Tag Archives: Austria

UPDATE 2-Italian results fell as PM Conte wants to form a new government | Instant News

* Conte will step down in an attempt to form a new government

* German 10-year yield fell to -0.561% in early trading

* US Treasury yields hit a three-week low

* Barriers to US stimulus plans worry stock markets (.)

LONDON, Jan 26 (Reuters) – Italian government bond yields fell across a curve on Tuesday as the prime minister will try to form a new government, fueling hopes of a return to political stability in the Southern European country.

Italian Prime Minister Giuseppe Conte will hand over his resignation to the head of state on Tuesday, Conte’s office said, in the hope that President Sergio Mattarella will give him the mandate to form a new government.

“If Conte manages to form a new government within a week with a stable majority, then the potential for tightening the spread is significant,” said ING interest rate strategist Antoine Bouvet. “But at the moment it is still a political gamble,” he added.

Italian government bond yields fell 2-4 basis points across the curve, with the benchmark 10-year yield dropping 3.5 bps to 0.646%.

The difference in the closely watched Italian-German bond yields was five basis points today at 114.5 bps.

While the resignations allowed elections to be avoided in Italy, a combination of political concerns and stock market jitters over US fiscal stimulus increased demand for safe havens such as the German Bunds.

Asian stocks fell on Tuesday, retreating from record highs as lingering concerns about a potential impediment to the Biden government’s $ 1.9 trillion stimulus weighed on sentiment.

The yield on German 10-year government bonds fell to a two-week low at the start of trading on Tuesday, although they again rose slightly to -0.54% at 1100 GMT, up one basis point on the day.

German Bund demand also came as the yield on the 10-year US Treasury fell to a three-week low of 1.028% earlier in the session as the US Senate pushed to pass the COVID-19 bill.

Later in this session, the EU is likely to finalize the sale of its benchmark seven-year bond and knock on outstanding 2050 debt through syndication. (Reporting by Abhinav Ramnarayan, editing by Karin Strohecker and Angus MacSwan)


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Australian Open 2021: Dayana` Yastremska drug ban, locked in quarantine, positive tests, bets fruitless | Instant News

The International Tennis Federation (ITF) on Saturday rejected Dayana Yastremska’s attempts to lift her doping ban while Ukraine remains in Australian quarantine.

The world number 29 was temporarily suspended on January 7 after testing positive for a banned anabolic agent used in the treatment of male infertility.

Yastremska still flies to Melbourne in hopes of playing at this year’s Australian Open, despite a positive result for the banned mesterolone metabolite during an out-of-competition test on 24 November.

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However the ITF on Saturday released a statement, confirming that it had rejected Yastremska’s application to lift its play ban.


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Germany regrets the US decision to sanction Russian vessels involved in Nord Stream 2 | Instant News

BERLIN (Reuters) – The United States has informed Germany that it plans to impose sanctions on a Russian pipeline laying vessel involved in the construction of the Russia-led Nord Stream 2 gas pipeline from Russia to Germany, the German Economy Ministry said on Monday.

FILE PHOTOS: A road sign directs traffic towards the entrance of the Nord Stream 2 gas line landing facility in Lubmin, Germany, 10 September 2020. REUTERS / Hannibal Hanschke / File Photo

“We record the announcement with regret,” said a spokesman for the Ministry of Economy in Berlin.

German business daily Handelsblatt previously reported US sanctions will take effect on Tuesday as part of the Act Against America’s Enemies Through Sanctions (CAATSA).

It said sanctions would be imposed on the Russian pipeline laying ship “Fortuna” and its owner, KVT-RUS.

Nord Stream 2, designed to double the capacity of the existing Nord Stream subsea gas pipeline, will pass through Ukraine, eliminating lucrative transit costs. The project has become a point of contention between Moscow and Washington, with the United States seeking to cut Europe’s dependence on Russian energy.

The group behind the pipeline suspended work in December 2019 due to threats of sanctions from Washington, even though the project was nearing completion.

Germany and European allies accuse Washington of using the newly introduced CAATSA sanctions regime to interfere with their foreign and energy policies.

According to Refinitiv ship tracking data, Fortuna is still anchored in the Baltic Sea near Rostock in northern Germany.

A spokesman for the US embassy in Berlin told Handelsblatt that Washington would continue to take “all necessary and appropriate steps” to prevent Nord Stream 2.

“Although we do not comment on future sanctions measures, we will continue to exchange ideas with allies and partners on potential sanctions issues,” the spokesman said.

The US government hopes Germany will reconsider its position on Nord Stream 2, he added.

The US State Department said it was not reviewing possible sanctions action and the Treasury Department did not immediately respond to a request for comment.

A German government spokesman told reporters earlier on Monday that Berlin’s view of the pipeline remains unchanged, namely that Nord Stream 2 is a private sector project.

Russia’s state-owned gas giant Gazprom is implementing the project together with Western partners Uniper, Wintershall, Engie, OMV and Shell.

