Italy Defending their budget Plan
The third biggest economy in Europe is Italy and its economic numbers normally don’t give Euro much volatility. However, the preceding announcement for Q3 2018, expected on October 30th, probably will be more complex and very different. Rome is battling with the European Commission about their budget for 2019. Italy came up with a budget that predicts a shortage to GDP ratio of 2.4%, deleting the EC’s demand for a goal of 2%. Italy’s debt ratio is at around 130% and it is the second in Europe after Greece.
The Lega party emphasizes tax reductions while the 5 Start Movement asks a Citizens’ Benefits program. They state that without those actions, the country will never raise itself from its sluggish growth.
The administration did not pay any attention to the warnings from Brussels and submitted the budget to parliament on the same day.
High oil prices are squeezing consumers’ confidence
High oil prices are squeezing consumers’ confidence and could additionally produce conflicting implications for producers. The executive director of the International Energy Agency (IEA) said on Tuesday.
IEA chief Fatih Birol said at an energy conference in Singapore “Many countries’ current account deficits have been affected by high oil prices.”
Major emerging Asian markets such as India and Indonesia have been hammered hard this year by increasing crude oil prices, which despite declines this month are up by around 15% since the start of 2018.
Fuel import costs have been driven up further by a slide in emerging market currencies versus the greenback, depressing growth and even triggering objections and government fuel price controls in India.
Dow drops more than 200 points
On Monday US stocks settled lower. Stocks returned any profits made at the beginning of the day while the day was marked by a very volatile sentiment and Dow Jones Industrial Average covered more than 850 points. The S&P 500 ended with 10% less from its recent high.
Many said that the possibility of further US-China duties linked with the drop in tech stocks and the decline. The 30-stock index also shortly plunged into the correction area.
The Dow fell 245.35 points to 24,442.90, deleting a 352-point profit, while Boeing fell 6.6 %. At the end of the day, the Dow was down about 560 points before coming back quickly before the end of the session.”
UK budget for hard-working families
The United Kingdom Finance Minister Philip Hammond stated that the country is approaching the conclusion of a period of austerity.
The Finance Minister was addressing in front of lawmakers at the government’s budget report. This is a yearly statement regarding what taxes it plans to impose but also where it intends to spend public money. It further gives an update on the status of the county’s finances.
On Monday Hammond started his speech in Parliament by stating he has a budget “for hard-working families, the strivers, the grafters and the carers,” before claiming “the era of austerity is coming to an end.” It is the latest U.K. budget to be published before Britain leaves the European Union on March.