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☆ Moody's lifts Italy's debt outlook to stable in boost for Meloni govt
▼ + stars: | 2023-11-17 | by ( ) www.reuters.com time to read: +2 min

Nov 17 (Reuters) - Moody's on Friday left Italy's sovereign debt rating at Baa3, one notch above junk, but upgraded the outlook to stable from negative, in an unexpected boost for Prime Minister Giorgia Meloni's government. Most analysts had expected the agency to leave both Italy's rating and outlook unchanged. Moody's had put the euro zone's third-largest economy on a negative outlook in August last year following a government collapse and in the midst of an energy crisis. "The decision to change the outlook to stable from negative reflects a stabilisation of prospects for the country's economic strength, the health of its banking sector and the government's debt dynamics," Moody's said. The European Commission forecast on Wednesday that Italy's debt, proportionally the second-highest in the euro zone, would rise marginally from a projected 140% of national output this year to 141% in 2025.

Persons: Giorgia, Moody's, DBRS, Fitch, Giancarlo Giorgetti, Gavin Jones, Keith Weir, Shounak Dasgupta, Rosalba O'Brien Organizations: P, Economy, Analysts, Saikeerthi, Thomson Locations: Italy, Germany, Bengaluru

☆ Italy Finance Minister evokes default risk to defend bank measures
▼ + stars: | 2023-11-14 | by ( Giuseppe Fonte | ) www.reuters.com time to read: +2 min

Minister of Economic Development Giancarlo Giorgetti attends the first voting session at the lower house of parliament to elect the new speaker in Rome, Italy, October 13, 2022. "In two or three years' time, when I may not be around but there will be a default crisis, perhaps someone will say that our government was not so crazy," Giorgetti said, without giving further details of this scenario. The average default rate for Italian companies rose for the first time in nearly decade in 2022 to stand at 2.4% in December, compared with a record low of 1.6% in December 2021, credit data company CRIF said last month. The rate has edged up in the first half of 2023 to 2.5%, CRIF added, forecasting it could get to 3% by the end of 2023. ($1 = 0.9346 euros)Additional reporting by Valentina Za in Milan; Editing by Gareth Jones and Alexander SmithOur Standards: The Thomson Reuters Trust Principles.

Persons: Giancarlo Giorgetti, Guglielmo Mangiapane, Giorgetti, CRIF, Valentina Za, Gareth Jones, Alexander Smith Organizations: Economic, REUTERS, Italian Economy, Hamas, Thomson Locations: Rome, Italy, ROME, Italian, Europe, Israel, Ukraine, Milan

☆ IPO laggards’ race to the bottom misses the target
▼ + stars: | 2023-11-10 | by ( Lisa Jucca | ) www.reuters.com time to read: +5 min

A view shows the Milan stock exchange building, as stocks slid in the first hours of trading after fears that the collapse of Silicon Valley Bank could trigger a broader financial crisis, in Milan, Italy, March 13, 2023. REUTERS/Claudia Greco Acquire Licensing RightsMILAN, Nov 10 (Reuters Breakingviews) - Italy is scrambling to make its stock market more attractive. Over the past few years, some prominent companies have moved their listing venue abroad. Companies rushing to list in the Netherlands are no doubt attracted by its lax approach to companies with dual voting share classes. Doubts over the sustainability of Rome’s high public debt push up listed companies’ cost of capital, depressing their valuations and making the stock market less appealing.

Persons: Claudia Greco, Giorgia, Rishi, Agnelli, Neil Unmack, Oliver Taslic Organizations: REUTERS, Reuters, Ministry, Companies, Reuters Graphics Reuters, Financial, Thomson Locations: Milan, Silicon, Italy, Amsterdam, New York, Paris, Italian, Netherlands, Britain, United States, London

☆ Europe is at an impasse over fiscal reform — and Italy's bond market may have the most to lose
▼ + stars: | 2023-11-01 | by ( Silvia Amaro | ) www.cnbc.com time to read: +3 min

The 27 member states of the EU have been at odds over new debt rules for several months. "Higher perceived risk of a return to old, stringent fiscal rules forcing a faster deficit reduction would worsen medium-term growth expectations for the EU, weighing on the euro. The old rulesEuropean member states have had to comply with fiscal rules that require they respect a 60% debt-to-GDP threshold and a public deficit of 3%. In 2020, the fiscal rulebook was frozen so member states could deviate from their fiscal targets and spend on pandemic-related matters, such as protecting jobs. And with Russia's invasion of Ukraine in 2022, the fiscal rules were kept on hold because governments were faced with new energy costs and inflationary pressures.

