Markets News 

Italian bonds cheer reports on end of budget deficit debate

“Talking about Italy’s debt problems” reports forexlive.com. With the news above, the yields spread between Italian and German 10-year bonds have also tightened to 259 bps on the day.All this of course comes after the reports of the European Commission said to have accepted Conte’s proposal of a deficit target of 2.04% next year.While all this budget news may sound positive on the front of it, let’s not forget that at the end of the day, a target is after all just a ‘target’. Source: forexlive.com Share This:

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The budget battle may be coming to an end…

“A ‘bottomless’ budget deficit, paired with such a level of debt does pose significant risk” reports forexlive.com. Would a budget deficit increase to 2.4% of the GDP, be of any help?. Disaster struck, as Italy announced its plans earlier this year to run a budget deficit of 2.4% of GDP not only for 2019, but also for two consecutive years thereafter.Through stronger growth – higher tax revenues and a lower deficit could be achieved over the course of a few years.Drowning in political and economic crisis, some already started to…

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News Oil 

Indonesia’s trade deficit in November reaches widest since July 2013

“The movement of the exchange rate in domestic market remains manageable and the trade deficit was supported by returning foreign inflows,” Gunarto said” writes unknown author for cnbc.com. The rupiah weakened slightly after the trade data to 14,620 a dollar at 0545 GMT, from 14,600 before the announcement.Indonesia posted its widest monthly trade deficit in over five years in November as exports, especially that of palm oil and pulp, slumped, data from the statistics bureau showed on Monday.Fakhrul Fulvian, economist at Trimegah Sekuritas, said the worse-than-expected trade deficit would “lower…

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US budget deficit hits record $204.9 billion for November

“The $204.9 billion deficit last month was the biggest deficit ever recorded in November, a month when the government normally runs a deficit” reports thebusinessjournal.com. (AP) — The federal budget deficit surged to a record for the month of November of $204.9 billion, but a big part of the increase reflected a calendar quirk.Last year’s budget deficit totaled $779 billion.For the first two months of this budget year, the deficit totals $305.4 billion, up 51.4 percent from the same period last year.In its monthly budget report, the Treasury Department said…

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Trump is failing to achieve one of the biggest goals of his trade war, and he only has himself to blame

“One of the President Donald Trump’s biggest goals for the trade war was to reduce the US’s trade deficit with China” writes Bob Bryan for businessinsider.com. “The trade deficit with China stands at an all-time high,” the pair wrote in a note to clients on Thursday.But according to Goldman Sachs economists Blake Taylor and Alec Phillips, the ever-increasing US-China trade deficit is actually because of the tariffs.”Declining exports alongside modestly increasing imports pushed the trade deficit with China to an all-time high in October.”. The economists said there are two…

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Here are 121 ways to get the nation’s fiscal house in order

“New left-leaning House Democrats in fact argue the country has to increase spending, particularly on domestic priorities” writes D C for marketwatch.com. It might be the Congressional Budget Office’s “options for reducing the deficit,” with the government budget agency on Thursday posting 121 different ways to curtail red ink. Related: U.S. budget deficit jumps to $205 billion in November. The CBO estimates the deficit will grow to $973 billion this year from $779 billion, and reach as high as $1.53 trillion by 2028. Source: marketwatch.com Share This:

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Italy’s Tria to be in Brussels today for budget talks

“Yesterday, it was announced that Italy has proposed a revised budget deficit of 2.04% ; one which will likely be approved by the European Commission” reports forexlive.com. If Italy’s government still insists on carrying out their fiscal measures to keep election promises, they’re more than likely to exceed the deficit target next year and it’ll spark another debate on the Italian debt situation again. Source: forexlive.com Share This:

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Rome and EU could be ready to compromise over Italy’s spending plans, local media reports

“Meanwhile, it said that Italy’s Finance Minister Giovanni Tria was ready to target a budget deficit of 2 percent for 2019” writes Holly Ellyatt for cnbc.com. La Repubblica newspaper reported Tuesday that the European Commission is willing to accept an increase in Italy’s deficit target to 1.95 percent for next year.Although not an agreement over the budget deficit targeted by Italy in 2019, the report suggests that both sides are willing to compromise after Italy’s spending plans put it on a collision course with Brussels. Source: cnbc.com Share This:

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Italy’s Conte reportedly aiming for 2.1% budget deficit target

“It sure looks like Conte has given up on trying to convince Salvini and Di Maio to get the deficit target below the 2.0% mark” reports forexlive.com. However, with the report saying that the European Commission is demanding the deficit target below the figure level it’s hard to see how anything higher would be approved.Update: Il Messaggero now reports that Salvini and Di Maio are refusing to accept a budget deficit target below 2.2%. Source: forexlive.com Share This:

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Philippines’ October trade deficit widens to record $4.2 billion 

“The Southeast Asian country’s trade deficit in January-October widened to $33.9 billion, compared with a $20.1 billion gap in the same period last year, government data showed” writes Dondi Tawatao I for cnbc.com. With the Philippine government expected to import more infrastructure-related goods for its massive “Build, Build, Build” program, the trade deficit is expected to remain a challenge for the economy.The Philippines posted its largest trade deficit on record in October, driven by double-digit increases in imports of intermediate and capital goods, which is expected to put more pressure…

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