The most discussed issue is for now political crisis in Italy which will surely influence political and economic situation in Europe. The toll was already taken by euro, as the united European currency is one of the main questions, causing the crisis.
Italian situations threatens Eurozone?
Italian elections took place months ago and still there is no formed government for the country. True, the elections were won by the 5-Star Movement. A party, which was against Euro-coalition. And all the Europe was frozen, awaiting further movements. But now it seems that there are massive disagreements in the political air of Italy as the recent events have submerged Italy in the full-scale political crisis.
5-Star Movement has colluded with Italian President Sergio Mattarella. And it seems that the impact won’t leave any stone standing. It is generally unusual for the President to meddle into political life of the government, especially during the process of its sculpturing. Everyone was expecting calm approach from Sergio Mattarella, but that wasn’t the case this time around. President declared that he would never agree for the Financial Minister post to be occupied by a known Eurosceptic and man against Italy being the part if Eurozone Paolo Savona. As the answer, coalition members have threatened Mattarella with impeachment. They declared that Mattarella was working for Germany and hi own country. Prime Minister candidate Giuseppe Conte has even resigned as the act of protest.
Seems like all of this can lead Italy to the new elections very soon. But this time it won’t be that simple. According to Francesco Galietti, head of political risk consultancy Policy Sonar in Rome “The election is going to resemble a referendum, de facto, on the European Union and the euro. It’s an existential threat for the entire euro zone.”. League leader Matteo Salvini added on the matter “The upcoming elections will not be political, but instead a real and true referendum ... between who wants Italy to be a free country and who wants it to be servile and enslaved. [] Today Italy is not free; it is occupied financially by Germans, French and eurocrats.”
The situation sends politicians in the EU into a slight panic. If the vote takes place the result of it may not be beneficial for EU countries. For now the toll on Euro is already being taken as the currency lost some position against the greenback.
List of the most expensive companies is out.
Forbes’ lists have already become something of a tradition in political and economic world. People around the world are awaiting it in order to be in the know of the most influential people and companies there are in the market. And now another one was published – the list of the most expensive companies in the world.
Main index for the list was the market cap pf the company. And, as several years in row prior to this the first place was taken by Apple – eighth time in a row. IT companies have not only taken higher potions of the list but also taken the first five places, as the second place was given to Google and the third to Microsoft.
Apple in 2018 has a market cap of $182.8 billion dollars. It is 8 percent more from the last years’ numbers. Google gained 30 percent of the price since last years and is now worth about $132.1 billion. Microsoft costs about #104.9 billion after having gained 21 percent. Fourth and fifth places are taken respectively by Facebook - $94.8 billion and Amazon $70.9 billion.
Strangely one of the biggest microchip producer in the world Intel couldn’t even get in the top-10. Even though the brand got about 9 percent of the price the company is occupying 14th place with market cap of about $34 billion. Cisco and IBM are at 16th and 17th place.
China is also represented in the list – Huawei is at the place 79 with $8.4 billion. PayPal is at 98th place with 33 percent gain.
Stocks, currencies and crude overview.
Italian politicians’ actions are provoking slow fall for European currency together with 10-year Treasuries. Stocks in Europe faced a sell-off because of the weakening euro with dollar gaining points globally. Political turbulence in Italy and Spain have reminded experts about the instability in Eurozone.
Stoxx Europe 600 lost 0.6 percent and sank to the lowest point in 3 weeks.
S&P 500 futures decreased 0.3 percent.
DAX from Germany fell 0.6 percent.
MSCI Emerging Market Index lost 0.7 percent.
MSCI Asia Pacific dipped 0.4 percent to the worst point in 3 weeks.
Dollar is at the highest point in 5 months - +0.1 percent against the basket of six major currencies.
Euro lost 0.3 percent - $1.1593 – weakest in more than half a year.
Yen added 0.5 percent – 108.92 – the best price in almost a month and a half.
WTI oil lost 1.8 percent in the fifth in a row decline - $66.69 per barrel – the worst price in six weeks.
Gold lost 0.1 percent - $1.296.78.