Persons: Giorgia Meloni, Antonio Masiello, Davide Oneglia, Oneglia, Goldman Sachs Organizations: Italian, Getty, European Union, Lombard, Goldman, European Commission Locations: Italy, Ukraine

The government last week revisited a 40% tax on banks' net interest margin (NIM) that it had introduced in a shock move in August. Lenders now have the option to boost reserves by an amount equivalent to 2.5 times the tax. Economy Minister Giancarlo Giorgetti said on Sept. 27 the final outcome of the process would be "a great bank policy measure" that makes Italy's banks the strongest in Europe. The law requires banks that forego the tax to set aside money under ad hoc reserves in their accounts. If forced to boost capital through the ad hoc reserves, banks can use larger buybacks over time to compensate shareholders, one of the sources said.

Persons: Giancarlo Giorgetti, Remo Casilli, Banks, Luigi Lovaglio, Andrea Orcel, Giorgia Meloni, Giorgetti, Bernadette Baum Organizations: REUTERS, Treasury, Economy, European Central Bank, Monte, Thomson Locations: Rome, Italy, ROME, Europe, Monte dei, Siena

Italian Economy Minister Giancarlo Giorgetti gestures during a confidence vote over the 2023 budget at the lower house of the parliament, in Rome, Italy December 23, 2022. "The government plans to maintain the forecasts of 1% in 2023, but inevitable external variables are radically changing the picture," Giorgetti said, speaking at The European House-Ambrosetti economic forum. The total cost of the so-called Superbonus originally introduced in 2020 is approaching 100 billion euros ($107.73 billion), the source added. With interest rate hikes by the European Central Bank to curb inflation dampening economic activity, Rome's growth target of 1.5% next year is increasingly at risk, economists say. As Italy is preparing a difficult 2024 budget, Giorgetti reiterated the commitment to keeping the deficit on a downward trend, leaving little leeway for stimulus.

Persons: Giancarlo Giorgetti, Remo Casilli, Giorgetti, Giuseppe Fonte, Giancarlo Navach, Giselda Vagnoni, Susan Fenton Organizations: REUTERS, European Central Bank, European Union, Thomson Locations: Rome, Italy, CERNOBBIO, Cernobbio, Ukraine

☆ EU's Gentiloni confident over budget rule deal by year-end deadline
▼ + stars: | 2023-09-02 | by ( ) www.reuters.com time to read: +2 min

EU Economic Commissioner Paolo Gentiloni holds a news conference on the European Commission's economic forecasts for the EU for 2023 and 2024 on GDP and inflation, in Brussels, Belgium February 13, 2023. REUTERS/Johanna Geron/File Photo Acquire Licensing RightsCERNOBBIO, Italy, Sept 2 (Reuters) - European Union Commissioner for Economy Paolo Gentiloni said on Saturday he was confident an agreement over re-implementing EU budget rules would be reached by year-end, ruling out an extension of their suspension into 2024. "I'm confident, I'd say I have to be confident, that a deal (over the new budget rules) can be reached by year-end," Gentiloni told reporters on the sidelines of the European House Ambrosetti economic forum in Cernobbio. Italy is preparing a difficult 2024 budget in which it will seek to meet Prime Minister Giorgia Meloni's tax-cutting promises while at the same time reducing the deficit while faced with an economic slowdown. Gentiloni said failing to reach a deal on reviving the rules would mean a return to previous budget rules that did not help promote economic growth and cut sovereign debt in the bloc.

Persons: Paolo Gentiloni, Johanna Geron, Gentiloni, Giancarlo Giorgetti, Giorgia, Christine Lagarde, Elvira Pollina, Giselda, Tomasz Janowski, Helen Popper Our Organizations: EU, REUTERS, Union, House, Italian Economy, European Commission, European Central Bank, ECB, Thomson Locations: Brussels, Belgium, Italy, Ukraine

☆ Italy windfall tax: European bank stocks bounce after tax blow is watered down
▼ + stars: | 2023-08-09 | by ( Anna Cooban | ) edition.cnn.com time to read: +2 min

London CNN —Banking stocks in Italy and elsewhere in Europe rebounded Wednesday after the country watered down a plan to whack its banks with a surprise one-off 40% tax on their windfall profits. The government’s climbdown eased investors’ fears over European banks more broadly. The Stoxx Europe 600 Banks index, which tracks 42 big banks in the European Union and the United Kingdom, gained 1.7% after shedding 3.5% the previous day. Late Monday, the government said it would impose a one-off windfall tax of 40% and would use the proceeds to support first-time home buyers and cut taxes for families and businesses. Several European countries, including Spain and the Czech Republic, have announced taxes on banks’ windfall profits in the past year as interest rate hikes by central banks have beefed up many lenders’ earnings.

