with its budget. —— and italy. 0f situation in italy with its budget. —— and italy.get the full reaction when we get it on the full reaction when we get it on the budget in italy. to india now, where china's smartphone maker xiaomi is setting up 5,000 stores in rural areas across the country by the end of next year. sameer hashmi is our reporter in mumbai. sameer, that's an awful lot of stores. welcome. well, that is right, and the reason for that is that xiaomi right now is number one player in the smartphone category in india. if you look at the indian smartphone market, it is the fastest growing market, it is the fastest growing market in the world. about 400 million smartphone users in the country right now but those numbers are expected to reach about 600 to 650 million in the next three years, thatis 650 million in the next three years, that is what xiaomi is looking to tap, that segment, because so far what you have seen is that the group has essentially come from the big cities in india. —— growth. another next wave of growth is expected to come from small to

all italy and brussels have been at odds for weeks over rome spending plans and italy's public debt it is the second highest ratio in the eurozone after greece a little earlier i spoke with did abuse by brussels has said that if italy is not willing to compromise the consequences could be severe there's of course the fear that this could spiral out of control when comes the point that into the is not able to finance the refinance instead when the spread so the surplus the risk telling that is too high that it could happen that italy is not able to pay its bills or to servants to service its debts and then this question is what happens then europe is not willing to bail out italy like it did with greece the european central bank is not willing to buy italian bonds and the consequence could be that italy is forced out of the euro zone and even out of the you and this of course would be a doomsday scenario for everybody here in brussels that triggers their british prime minister trees are may is heading to brussels later today where she's hoping to agree a blueprint of britain's future ti

sounds like these stands for italy's economic power but despite its strong industrial base italy punches below its weight in several key areas for example economic growth although it's launched a number of programs in the last decade to help kick start investment in the southern european country when stuff remains stubbornly below average compared to the e.u. its new government now wants to radically cop taxes to help spur growth but that could eventually lead to even higher levels of debt and break even budgetary rules so in late october for the first time ever the european commission rejected a draft budget submitted by member states italy so italian leaders have to submit an amended budget until midnight if they don't they are setting up a clash that will probably ripple into markets. rome issued new bonds on tuesday a clear test of investor confidence uncertain buyers demand more return for the risk potentially costing the country more yet bond yields remain stable a sign that buyers still have faith in italian bonds but borrowing costs for rome have risen during the budget fight rat

the most part of governance i think to comply and have left italy behind. and all that i think the new government will change the situation for the better. not far away in front of another rundown drops and in the city more unemployed neapolitans are queuing to learn more about the citizens wage to support the new government. here in this pretty i hope that something good could happen. i hope i hope so i trust this government i voted for the whack otherwise we conclave. could end so however it isn't convinced that this government or the citizens wage will in any way improve his situation maybe i just have to my. that's where. it's not personally open for i'd like to say and change something but it's getting harder and harder to fight. you know keep looking for black if not to need to meet them somewhere else in the e.u. . but to bad we get in brussels that bad if brussels still says no it's a lease budget plans what could this lead what's the worst case scenario for the first case lending costs for italian that could. go up rather quickly and then it would

the most part of france i think to comply and have left italy behind. and although i think the new government will change the situation for the better. but sooner. not far away in front of another rundown drops and in the city more unemployed neapolitans are keen to learn more about the citizens wage to support the new government. when i hope that something good could happen. i hope i hope so i trust this government i voted for the government to work otherwise we complement. good and so however isn't convinced that this government all of a citizen's wage will in any way improve his situation maybe i just have to mow. best where. it's not personally open for i'd like to say and change something but it's getting harder and harder to fight. you keep looking for one if not and it's only then somewhere else in the. all in this confrontation with the italian government the european commission could impose a record fine which would be absolutely unprecedented the commission wants the italian budget cut and it's being backed by euro zone governments worried abo

