Weekly Smart Pills #73
Financial Markets
Cryptocurrency Market
This week, the cryptocurrency market showed a downward trend affecting major digital currencies.
Bitcoin (BTC) fell to the $82,000 mark, and its market dominance slightly decreased, settling at 61.19%.
Ethereum (ETH) dropped by 1.4%, trading around the $1,800 level.
These movements reflect a phase of consolidation in the crypto market, influenced by macroeconomic factors and new regulations.
Traditional Financial Markets
European stock markets showed positive signs.
In Milan, the FTSE MIB index closed up by 1.1%, driven by strong performances from Unicredit (+3.3%) and Intesa Sanpaolo (+2.2%), supported by favorable reports from Equita and J.P. Morgan.
However, Pirelli saw a decline of 2.5% due to speculation about a possible restructuring of its ownership.
Economy and Regulation
France’s public deficit stood at 5.8% of GDP in 2024 (€169.6 billion) — lower than the expected 6% but still nearly double the EU’s 3% target.
Finance Minister Eric Lombard warned that deficit and debt remain serious risks, with public debt rising to 113% of GDP.
Revenue increased by 3.1%, while spending rose 3.9%, driven by pension and unemployment expenses.
The government aims to reduce the deficit to 5.4% in 2025, and below 3% by 2029.
Economic challenges persist amid weak growth forecasts and tight budget conditions, especially as Macron plans to increase defense spending.
U.S. President Donald Trump’s 25% tariffs on vehicles and auto parts are expected to significantly impact Italy’s automotive supply chain, according to industry group ANFIA.
Italy exports €1.2 billion worth of components to the U.S., while importing only €230 million, and exports three times more vehicles than it imports.
ANFIA Director Gian Marco Giorda expressed concern over added uncertainty for already struggling manufacturers and suppliers, hoping the tariffs are a negotiating tactic that may be reversed.
The tariffs could raise car prices by $6,000 to $10,000.
Trends and Statistics
Extra-EU Foreign Trade – February 2025
Exports to non-EU countries rose by 2.8%, while imports grew by 0.8%, driven primarily by increased sales of consumer goods and energy purchases.
Over the December–February quarter, exports grew by 3.9%, and imports by 6.7%, mainly due to the energy sector.
Year-on-year, exports fell by 2.1%, due to decreased sales of energy and capital goods, while imports rose by 8.6%.
The trade surplus shrank to €4.7 billion, down from €6.9 billion in February 2024, with a widening energy deficit.
Exports declined to Turkey (-10.6%) and the U.S. (-9.7%), but rose to Switzerland (+17.3%), OPEC countries (+12.9%), and the UK (+8.5%).
Imports significantly increased from OPEC countries (+34.3%) and China (+18.3%).
