The IMF trims its economic growth forecast again as the U.S.-China trade war continues, Brexit worries linger and inflation remains muted.Economyread more
Citigroup thinks Tesla investors hoping for a post-earnings rally later this week should scrutinize a pair of related financial metrics.Investingread more
Olive branches were extended from both China and the U.S. as the two nations are set to restart face-to-face trade negotiations after a monthlong truce.Marketsread more
Coca-Cola topped Wall Street's expectations for earnings and revenue.Food & Beverageread more
New disclosures show Facebook and Amazon each spent more than $4 million on lobbying activity in the second quarter of 2019.Technologyread more
Boris Johnson, one of the biggest voices in the Brexit movement, wins the Conservative Party leadership race by a 2-1 margin.Europe Politicsread more
Disney can nearly double its earnings by 2024, Morgan Stanley said in a note to clients on Tuesday.Investingread more
Amazon is expected to report its second-quarter earnings on Thursday.Investingread more
The largest residential brokerage company in the U.S. is partnering with the largest online retailer in a strategy to boost sales for both.Real Estateread more
Here are the biggest calls on Wall Street on TuesdayInvestingread more
Canaccord Genuity's Tony Dwyer believes stocks are about to fall as much as 5% from their all-time highs.Trading Nationread more
Italy's coalition government should look to implement structural reforms and austerity policies now that the country's economy is growing, according to a European Commission presidential candidate.
Alexander Stubb, the Europhile former prime minister of Finland who has experience co-governing with populist parties, was clear about what path to take when asked by CNBC how he would deal with the Italian budget situation.
"I would emphasize the necessity to stick to the rules," Stubb said in a phone interview on Thursday.
Italy's anti-establishment government has clashed with the European Union regarding its spending plans. The populist cabinet wants to increase Italy's deficit to 2.4 percent of gross domestic product (GDP) in 2019, which deviates from previous agreements between Rome and Brussels.
"I would convey the message that when the economy is doing well is when you implement structural reforms and, in a way, austerity policies," Stubb said.
In the aftermath of the sovereign debt crisis, the Italian economy struggled to register significant growth levels. In 2016, the growth rate stood at 0.9 percent. It then grew 1.5 percent in 2017 and the current government has pointed to a GDP rate of 1.2 percent this year.
Investors are concerned that a growth rate around 1 percent and higher spending will put Italy at risk. Italy has the second largest debt pile in Europe and, in such conditions, it could find itself in crisis mode all of a sudden.
The economic risks in Italy, coupled with the deviation from previous commitments could spark action from the European Commission, which is responsible for overseeing fiscal discipline in Europe. The body could reject Italy's budget and ultimately sanction Rome. However, despite excessive deficits in the past, the commission has never fined a country.
"As the guardian of the treaty, I would be legalistic," Stubb told CNBC, suggesting that if justified, the European Commission should apply the law and fine countries that do not respect fiscal rules.
Stubb noted that as a candidate to become the next commission president in 2019, it is not his role to tell the institution what to do at this stage, and he does not have all the information regarding the Italian budget as the commission does. "But I would stick to the rules," he added.
The Finn is campaigning against European lawmaker Manfred Weber, who is from Germany, to become European Commission president.
Both are members of the center-right European party, EPP, and need to go through a primary vote within their own party. After that, one will campaign against other European parties in May during the European elections. The most voted for party in the election will then have the right to appoint its candidate as European Commission president.
A new commission team will take over in November 2019.