funds measures that would soon be felt by italy's citizens. well for more i welcome to the studio mark as well he's a senior economist at the university of sound welcome to the studio mark has the word from brussels is still out what do you expect will happen well any other than decisive action against the budget proposal would be surprising and it would be wrong both politically and economically also well politically you cannot allow a country to to actually do things against what they agreed beforehand the older government and economically few seats one thirty five one thirty two percent of g.d.p. to debt ratio up thirty percent over the last ten years in this new production has just been back on the level of ten years ago so it really has this been the money in norway and that needs to be corrected and take over the political year for a second. italy says for example that france has that much more leeway when its budget was under scrutiny do they have a point where of course they do have a point that france and germany and other countries h

or demonic in the arm wrestling between italy and europe over at least finances continue and who will win who will come out on top terry because you officials invest as a seventy braced for a roller coaster week that as the standoff between rome and brussels of each of these fiscal plan for twenty nine hundred comes to a head the european commission rejected the plan last month saying it flouted a commitment to noah the deficit and did not guarantee a reduction in the country's debt which by the way is the second highest in the eurozone as a proportion of g.d.p. the commission gave roman till tuesday that's tomorrow to present a new budget if there's no agreement to brussels could start a disciplinary steps against rome later this month. the italian government is not backing down over its budget despite e.u. commission warnings to dress tickly reduce its budget deficit target after talks with euro group president mario centurion or italy's finance minister said it would be political suicide to cede to the e.u.'s demands regular to be careful and i mean . we are going to reiterate our

and italy's own statistics office of downgraded their growth forecasts for the country but italy is too big to fail if the euro zone's third largest economy its debt is already so high no rescue fund could be big enough to save it. borrowing costs projected growth let's try and understand this a little bit more i'm joined now by alessio tared see he's an economist at the brutal institute of brussels based think tank let's you know there's this idea that the markets will punish italy before the e.u. can we actually seeing signs that this is getting painful for rome. yes yes indeed we are already seeing signs going beyond the volatility of one day of financial markets if you look at the past six months the interest rate that they tell your government pays on its bonds has increased substantially several points percentage points and this obviously is very relevant in a country that has a huge debt by like italy so even small fluctuations have a big impact on the economy. you know italy of course is projecting the budget the budget will spur growth but the e.u. saying it has yet to really s

the most part of ns i think to comply and i've left italy behind. and all that i think the new government will change the situation for the better. but you are. not far away in front of another rundown drops and in the city more unemployed neapolitans are queuing to learn more about the citizens' wage they to support the new government. when i hope that something good could happen. i hope i hope so i trust this government i voted for the walk otherwise we complement. gordon so however if i'm convinced that this government or the citizens wage will in any way improve his situation maybe i just have to mow. s. where. it's not personally open for. to say and change something about it's getting harder and harder to fight the good you keep looking for a blank if not into me then somewhere else in the you could do a new going to go live it all right now to some of the other stories making news around the world. a claim photographer should do it along has been released on bail from prison in bangladesh he spent more than three months there after being arre

in its budget dispute with rome as brussels warns it could begin disciplinary procedures against italy for its overspending. and germany is trying to get dirty diesels off the road so i guess where they end up not very far away at all we'll give you the details. i'm stephen beardsley in berlin thanks for joining us brussels says it's ready to pursue disciplinary procedures against italy as long as the country refuses to change its draft budget for twenty nineteen now at issue is italy's towering debt and the political goals of its government at stake avoiding the next financial crisis. only the flags co-exist peacefully here everything else is subject to dispute never before has a member states budget been rejected but the european commission is determined to prevent italy from increasing its debt burden let me stress that the situation in italy is of concern euro countries are in the same team and should be playing by the same rules cecil's are fewer to protect us to provide certainty stability and mutual trust if the threat of an excess deficit procedure was meant as a warning shot t

in the european union and italy there are hopes that italy will move at least a little bit of that in the end they'll get a deal done but even if nobbs it's a long way on so italy finally could. face the burden to pay. quite a high prattled see this could be up to or point five percent of their g.d.p. but according to analysts this is not going to happen before the european election meaning before may of this year so i guess this is why the market is not extremely nervous and we also don't really see a lot of signs that there might be a risk of contagion but clearly today the mood is quite positive from the market is this could change cried quickly in case investors start to worry about the huge tree financing need the italian economy is facing next year and as we mentioned before businesses are keeping a close eye on developments one area italy's been struggling to keep up with is the general innovation something it has in common with germany so could the two countries actually help each other catch up. they've come with a clear goal to boost digital infrastructure and promote innova

