Turkey, Italy, Bloomberg discussed on Monocle 24: The Briefing
Let's turn to the latest business news. Now as the clock ticks through twelve or six in London. Italy's populist leaders have brushed off their finance ministers, attempts to reassure investors. You imports from Bloomberg joins us on the line good afternoon to you. You and what's the latest from Italy. Told me it's lots of investor focus on Italy's budget for next year. We expect in the next few weeks to get some more details from the populist governments and next year's budget light. See the deficit almost doubled a touch, the European Union's three percents deficit singing that's going to deputy prime. The Matteo Salvini a lot of focus on from investors on this. The governor, of course, has some very expensive election promises, but the the government, they're saying that they will try to respect all the European hurdles, but the wellbeing of Italian citizens comes first Fitch Ratings on fighting on the main rating agencies cited budgetary concerns as it changes outlook on Italy to negative from stable, but they didn't actually move down the rating on the debt which to some people was a bit of a relief Italian currently, two notches above junk status. Italian bonds today actually up slightly with the yielding yield of three point one, nine percent. Now the yield. On Italian bonds has risen since the government took over in June's, suggesting that it will cost Italy more to borrow as time goes on. Now, another country that you and I have discussed frequently on this program in is Turkey, obviously, very sort of incendiary quite turbulent recently and some inflation data today. I don't know what are we going to what should be the takeaways from this? Yeah, fascinating. The economic story in Turkey, Tom, soggy, central banks digging today. The high interest rates are in the offing after inflation rose more than forecast in August and also producer prices surging. Now, the central Bank in Turkey says that the monetary stance will be adjusted at the September Monchy policy meeting in view of the latest developments a not very coded warning that we will probably see high interest rates in Turkey. Now, the data, the came out this morning pretty startling seventeen point. Nine percents is the current annual rates of price rises for consumers in Turkey because we've grown. In Houston. The west are having very little inflation prices not rising a tool that is not the pitcher in Turkey. The slumping lira means that imported goods become much much more expensive for Turkish. Consumers Turkish producer prices while they're rising at thirty two percent a year. So that suggesting that this some gap between producers a paying in what they're passing onto consumers, but that won't last forever. So eventually those high producer prices. We'll also get passed on to consumers. Now that's a rate rise from the circuit Turkey. Central Bank when we get it puts them at odds with president urged one, he said he doesn't want to see rates rising. He wants to see focus on economic growth in Turkey, and he doesn't really believe in rising interest rates as a way of stemming inflation. But certainly inflation is something of a problem in Turkey at the moment. And did it is always good to hear from you that was offering to you? Imports from Bloomberg joining us here on the briefing..