Tag Archives: Euro zone

UPDATE sells Euro-2 zone bonds; Italy has set the best month since May | Instant News


* Eurozone periphery government bond yields tmsnrt.rs/2ii2Bqr (Updates throughout)

By Elizabeth Howcroft

LONDON, July 31 (Reuters) – Eurozone government bonds were sold on Friday, both in the core and periphery, with Italian 10-year bonds set as the worst day since early May but still producing strong performance throughout the month.

With the market widely cautious on Friday, analysts said the sell-off could be triggered by an unusual month-end flow.

“I attribute it to long-term, long-term positions from dealers who may be mistaken because of the sale of real cash flow,” said Peter Chatwell, chief of multi-asset strategy at Mizuho.

Analysts were surprised by the move, because the month-end index extension – where funds rebalanced their portfolios to reflect activity during the month – was expected to support bonds at the start of the session.

Italian 10-year yields are at their highest level in more than a week, up 6 basis points (bps) at 1.092% at 1449 GMT.

However, Italian bonds have experienced a decent month, with yields set down 24 bps in July – the best month since May. The paper demand was driven by recovery funds agreed by the European Union last week.

The 750 billion euro fund, which will partly be offered as a grant to the member states hardest hit by the coronavirus, has been hailed as a game changer for the eurozone and has increased Italy’s debt, given concerns about the country’s sustainability. loan.

Italy’s risk premium pays Germany for 10-year debt falling to March lows when the fund was agreed, although it has risen again this week, and is 3 bps wider on Friday at 160.65 bps.

Mizuho Chatwell said the Italian rally that was easing this week could be due to oversupply.

“What happened to BTP was a bit exhausted after recording a number of supplies,” he said.

“I think the market is now saturated with this positivity, but supply continues to run,” he added.

The 10-year German Bund benchmark was set for the best month since April, as investors flocked to safe-haven debt, pushing yields below -0.5%.

Safe-haven bonds are likely to remain supported given the increasing number of coronavirus cases around the world, raising fears of new lockouts.

Global fund managers prefer to cut equities to their lowest level in four years in July while keeping bond allocations unchanged, as hopes for economic recovery fade, a Reuters poll shows.

Data on Thursday revealed a record contraction in Germany – the region’s leading economy – and sent Bund results to two and a half month lows, but there was little reaction on Friday to the euro zone GDP estimates.

But euro zone inflation suddenly rose in July, supporting the European Central Bank’s expectations that negative headline readings could be avoided. (Reporting by Yoruk Bahceli and Elizabeth Howcroft; editing by Gareth Jones and Mark Potter)

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Germany warns against trips to three regions of Spain hit by the virus | Instant News


FILE PHOTOS: People enjoy fine weather on the coast of Barceloneta, after regional authorities of Catalonia and the city council announced restrictions to restrain the spread of coronavirus (COVID-19) in Barcelona, ​​Spain July 19, 2020. REUTERS / Nacho Doce / Photo File

BERLIN (Reuters) – The German foreign ministry on Friday advised people not to travel to the northern Spanish region of Catalonia, Navarre and Aragon, because of fears that travel could bring a second wave of COVID-19 infections.

The Robert Koch Institute, a German public health agency, places all three regions of Spain on a list of high-risk locations, which means people returning to Germany are required to quarantine for 14 days or give a negative corona virus test.

With the increasing number of viruses in Germany, concerns are growing that tourists returning from destinations experiencing a surge in new cases can spread the infection quickly. Germany reported 870 cases of the corona virus on Friday, the highest daily total since mid-May.

Starting next week, Germany plans to make a mandatory corona virus test at the airport for all tourists returning from high-risk areas to slow the spread of infection.

The travel warning is the latest blow to the Spanish economy, which is already in a steep recession and is dependent on tourism for 12.3% of its economic output. Germany makes about 5% of tourists to Catalonia’s main city, Barcelona in 2019, according to the city’s tourism activity report.

Germany’s travel warnings are following in the steps by other European countries to limit travel from Spain, especially Britain, which is the largest share of foreign visitors. It has introduced a 14-day quarantine on all arrivals from Spain and recommends it to all but important trips to mainland Spain. Norway also enforces a 10-day quarantine.

France has advised against traveling to Catalonia.

