The separatists Salvini and Le Pen are at the "bunker of Brussels"

The separatists Salvini and Le Pen are at the

The British pound and the Chinese Yuan also lost ground.

Rome is defying Brussels and has resolved to maintain a 2,4% budget deficit, which is three times higher than the commitment taken by the previous government.

Rome's defiance is shaking markets.

Simon Derrick, chief currency strategist at BNY Mellon said that on the pretext of present degrees of stress in the Italian markets, what remains to be answered yet is how much the Bund/BTP permit openings can blow out and how this could be construed back into the FX market.

A slump in Italian assets deepened after a tug-of-war between the government and the European Union (EU) over its budget intensified.

In a letter to Italy's Economy Minister Giovanni Tria, the European Commission estimates that in 2019 Italy's structural deficit, which excludes one-offs and business cycle effects, would rise by 0.8% of GDP.

More news: Christian bakers win court fight after rejecting gay marriage cake
More news: Tway captures Safeway playoff for 1st career win
More news: Michael expected to hit Florida as a hurricane midweek

Another cabinet minister with well-known anti-EU tendencies, meanwhile, felt it necessary to insist that there was "no chance" of Italy defaulting on any of the country's 2.3 trillion euros worth of debt.

The original promise to triple the previous government's deficit target for the next three years to 2.4 per cent of GDP each year would have made it very hard for Rome to reduce its 130 per cent debt/GDP ratio each year, as required under the EU's budget rules.

"Italian Deputy PM Salvini yesterday met with far-right former French presidential candidate Marie Le Pen, where the two publicly agreed that "dancing-man" Juncker is the "real enemy" of Europe: perhaps that's why the guy was shuffling from side to side in public, to make himself a harder target for populists?"

"We're not fighting against Europe but against the European Union that has become a totalitarian system", she said.

"The Italian situation is an excuse for some investors who had been expecting a rebound in the last few weeks of the year as recent data out of Europe has hardly been supportive", State Street Global Markets head of macro strategy Timothy Graf said.

Italy's expansionary multi-year budget plan published late on Thursday may backfire on the populist government, according to several analysts who see a risk of rising borrowing costs, a bruising battle with Brussels and ratings downgrades.

Related Articles

  • Camilla, Duchess of Cornwall won't be attending Princess Eugenie's royal wedding

    Camilla, Duchess of Cornwall won't be attending Princess Eugenie's royal wedding

    The only non-royal bridesmaid will be Theodora Williams - the six-year-old daughter of Robbie Williams and Ayda Field. George's Chapel at Windsor Castle - the same location as Prince Harry and Meghan's wedding in April.
    Roberts refers ethics complaints against Kavanaugh to federal judges

    Roberts refers ethics complaints against Kavanaugh to federal judges

    Trump used the ceremony as a platform to decry the " campaign of political and personal destruction " waged against Kavanaugh. The school recently said that Kavanaugh will not be returning to teach there.
    Fifty killed in Kenyan bus crash

    Fifty killed in Kenyan bus crash

    The additional passengers were seated on the bus floor since all the seats were taken, according to the report . Twelve women and seven children were among those killed in the crash on Wednesday morning.
  • The Surprising Illnesses the HPV Vaccine Can Protect Against (Beyond HPV)

    The Surprising Illnesses the HPV Vaccine Can Protect Against (Beyond HPV)

    Most HPV infections , including potentially cancer-causing varieties, go away on their own, the National Cancer Institute says. If a person has already been exposed to a certain strain of HPV, then the vaccine will not protect them against that strain.
    Walsh says he is not the person he's being portrayed as

    Walsh says he is not the person he's being portrayed as

    Katya, meanwhile, spoke out about her husband Neil, saying: "I apologise to everyone it hurt and it involved". Walsh and Jones are set to appear on this Saturday's edition of the show despite the furore over the images.
    Stock prices plummet amid tech selloff, rising interest rates

    Stock prices plummet amid tech selloff, rising interest rates

    The benchmark US stock index hadn't suffered a five-day losing streak since November 2016, just before the presidential election. The Standard & Poor's 500 index fell 94 points, or 3.3%, to 2,785 on Wednesday, its biggest one-day loss since February 8.
  • Stardew Valley is coming to mobile this month, first on iOS

    Stardew Valley is coming to mobile this month, first on iOS

    Pre-orders for Stardew Valley mobile will go live today on the App Store, and it will run you £7.99/$7.99/€8.99. And, if you're using mods in Stardew Valley on PC, that will cause problems when importing the save files.
    Taylor Swift Urges Viewers to Vote During American Music Awards Speech

    Taylor Swift Urges Viewers to Vote During American Music Awards Speech

    Taylor Swift accepts Artist of the Year during the 2018 American Music Awards on October 9, 2018, in Los Angeles. Cardi B and Drake are both nominated for eight awards .
    South Korea eyes lifting of some sanctions against North Korea

    South Korea eyes lifting of some sanctions against North Korea

    Kim arrived in a black limousine sporting the luxury carmaker's distinctive "R" on the whole hubs for a meeting with U.S. US President Donald Trump arrives on stage for a rally at the Mid-America Center in Council Bluffs, Iowa on October 9.
  • Red Sox hold on in 9th vs. Yankees to advance to ALCS

    Red Sox hold on in 9th vs. Yankees to advance to ALCS

    Those hits came a night after Brock Holt and Rafael Devers helped the Red Sox roll to a 16-1 rout in Game 3. The Red Sox hit.400 with runners in scoring position this series; the Yankees hit.154.

    Trump Says Fed Has Gone 'Crazy' With Interest Rate Hikes

    This will pass and the United States economy remains strong". "You don't see that inflation coming back". In comments to the press in Erie, Pennsylvania, Trump said, "I think the Fed is making a mistake.
    Minnesota kids suffer rare, polio-like disorder

    Minnesota kids suffer rare, polio-like disorder

    Health officials in Minnesota are telling doctors to be on the lookout for a rare disorder called acute flaccid myelitis, or AFM . Acute flaccid myelitis is tricky to diagnose and may require tests of spinal fluid, as well as magnetic resonance imaging (MRI).