Inflation Helped Most Indebted Eurozone Budgetary Positions Improve

With all the doom and gloom headlines you maybe somewhat surprised to find out there have been huge improvements in budgetary positions in many European nations. More significantly the biggest debtor nations have seen the biggest improvements. Why? Inflation is adding more to revenues than it is to spending, this is reducing debt-to-national-income ratios by both lowering debt and by boosting (nominal) income. Europe was affected by the Russian gas supply cut; however, it could have been much worse. The … Continue reading “Inflation Helped Most Indebted Eurozone Budgetary Positions Improve”

Italian 10-Year Bond Yield Soars in 2022 to Near Ten-Year High

Italian 10-Year BTP government bond yields soared in 2022 to a yield above 4.6%, adding 350bps since the start of the year and remaining close to near decade high of 4.8% touched on November 12th. Global central banks raising rates, including the ECB to soak up excess liquidity and fight inflation bonds around the world fell hard and yields rose. Additionally increased fiscal risk in the Italian economy pressured yields higher. Italy saw more political turmoil in 2022 which resulted … Continue reading “Italian 10-Year Bond Yield Soars in 2022 to Near Ten-Year High”

S&P Revise Italy’s Outlook to Stable from Positive Rating

S&P Global Ratings agency said on Tuesday it had revised its outlook on its BBB/A-2 ratings on Italy to stable from positive. The change reflects impact of the global effect on Italy’s economy and on sovereign’s fiscal position. The Italian Prime Minister Draghi resigned last week and there will be new elections later in the year. The ratings agency affirmed all of its sovereign ratings on the country and said the stable outlook balances rising risks to the economy and … Continue reading “S&P Revise Italy’s Outlook to Stable from Positive Rating”

Italy’s FTSE MIB Borsa Italiana Closed Up 23% in 2021

The Italian Blue Chip stock index, the FTSE MIB closed unchanged at 27,346.83 on the last trading day of the year, up 23% for 2021. It was the second sharpest yearly rise since 2009, after falling 5.4% to 22,233 in 2020. The index is well off the nearly eight-year low of 14,153 from the height of the Covid panic.    The FTSE MIB closed 2021 at 27,346.83 up 23% on the year in the second steepest yearly increase for the … Continue reading “Italy’s FTSE MIB Borsa Italiana Closed Up 23% in 2021”

Italy’s FTSE MIB Borsa Italiana Closed Down 5.4% in 2020 Among Lockdown Nerves

The Italian Blue Chip stock index the FTSE MIB fell 5.4% to 22,233 in 2020 bouncing back from lows in March after Italy was the first western country to implement a national lockdown, Italy’s FTSE MIB index crashed to a nearly eight-year low of 14,153.  Concerns about the impact of current restrictive measures on Italy’s fragile economy overhang sentiment.

Spanish, Italian and French Banks Are Most Exposed to Turkey

The Turkish crisis escalated over the past week and has sent flight risk contagion ripples through emerging markets. The fallout extends to those that are Turkey’s biggest lenders. There are five banks most exposed with Spains BBVA the most at risk