Reporting by Caroline Copley; Additional reporting by Emma Pinedo Gonzalez in Madrid; Editing by Michelle Martin and Peter Graff

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Italy’s GDP dropped 12.4% unprecedented in the second quarter, but better than analysts had feared | Instant News


ROME, (Reuters) – Italy’s economy shrank 12.4% in the second quarter from the previous three months, preliminary data showed on Friday, due to dipping activity during the coronavirus pandemic, but the decline was less severe than many analysts had predicted.

FILE PHOTOS: People wearing protective masks are seen at a supermarket in Posillipo, near Naples, Italy, March 10, 2020. REUTERS / Ciro De Luca

The quarterly slump in gross domestic product (GDP) in the eurozone’s third-largest economy was “unprecedented”, the ISTAT national statistics bureau said.

On a year-on-year basis, second quarter GDP dropped 17.3%, ISTAT said.

Analysts surveyed by Reuters forecast a 15.0% quarter-on-quarter contraction and an 18.7% year-on-year decline.

All segments of the economy suffer, said ISTAT, without giving details.

ISTAT also revised its reading down for the first three months of 2020 to provide a quarterly decline of 5.4% and a 5.5% decline compared to the same period last year. These were previously given respectively 5.3% and 5.4%.

Italy has been one of the hardest hit countries in Europe by Covid-19, recording more than 35,000 deaths since its transmission was revealed at the end of February. Seeking to stop the spread, the government introduced rigid restrictions on trade and travel on March 9, forcing most businesses to close.

The locking has gradually subsided since May 4 and most of the economy is still sick.

Italy’s official estimate is for a full-year GDP contraction of 8% this year, although Economy Minister Roberto Gualtieri said this might need to be revised lower. The Italian bank expects 9.5% negative growth and the European Commission expects the economy to contract 11.2% – the sharpest decline in the 27-nation bloc.

Spain reported earlier on Friday that its GDP contracted 18.5% in the second quarter from the previous three-month period, while in France GDP fell 13.8% and in Germany it fell 10.1%.

The Italian government has announced measures worth 75 billion euros ($ 89.18 billion) to help companies and families overcome the crisis and said it would present an additional 25 billion euro stimulus package in early August.

Reporting by Crispian Balmer

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Italy’s GDP dropped 12.4% unprecedented in Q2, but better than analysts had feared | Instant News


ROME, July 31 (Reuters) – Italy’s economy shrank 12.4% in the second quarter from the previous three months, preliminary data showed on Friday, due to dipping activity during the coronavirus pandemic, but the decline was less severe than many analysts had predicted.

The quarterly slump in gross domestic product (GDP) in the eurozone’s third-largest economy was “unprecedented”, the ISTAT national statistics bureau said.

On a year-on-year basis, second quarter GDP dropped 17.3%, ISTAT said.

Analysts surveyed by Reuters forecast a 15.0% quarter-on-quarter contraction and an 18.7% year-on-year decline.

All segments of the economy suffer, said ISTAT, without giving details.

ISTAT also revised its reading down for the first three months of 2020 to provide a quarterly decline of 5.4% and a 5.5% decline compared to the same period last year. These were previously given respectively 5.3% and 5.4%.

Italy has been one of the hardest hit countries in Europe by Covid-19, recording more than 35,000 deaths since its transmission was revealed at the end of February. Seeking to stop the spread, the government introduced rigid restrictions on trade and travel on March 9, forcing most businesses to close.

The locking has gradually subsided since May 4 and most of the economy is still sick.

Italy’s official estimate is for a full-year GDP contraction of 8% this year, although Economy Minister Roberto Gualtieri said this might need to be revised lower. The Italian bank expects 9.5% negative growth and the European Commission expects the economy to contract 11.2% – the sharpest decline in the 27-nation bloc.

Spain reported earlier on Friday that its GDP contracted 18.5% in the second quarter from the previous three-month period, while in France GDP fell 13.8% and in Germany it fell 10.1%.

The Italian government has announced measures worth 75 billion euros ($ 89.18 billion) to help companies and families overcome the crisis and said it would present an additional 25 billion euro stimulus package in early August.

ISTAT provides the following details:

Q2 2020 Q1 2020 Q4 2019 T / Q (percent change) -12.4 -5.4r -0.2 Y / Y (percent change) -17.3 -5.5r 0.1

r = revised

Keywords: ITALY ECONOMY / GDP

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Soccer-Italia Serie A opposes the decision to sell shares in the media business | Instant News


MILAN, 30 July (Reuters) – Italian Serie A soccer league has postponed the decision on the project to sell minority shares from its media business, because representatives from the country’s top clubs have asked for more time to assess the proposal for private equity funds.

