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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.”