Persons: ’, Giancarlo Giorgetti, Remo Casilli, Jeremy Hunt, Moody’s Organizations: London CNN — Banking, Banco, European Union, Reuters, Deutsche Bank, DB, Bank Locations: Italy, Europe, United Kingdom, Rome, Spain, Czech Republic

☆ Italy's Brembo wary of getting dragged into Pirelli's China dispute
▼ + stars: | 2023-06-21 | by ( Giulio Piovaccari | ) www.reuters.com time to read: +3 min

Rome's move will limit the influence of its largest investor, China's Sinochem which has a 37% stake. China is the third-largest market for Bergamo-based Brembo, after the United States and Germany. "If China should somehow retaliate, it wouldn't be just Brembo to suffer, but the whole Italian economy," the source said, referring to the extensive business interests of Italian companies in China. PUTTING THE BRAKES ONAnalysts have speculated about a possible long-term plan to merge Brembo and Pirelli, two of Italy's largest components suppliers in the automotive industry. Pirelli has a market cap of around 4.5 billion euros ($4.9 billion), broadly in line with 4.8 billion euros for Brembo.

Persons: Brembo, Camfin, Marco Tronchetti Provera, Sinochem, Gold, Carlo Alberto Carnevale Maffè, Tronchetti, They've, Giulio Piovaccari, Keith Weir, Sharon Singleton Organizations: MILAN, Pirelli, Reuters, Gold Phoenix, Bocconi University's School of Management, Thomson Locations: China, Bergamo, United States, Germany, Rome, Netherlands

Foreign holdings of Italian government paper increased in February after 10 consecutive monthly declines, according to Bank of Italy data. "This is a magic moment for Italian bonds," he told Reuters. The share of Italian government debt held by foreign investors fell to below 20% at the end of 2022 from around 50% before the 2008 financial crisis, Bank of Italy data shows. The Italian Treasury has already taken steps to shore up demand for its bonds as the ECB retreats, by boosting purchases among domestic households and companies. Together, Italian families and firms now hold around 215 billion euros, or 9%, of Rome's debt, UniCredit's Cazzulani said, the highest level since mid-2015.

☆ Rome foot-dragging can help EU kick bad aid habits
▼ + stars: | 2023-04-18 | by ( Rebecca Christie | ) www.reuters.com time to read: +7 min

Italian Prime Minister Giorgia Meloni is trying to pry out 19 billion euros in EU pandemic aid. Economic conditions have changed a lot since it launched its 800 billion euro pandemic recovery plan in 2020. With 191.5 billion euros requested in grants and loans, it is in line to receive more EU pandemic aid money than any of its peers, and 67 billion euros has already changed hands. EU member states approved public borrowing of about 800 billion euros to fund the aid programme. Total commitments come to only about 508 billion euros, according to a dataset maintained by the Brussels-based Bruegel think tank.

☆ Italian bank loans to firms fall as demand weakens: central bank
▼ + stars: | 2023-04-07 | by ( ) www.reuters.com time to read: +1 min

April 7 (Reuters) - Bank loans to companies in Italy declined sharply between November and February as demand weakened and interest rates rose, the Bank of Italy said on Friday. In the three months to February loans to the non-financial sector fell overall by 3.2% year-on-year, driven down by 7.5% drop in credit to companies, the Bank of Italy said in its quarterly bulletin. Between November and February the average interest rate on new bank loans to firms increased by 60 basis points (0.6%) to 3.6%, the central bank said. Loans to families in the three months to February edged down by 0.1% year-on-year, as demand for house mortgages declined, it added. Reporting by Alberto Chiumento, Luca Fratangelo, editing by Gavin Jones andOur Standards: The Thomson Reuters Trust Principles.

☆ Italian minister warns ECB of risk from higher interest rates
▼ + stars: | 2023-04-01 | by ( Federico Maccioni | ) www.reuters.com time to read: +1 min

CERNOBBIO, Italy, April 1 (Reuters) - The outlook for the Italian economy is improving but higher interest rates designed to curb inflation could pose a threat to growth, Italy's economy minister said on Saturday, sending a warning to the European Central Bank (ECB). "Fighting inflation with monetary policy is not enough, recession cannot be the price paid for fighting inflation," Giancarlo Giorgetti said. Giorgetti is from the League party which last month criticised the ECB for pushing ahead with its latest 50 basis point rate increase despite turmoil in the banking sector. He added it would be difficult for the European Union when it comes to reintroducing budget rules that remain suspended until the end of 2023. Reporting by Giancarlo Navach and Federico Maccioni, Writing by Keith Weir Editing by Emelia Sithole-Matarise and Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ Wealthy G7 nations gearing up for new volley of sanctions on Russia
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +2 min

