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According to analysts at Danske Bank, in Europe the Italian Job continues to raise risks of ‘blowing the bloody doors off’.

Key Quotes

“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?”

“With the Italian bond and stock market making its own negative judgement on the Italian desire not to have to embrace Teutonic hair-shirt fiscal policy in a febrile socio-economic environment, Salvini added “If one had evil thoughts, he would think there are people betting on the spread  [of Italian over German government bond yields] because they don’t want Italy to grow and create jobs.” And there was also little sign of any retreat or surrender to the bond market or the European Commission: “We will not backtrack, we will not backtrack,”  Salvini insisted, adding that  “Speculators acting like Soros are betting on Italy’s collapse to buy at discount prices the healthy companies, and there are many of them, that have remained in this country.”