Looking for ways to increase revenue and overcome the coronavirus crisis, Serie A has asked investors to bid to buy up to 15% of shares in newly created media companies that will control broadcast rights.

But sources close to the matter told Reuters several Serie A clubs were reluctant to accept losing their power over this vital business.

Private equity firms CVC, Bain Capital and Advent International have submitted bids for shares in the business, while the credit arms of Apollo, Fortress and Blackstone GSO have made proposals for offering debt or hybrid financing, the source said.

Moreover, Chinese media companies Wanda Sports and Mediapro have submitted separate proposals to create a special Serie A broadcast channel that will distribute more than a number of platforms, the source added.

“We need to judge what is the best way,” Serie A president Paolo Dal Pino told reporters after meeting with top executives from 20 clubs on Thursday.

“We decided to take more time, until August 25, to assess all the opportunities we have at our table,” he said.

Serie A, which relies on broadcast rights for more than half of its income, lags behind the financial heavyweights of the English Premier League, La Liga in Spain and the German Bundesliga. (Reporting by Elvira Pollina; Editing by Mark Potter)

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A2A Italia says a single broadband network is not a priority at the moment | Instant News


FILE PHOTOS: A2A Energy company technicians work in the junction box of downtown Milan, Italy, May 28, 2016. REUTERS / Stefano Rellandini

MILAN (Reuters) – Italian regional utility A2A (A2.MI) has no immediate plans to invest in ultra-fast broadband networks, Chief Executive Renato Mazzoncini said on Thursday.

“We will present a new industry plan at the end of the fall and we will see it later. Now this is not a priority for us, “Mazzoncini told a conference call about the results of the group’s first round.

Earlier this week, two people familiar with the matter told Reuters that both A2 and Comcast units were considering investing in Italy’s single ultra-fast broadband network.

Reporting by Giancarlo Navach; editing by James Mackenzie

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China warns Britain: You have no future if you try to put China aside | Instant News


LONDON (Reuters) – The Chinese ambassador to London frankly warned Britain on Thursday that they have no future if they try to separate themselves from the communist state.

“It’s hard to imagine a ‘Global Britain’ that bypasses or excludes China, separating from China means separating from opportunities, separating from growth and separating from the future,” Chinese ambassador to London Liu Xiaoming told reporters.

He said Britain would “pay the price” if it wanted to treat China as a hostile country.

Reported by Guy Faulconbridge and Kate Holton

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Italy The June unemployment rate rose to 8.8% due to 46,000 lost jobs -ISTAT | Instant News


ROME, July 30 (Reuters) – Italy’s unemployment rate rose to 8.8% in June from an upwardly revised 8.3% the previous month, data showed on Thursday, as around 46,000 jobs were lost in the ongoing coronavirus crisis, the statistics bureau national ISTAT report.

The May rate was previously reported as 7.8% and ISTAT said health emergencies prove an obstacle to collecting data. A survey of nine Reuters analysts predicted the June unemployment rate of 8.6%.

June is the fourth month of employment data to reflect the impact of the Italian corona virus outbreak that emerged in late February.

“Since February 2020, employment rates have fallen by around 600,000 and job seekers have fallen by 160,000, while the number of inactive people has increased by more than 700,000,” ISTAT said.

Government locking measures aimed at controlling infection put the economy on its knees, with most companies closed throughout March and April.

The unemployment rate fell in the two months because people stopped looking for work, reaching a multi-year low of 6.6% in April. The next increase in May and June reflects the end of the gradual closure that allowed Italians to return to the labor market.

Only people who are actively looking for work are calculated against the unemployment rate.

Seeking to prop up the labor market, the government has banned companies from firing people until mid-August and has supported a temporary layoff scheme to help companies overcome the crisis.

However, in the April-June period, 459,000 jobs were lost compared to the previous three months, ISTAT said.

In June, the youth unemployment rate, which measures job seekers aged between 15 and 24 years, rose to 27.6% from a revised 25.6% in May. The previous month’s figure was given as 23.5%.

Italy’s overall employment rate, one of the lowest in the euro zone, slipped in June to 57.5% from 57.6% in May.

The government has promised more than 75 billion euros in financial support for companies and families, and Economy Minister Roberto Gualtieri has repeatedly said that “no one should lose their jobs because of the corona virus”.

In the first quarter of this year, gross domestic product dropped 5.3% due to a virus outbreak, the steepest quarterly decline since the current series began in 1995.

