News of greater political uncertainty in Italy and poor European data is spurring risk-off moves, with the dollar and yen firmer, emerging market currencies mostly softer, global equity markets lower and core bonds a bit firmer. Following much weaker than expected German industrial production figures last week has been followed in kind by disappointing French and Italian output figures today. Italy reported a 1.1% decline. The consensus was for a 0.2% decline and the Sept series was revised lower. French output fell 0.7%. The consensus was for a 0.3% increase. Yet it is really the Italian political scene that is the ... (full story)