Our editorial team does not receive direct compensation from our advertisers. Italy is of course a much larger economy and (I was surprised to learn) actually a slight net contributor to the EU. But it’s expensive to provide decent care for the very frail, even at the minimum wage. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Oh and as to Eurobonds well actually they do exist. “What’s happening to us right now is not being driven by a market failure,” Olsen adds. Joblessness rose to 14.7 percent in April, the largest month-to-month increase on record. ( Reuters). Total EU spend in Italy – € 10.337 billion No Rush Purchases as Japan Expects Another Sales Tax Hike. Get today's stock futures, stock market commentary, stocks to watch, analyst upgrades and more. Forgive me if your opening sentance was sarcasm, but Italy most definitely does have a regular flu/pneumonia spike that causes thousands of deaths each year. “If financial markets were still stressed, that’s what would blow those dominos down even faster,” Azzarello says. If the U.S. economy resembled any object, it’d likely be a broken traffic light. States nationwide enacted stay-at-home orders forcing businesses, restaurants, offices and retailers to close, eroding consumption and putting what’s perhaps 1 in 4 U.S. workers on unemployment benefits. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. So who pays and how do they afford it? Facebook Twitter Reddit Email RSS Feed Newsletter Donate. More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. Coronavirus cases first started resurging in Texas, Florida, Georgia and Arizona. The most important stories happening in the world right now… Ignoring information and productivity (Photo: Getty) A new report from scientists states that ignoring information is actually liable to make you more productive and efficient in the long run. Given that the coronavirus is the root of these problems, it might not come as a surprise that you should watch case counts across the U.S. and world, as well as hospitalization rates. If Italy had been reasonably prudent and efficient, the help would be there. water bottled is the same. Of course, the likes of Jeff Taylor are backing the nationalist argument that the rich north should pay through Eurobonds, but then the Brexiteer argument was that we should not be paying to help anyone beyond ourselves. As predicted on here on numerous occasions, UBI is being proposed in Spain, and the aim is for it to be PERMANENT, they aren’t even pretending to call it temporary! coke bottles dropped from 2ltr to 1.5 ltr Turkey lira crisis: What is happening in Turkey right now? UK : we re-apply Having said that, let us now compare the state of the economy today versus how it was three years ago, before President Duterte took over. The downturn was most marked in the service sector, ( Klaus Regling). It’s since, however, fallen, with the index sliding to 72.5 in July. Employers in March and April cut a whopping 22.2 million positions, enough to wipe out a decade’s worth of job gains during the previous economic expansion. But as you can see even the powered up Pac-Man of the ECB is in danger of being swamped by the size of the bond issuance. This came with the lowest PMI number I can recall which was 17.4 for the services sector. Like a soul without a mind If Americans aren’t confident about the direction of the economy, they might hold back on making purchases for even longer. re “We are talking about 750 billion, almost half of our GDP. But now, the exchange rate is 40 pesos for every dollar. Today has brought the economy of Italy back into focus and before I look at the economics let me express my deepest sympathy for also those affected by the Corona Virus there. The overall effect of the outbreak was seen as putting downward pressure on prices, exacerbated by weaker growth and slower spending. The contagion has spread to more than 19.1 million people around the globe as of August 7 with nearly a quarter of those cases in the U.S., according to a tracker from Johns Hopkins University. About 2 in 5 said they weren’t planning to shop at traditional in-person retailers as much as before the pandemic, driven in large part by fear of contracting the virus. Consumer spending rose 8.5 percent in May and then 5.6 percent in June, according to the most recent release from the Department of Commerce. The Congressional Budget Office, meanwhile, is projecting the economy to return to its pre-pandemic size sometime in 2022. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. hmm, wouldn’t Universal National Income be more acceptable wording ? It comes after the economy contracted by 5 percent in the first three months of 2020, also at an annualized rate, which at the time was the worst performance since the fourth quarter of 2008. What is happening to the economy of Italy right now? The offers that appear on this site are from companies that compensate us. Let me finish with something more optimistic Italy has a large grey economy estimated at over 200 billion Euros and it is a nation of savers. Is the Philippine economy in a crisis? the same month of the previous year) were the epidemic originated. This will eventually hit bottom. Then, there is that little issue of ‘where does it end’? https://www.bloomberg.com/news/articles/2020-04-05/spanish-government-aims-to-roll-out-basic-income-soon. With the economy shrinking we could see a debt to GDP figure of the order of 200% for a time. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. There is a lot of talk about the economy happening at the moment and you may have found yourself trying to decipher the complex world of money. While we adhere to strict There are essentially four topics at play. Today’s decree brings 400 billion of liquidity for businesses, with the #CuraItalia we had freed 350. When Italy gets up it runs.”. UK:: ok ! ( Klaus Regling). all of this is much healthier than all the credit buying.. With slowing global growth, it’s all about the US economy and market right now. Bankrate.com is an independent, advertising-supported publisher and comparison service. All Rights Reserved. More precisely, for sectors in lockdown or for which we assume that the turnover is near zero “I think of financial markets and the real economy like two pieces dancing together.”. We have learnt over time to take these surveys with several pinches of salt but it was clear we were seeing a large fall in economic output which in the case of Italy comes on the back of at best stagnation. This site uses Akismet to reduce spam. Johannes Eisele / Contributor / Getty Images. However the EU and the Euro will NEVER be allowed to fail by the central banks, whatever ends up coming out the other end of this catastrophe, you can be sure the EU, the ECB and the Euro will like their fellow cockroaches and rats after a nuclear devastation be still there. All of this is taking a toll on consumer confidence, what many economists attribute as a leading indicator of where consumer spending is heading. Here are live updates of the political crisis happening in Egypt right now. Economists say that number is likely underestimating the problem, with gig-economy workers and the self-employed applying for another form of benefits granted through the CARES Act known as the Pandemic Unemployment Assistance program. Learn how your comment data is processed. Before I look at the impact of the above on Italy we need to see where it stands in economic terms. In the first week of March, we’d have answered that gross domestic product above inflation grew 2.4% at an annual rate in the fourth quarter 2019, and the unemployment rate was 3.5% in February 2020. Hiring in the U.S. rebounded quicker than expected during May and June, but the pace of job recovery slowed in July. I suspended the #Eurogroup & continue tomorrow, thu. Granting the European Investment Bank 25 billion euros of extra guarantees so it can step up lending to companies by a further 200 billion euros is another option. We do not include the universe of companies or financial offers that may be available to you. “We know all of the numbers are going to be bad,” Azzarello says. As General Khalifa Haftar continues his advance towards Tripoli, Ian Bremmer breaks down what's at … So far, employers have picked up hiring again in those sectors, though it’s nowhere near pre-pandemic levels. Meanwhile, other measures of the labor market tracking broader categories of labor underutilization and detachment show that many Americans are still suffering, with about 16.3 million individuals still unemployed and even more underutilized. A Federal Reserve gauge of industrial production shows that activity rose 5.4 percent and 1.4 percent in June and May, respectively, but that wasn’t enough to offset a record 12.7 percent plunge in April, the steepest decline on record. The spectre of default would take the yield even higher than the existing debt and FX issues. What is happening to the economy of Italy right now? The next context is that this is way beyond the ability of the ESM to deal with alone. We provide two different scenarios, the first in which the lockdown will be concentrated in March and April and If you need a first-payment deferral to afford a new car, now is probably not the right time for you to buy or lease. But with a number of states taking steps to partially reverse their reopenings, such as Florida and Texas suspending drinking at bars, the pace of that recovery could end up being similarly threatened. My issue with the project was and still is , is that it was all hype and wishful thinking instead of sound fiscal setting . I think its madness but its a Mad Mad Mad world. Keep reading to learn how the economy is doing right now. They have modelled what they think the impact will be from this. yah, I forgot to say re-application today would be very risky ! And that’s exactly what came