the fundamentals in italy remain positive. italy are growing and exporting.share in those italian smes. look at our sensitivity for capital, we are very resilient. we can absorb significant shots -- shocks of the italian spread. 100 basis points or more of italian spread are worth 12 points of sovereignty ratio. we can take short-term problems if they come. thehat do you think discount on your share price is because you are italian? because the company is italian? >> everyone understands you are diversified. we are building a new pillar of our business which is the asset management. earnings will be growing at a significant pace. it will be very sustainable. less risky business model. donnetk you so much, mr. . .he share price is gaining 2% let's get to the first word news. >> italian bonds have rallied after reports the company is open to revising the budget proposal. the italian government could for income andts beneficiaries of the low retirement age. the european commission report says the current budget is in breach of eu fiscal rules raising the threat

the fiscal policies and the budgets of all member states not only italy but when it comes to italy it is certainly necessary to discipline this populace to government and rome and in the end they also have the possibilities to to apply fines but this is still way down the road that's maybe come in in this couple of months it's a very long procedure was many steps interests and all member states of the eurozone also have to agree to this it's not only that you commissions also the fed the member states and the question more is will the markets watch all of this unfolding of this drama and when will they pull the trigger on the italian debt ok we saw people in naples also watching this drama and hoping hoping at least that something will occur on the side of the commission could it in the end be ready to compromise and accept higher debt levels for italy. rather the commission always has reiterated that it is of course willing to negotiate was to lead to to talk about certain measures in this budget but so far no signals from the room actually to talk about the budget it's more or less

italy's first draft was rejected. -- what ism to its your case for italy?some procedure at some point. a lot of uncertainties around the depth of how much budget deficit they will have at the end of the day. i think it's fair to say the economy is the arbiter of all that uncertainty about italy. the economy stalled. pm eyes in october plunged. financial conditions are tighter. you can see that in the yield and in spreads. there has already been significant feedback from markets into the economy regarding this issue i think is something that ultimately limits the extent to which they can push on this. you see a slog as a base case scenario in the ebp but also one in which italy's chips are numbered in terms of how much they can play for. david: what is the bigger risk, that italy is brought to its knees or other countries say i can get away with it too? ben: that response markets a similar path. that is a cautionary tale. from therally i think perspective of an investor we've been taking down risks. as a global outlook. part of it is the balance of risks. in

it is quite important for italy.sliding this morning after wall street slumped overnight. the falls in the us were driven by a selloff in apple after a profit warning from one of its major suppliers, which exacerbated concerns that demand for iphones is slowing down. while tech stocks were hit hard, other sectors are also this felt the pain. our new york business correspondent michelle fleury gave us the details. some of this was due to a sell—off in the oil. if you look at stocks like exxon mobile, they saw more than one percentage point drop. that its concerns about slowing growth. if you talk about goldman sachs, this stock for its worst loss in many months. this is to do with the scandal concerns in malaysia with 1mdb and who knew what at the bank and how far rocket went. there are concerns about some of the investigations going on. and then you have apple. one of its suppliers came out and basically said that the manfred product was left than had been expected. that led to fears that perhaps demand for apple pro

next steps for italy.r investigation. -- the robert lawler investigation. -- robert molar investigation. mullerr investigation. >> theresa may has just made her way in. this will be a long day for theresa may. the u.k. and european union both agree terms of the exit have been scheduled but it is about the future relationship, the future trade, the

making money in italy is not easy.e areyment in italy, still hovering around 40% on a climate youth. the dissatisfaction they have will remain. popular as it will not go away. the question is can populism fix this? the answer is we don't know yet. they are going to try. i think markets will remain negative. the economic performance cannot become very positive as long as we are in this uncertain environment. does austerity go away, does the european project as it's been in vision, written into legalese, if not law of each country, go away? open.h directions are it's such a controversial subject where we are now, particularly in light of brexit negotiations. i have long argued the populism to lead to brexit is the same thing we are seeing unfolding in various parts of europe, italy being the most predominant example currently. we should not be surprised if they push in the direction as we currently see of resisting the relationship with the center, with brussels, saying we want to make our own rules, have our own structu

