Huawei CEO Ren Zhengfei laid out plans to bring more efficiencies to the organization. This included simplifying the reporting structure, cutting down on surplus staff, axing...Technologyread more
The bond market has entered a financial twilight zone, and at this point, there doesn't seem to be a smooth way out.Market Insiderread more
China has used both monetary and fiscal measures to lift economic activity as its trade war with the U.S. looks set to intensify in the coming months.China Economyread more
President Donald Trump said on Twitter he was postponing a scheduled meeting with Denmark's prime minister because of her lack of interest in discussing a possible sale of...World Politicsread more
"I think (rate cuts) will help, but whether they're going to be sufficient to counter the negative trade pressures and global growth slowdown and impact is debatable," one...Central Banksread more
Chinese overseas investment growth will likely slow or even decline in the next few years as risks around the world increase, according to new research by Moody's Investors...China Economyread more
The two countries want to smash the civil aerospace duopoly enjoyed by Airbus and Boeing.Aerospace & Defenseread more
Alibaba held a board meeting before its latest quarterly earnings release last week, during which the board decided to postpone the Hong Kong listing, Reuters reported.Technologyread more
Federal Reserve Chairman Jerome Powell is set to deliver his annual speech on Friday at the Jackson Hole, Wyoming symposium, where he's expected to provide more clarity on the...Asia Marketsread more
U.S. and Asian investors poured $3.7 billion into U.K. tech start-ups in the first seven months of 2019, research shows.Technologyread more
After Elon Musk touts Tesla solar on Twitter, Walmart sues the electric vehicle and clean energy company over store rooftop panels that ignited.Technologyread more
Italy's 2019 budget draft is in serious breach of EU budget rules, the European Commission told Rome on Thursday, in a step that prepares the ground for what would be an unprecedented rejection of a member state's fiscal plan.
The Commission said in a letter to Economy Minister Giovanni Tria, published on its website, that planned government spending was too high, the structural deficit - excluding one-offs and business cycle effects - would rise instead of fall, and that Italian public debt would not fall in line with EU rules.
"Those three factors would seem to point to a particularly serious non-compliance with the budgetary policy obligations laid down in the Stability and Growth Pact," the letter said.
The Commission said that the draft budget envisaged a nominal rate of growth of net government expenditure next year of 2.7 percent, while EU rules allowed Italy only 0.1 percent.
The structural deficit would rise 0.8 percent of GDP next year, while a binding recommendation by EU finance ministers from July obliged Rome to cut it by 0.6 percent of GDP.
"Moreover, with Italy's government debt standing at around 130 percent of GDP, our preliminary assessment also indicates that Italy's plans would not ensure compliance with the debt criterion benchmark ... which requires a steady reduction of the debt level towards the 60 percent threshold," the letter said.
The Commission also asked Tria to explain why he ignored a negative opinion on the budget's macroeconomic assumptions from the Parliamentary Budget Office - Italy's independent fiscal monitoring institution - which also violates EU law.
The Commission asked Rome to respond by Monday.
The letter is part of required consultations between the Commission and any euro zone government whose draft budget clearly breaks EU rules.
Unless the main parameters of the budget are changed, the Commission is likely to send the draft back to authorities in Rome asking for changes for the first time since it got draft-budget vetting powers in 2013.