Italian markets remain caught between fiscal consolidation and rising borrowing costs, with the government's scaled-back defense spending in the new budget doing little to stop the
Italian markets remain caught between fiscal consolidation and rising borrowing costs, with the government's scaled-back defense spending in the new budget doing little to stop the bond spread against German debt from widening further. Euro zone inflation staying warm in September keeps pressure on rates, while the Eurocoin growth indicator worsened, adding a softer growth backdrop to the fiscal story. Retail sales data still shows households buying less in volume terms even as they spend more in cash terms, a sign prices continue to squeeze consumption.
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