or italy, they save italy? >> absolutely. italy is too big to save, too big to fail.ement andulist the european commission, and neither side will give in. a compromise is always possible. it is who will offer the first olive branch. ,rancine: do you think christian, brussels should be softer on italy? if you look at a time growth, it is not really there. you need to spend your way out of it. in on italy, then others may come with the same problem. that may be the line the commission is taking. openlyernment is dismissing the rules, so it is obvious the commission would go against them. we've have a track record, so why stop with italy. italy does not need this budget they have proposed. italy needs structural reforms, not fiscal stimulus, a permanent giveaway to households. it is the wrong policy. there has to be something from italy to improve things. francine: where do you see euro going? how much is dependent on world growth, and how much on italy? >> a lot depends on what happens in the u.s. our view is u.s. growth is peaking and will come down. the ecb will start

italy is now wantin of public debt today the european commission rejected the latest draft of italy's budget opening the door to disciplinary proceedings including significant fines for rome and a freeze on the e.u. funding italy's populist government has been at loggerheads with brussels over its spending plans for months rome argues that it needs to stimulate the economy and offer italian some respite after years of austerity but brussels says that italian spending is out of control and could spark another debt crisis that could engulf the entire european union italy's government has showed little indication that it is prepared to make concessions here's what interior minister. said earlier today. as the letter from brussels arrived i was expecting one from santa claus as well anyway we'll be talking about it again here it will respond politely as we always do but i won't back down. and tales of any speaking earlier let's get more from journalists who joins us now from rome so the e.u. has very clearly upped the ante against italy how is that going down there in rome where you are.

it is a tough spot and italy.e are already seeing reaction from the government -- reaction in italy showing they are relishing the fight. the next step will be ththe commission president having a dinner with the italian prime minister on saturday. jennie: jean-claude juncker is meeting with theresa may in brussels. they will sit down together to talk again about brexit ahead of this summit on sunday. what do we think is going to come out of that meeting? : that is happening araround tetea time, 5:30. theresa may is coming to brussesels. it is assumed the meeting will be about how can the eu u suppot theresa may in this difficult time for her? she is facining potential leadership challenges and a potential that the draft break the deal will be rejected by the u.k. parliament. she will be asking for moves by the eu to make it more likely that can be passed in the u.k. the deal can be adjusted in some way. some in our cabinet are callllig for it. they may be able to find something symbolic they can change that can ma

enormous mountain of debt the biggest in real terms in europe italy is the euro zone's third largest economy and the second largest manufacturer in europe bust despite the country's potential italian economic growth has been weak and it's been lagging behind the use of. more debt would jeopardize italy's credit worthiness but the entire euro zone frist german economist german stock is the e.c.b. is former chief economist and he hopes it won't come to that. yeah i hope that this can be avoided and this would be the worst case. i hope that the signals coming from the european peers from other european euro area member states but also from other european institutions like the e.c.b. president draghi was very outspoken in his recent press conference that italy cannot expect any support coming from d.c. b. it is not in within the men date of the e.c.b. to finance the fiscal deficits so i think the the the messages coming from the peers of italy pretty clear but i personally expect that markets going to behave more fiercely and signal to italy that it is a dent in continuing this way of pu

and italy's own statistics office of downgraded their growth forecasts for the country but italy is too big to fail it's the eurozone third largest economy its debt is already so high no rescue fund could be big enough to save it. borrowing costs projected growth let's try and understand this a little bit more i'm joined now by alessio tad see he's an economist at the brueghel institute a brussels based think tank let's you know there's this idea that the markets will punish italy before the e.u. can we actually seeing signs that this is getting painful for wrong. yes yes indeed we are already seeing signs going beyond the volatility of one day of financial markets if you look at the past six months the interest rate that they tell your government pays on its bonds has increased substantially several points percentage points and this obviously is very relevant in a country that has a huge debt by like italy so even small for fluctuations have a big impact on the economy. you know italy of course is projecting the budget the budget will spur growth but the e.u. saying it has yet to reall

