Halister News

(Bloomberg) -- Veneto banks rescue “is not a bailout, everything was done by the rules,” Italian Finance Minister Pier Carlo Padoan says in interview with Bloomberg Television.

• Says rules were negotiated with EU institutions
• Says “taxpayers are not affected”
• “The amount of public resources set aside was already discounted in December so this is not additional state money to be levied on taxpayers”
• Italian deal doesn’t change the playing field
• “We have strengthened euro integration and strengthened the banking union and we are working to make it even stronger” not weakened it
• Says he’s quite confident about recovering the almost EU5b put in by the govt
• Says mood in market improving as shown today
• Says Monte Paschi situation is “completely different”
• Says Carige so far complying with EU requests

(Bloomberg) -- The European Union’s main financial supervisors publish draft regulatory technical standards to help national authorities “determine when payment-service providers and electronic money issuers should appoint a central contact point to support the fight against money laundering and terrorist financing.”

• Link: http://tinyurl.com/y7g38oen

(Bloomberg) -- In the face of the alleged request from President Michel Temer to lower 2019 inflation target to 4% and of Brazil Central Bank weekly economists survey’s projection of the IPCA below 3%, a reduction of 50bps "is on the radar," said Marco Antonio Caruso, an economist at Banco Pine, in a telephone interview. See main points:

• Unemployment, efficient stance of monetary policy, weak economic activity give signs that disinflation is structural and can last longer
  • BCB’s Focus survey is yet another argument for the National Monetary Council, or CMN, to reduce 2019 inflation target to at least 4.25%
• Markets should also keep an eye on the possible tariff change by Brazil electricity regulator Aneel to yellow
  • With green flag, IPCA forecast for July is -0.02%; with yellow flag, forecast is something close to +0.10%
  • Forecast for IPCA of June is -0.20%

Original Story: Banco Pine: Redução da meta de inflação para 4% "está no radar" To contact the translator on this story: Danielle Chaves in Sao Paulo at djelmayer@bloomberg.net Reporter on the original story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net Editor responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net

--GREG STOHR