US President-elect Joe Biden has opposed Nord Stream 2 in the past, but it is unclear if he can compromise on the issue after taking office on Wednesday.

Handelsblatt quoted a spokesperson for Nord Stream 2 as saying that it is up to the European Union and governments in the countries involved to protect the company from any sanctions.

Gazprom declined to comment and Nord Stream 2 could not immediately be reached for comment. KVT-RUS could not be reached for comment.

Reporting by Michael Nienaber; Additional reporting by Timothy Gardner in Washington and Vladimir Soldatkin in Moscow; Edited by Maria Sheahan, Peter Graff and Catherine Evans


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FIXED-Italian bond yields fell but set for biggest weekly gain since October | Instant News

(Correction to say biggest weekly increase since week ended Oct 23, not Oct 12 in paragraph 9, no other changes to text)

* Eurozone suburban government bond yields tmsnrt.rs/2ii2Bqr

AMSTERDAM, Jan 15 (Reuters) – Italian bonds showed some recovery on Friday as yields fell, but borrowing costs are set for their biggest weekly gain in 12 weeks as focus remains on government uncertainty in Rome.

Italian Prime Minister Giuseppe Conte rejected calls to resign on Thursday after a junior coalition party led by former prime minister Matteo Renzi pulled out of government on Wednesday and revoked its majority.

Instead, Conte has signaled he wants to continue his fight for survival in parliament, with his main coalition partners backing a plan to try to find support among opposition ranks to shore up the government.

He will address before the Italian Chamber of Deputies on Monday, followed by a vote of confidence expected to show whether he can keep fighting.

Renzi told Italian daily La Stampa he did not believe Conte had the support to win the vote of confidence scheduled for next week.

On Friday, the Italian bond market was poised to end the week on a calmer note, as the 10-year bond yield fell 2 basis points at 0.59% in early trading.

“We see the new elections as the worst outcome for BTP, but this is very unlikely, in our view,” Societe Generale analysts Jorge Garayo, Ninon Bachet and Adam Kurpiel told clients, echoing views held by many bond analysts.

“There is still a possibility that PM Conte will succeed in gaining support after negotiating with Renzi and other members of parliament. This will be the best outcome for BTP, ”they said, referring to Italian government bonds.

But several heavy selling sessions this week put 10-year yields on track to end the week 10 basis points higher, their biggest weekly gain since the week ended October 23.

BTP outperformed German bonds on Friday, squeezing the gap between German and Italian 10-year bond yields to 113 basis points, down from a seven-week high of around 118 bps reached on Thursday.

But the gap, which is effectively paid for by the risk premium Italy pays on its debt, is up more than 10 bps this week.

Analysts at Mizuho expect it to extend to 130-150 basis points until the problem is resolved, although support from European Central Bank asset purchases is expected to limit the sell-off.

Elsewhere, German 10-year yields are set for their biggest weekly decline in a month, dropping 4 basis points this week, supported by uncertainty in Italy and as January bond issuance was quiet, according to Commerzbank analysts.

They were unchanged in early Friday trade at -0.55%, near one-week lows. (Reporting by Yoruk Bahceli; Editing by Susan Fenton)


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USTR says Austrian, Spanish, UK digital taxes discriminate against US companies | Instant News

WASHINGTON (Reuters) – The US Trade Representative Office said Thursday it had found that a digital services tax imposed by Austria, Spain and the UK discriminated against US companies and was inconsistent with international tax principles, but would not take immediate action.

Releasing the results of a “Section 301” investigation into the country’s digital taxes, US Trade Representative Robert Lighthizer said the trade agency would continue to evaluate all available options.

“The best outcome is that countries come together to find solutions,” Lighthizer said in a statement.

Announcement here reflects last week’s findings in similar digital services tax imposed by India, Italy and Turkey, and follows USTR’s decision to suspend planned tariffs on French cosmetics, handbags and other goods as a penalty for France’s digital services tax.

The decision not to impose tariffs immediately provided breathing room for USTR President-elect Joe Biden, Katherine Tai, to try to negotiate a tax dispute settlement once he takes office in the coming weeks.

The Section 301 report found that foreign digital taxes discriminated against big US tech companies, such as Google, Facebook, Apple and Amazon.com, that hinder US trade. The US Treasury Department has tried to negotiate a global treaty on digital taxation through the Organization for Economic Cooperation and Development, but talks have stalled in recent months.

The issue is also complicated by US President Donald Trump’s feud with big tech firms during his fading days in office, one source with knowledge of the matter told Reuters.

The source added that it made sense to postpone unilateral tariffs for now to allow OECD talks to continue and avoid tying the hands of Biden’s trade team. USTR officials have stepped up efforts to ensure a smooth transition to the new government since mid-December, the source said.

Reporting by David Lawder, additional reporting by Andrea Shalal; Edited by Chizu Nomiyama and Alexandra Hudson


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