Italy may have to go back to the drawing board with its budget as the European Union has rejected Rome’s fiscal plan. However, Italian Prime Minister Giuseppe Conte has said “there is no plan b”. Following the European Commission’s decision, the Euro fell to 1.1425 against the Dollar – its lowest level since August. Italy has three weeks to revise its spending plans and resubmit them to Brussels.
Across the Atlantic, the US mid-term elections are drawing closer. In a bid to secure the Republicans’ majority, US President Donald Trump has pledged further tax cuts for the middle-class – a promise Congress appeared to not expect.
Meanwhile, there are more signs that global growth is slowing. The world’s largest construction manufacturer Caterpillar yesterday, 23 October released its earnings, with its shares dropping by more than 8 per cent as the company failed to increase its future profit expectations.
Finally, the focus today is on the health of the respective services sectors in Europe and the US. Economists forecast a slowdown across the board – another evidence of the negative impact of the escalating trade war. As global stock markets continued to sell off, any further negative signs are likely to accelerate their descent.
Euro up despite concerns over Italian budget
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