Daily Market Update

EU ‘Nightmare Scenario’ As Popular Anti-Euro and Anti-EU Government Takes Power In Italy

by Ambrose Evans-Pritchard, Daily Telegraph

Firebrand populists of Left and Right are poised to take power in Italy, forming the first “anti-system” government in a major West European state since the Second World War.

Source: Wikimedia Commons

Leaders of the radical Five Star Movement and the anti-euro Lega party have been meeting to put the finishing touches on a coalition of outsiders, the “nightmare scenario” feared by foreign investors and EU officials in equal measure.

The unlikely allies vow a blizzard of contentious measures, threatening to cancel VAT rises, overturn key market reforms, introduce a universal “basic income” for the poor, and launch a fiscal blitz in open defiance of EU spending rules.

The formation of such a government could stiffen German resistance to any form of EMU union or debt pooling. It effectively dooms the Macron plan for a eurozone budget, leaving monetary union as vulnerable as ever going into the next global downturn.

Earlier proposals included the creation of a parallel currency or “fiscal certificate”. This would be based on perpetual treasury notes to cover €70bn (£62bn) of tax rebates and funds owed to state contractors. It is a way to inject liquidity into the economy, and to reintroduce the lira by stealth.

The scheme would – if ever enacted – subvert the monetary control of the European Central Bank and destroy German political consent for the single currency. It ultimately renders the euro structure unworkable.

“It is not going to be so revolutionary from the beginning. Nobody expects us to come out of the euro on day one, but what we will have is the first free government in Italy for many long years .”

Full article on The Telegraph here (must register)

 

News and Commentary

PRECIOUS-Gold eases on firmer dollar; but eyes first weekly gain in four (Reuters.com)

Gold steady as dollar hovers below 2018 peak (Reuters.com)

Bottom in place? Gold jumped to 10-day high (FXStreet.com)

U.K. House-Price Gauge Drops to 5 1/2-Year Low as London Slumps (Bloomberg.com)

London house prices predicted to keep falling (CityAM.com)


Source: US Funds

Gold Love Trade Looks Promising in India and China (USFunds.com)

The Wealthy Are Hoarding $10 Billion of Bitcoin in Bunkers (Bloomberg.com)

Gold Gets a Lifeline From a Surprising Source: Cheap Flights and Cars (Bloomberg.com)

Putin Wants to `Break’ With the Dollar But Dumps Euros Instead (Bloomberg.com)

The 1970s All Over Again? Part 1: The Middle East Explodes (GoldSeek.com)

Central Banks: The Great Experiment Has Failed (DailyReckoning.com)

 

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

10 May: USD 1,314.80, GBP 969.27 & EUR 1,106.80 per ounce
09 May: USD 1,306.85, GBP 965.11 & EUR 1,102.07 per ounce
08 May: USD 1,310.05, GBP 969.44 & EUR 1,101.88 per ounce
04 May: USD 1,309.35, GBP 965.78 & EUR 1,094.09 per ounce
03 May: USD 1,313.30, GBP 966.19 & EUR 1,094.64 per ounce
02 May: USD 1,310.75, GBP 960.52 & EUR 1,091.99 per ounce

Silver Prices (LBMA)

10 May: USD 16.60, GBP 12.24 & EUR 13.97 per ounce
09 May: USD 16.44, GBP 12.12 & EUR 13.84 per ounce
08 May: USD 16.45, GBP 12.17 & EUR 13.85 per ounce
04 May: USD 16.42, GBP 12.10 & EUR 13.72 per ounce
03 May: USD 16.47, GBP 12.12 & EUR 13.74 per ounce
02 May: USD 16.35, GBP 11.98 & EUR 13.62 per ounce


Recent Market Updates

– Gold Mining Supply Globally Looks Set To Decline
– Gold Bullion Demand In Iran May Surge On Trump Sanctions
– “Money Is Gold — and Nothing Else”
– U.K. Home Prices Plunge 3.1% In April – Largest Monthly Drop Since Financial Crisis In 2011
– Weekly Gold Update – Gold In Dollars Lower Despite Poor US Jobs and Other Data
– Own Some Gold and Avoid Overvalued Assets
– Gold Demand Falls In Q1 Despite Robust Central Bank and Investment Demand and Surging Demand In Turkey and Iran
– Smart Money Diversifying Into Gold – One Billionaire Invests Half His Net Worth
– “Blood In The Streets” Of U.S. Gold Bullion Market As Sale Of Gold Coins Collapse
– Most Important Chart Of The Century For Investors?
– Gold Mining Shares Are Speculative Making Gold Bullion A Better Investment
– Gold Price Increasingly Influenced By Declining Dollar Rather Than Interest Rates
– Cash “Vanishes” From Bank Accounts In Ireland

Mark O'Byrne
Executive Director

Read more...
Category
Archives
Popular

No posts available