Could Naples’ garbage problem cause Italy’s exchange traded fund (ETF) to smell a little ripe?
The problem, reports Robin Pomeroy for Reuters, is that garbage has been accumulating in the city since Dec. 21. Dumps in the area have been declared full and the island of Sardinia has taken on most of the overload. Sixty schools were shot down after their entrances became blocked by the growing piles.
Will it affect the iShares MSCI Italy Index (EWI) at all? If it drags on long enough, it might — the trash problem has already hurt the local economy as tourists are staying far away from the stink.
Naples authorities have been shipping mountains of trash to other parts of Italy and the deliveries are causing skirmishes to break out for the first time in the weeks-long crisis. Islanders in Sardinia had it out with police when a ship loaded with refuse arrived Thursday, as gangs torched garbage cans, cars and started numerous fires.
The European Union prompted the bloc’s executive to speed up legal proceedings it has already launched against Rome. Meanwhile, Naples is upping the waste quantity that it sends to incinerators in Germany.
It looks like the problem could be resolved soon, and the ETF and related stocks can say Ciao! to the rubbish accumulating.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.