commission in this row with italy brussels has rejected italy's spending plan an unprecedented move and given the country a few weeks to submit a new version i tell you prime minister josep a contact has said there is no plan b. to his program which is big on deficit spending. now for more on the meeting let's turn to our brussels correspondent georg matis georg we've heard already a lot from brussels about at least budget what did we hear today from euro zone members themselves a finance ministers here in brussels were pretty really united when it comes to italy's fifty mond of the commission rather hear that italy should hand in a new draft budgets they spoke of dialogue as well that so that showed some room of flexibility but the advice for instance from the french finance minister was very clear take the hand that has been reached out to you from the e.u. commission send in a new budget. so what happens next what's the next step. well the next step is that it's only has time until the thirteenth of november to hand in this new budget if they missed that deadline the commission decid

by economic drama is playing out between italy and the european union italy has broken easy budget rules and now the message from the european commission is clear the euro zone's third biggest economy won't be getting away with its largely has more from brussels. rome may be the eternal city but it's looking like someone needs to give it some attention the social as well as physical fabric of italy has been unraveling for years with high unemployment and the persistently stagnant economy. rather than pointing to the endemic corruption in italy has always suffered the populist coalition government has squarely blames austerity imposed by the european union on its problems but their vows to break hardline spending rules from brussels has led inevitably to an all out confrontation with the european commission which has said it will impose sanctions and fines honestly if it doesn't change its budgets strace the situation in italy is of common concern euro area countries are in the same team and should be playing by the same rules the response to all that from opponents of austerity would be

by economic drama is playing out between italy and the european union italy has broken even budget rules and now the message from the european commission is clear euro zone's third biggest economy won't be getting away with it largely has more from brussels. rome may be the eternal city but it's looking like someone needs to give it some attention the social as well as physical fabric of italy has been unraveling for years with high unemployment and a persistently stagnant economy. rather than pointing to the endemic corruption in italy has always suffered the populist coalition government to squarely blames austerity imposed by the european union on its problems but there vowed to break hardline spending rules from brussels has laid inevitably to an all out confrontation with the european commission which has said it will impose sanctions and fines honestly if it doesn't change its budgets in the stressors a situation in italy is of common concern euro area countries are in the same team and should be playing by the same rules the response to all that from opponents of austerity would b

i don't know how you view italy. pau: i wouldn't touch italy at the moment.ay's budget proposal will not be dramatically different. for the very same reason the two parties are in power, it makes sort of on flexible when it comes to those requests. on the one side, it appeals to the northern base, if you are the lake and have to appeal to thedisenfranchised, and combination of lower taxes and the north and more expenditure in the south means italy will not change the budget. growth numbers give them a little bit more ammunition. hard and have to play therefore you will see a standoff which will continue and that has the potential for slightly even higher yields. i think it is catching a falling knife when it comes to trying to btp's.ney off of italian today, we are tied to contribute to the conversation by asking, which assets will win standoff.he eu-italy i also learned what a game of chicken was. who wins? pau: everybody loses. the only people that can win is obviously the politicians, which are treating these more as a platform to establish themselves and

it's it italy? there are several threats for the eurozone both external and domestic. eurozone both external and domestic. slowdown we are seeing an in particulate in china. particulate in china. situation with trade tensions which mainly concerned the us and china. mainly concerned the us and china. direct effects are quite limited, they are marginal. they are marginal. channel and uncertainty is really dragging on in less than. dragging on in less than. situation, we have brexit and also the need for more integration. the need for more integration. international stage but dairy week in germany. in germany. so what is your outlook for the eurozone? for the eurozone? how difficult will it get? it get? some are saying it could head back to recession? head back to recession? is early days to talk about recession. recession. a year on year basis, eurozone gdp is growing. is growing. and as that lifts we might see a bit of a bounce back in germany. of a bounce back in germany. ready, institutionally, fo

