A crisis in one country only becomes a crisis for the whole eurozone when a collective European response is required, Simon Nixon writes
The Wall Street Journal
By SIMON NIXON
Dec. 7, 2016 3:27 p.m. ET
4 COMMENTS
Not for the first time this year, the doom-mongers have been confounded. The Italian referendum over the weekend resulted in a resounding defeat for Prime Minister Matteo Renzi, who promptly announced his resignation. Yet the sky didn’t fall in, the euro dipped and then rallied, and Italian bonds and bank stocks barely budged. Other European assets were also largely unmoved.
"Ό,τι η ψυχή επιθυμεί, αυτό και πιστεύει." Δημοσθένης (Whatever the soul wishes, thats what it believes, Demosthenes)
Showing posts with label Italy. Show all posts
Showing posts with label Italy. Show all posts
Friday, December 9, 2016
Monday, December 5, 2016
Markets stabilise after Italian referendum
5-12-2016
BBC
The euro was hit after Mr Renzi announced his intention to resign. At one stage the euro hit $1.0505, its lowest level against the US currency since March 2015.
But it rebounded from that low to stand at $1.0634, a fall of just 0.3%.
Shares in Italian banks opened lower before recovering ground.
The troubled Monte dei Paschi was down by more than 5% in the first few minutes of trade, but then rebounded and had edged into positive territory. Shares in Unicredit and Intesa also fell sharply at first before recovering.
BBC
The euro was hit after Mr Renzi announced his intention to resign. At one stage the euro hit $1.0505, its lowest level against the US currency since March 2015.
But it rebounded from that low to stand at $1.0634, a fall of just 0.3%.
Shares in Italian banks opened lower before recovering ground.
The troubled Monte dei Paschi was down by more than 5% in the first few minutes of trade, but then rebounded and had edged into positive territory. Shares in Unicredit and Intesa also fell sharply at first before recovering.
Labels:
European debt crisis,
European Union,
Italy,
Referendum
Wednesday, November 23, 2016
Greece to continue bailout talks, aiming to finish before December 5
Tue Nov 22, 2016 | 1:42pm EST
Reuters
Greece will continue talks with international creditors on fiscal and labor reforms, aiming to wrap up the second review of its bailout program by early next month ahead of a euro zone finance ministers' meeting, government officials said on Tuesday.
Mission chiefs of the creditor institutions overseeing the program's implementation - the euro zone's ESM rescue fund, the European Central Bank, the International Monetary Fund and the European Commission - left Athens on Tuesday, leaving remaining issues to be resolved by technical staff and via teleconference.
Reuters
Greece will continue talks with international creditors on fiscal and labor reforms, aiming to wrap up the second review of its bailout program by early next month ahead of a euro zone finance ministers' meeting, government officials said on Tuesday.
Mission chiefs of the creditor institutions overseeing the program's implementation - the euro zone's ESM rescue fund, the European Central Bank, the International Monetary Fund and the European Commission - left Athens on Tuesday, leaving remaining issues to be resolved by technical staff and via teleconference.
Labels:
Brexit,
Euro,
European debt crisis,
European Summit,
Greek Crisis,
Italy
Tuesday, October 18, 2016
Will Italy Leave the Euro? Follow the Money
30 OCT 17, 2016 1:31 AM EDT
By Mark Whitehouse
Bloomberg
Will Italy follow the U.K.'s example and leave the European Union? Far-fetched as it may seem, capital flows suggest that some people aren’t waiting to find out.
To keep the euro area's accounts in balance, Europe's central banks track flows of money among the members of the currency union. If, for example, a depositor moves 100 euros from Italy to Germany, the Bank of Italy records a liability to the Eurosystem and the Bundesbank records a credit. If a central bank starts building up liabilities rapidly, that tends to be a sign of capital flight.
By Mark Whitehouse
Bloomberg
Will Italy follow the U.K.'s example and leave the European Union? Far-fetched as it may seem, capital flows suggest that some people aren’t waiting to find out.
To keep the euro area's accounts in balance, Europe's central banks track flows of money among the members of the currency union. If, for example, a depositor moves 100 euros from Italy to Germany, the Bank of Italy records a liability to the Eurosystem and the Bundesbank records a credit. If a central bank starts building up liabilities rapidly, that tends to be a sign of capital flight.
