French inflation eased below 3% for the first time in 2 1/2 years and Italy reported a lower-than-expected reading, confirming a trend that has tipped the European Central Bank toward cutting interest rates, Bloomberg News reported. Consumer prices in France, the euro area’s second-largest economy, rose 2.4% from a year earlier in March after a 3.2% gain the previous month, statistics agency Insee said. The slowdown was sharper than the 2.8% forecast of economists surveyed by Bloomberg. In Italy, the bloc’s third-largest economy, inflation had already fallen below 2% in October.
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The number of people living in poverty in Italy rose in 2023 to its highest level in about a decade, data showed on Monday, despite an economic rebound since COVID-linked restrictions were eased, Reuters reported. Those living in “absolute poverty” — who were unable to buy essential goods and services — rose to 5.75 million, or 9.8% percent of the population, national statistics bureau ISTAT reported. That's up marginally from 9.7% in 2022 and the highest since the current data series began in 2014.
Telecom Italia's business plan for the new company emerging from the sale of the former phone monopoly's fixed line network is sustainable, Italy's Industry Minister Adolfo Urso said on March 14, Reuters reported. Shares in the former phone monopoly plunged last week after TIM unveiled its three-year strategy and outlook for the business emerging after the network sale to U.S. fund KKR, piling pressure on TIM Chief Executive Pietro Labriola.
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UniCredit faces court hearings in Britain and Russia in the second quarter after a Russian energy company sued the Italian bank for failing to honour guarantee payments because of international sanctions, UniCredit said on Tuesday, Reuters reported. Italian lenders Intesa Sanpaolo and UniCredit still have businesses in Russia, as Western sanctions following the Ukraine conflict curtailed the number of potential buyers and Moscow then passed laws that restrict divestments.
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Telecom Italia SpA is planning to reject Italy’s bid of up to €750 million ($805 million) for its submarine cable unit Telecom Italia Sparkle SpA dragging on the sale of a strategic asset for the government, Bloomberg News reported. The company’s board is expected to ask Italy’s Finance Ministry for better terms for the entire unit at a meeting Wednesday. Giorgia Meloni’s government is trying to take over what it views as a particularly strategic asset beyond Italy. Sparkle operates over 600,000 kilometers (373,000 miles) of cables connecting countries including Israel and the US.
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Some of the banks backing KKR & Co.’s purchase of Telecom Italia SpA’s land line network with a €10 billion ($10.7 billion) infrastructure financing are looking to syndicate the deal this month, Bloomberg News reported. The financing was underwritten at the end of last year by 10 or more banks including BNP Paribas SA, Credit Agricole SA and JPMorgan Chase & Co., according to people familiar with the matter, who spoke to Bloomberg on condition of anonymity. Some of the banks are now set to sell on the debt to buyers including infrastructure funds, the people said.
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The Italian government is asking for an additional review to clear the planned acquisition of alternative asset manager Prelios SpA by Andrea Pignataro’s ION Group after deciding against using its special powers to block the deal, Bloomberg News reported. The government is set to tell ION it will need to obtain another permission to complete the purchase after setting the final conditions for its financing, according to people familiar with the matter.
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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'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.