Salvini pointed out that the government no longer has a majority. Polls for Salvini's League party approached 40%, allowing it to govern on its own. He is trying to capitalize the advance of his polling numbers over the past year. He states that his League party has grown frustrated by the constant fighting with their coalition partners, the Five Star Movement. Prime Minister Conte countered that Salvini has no decision power when to hold a parliament confidence vote and that he will not let his opponent dictate the pace of events. An eventual general election would probably take place in autumn, ironically at the same time of the 2020 budget negotiations with the European Union. But as Italy's parliament is currently in recess, it's not clear when or whether the crisis would be made official.
The recent decline in weekly jobless claims in the US suggests that the labor market remains surprisingly stable despite cooling global demand and trade tensions. The official unemployment rate of 3.7% is close to the full employment lows of the 1990s. Since the labor market is regarded as an early indicator of impending weaknesses in economic performance, the latest employment figures alone paint a still positive picture of the US economy.
In its economic report, the European Central Bank (ECB) takes a worried look at economic developments as trade disputes intensify. Other concerns were the increasing risk of protectionism and continued geopolitical uncertainty. Survey results point to weaker economic growth in the second and third quarters. In such an environment, inflationary pressure would also remain subdued. Therefore, from the ECB's point of view, a considerable degree of expansionary monetary policy is still necessary. Due to increased economic concerns, the currency authority has indicated the possibility of further interest rate cuts in July. Meanwhile, interest rates should be kept stable until mid-2020. A reopening of bond purchases is still an option.
|03:30||CN||Producer Prices (y/y)||0.0|
|03:30||CN||Consumer Prices (y/y)||2.7|
|08:00||DE||Trade Balance (NSA)||20.6|
|08:45||FR||Industrial Production (y/y)||4.0|
|10:30||GB||Industrial Production (y/y)||0.9|
|11:00||IT||Consumer Prices (y/y)||0.4|
|14:30||US||Producer Prices (y/y)||1.7|
|14:30||US||Core Producer Prices (y/y)||2.3|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: David Wolf, +41 44 250 83 48, E-Mail: email@example.com
Source: LGT Bank (Switzerland) Ltd.
Risk Disclosure (Disclaimer)
This publication is an advertising material / marketing communication. This publication is for your information only and is not intended as an offer, solicitation of an offer, or public advertisement to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any confirmation or guarantee as to its being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Information that has been published should therefore not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax-related or other consulting matters, nor should any investment decisions or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Investments in foreign currencies are also subject to fluctuations in exchange rates. We disclaim all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them. In line with internal guidelines, persons responsible for compiling this report are free to buy hold and sell the securities referred to in this report.