The second quarter, which contains more days affected by the lockdown, is expected to send a steeper decline, with data coming out on Friday. Economists predict a partial rebound during the second half of 2020.

ISTAT provides the following data:

JUNE MAY APRIL MARCH EMPLOYMENT LEVELS 8.8 8.3r 6.8r 8.4r = YOUTH UNEMPLOYMENT LEVEL (15-24) 27.6 25.6r 23.6r 27.4r EMPLOYMENT LEVELS (15-64) 57.5 57.6 57.9 r = revised (Reporting by Crispian Balers)

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Brembo Italia increased ownership in Pirelli to 4.99%, ending the purchase | Instant News


FILE PHOTOS: Brembo logo seen at its headquarters in Bergamo, Italy October 7, 2019. REUTERS / Flavio Lo Scalzo

MILAN (Reuters) – Italian brake maker Brembo (BRBI.MI) said on Wednesday that he would not buy additional shares in tyremaker Pirelli (PIRC.MI) after increasing its ownership to almost 5%.

Brembo, which makes brakes for car makers including Ferrari (RACE.MI) and Tesla (TSLA.O) as well as several Formula One teams, said they now hold a 4.99% stake in Pirelli, both directly and indirectly through Nuova FourB’s parent company, and have completed the buying process.

Brembo Deputy Chief Executive Matteo Tiraboschi on Wednesday told Reuters that the company has no plans to increase its current ownership, and has no desire to play a role in the Pirelli administration.

“We have invested, which we have decided before the COVID-19 outbreak, in a company that we know and are very respectful of, with a market positioning very similar to ours,” he said.

Brembo said in March that they had bought a 2.43% stake in Pirelli with a “non-speculative long-term approach”.

This surprise move heightened speculation that this could be the first step towards the integration of the two groups in the future – both focused on premium market segments – to create an Italian heavyweight in the supply of auto parts.

Pirelli, whose tires are used by racing teams and Formula One car makers like BMW (BMWG.DE) and Audi (NSUG.DE), are not available for comment.

Pirelli is controlled by ChemChina and China’s Silk Road Fund, which together hold about 46% and are linked by a shareholder agreement that ends in 2023 with Camfin, investment vehicle for Pirelli Ececutive Chief Marco Tronchetti Porvera, which has a stake of just over 10%.

Tronchetti Porvera previously said there were no plans to merge with Brembo and move to strengthen its influence on the tyremaker with Camfin in May agreeing with the Niu China family to create a joint venture that could allow him to control an 18% stake in Pirelli.

Reporting by Giulio Piovaccari; edit by James Mackenzie, Emelia Sithole-Matarise, Kirsten Donovan

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The Italian government won Senate support to increase the 2020 deficit | Instant News


FILE PHOTOS: Italian Prime Minister Giuseppe Conte speaks at the upper house of parliament about coronavirus (COVID-19) in Rome, Italy, 28 July 2020. REUTERS / Remo Casilli

ROME (Reuters) – The upper house of the Italian parliament on Wednesday authorized the government to increase the 2020 budget deficit, paving the way for approval in early August of the latest stimulus package aimed at helping the economy overcome the coronavirus crisis.

The new measures, worth a total of 25 billion euros (22.6 billion pounds), will push Italy’s fiscal gap to 11.9% of national output, versus the 10.4% goal set in April and the 1.6% figure reported in 2019, the lowest in 12 years.

Rome sees its public debt, the second highest in the euro zone after Greece, rising to 157.6% of GDP this year.

The Senate endorsed deficit requests with 170 fourth votes in 319 seats, with right-wing opposition parties abstaining. The lower house, where the coalition has a much bigger majority, will vote on the size later on Wednesday.

Italy has said additional spending will be used to increase funding for education and local authorities, to help workers who were temporarily laid off during the crisis and to help the tourism and automotive sectors.

Speaking to lawmakers before the vote, Economy Minister Roberto Gualtieri also pledged to extend a moratorium on home loan payments which will now end in September.

New measures come on top of the around 75 billion euros that have been mobilized to help businesses and families. Overall, Rome plans to pledge up to 212 billion euros including state guarantees for bank loans, although only part of this amount is expected to be spent.

The size of the planned additional deficit can be reviewed later this year, because Italy hopes to load up to 10% of the money that can be received from European recovery funds starting in 2021.

Prime Minister Giuseppe Conte announced this week that Italy would send Europe a national recovery plan in mid-October.

Reporting by Giuseppe Fonte; Editing by Alexandra Hudson

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