5-Star, League want European Central Bank to forgive €250 billion of Italy debt

Getty Images

In a direct challenge to European Union fiscal rules, the draft accord also called for the bloc to create fiscal headroom for spending by adjusting the formula used to calculate Italy's debt burden, which the rules say must be reduced.

Leaders of the far-right League and the 5-Star Movement, which emerged as two of the biggest parties from an inconclusive election on March 4, have been discussing a common policy agenda to form a coalition government and end more than 10 weeks of stalemate.

US 10-year Treasury yields rose, extending this week's bond market selloff, as traders and investors have not reached a consensus on whether it was time to buy or if the market was vulnerable to more selling.

"It's right to resonate with markets because it tells you about the sense of the wisdom between these negotiating parties", said Chris Scicluna, head of economic research at Daiwa Capital Markets. Italians are sick of the austerity associated with euro membership, and "will not tolerate" another round of it.

In bond markets, the USA 10-year Treasury yield set a fresh seven-year high of 3.108 percent in Asian trade on Thursday.

US bond yields have risen after data this week showed a solid rise in USA retail sales, suggesting the US economy is on a stronger footing in the second quarter.

This spread, a closely watched indicator of relative risk, was 129 bps on Tuesday.

But it would also mean that Italy's borrowing costs would rise sharply on concern about long-term debt sustainability.

The benchmark 10-year US yield US10YT=RR hovered above 3.1 percent, continuing a surge higher earlier in the week.

"We are seeing the latest, unacceptable interference from an unelected official in Europe", said Salvini.

California Energy Commission Adopts Standards Requiring Solar Systems for New Homes
Under the plan, some new homes, including those located under shade, will be exempt from having solar panels. The use of solar power in the United States has increased 600% over the past 6 years or so.

OxyContin maker faces more lawsuits
Stenehjem says Purdue "misrepresented and trivialized" the risk of addiction from prolonged opioid use. In 2012, Purdue's OxyContin represented about 30 percent of the overall painkiller market.

Is Jupiter's moon Europa venting plumes of water vapor?
The spacecraft will make repeated flybys of Jupiter and more than 40 close passes by Europa at altitudes as low as 16 miles. This would let the scientists search molecules, which could be capable of supporting the formation of life there.

But unease was evident across Italian markets.

The pan-European FTSEurofirst 300 stock index .FTEU3 rose 0.51 percent.

Shares in Italian banks, considered a proxy for political risk in the country due to their large holdings of government bonds, were broadly lower and the sectoral index was on course for its worst day in five months, down 2.9 percent.

Benchmark 10-year notes US10YT=RR last fell 5/32 in price to yield 3.1112 percent, from 3.095 percent late on Wednesday.

Spot gold XAU= dropped 0.1 percent to $1,288.96 an ounce, touching a new low for the year during the session.

These include slashing taxes for companies and individuals, boosting welfare provision, cancelling a scheduled increase in sales tax and dismantling a 2011 pension reform which sharply raised the retirement age. It might also dismay Italian President Sergio Mattarella, who has repeatedly stressed the importance of maintaining a strong, pro-European stance.

The League's support largely is centered in northern Italy, where it backs lower taxes and reining in central government spending, a popular platform in Italy's most productive region.

Some analysts, however, see the headlines as mostly noise and think the proposals are likely to be moderated by Mattarella. Global trade deals "excessively weaken the defense of citizens' rights and damage fair competition to the detriment of domestic market sustainability", their joint draft says.

A Five Star/League government has always been seen as the most disruptive scenario for eurozone leaders.

It would also be Italy's first all-populist government.

Related news:

Hot News

isis-killer-beheading-video-story-top FDA approves drug to help with opioid withdrawal symptoms
May 18, 2018 - 09:26
The drug Lucemyra reduces the severity of withdrawal symptoms but can not eliminate them altogether. Mark Pirner, senior medical director of Clinical Research and Medical Affairs for US WorldMeds.

isis-killer-beheading-video-story-top Golfer's wife arrested for drunken attack after missed cut
May 17, 2018 - 01:27
She later hangs up the phone, but when the 911 dispatcher calls the number back, her husband Lucas Glover answered the phone. Once they were able to get her into the backseat, she proceeded to kick the hell out of the door.

