Welcome to Finance Insider, Business Insider’s summary of the top stories of the past 24 hours.
Italy’s prime minister Matteo Renzi announced his resignation in Rome shortly after midnight local time on Monday, after losing the critical referendum on which he staked his political career.
Here’s what you need to know:
- Italy’s prime minister resigns after landslide defeat in referendum vote
- Italy must now form a new government, with finance minister Pier Padoan tipped to be the next PM
- The euro had a great day despite the Italian referendum result
- Equities in the country briefly crashed on Monday morning, before fighting back strongly
- Here’s what 5 investment banks are saying about Italy’s referendum result
In the US, a showdown between Donald Trump and the Fed is looming, according to Luke Bartholomew at Aberdeen Asset Management. Trump could be either the best or the worst thing to happen to the global economy in 2017, according to Oxford Economics.
“I think the Trump rally is celebrating that capitalism is back,” he said.
In related news, Trump’s China rant had one truth and two lies
, according to Linette Lopez.
Elsewhere in China news, the country’s insane spending on robotics is fundamentally changing capitalism, according to Alliance Bernstein. Liberty Mutual is buying an insurance company from a Chinese giant for about $3 billion. And China is urging Washington to stop disrupting its foreign corporate acquisitions.
Elsewhere in deal news, Disney should get rid of ESPN, according to RBC Capital Markets. Burberry shares jumped on talk of a £15 billion takeover. And Sears is on the brink of catastrophe as store closures loom and top execs flee the company.
In tech news, Facebook and Google are “killing news,” according to the CEO of Dow Jones. One of the top former editors at Bloomberg has launched his new media venture “The Outline.” The founder of Google Ventures is launching a new venture fund.
And this is Amazon’s grocery store of the future: no cashiers, no registers, and no lines.
Here are the top Wall Street headlines at midday
A pensions time bomb spells disaster for the US economy – Underfunded government pensions to the tune of $1.3 trillion, with a gap that just can’t be filled, are the ticking time bomb facing the US economy.
A 26-year old Bitcoin entrepreneur was handed prison time, and the experience only confirmed his belief in the cryptocurrency – The rise of 26-year old Charlie Shrem was swift. So was his fall.
One of the biggest forces powering the stock market is stalling – Companies have finally hit the limit for buying up their own stock, according to Deutsche Bank.
US service providers are getting bombarded with new orders – Two indicators on the US service sector released Monday showed strong new-business orders and hiring in November.
China’s demographic future has a big problem – Many countries face looming demographic issues as their populations age.
Trump’s tax plan is giving realtors and nonprofits something to worry about – President-elect Donald Trump’s pick for treasury secretary, Steven Mnuchin, says the incoming administration is about to embark on the “largest tax change since Reagan.”
This picture sums up the political chaos of 2016 perfectly – 2016 has been a crazy year. Nowhere is this more true than in the massive political upheaval we have seen in countries around the world but particularly here in the West.
Wealthy Americans have a new attitude about travelling — and it should terrify hotel chains – When busy people go on vacation, they’re often looking to put their feet up, catch up on sleep, and just generally enjoy being somewhere else.