Feb 1, 2019

Markets yawn as Italy enters technical recession

Dion Rabouin, author of Markets

Italian Prime Minister Giuseppe Conte. Photo: Michele Spatari/NurPhoto via Getty Images

Italy fell into a technical recession in 2018, with quarter-over-quarter growth declining in both the third and fourth quarters of the year, national statistics bureau ISTAT reported on Thursday.

Of note: The country's GDP fell 0.2% in the fourth quarter, following a 0.1% decline in the third. However, Italian GDP rose 0.1% on an annual basis in Q4 and 0.7% in Q3. (The definition of recession is quite nuanced and hotly debated.)

Recession of any kind is generally worrisome, but markets were little moved by the news because Italy's stalled growth has been known for some time.

  • The spread between Italian 10-year bond yields and similarly dated German bonds remained near 240 basis points, and the country’s benchmark FTSE MIB closed just 0.21% lower on the day.

What they're saying: Italian Prime Minister Giuseppe Conte was also undisturbed by the (technical) recession announcement.

  • "I'm not at all worried ... Even the most naive analysts know that at this moment there is a trade war going on between the United States and China," he told reporters.
  • "Above all, Germany is holding us back ... it's a transitional phase, which depends on external factors."
  • "We are interested in focusing on the relaunch of our economy, which will certainly take place in 2019 ... This relaunch will hit full capacity in the second half."

More bad news for the EU: German retail sales fell by 4.3% in December, the biggest monthly drop in 11 years.

Go deeper

Your guide to comparing climate change and coronavirus

Illustration: Eniola Odetunde/Axios

Climate change and the coronavirus have a lot more in common than the letter C, but their differences explain society’s divergent responses to each.

Why it matters: The Internet is full of comparisons, some from biased perspectives. I'm going to try to cut through the noise to help discerning readers looking for objective information.

Updated 2 hours ago - Politics & Policy

George Floyd protests: Unrest continues for 6th night across U.S.

A protest near the White House on Sunday night. Photo: Alex Wong/Getty Images

Most external lights at the White House were turned off late Sunday as the D.C. National Guard was deployed and authorities fired tear gas at hundreds of protesters nearby, per the New York Times.

What's happening: It's one of several tense, late-night standoffs between law enforcement and demonstrators in the United States.

Updated 7 hours ago - Politics & Policy

Journalists get caught in the crosshairs as protests unfold

A man waves a Black Lives Matter flag atop the CNN logo outside the CNN Center during a protest in response to the police killing of George Floyd, Atlanta, Georgia, May 29. Photo: Elijah Nouvelage/Getty Images

Dozens of journalists across the country tweeted videos Saturday night of themselves and their crews getting arrested, being shot at by police with rubber bullets, targeted with tear gas by authorities or assaulted by protesters.

Driving the news: The violence got so bad over the weekend that on Sunday the Cleveland police said the media was not allowed downtown unless "they are inside their place of business" — drawing ire from news outlets around the country, who argued that such access is a critical part of adequately covering protests.