- Italy's 'Superbonus' tax credit scheme for home renovations has caused a liquidity crunch for small construction businesses.
- The scheme encouraged property owners to upgrade the energy efficiency of their homes with transferable tax credits.
- After the scheme was tightened, thousands of small construction businesses were left with €20bn of frozen tax credits stuck on their books.
- 32,000 small construction companies are at risk of going bust unless the government helps them unload their accumulated tax credits.
- The Superbonus has cost about €110bn, or about 6% of GDP, but emissions have remained at the same level.
Central banks around the world are pausing tightening campaigns as inflation eases and economies slow. Inflation-targeting regimes are keeping their own houses in order, while the US Fed's key inflation gauges fell to the slowest annual paces since late 2021.
Two massive earthquakes on Monday have devastated cities and towns across Turkey and Syria, with death toll of over 16,000. This is one of the worst natural disasters this century, alongside the 2004 Sumatran Tsunami, 2010 Haiti earthquake and 2008 Cyclone Nargis.
A raft of U.S. data and European inflation numbers will give guidance on how the world's top central banks will navigate the way ahead, including the hotly debated "no landing" scenario. Reports on U.S. durable goods orders, home prices, manufacturing and consumer confidence threaten to cement expec