Showing posts with the label Europe Economy

Europe | Italy's Economy:Italy's credit rating downgraded to one notch above junk by Fitch

Holly Ellyatt 4-5 minutos Elias Kordelakos photography | Flickr | Getty Images Italy’s credit rating has been downgraded to one notch above junk level by Fitch ratings agency as the coronavirus hurts Italy’s already fragile economy further. Fitch downgraded Italy’s credit rating from ‘BBB’ to ‘BBB-’, just one level above its junk rating, reflecting increasing doubts around Italy’s credit-worthiness as it tries to recover from the economic and societal damage inflicted by the coronavirus. The ratings agency said the downgrade reflects “the significant impact of the global COVID-19 pandemic on Italy’s economy and the sovereign’s fiscal position.” Fitch forecast that Italy’s economy will contract by 8% in 2020 and said the risks to this baseline forecast are tilted to the downside, as it assumes that the coronavirus can be contained in the second half of the year, leading to a relatively strong economic recovery in 2021. Bu

Europe Economy: ECB hawks are trying to downplay the chances of a huge stimulus package in September

Silvia Amaro , Matt Clinch 4 minutes - Source: CNBC FMario Draghi (C), president of the European Central Bank (ECB)speaks flanked by Luis de Guindos, vice president of the European Central Bank (ECB), and Christine Graeff, director general for communications to the media following a meeting of the ECB Governing Council at ECB headquarters of March 7, 2019 in Frankfurt, Germany. Thomas Lohnes | Getty Images Two top officials have tried to temper market expectations of an immediate quantitative easing (QE) package being launched by the European Central Bank (ECB) . Earlier in the summer, ECB President Mario Draghi said he was looking at further options to prop up the 19-member euro zone economy, outlining that one of the possibilities included a new program of asset purchases to stimulate lending and boost inflation. Investors cheered his dovish comments with ECB members like François Villeroy de Galhau highlighting that a m

Europe Economy: Sterling rises as Germany's Merkel comments on possible Brexit solution

Matt Clinch, Spriha Srivastava 3-4 minutes - Source CNBC German Chancellor Angela Merkel speaks at the 100-years anniversary celebration of prosthesis maker Ottobock SE in Duderstadt, Germany, February 18, 2019. Ralph Orlowski | Reuters Sterling hit a three-week high against the dollar Thursday after German Chancellor Angela Merkel said a solution to the Irish “backstop” is possible before the October 31 Brexit deadline. “I said that what one can achieve in three or two years can also be achieved in 30 days. Better said, one must say that one can also achieve it by October 31,” Merkel told a news conference in the Hague. Her comments build on a speech Wednesday alongside U.K. Prime Minister Boris Johnson when she suggested that both sides could find a solution to the Irish backstop in the next 30 days. This was seen as signal that she was willing to compromise with Johnson and the extended deadline from her comments on