Leaders of the bloc of developed nations will meet virtually on Friday with Ukrainian President Volodymyr Zelenskiy to mark the one-year anniversary of Russia's invasion, and are expected to announce the sanctions package. Current G7 president Japan said it was considering new measures, without giving any details, and called for a unified stance towards Moscow. "Russia is refusing to change their hardline stance," Japanese Prime Minister Fumio Kishida said at a news conference to mark the anniversary. India, which has maintained a neutral stance on the conflict, does not want the G20 to discuss additional sanctions on Russia. Speaking at the G20, U.S. Treasury Secretary Janet Yellen accused Russian officials of being "complicit" in atrocities in Russia's invasion of Ukraine.

[1/2] FILE PHOTO-Planes of German air carrier Lufthansa are parked as Lufthansa pilots start a strike over a wage dispute, at the airport in Frankfurt, Germany, September 2, 2022. REUTERS/Kai PfaffenbachROME/FRANKFURT, Jan 18 (Reuters) - German carrier Lufthansa (LHAG.DE) said on Wednesday it had offered to buy an minority stake in ITA Airways, betting on reviving the loss-making successor to Italy's Alitalia and expanding its footprint in Europe. One of the sources said it was valued at 200-300 million euros ($540 million). The new right-wing administration in Rome passed a decree in December to initially sell a minority stake through capital increases, in order to speed up a full divestment in ITA. "Acquiring ITA is one of the most challenging propositions in European aviation: the airline has been persistently loss-making," said Bernstein analyst Alex Irving.

[1/2] FILE PHOTO-Planes of German air carrier Lufthansa are parked as Lufthansa pilots start a strike over a wage dispute, at the airport in Frankfurt, Germany, September 2, 2022. REUTERS/Kai PfaffenbachBERLIN/ROME, Jan 18 (Reuters) - German carrier Lufthansa (LHAG.DE) said on Wednesday it had offered to buy an initial minority stake in ITA Airways, Italy's state-owned successor to Alitalia. Lufthansa said Italy is the most important market outside of its existing home markets and the United States, noting its prominence as both a business and tourism destination. The move comes after the new right-wing administration in Rome passed a decree in December to initially sell a minority stake through capital increases, in order to speed up a full divestment in ITA. Beside its domestic German business, Lufthansa already operates the brands Swiss, Austrian Airlines and Brussels Airlines.

ROME, Dec 17 (Reuters) - The prospect of subsequent hikes in interest rates by the European Central Bank is worrying for highly indebted countries like Italy, its economy minister said on Saturday. "We have benefited as a country for several years of a favourable situation, with interest rates close to or below zero, and this is now changing," Economy Minister Giancarlo Giorgetti said speaking at an event in Rome. Ministers of the Italian rightist government criticised the European Central Bank, which raised the financial pressure on one of the euro zone's most indebted countries. Deputy Prime Minister and League leader Matteo Salvini branded the ECB's conduct "unbelievable, baffling, worrying", while Defence Minister Guido Crosetto said the move risked helping Russia to undermine Western solidarity for Ukraine. "Some Italian companies are considering moving production to the U.S. following the IRA scheme, it would be a disaster."

☆ Energy price fall by March is unrealistic, Italian economy minister says
▼ + stars: | 2022-12-17 | by ( ) www.reuters.com time to read: 1 min

ROME, Dec 17 (Reuters) - Italian Economy Minister Giancarlo Giorgetti said on Saturday it was unrealistic to expect energy prices to fall by March and that the war in Ukraine will come to an end. He told an event in Rome that Italy was studyng a mechanism to shield households and business from soaring energy bills, which could enter into force next spring. Reporting by Angelo Amante and Giuseppe Fonte, Editing by Angus MacSwanOur Standards: The Thomson Reuters Trust Principles.

☆ Biden's climate plan strains trade ties with Europe
▼ + stars: | 2022-12-06 | by ( Anna Cooban | ) edition.cnn.com time to read: +7 min

The European Union and United States — together responsible for one third of global trade — have been at loggerheads in recent weeks over US President Joe Biden’s landmark $370 billion climate plan. While a trade war is unlikely, the plan is testing the transatlantic alliance and pushing Europe to consider mobilizing its own package of subsidies. The IRA is now law, and there is little appetite to bring it back to Congress to make substantive changes, he told CNN Business. The European Union has a couple of options at its disposal, analysts told CNN Business. On Monday, Italian Economy Minister Giancarlo Giorgetti said that the bloc should create its own “European IRA plan,” according to a Reuters report.

