Instability rules in Italy
Italian national elections have ended in chaos and the voters’ message is that they are tired of austerity and the political elite. The country faces a hung parliament after votes were split between a former comedian, an ex-prime minister who faces corruption charges, and the centre-left, who won narrowly in the lower house. Mario Monti, the technocratic prime minister who was appointed 15 months ago, came a distant fourth place. In this podcast, Guy Dinmore, Rome correspondent, Peter Spiegel, Brussels bureau chief, and Ferdinando Giugliano, leader writer, join world news editor Shawn Donnan to discuss the unfolding drama, which could take weeks to resolve. Read more

By Julia Zhu in London

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Making sure the world gets the message – Graffiti on a wall in Livorno, Italy

Political deadlock and impending chaos, a rejection of EU-driven austerity, and market uncertainty are the main three themes in the media commentary on the Italian election that had yet to be declared on Tuesday morning.

“The reality is that Italy today is almost ungovernable,” writes Fabrizio Goria on Linkiesta, a news website. “And it will not take long for the markets to react.”

The headline in La Repubblica , the leading centre-left daily, doesn’t really need translating:

Italia ingovernabile: Senato spaccato, Grillo primo partito

“An ungovernable country,” concludes Massimo Razzi inside. “Politically, but also technically. With few ways out given the almost unworkable or numerically insufficient alliances.” Read more

By Julia Zhu in London

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What the strange trial of a dead man tells us about Putin’s Russia
Sergei Magnitsky, a lawyer who died in a Moscow jail in 2009 after making allegations of tax fraud against interior ministry officials, is to be tried on tax-evasion charges in a Russian court beginning on Monday. Charles Clover, Moscow bureau chief; Geoff Dyer, diplomatic correspondent; and Neil Buckley, east Europe editor, join Gideon Rachman to discuss what this strange posthumous trial says about Putin’s Russia and how could it affect relations with Europe, and particularly the US. Read more

How dangerous is North Korea’s nuclear test?
Within hours of the North Korean nuclear test this week, the UN security council was meeting in emergency session. But how dangerous is this development, and what is likely to happen next? James Blitz, diplomatic and defence editor, Christian Oliver, former Seoul correspondent, and Simon Mundy, the current FT correspondent in Korea, join Gideon Rachman. Read more

 

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The most important Italian election for 30 years?

Some argue that the elections to be held in Italy are the most important for that country in three decades, since the fate of the euro could be at stake. Tony Barber, Europe editor, and Guy Dinmore, Rome bureau chief, join Gideon Rachman to discuss the election. Read more

A post-Davos debrief on the state of the world economy

As US growth shrinks and fears of a catastrophic collapse in the eurozone recede, Gideon Rachman, FT editor Lionel Barber and economic editor Chris Giles discuss the strength of world economy in this week’s podcast (also available on video) Read more

by Kate Allen and Keith Fray

Today’s encouraging US non-farm payrolls data presents a puzzle – it contradicts the quarterly GDP figures that were published earlier this week. Employment is up, but the economy has apparently shrunk. Britain has been facing a similar contradiction for some time now.

It’s important to remember that we shouldn’t place too much emphasis on a single set of monthly figures – as this blog has mentioned before. But non-farms are interesting because, as this chart shows, they have a track record of being closely associated with GDP – historically there has been a good fit.

US GDP and nonfarm payrolls

 

The discrepancy between this week’s surprising and depressing GDP number and the relatively optimistic non-farm payrolls bucks this trend.

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