isis-killer-beheading-video-story-top Authorities investigate California explosion as intentional
May 17, 2018 - 01:26
Authorities say one person is dead and two others have injuries after an explosion rocked a Southern California office building. The neighbor says Krajnyak was her mother's caretaker and describes the husband as a massage therapist and nice man.

isis-killer-beheading-video-story-top EPA chief to face fresh questions about spending in senate hearing
May 17, 2018 - 01:25
Udall issued some of the harshest criticism of Pruitt, calling his leadership at the EPA "a betrayal of the American people". Udall tells Pruitt he's treating his position of public trust "as a golden ticket for extravagant travel and fine dining".

isis-killer-beheading-video-story-top Baylor Men's Golf Cruises into Final Round at Six-Under
May 17, 2018 - 01:24
No. 27 UNF is now third at 5-under, while No. 33 Pepperdine is second at 7-under and No. 3-ranked Oklahoma is first at 9-under. Sharp opened the day with par to complete his second round 3-under-par 68, which was his second lowest score of the season.

isis-killer-beheading-video-story-top Ramadan 2018 to begin on Thursday, moon sighted in India
May 17, 2018 - 01:22
Opposition Leader Kamla Persad-Bissessar urged for Muslims to practice spiritual reflection as the season of Ramadan begins. The final 10 nights of Ramadan include intense prayer and are followed by a three-day holiday called Eid al-Fitr.

isis-killer-beheading-video-story-top Barcelona FC Arrives In South Africa
May 17, 2018 - 01:21
The only first-team players not to travel to South Africa are defenders Samuel Umtiti and Thomas Vermaelen, who are both injured. Tonight's match is part of celebrations to mark 100 years since the birth of anti-apartheid icon Nelson Mandela.

isis-killer-beheading-video-story-top United States first lady Melania Trump undergoes kidney surgery
May 16, 2018 - 07:55
The White House has cited the first lady's privacy for not offering any additional details on her condition. White House Director of Communications Stephanie Grisham added that Melania was "doing well".

isis-killer-beheading-video-story-top Starbucks slams Seattle's new big business tax
May 16, 2018 - 07:54
That task force recommended $75 million through a tax on employers. "We took a huge step a year ago ", said Meg Olberding of HSD. While most the most dramatic moments in this saga unfolded over the last couple weeks, today's moment was months in the making.

isis-killer-beheading-video-story-top Boss Pep Guardiola: City will look to come back stronger next year
May 16, 2018 - 07:53
The atmosphere was unbelievable and I'm always happy to feel that I'm helping the team to win games and points - always happy about that".

isis-killer-beheading-video-story-top Peace Officers Memorial Day Observed on Wednesday
May 16, 2018 - 07:50
The president and other dignitaries honored the almost 200 officers who died in the line of duty a year ago at today's ceremony. Aaron Lloyd Crook's name was added to the National Law Enforcement Memorial in Washington, D.C.

isis-killer-beheading-video-story-top Marvel Studios Confirms Ms. Marvel (Kamala Khan) for the MCU
May 16, 2018 - 07:49
But others have argued that a younger actress should play the character since Kalama Khan is a teenager after all. She debuted in 2013, and she is one of the very few Muslim characters in the Marvel Comics world.

isis-killer-beheading-video-story-top Janoris Jenkins continues to pound drum for Dez Bryant to Giants
May 16, 2018 - 07:46
But he's going to partner with a great quarterback and have somebody that he feels like he can contend for a championship. I still believe Dez can highpoint the football as good as any receiver in the National Football League.

isis-killer-beheading-video-story-top Vodafone sees turnaround as profits for 2018 hit £2.5bn
May 15, 2018 - 22:19
Vodafone Chief Executive Vittorio Colao delivers a keynote at the Mobile World Congress in Barcelona, Spain, February 26, 2018. This has led to a mixed full year to 31 March 2018 operating performance, although one that looks pretty decent overall.

isis-killer-beheading-video-story-top Fox Revived 'Last Man Standing' Because They Were "Emboldened by Roseanne"
May 15, 2018 - 22:18
The buddy cop drama will have a new costar in Seann William Scott, who is replacing Clayne Crawford. The network has yet to make a decision on the fates of "Ghosted" and "L.A.to Vegas".