can find italy for budget deficit breaches. but the bloc would need months to sanction a member state but then the markets would probably have delivered their own verdict . about markets paul shares time five percent in the u.s. dragging other tech shares down all over the world today suppliers of mobile phone parts across the globe it said that their largest customer widely taken to be a poll asked them to materially reduce shipments investors now fear that the fox or i phone is not selling as well as in the past apple is already under pressure after posting disappointing earnings earlier this month but then that would no longer report the sales numbers for its flagship smartphone bestest critic criticized that decision fearing a lack of transparency in the company's books. it's going straight to our markets first one and done a cope in front. loses forty billion dollars market value is that serious or just chickenfeed for a company that big. well i'm sure it was a really dark day yesterday for investors holding apple shares w

presumably for the euro italy is weighing on that as well i am sure.tty stable. today is the crunch date for italy to revise its budget that it has put down in front of the eu, if we get some answers around that that will board the markets. it's about political uncertainty, trade wars, interest rates and brexit. all right, thank you for now, you'll be back, i don't know if you have a marvel superhero or not! you will find one! that is the challenge. still to come why fewer is more. we'll get the inside track on the luxury watch market, with the uk general manager at audemars piguet. also how his career has developed, after he left school at 16! you're with business live from bbc news. the chief executive of premier foods, the maker of 0xo, mr kipling and ambrosia, is to step down. the news has come as the company published its results, showing revenues up i.3%. the firm says it intends to start stockpiling raw materials to protect itself against delays at ports in the event of a no—deal brexit. adam leyland is editor of the grocer, he's in our newsroom

or demonic in italy in the e.u. are still wrangling over italy's budget yes and there's a big deadline looming terry tomorrow tuesday in the best as a certainly braced for a roller coaster week as the standoff between rome and brussels over its least fiscal plan for twenty nine thousand comes to a head the european commission rejected the budget plan last month saying it flouted a commitment to know whether the deficit and it did not guarantee a reduction in the country's debt which by the way is the second highest in the us portion of g.d.p. the commission gave rome until tomorrow tuesday to present a new budget if there's no agreement brussels could starts disciplinary steps against rome later this month. the italian government is not backing down over its budget despite e.u. commission warnings to dress tickly reduce its budget deficit target after talks with euro group president mario same thing or italy's finance minister said it would be political suicide to cede to the e.u.'s demands they could at least you c

italy has huge accumulated debt.ster is saying it we think what we're doing is right by the way, the rest of europe should do the same. but a country hosted cleanup and rebuild. you have to remember, this is an economy which has had ten years of lack of growth. many young people have left the country to look for jobs elsewhere. huge criticism in italy about the lack of investment in infrastructure. the collapse of the bridge and other events...” have been to italy for work and pleasure and you see the lack of spending. italy is in desperate need of spending but it has huge accumulated debt, up i30% of gdp. what happens if there is an economic downturn? where will it find the firepower if it spent now. brussels may not find italy but the international financial markets will ta ke international financial markets will take its toll with the increase in costs. what the deputy minister is saying is we are committed to the euro so saying is we are committed to the euro so keep costs down. they are trying to massaged that.

because of that i'm not all that i am or we struggle with high wages in italy. and in addition we have a bloated bureaucracy that we have to obey that makes our lives very difficult. problems that have been around for quite some time but now the country's new populist government plans to significantly boost public spending and to set on a collision course with the e.u. . the politicians are always promising the great things and coming up with great solutions to problems but they're ultimately unrealistic or only partially applicable because in part of that. i don't think they'll go too far they're making a lot of noise but just enough to get people's attention. with over sixty governments since the end of the second world war italians are slow to get worked up about new policies now wait and see what happens next. it is a reminder of the top stories we're following for you. israeli warplanes have struck dozens of time gets throughout the gaza strip after palestinian militants in gaza five hundreds of rockets at israel violence follows a botched israeli military