☆ Italy urges EU subsidy package in response to U.S. IRA scheme
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: +1 min

ROME, Dec 5 (Reuters) - Italian Economy Minister Giancarlo Giorgetti on Monday called for a common European Union approach to support competitiveness and protect strategic production, in response to the massive subsidies in the United States' Inflation Reduction Act (IRA). The EU fears that the $430 billion IRA scheme, with its generous tax breaks for domestic production of energy sector components, may lure away EU businesses and disadvantage European companies, from car manufacturers to makers of green technology. "We are in favour of a European IRA plan with the objective of reducing inflation," Giorgetti said in a statement issued on the sidelines of a meeting with fellow euro zone finance ministers in Brussels. Giorgetti said the EU should act in a united fashion rather than follow a country-by-country approach. Reporting by Giuseppe Fonte; Editing by Gavin Jones and Sandra MalerOur Standards: The Thomson Reuters Trust Principles.

☆ Italy names former Treasury official to head ITA Airways
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Remo CasilliROME, Nov 16 (Reuters) - The Italian economy ministry on Wednesday said it would appoint former Treasury official Antonino Turicchi as chairman of state-owned carrier ITA Airways, the successor to Alitalia. At ITA Airways, he will take the place of Alfredo Altavilla, who resigned earlier this month after a clash with several board members over strategy to complete the privatisation of the airline. The exclusivity period ended last month but talks over a potential sale agreement are continuing. Confirming a Reuters report on Tuesday, the Treasury said in a statement it would appoint Turicchi at an ITA Airways shareholders' meeting on Wednesday. Turicchi had recently been indicated by political sources as a potential candidate to replace Alessandro Rivera as director-general of the Treasury.

☆ Italy seeing strong growth and political clarity: Illimity Bank CEO
▼ + stars: | 2022-11-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailItaly seeing strong growth and political clarity: Illimity Bank CEOCorrado Passera, CEO of illimity Bank, discusses the lender's third-quarter earnings, his outlook for the Italian economy, and how two decades of work have prepared the Italian banking sector for challenges ahead.

She told reporters she would spend more than nine billion euros on an anti-inflation package in a decree next week. The government raised Italy's GDP growth forecast for this year to 3.7% from 3.3% on the back of stronger expected expansion in the third quarter, while leaving the 2023 forecast unchanged at 0.6%. RECORD INFLATIONThe Treasury's targets will form the framework for the 2023 budget that Meloni will present to parliament this month for approval by the end of the year. Public finances this year have gone better than forecast, with value added tax revenues and excise duties boosted by inflation and surging energy prices. Giorgetti said Italy's public debt, proportionally the highest in the euro zone after Greece's, will fall steadily from the 150.3% of GDP level registered in 2021 to 141.2% in 2025.

☆ UniCredit ups 2022 profit goal after Q3 earnings beat
▼ + stars: | 2022-10-26 | by ( Valentina Za | ) www.reuters.com time to read: +2 min

MILAN, Oct 26 (Reuters) - Italy's No.2 bank UniCredit (CRDI.MI) on Wednesday raised its 2022 profit goal above 4.8 billion euros ($4.8 billion), helped by higher interest rates and lower loan loss provisions that also drove quarterly earnings above forecasts. UniCredit posted a profit for July-September of 1.71 billion euros, well above analysts' consensus forecast of 1.00 billion euros provided by the bank. UniCredit had already improved its 2022 guidance in July, indicating a net profit target of around 4 billion euros. Quarterly earnings were also boosted by much higher than expected trading income, which UniCredit said had been helped by companies' demand for hedging products. The erosion reflects a second share buyback UniCredit is carrying out as it hits a goal of returning 3.75 billion euros of last year's earnings to shareholders.

☆ Key moments from Italian PM Meloni's maiden speech
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +6 min

ROME, Oct 25 (Reuters) - New Italian Prime Minister Giorgia Meloni unveiled her policy priorities in her maiden speech to the lower house of parliament on Tuesday. "It will be necessary to maintain and strengthen national measures to support households and businesses, both on bills and fuel. ECONOMY/TAXES/PENSIONS"The context in which the government will have to act is very complicated, perhaps the most difficult since World War Two." "Our firms are asking above all for less bureaucracy ... we need fewer rules but rules that are clearer for everyone." "We do not intend in any way to question the right of asylum for those fleeing war and persecution."

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