Sep 29, 2018

Italy's budget proposal sparks fears of financial collapse

Italian Deputy Prime Minister Luigi Di Maio speaks to reporters after unveiling a new budget proposal. Photo: Antonio Masiello via Getty Images

Italy's populist government unveiled a draft budget Friday that includes tax cuts and a guaranteed "citizens income" for the poor, raising its annual budget deficit to 2.4% of its GDP and renewing fears in the European Union of a Greece-like debt crisis, reports the Financial Times.

The big picture: The budget must be approved by the European Commission, which asks all EU member states to bring down their overall debt to 60% of GDP. Italy's debt, which is second in Europe only to Greece, currently sits at 130% and is expected to rise. A budget veto by the Commission could spark a political fight ahead of next year's European Parliament elections, which are already expected to pit the center-right establishment and against surging right-wing populists.

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There are warning signs that Nevada could be Iowa all over again

Former Sen. Harry Reid (D) lines up to cast an early vote for the upcoming Nevada Democratic presidential caucus. Photo: Ethan Miller/Getty Images

The alarms are increasingly sounding over Nevada's Democratic caucus, which is just five days away.

Why it matters: Similar issues to the ones that plagued Iowa's caucus seem to be rearing their ugly heads, the WashPost reports.

China tries to contain coronavirus, as Apple warns of earnings impact

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's NHC; Note: China refers to mainland China and the Diamond Princess is the cruise ship offshore Yokohama, Japan. Map: Danielle Alberti/Axios

As China pushes to contain the spread of the novel coronavirus — placing around 780 million people under travel restrictions, per CNN — the economic repercussions continue to be felt globally as companies like Apple warn of the impact from the lack of manufacturing and consumer demand in China.

The big picture: COVID-19 has now killed at least 1,775 people and infected more than 70,000 others, mostly in mainland China. There are some signs that new cases are growing at a slower rate now, although the World Health Organization said Monday it's "too early to tell" if this will continue.

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Apple will miss quarterly earnings estimates due to coronavirus

Apple CEO Tim Cook

Apple issued a rare earnings warning on Monday, saying it would not meet quarterly revenue expectations due to the impact of the coronavirus, which will limit iPhone production and limit product demand in China.

Why it matters: Lots of companies rely on China for production, but unlike most U.S. tech companies, Apple also gets a significant chunk of its revenue from sales in China.