesda's official Twitter but without further explanation.
  • Active Shooter video game removed online after backlash

    Active Shooter video game removed online after backlash

    On Tuesday afternoon, Valve sent Q13 News a statement saying it has removed the developer responsible for the game from Steam . Parents and student survivors from Marjory Stoneman Douglas High School were disgusted over the video game, CBS Miami reports .
    Kardashian West heads to White House to talk pardon

    Kardashian West heads to White House to talk pardon

    Alice Johnson or the injustice of her case, Kim is calling on President Trump to exercise his clemency power to right this wrong". Johnson to bring "her case to the president's desk" and to lobby the White House to release her.
    Catastrophic Flooding Hits Ellicott City, Maryland

    Catastrophic Flooding Hits Ellicott City, Maryland

    At the height of the storm, the water had risen above the first floor of some buildings, Howard County emergency officials said. Some people in Ellicott City's historic downtown say they are determined to rebuild after Sunday's devastation.
  • Long shots: Odds against Cavs in NBA Finals against Warriors

    Long shots: Odds against Cavs in NBA Finals against Warriors

    As Durant, driving left, turned the corner on Green, he met LeBron James in the lane, where the two superstars collided. Well, not the real KD, but a huge photo of him.
    Assassin's Creed Odyssey Confirmed by Ubisoft

    Assassin's Creed Odyssey Confirmed by Ubisoft

    According to the site (via Google Translate), one insider sent an Assassin's Creed Odyssey keychain in the form of a Spartan head. Three unnamed members close to the project, who have played early versions, say the game will bring dialogue options into play.
    Canada hits USA  with billions in retaliatory tariffs in steel row

    Canada hits USA with billions in retaliatory tariffs in steel row

    The retaliatory tariffs they've promised make no more sense in narrow economic terms than the US tariffs they're objecting to. She added: "We have no intention to escalate this, the door for dialogue is always open.the ball is in (the US's) court".
  • Chelsea shelve Stamford Bridge project over ‘unfavourable investment climate’

    Chelsea shelve Stamford Bridge project over ‘unfavourable investment climate’

    Chelsea was looking to build the new stadium on its current Stamford Bridge site in west London, and planned to moved in by 2021. But it is understood that Abramovich's decision will have no impact on the running of the football team.

    European Union has 'gun held to head' on steel tariffs

    The move is a reaction to the Trump administration's decision to impose tariffs on steel and aluminum from the European Union, Mexico and Canada.
    Trump to meet with Japan's Abe at White House on June 7

    Trump to meet with Japan's Abe at White House on June 7

    South Korean media earlier reported that Kim Yong-chol's name was on the passenger list for a fight Wednesday from Beijing to NY . Meanwhile, meetings are taking place, he said, in preparation of a summit between Trump and the communist dictator Kim Jong Un .


Missouri governor offered to resign if charges dropped
Those charges stem from his alleged use of a donor list from a charity he founded, The Mission Continues, to benefit his campaign. Greitens' resignation also allows him to avoid the distinction of becoming the first Missouri governor to be impeached.

White House: China 301 tariffs coming soon after June 15
Meanwhile, Trump's team continues to negotiate to achieve Trump's pet project of reducing the trade deficit. It's the most specific the administration has been about the timing for the duties to take effect.

What To Know For NBA Finals Game 1
The man has made a habit of hitting long-range shots to close out quarters or halves, and he did it again in this one. Curry put up a desperation heave from 38-feet with the score sitting at 53-56, just 1.5 points away from the over.

Arsene Wenger is favourite to replace Zidane at Real Madrid
After doing three years, it's the right decision. "I will be close to this club for the rest of my life". All I want to do is remind him that this club is his home and family'.

Macron rewards migrant hero who saved dangling child
He was an undocumented immigrant, and French authorities had the power to grant him citizenship in exceptional cases. He told Mr Macron: "I just didn't have time to think, I ran across the road to go and save him.

Only took one day to guarantee 1st-time French Open finalist
The fourth seed opened proceedings on Court Philippe Chatrier as he began his latest attempt to win a maiden grand slam. She previously beat Ostapenko both times they had faced off, before Ostapenko had risen in the rankings.

Rudy Giuliani gets chilly reception, booed at Yankee Stadium for birthday
Rudy Giuliani wasn't getting much love from New York Yankees fans on his birthday. However Giuliani did see the Yankees beat the Boston Red Sox, 9-6 , on May 10th.

Another American hostage comes home
Marco Rubio, R-Fla., a member of the Senate Foreign Relations Committee , tweeted he is "very happy for Josh Holt & his family". Utah man Joshua Holt and his wife Thamy have been in a Venezuelan prison since 2016 after being arrested for firearm offences.

Brussels in last-ditch attempt to avoid Trump's trade tariffs
Commerce Department told lawmakers it had reached a deal to put Chinese telecommunications firm ZTE Corp back in business. In mid-May, China agreed to increase purchases of U.S. agriculture and energy products, and last week, the U.S.

Canada to Buy Kinder Morgan Pipeline for $3.5 Billion
NDP MP Nathan Cullen suggested Ottawa was prioritizing a pipeline over safe drinking water for Indigenous children on reserves. The federal Liberal government is spending $4.5 billion to buy Trans Mountain and all of Kinder Morgan Canada's core assets.