Talks stumble

• The risk of snap elections in Italy is rising this morning as talks between the anti-establishment Five Star Movement and center-left Democratic Party do not seem to be going well.
• Both sides have until tomorrow evening to show President Sergio Mattarella that they have a solid parliamentary majority and have agreed on a program for the government for the next four years.
• Elsewhere in Europe, the second reading of German second-quarter GDP showed that a collapse in exports is weighing enough on the country’s economy to push it to the brink of recession.

(Source: Bloomberg)