italy is in a recession. italian growth has already been slowing and the budget has not been approved yet. stephen: we often talk about this crisis in the context of decrease crisis in 2009. this is different, right? this seems political. alessio: it is indeed. conversely from greece, greece was an economic crisis, but with a lot of political will on both sides. the greek government and the eurozone wanted to find a solution to it. whereas, in the italian case, the economics has remained probably the same. it is true that italy has low growth and high debt, but this has been true for several years now. what is different this time is that the italian government is actively seeking confrontation with brussels and what we received today, this negative opinion on the budget is exactly what the government wanted, which is peculiar in a way. in a eurozone setting, shared fiscal woes. stephen: thank you very much. alessio: thank you. stephen: let's go back to sarah now with more news. sarah: thank you so much. we ar

briggs it isn't the only contentious issue that the european union is currently facing italy's budget dispute with the e.u. is growing more acute by the day italy's once again refused to cut down its proposed deficit spending something european union had insisted on in light of italy's already huge debt pile now worms facing possibly disciplinary measures from brussels that could involve brilliance and penalties as tensions between the e.u. and italy rise so just the cost of italian borrowing investors in other words want more for their money it's no longer a surprise italy's borrowing costs its bond yields have risen steadily since its populist government was elected investors respond badly to uncertainty and grown has provided plenty trashing the euro currency and dismissing the country's massive pile of debt the new budget seems just as unconcerned about debt it more than trickles deficit spending from the previous government's plan the e.u. says its growth projections are too optimistic credit rating agencies have weight in lowering ratings and outlooks the gap between italian and

well here in europe all eyes are on rome and to brussels the deadline for italy to present a revised budget plan and today the e.u. is worried about plans by italy's clinician government to take out one more debt to pay for expensive election campaign promises rome is planning big cuts in taxes to boost growth but the e.u. says that that is unacceptable given internees enormous mountain of debt the biggest in real terms in europe italy is the euro zone's third largest economy and the second largest manufacturer in europe but despite the country's potential italian economic growth has been weak and it's been lagging behind the news average . of course more debt would jeopardize italy's credit worthiness and perhaps put the entire eurozone at risk german economist your. former chief economist hopes it won't come to that. yeah i hope that this can be avoided and this would be the worst case. i hope that the signals coming from the european peers from other european euro area member states but also from other european institutions like the e.c.b. president draghi was very outspoken in hi

guy: a quick question about italy. in the third quarter, we saw the italian economy effectively grind to a halt. do we see the fourth quarter generate a bounce back question mark where do you see the italian economy going? having oure actually annual performance in italy right now and it is wrapping up next week. it is a bit premature for me to on where italy is .oing i would want to wait to see the fine going -- to see the findings of this ongoing mission. how does the u.s. administration right now, and we've obviously just had midterms, so there is one branch that has changed hands. impact how the imf growth, now that there's wrinkles. sanctions let europe isn't going aboutde by, and questions trade between europe and the united states. aboutour assumption , building some ,ontinued slow down in export but it has a continuous, strong ,xpansion of domestic demand domestic investment and consumption in europe. it does not build in any significanton of de-escalation of trade sanctions or any other risks that are on the h

italy continues it shared with the e.u. italy is sticking to its guns on its budget absolutely sticking to its guns is exactly terry its sticking to its big spending budget plan rome did not meet a deadline set by the european commission to present a revised budget plan one that would be in line with the used ability rules brussels rejected rome's initial plan which saw deficit spending at two point four percent of g.d.p. italy has the second highest debt to g.d.p. ratio in the euro zone the international monetary fund warns that into these heavy spending carried substantial risks and could spur market turmoil. prime minister material so the made clear where his priority was. i can only say that we are working on a financial plan that includes more jobs more rights for retirement and less taxes if not for everyone at least for many italians if the european union likes it will be happy if they don't like it we'll stay the path anyway. early retirement lower taxes and a basic income for all italians that's what the populist m

italy looks more attractive. tradewas an interesting to be position long italy. italy,e volatility in you have to be careful. the liquidity has been poor. nejra: why is in the market putting enough pressure on the italian government to back down? >> they put some pressure. it is important to realize the italian government has eighth line balance they have to work. they have to balance what they said in the election versus the european union. the market has put some pressure on. hiel stays with us. where should investors shop around? we will discuss next. this is bloomberg. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. happy friday his markets. japan and indi