World News: 09:26 GMT Wednesday 15th May 2019. [Yahoo Business News Feed via SPi World News]
Italian bonds and stocks tumbled, leaving investors scrambling for the safety of German bunds a day after Deputy Prime Minister Matteo Salvini ratcheted up tensions by saying he would be prepared to see the country’s deficit rise above EU limits if it were to boost employment. Fears over Italy’s deficit have resurfaced over the past week following a projection from the European Commission that the shortfall will exceed the bloc’s 3% limit in 2020. “Italy’s yield spread was going to come under pressure over the summer on a protracted budget process, but the market is now front-running this scenario,” said Michael Leister, head of rates strategy at Commerzbank AG.
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