An Italian court on Monday cleared the way for energy companies to cut off gas supplies to steel company Acciaierie d'Italia (ADI), majority owned by multinational steel giant ArcelorMittal, over mounting debts, Reuters reported. Weighed down by an increase in energy prices and a drop in rolled steel coil prices, ADI has run out of cash and has accumulated a huge debt pile with suppliers. These include energy giant Eni, owed 104 million euros by the steelmaker as of end-June 2023.
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Italy
Italy's government will agree on a limited extension of costly "superbonus" subsidies for home improvements which Prime Minister Giorgia Meloni had previously blamed for wrecking public finances, a coalition party said on Thursday, Reuters reported. The Forza Italia party, which pushed hard for the concession, said 110% tax credits would remain in place for low-income households who have not completed home renovations this year. They otherwise faced having to draw on less generous 70% tax credits, kicking in next year.
The Serie A leaders are currently leading their domestic league and they have also qualified for the knockout stage of the Champions League, CaughtOffSide reported. The news of their bankruptcy started surfacing in the media after they paid their 10 board members their annual compensation. Their corporate CEO, Alessandro Antonello, and the CEO of the sports area, Giuseppe Marotta, received less compensation compared to the previous financial year.
Italy is no longer in danger of a cut to junk at Moody’s Investors Service, which raised its rating outlook to stable in a huge win for Prime Minister Giorgia Meloni, Bloomberg News reported. The country’s assessment was kept at Baa3, the lowest investment grade, but the company removed the threat of a downgrade after more than 15 months with a negative view instituted just before the populist premier won power.
Agricultural and construction machinery maker CNH Industrial on Tuesday lowered its 2023 revenue forecast, citing a softening demand for its farm machinery, predominantly in South America, sending its shares plummeting, Reuters reported. The company also announced a restructuring plan that will entail trimming 5% of its salaried workforce costs and reducing its total workforce expenses by 10% to 15%. Shares were down 7.7% on the NYSE. Trading for the manufacturer was repeatedly halted in Milan due to volatility after the company revised its sales outlook for the year.
An Italian judge has ordered the seizure of 779.5 million euros ($836.40 million) from short-term rentals platform Airbnb's Ireland unit for alleged tax evasion, Milan prosecutors' office said on Monday, Reuters reported. The probe concerns Airbnb's alleged failure to withold 21% of landlords' rental income and pay it to Italian tax authorities, as required by a 2017 law, prosecutors in the northern Italian city said in a statement.
Italy plans to crackdown on landlords who do not pay taxes on short-term flat rentals such as those made through platforms like Airbnb, politicians said on Monday, in a move that could boost fiscal revenue by 1 billion euros ($1.06 billion), Reuters reported. After a meeting between key coalition figures over the 2024 budget, the co-ruling Forza Italia party said in a statement that Italy planned to introduce a national identification code to be used for short-term rentals. "That code will bring out the revenue of those who rent flats without declaring them.
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The risk premium on Italian government debt fell on Thursday after the European Central Bank (ECB) kept interest rates on hold and said it would keep reinvesting the proceeds of its pandemic-era bond purchases until the end of next year, Reuters reported. The ECB held interest rates at the record high level of 4%, ending an unprecedented streak of 10 consecutive hikes. The euro and European stocks pared earlier losses as investors also digested strong U.S. growth data.
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Italy’s far-right-led government on Monday approved a budget for next year that aims to bolster public health services, encourage families to have more children and put more money in the pockets of low- and medium-wage earners, the Associated Press reported. Premier Giorgia Meloni said the 24 billion-euro ($25 billion) budget, which includes 5 billion in spending cuts, is in line with the government’s priorities. She described it as both “serious” and “realistic," even as Italy faces an expected increase of 13 billion euros in payments to service its public debt as interest rates increase.
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KKR & Co. is set to submit a binding offer for Telecom Italia SpA’s phone network, in what promises to be a game-changing deal for the ex-monopolist looking to slash its massive debt pile, Bloomberg News reported. Telecom Italia expects the final bid from the US private equity firm, following months of negotiations, by the end of this weekend at the latest, the people said, in line with a company deadline. KKR has valued the grid at as much as €23 billion ($24 billion).
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