to fruition. Whilst the Eurogroup indecison has raised the benchmark ten-year yield by 0.08% today ( and I am assuming the ECB is buying more today to resist this) it is at 1.67% under control. Having been in this situation, I know that there comes a point at which you have to say ‘no more’ and take any consequences. Eurobonds would be an open-ended commitment, hence the use of existing SPVs. I enjoyed my time in Milan and hope to go back soon, such a wonderful country to visit. Further proposals under discussions include credit lines from the euro zone bailout fund that would be worth up to 2% of a country’s economic output, or 240 billion euros in total. Actually there were apparently requests for even more money to be deployed. You can track how this impacts your wallet by looking at the spread between the 30-year fixed mortgage, one of the most popular forms of consumer borrowing, and the Fed’s benchmark rate. Now March and as BBC children’s TV used to say, are you sitting comfortably? Change ), You are commenting using your Facebook account. https://www.bbc.co.uk/news/world-europe-52213898?at_custom4=C714324C-79A4-11EA-8A69-FADB4744363C&at_custom3=%40BBCWorld&at_custom2=twitter&at_campaign=64&at_custom1=%5Bpost+type%5D&at_medium=custom7. As for the next gen payback – well they only need to afford the interest payment – The Napoleonic debt took about 200 years ? “Now we’re talking about how bad really they’re going to be.”. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. About one-tenth of the U.S. workforce is drawing unemployment benefits as of July 25, another job market measure closely tracked. Unless you’re 100% sure you’ll be able to make your payments when the deferral period ends, you can set yourself up for serious financial pain and long-term damage to your credit score. The unemployment rate is now about 10.2 percent, essentially matching the 10 percent peak during the Great Recession. My goal remains: A strong EU safety net against fallout of, (to shield workers, firms &countries)& commit/ to a sizeable recovery plan, Today’s decree brings 400 billion of liquidity for businesses, with the. WHAT IS HAPPENING TO THE PHILIPPINE ECONOMY RIGHT NOW? Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. As there would be calls from countries other than Italy the ESM presently needs more ammo. Change ), You are commenting using your Google account. European debt, for many years already. “It’s like predicting a ballplayer that hits three home runs on opening day will maintain that pace for the whole season,” says Greg McBride, CFA, Bankrate chief financial analyst. As of August, however, more Midwestern states are seeing the most per-capita increases, including Oklahoma, Nebraska and Illinois. Warren Buffett is noticing a unique phenomenon right now in the global economy: negative interest rates and low inflation. ( Reuters). Economy could destabilise world TURKEY’S ongoing lira crisis has ignited fears of an … My father works overseas and he sends us a monthly budget of **** dollars. More Facebook Twitter LinkedIn Tumblr Pinterest Reddit VKontakte Odnoklassniki Pocket Print. negative signals suggest that there might be in the coming months a deterioration in income, consumption and labour ( Log Out /  Cases are falling in Florida and Arizona, while flattening in Texas and Georgia. 5 Big things happening in the Japanese economy right now. Growth declined by 5.0% in the first quarter, signaling the onset of the 2020 recession. Right now, with these Hindenburg omen signals occurring, it's fully priced. The second quarter (Q2) of 2020 was worse than the first, which endured the COVID-19 pandemic. We have been down this road so many times now and have always ended up singing along with Talking Heads. Firstly there is the issue of extra spending. And it comes with consequences for firms. We’re getting hit all at once now.”. We’re on a road to nowhere What’s happening in our economy, right now? by Shaun Richards. The fact that Italy is a net EU contributor surprised me too because its economic underperformance would mean that the contribution based in national income will be falling in relative terms. The Fed has an inflation target of 2 percent, which was challenged even during the decade-plus-long expansion. Hopefully someone can sort the bridges out. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. And it too was centred on Lombardy, this province has double the death rate from flu/pneumonia than any other provence regularly each year. Hospitalization rates, meanwhile, rose in the first few weeks of July, but have since started falling again, though they’re still elevated for more at-risk groups, such as individuals older than age 65, according to data from the Centers for Disease Control. although both services providers and manufactures reported record reductions in output during March. It is going to fail its greatest test. 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