Analysts at Nomura argued that the risks to the Italian economy are many.
Key Quotes:
- “weaker external demand, political uncertainty and protracted fears derived from the US-China trade issue.”
- “Financial conditions are starting to tighten – as shown by the Bank of Italy’s BLS – and banks are facing shrinking margins.”
- “If this situation persists, adverse financial conditions could reverse any economic stimulus from a loose fiscal policy that the government wants to implement.”
- “Italy’s balance of risks is tilted to the downside and keeping this in mind we will closely monitor this week’s data releases.”
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