Friday, July 31, 2015
Italy is the most likely country to leave the euro
By Matt
O'Brien July 30 at 2:56 PM
What do you
call a country that has grown 4.6 percent—in total—since it joined the euro 16
years ago? Well, probably the one most likely to leave the common currency. Or Italy , for
short.
It's hard
to say what went wrong with Italy ,
because nothing ever went right. It grew 4 percent its first year or so in the
euro, but almost not at all in the 15 years since. Now, that's not to say that
it's been flat the whole time. It hasn't. It got as much as 14 percent bigger
as it was when it joined the euro, before the 2008 recession and 2011
double-dip erased most of that progress. But unlike, say, Greece , there
was never much of a boom. There has only been a bust. The result, though, has
been the same. As you can see below, Greece
and Italy
have both grown a meager 4.6 percent the past 16 years, although they took
drastically different paths to get there.
Friday, November 22, 2013
France With Italy, Spain Seek Flexibility in Euro Budget Talks
By Ian
Wishart & James G. Neuger - Nov 22, 2013 10:48 PM GMT+0200.
Bloomberg
The
growth-versus-austerity debate was renewed at a meeting of finance ministers in
Brussels today, as euro-area governments attempted to coordinate budget policy
for 2014 using powers that were introduced earlier this year as part of their
response to a debt crisis now in its fifth year.
“No, no,
no,” Italian Finance Minister Fabrizio Saccomanni told reporters when asked
whether his government would modify its budget. “Reducing the debt load is also
our goal, and we managed that both with fiscal policies by reducing the
shortfalls and with additional measures that they have now fully understood.”
Wednesday, March 13, 2013
Italy’s Borrowing Costs Rise at Bond Auction After Downgrade
By Chiara
Vasarri - Mar 13, 2013 2:39 PM GMT+0200
Bloomberg
Italian
borrowing costs rose in the first bond auction since a credit rating downgrade
last week that highlighted the economic risks of the country’s current
political stalemate.
Labels:
Elections 2013,
European debt crisis,
Italy,
Politics
Tuesday, March 5, 2013
EU Opens Way for Easier Budgets After Austerity Backlash
By James G.
Neuger & Svenja O’Donnell - Mar 5, 2013 1:01 AM GMT+0200
European
finance ministers opened the way for looser budget policies after a backlash
against austerity thrust Italy
into political limbo and shattered months of relative stability in European
markets.
Friday, March 1, 2013
Italy behind rise in eurozone jobless to record
By By Pan
Pylas on March 01, 2013
Bloomberg
Businessweek
LONDON (AP)
— Italy 's
voters gave their verdict on the austerity medicine they've been forced to take
when they went to the polls earlier this week. By Friday, one of the reasons
behind the protest was highlighted when the country's unemployment hit its
highest level in at least two decades.
Wednesday, February 27, 2013
Italy Election Impasse Negative for Credit Rating, Moody’s Says
By Kevin
Buckland - Feb 27, 2013 7:03 AM GMT+0200
Bloomberg
Tuesday, February 26, 2013
Italy Renews Market Concerns as Voters Reject Monti
By Andrew
Frye - Feb 26, 2013 9:24 AM GMT+0200
Bloomberg
Monday, February 4, 2013
European political worries halt risk asset rally
By Richard
Hubbard
(Reuters) -
Stronger U.S. and Chinese
economic data supported world equity markets on Monday, while the euro dipped
and Spanish bond yields rose as growing political uncertainty in southern Europe worried investors.
Saturday, January 14, 2012
France Loses AAA Status as S&P Wields Ratings Ax
Bloomberg
… The first gauge of the report’s impact
will come in two days when France
sells as much as 8.7 billion euros…
… U.S. Treasuries rose, pushing yields to
the lowest levels this year…
… Perhaps this will now concentrate the
minds of EU policy makers making them realize that no country is immune to
being pulled down by the euro crisis…
… Greece ’s creditors yesterday
suspended talks…
… The French and Austrian downgrades risk
sapping the potency of the region’s current rescue program…
Labels:
Downgrade,
European debt crisis,
France,
Greece,
Italy
Friday, January 13, 2012
Yields fall sharply at Spanish, Italian debt sales
… a back-door bailout
by the European Central Bank…
… Italy also fared
well, paying less than half what it did a month ago…
… Spanish local media
attributed the auction's success to tough cost-cutting measures…
Friday, December 30, 2011
Deepening Crisis Over Euro Pits Leader Against Leader
By MARCUS WALKER in Berlin ,
CHARLES FORELLE in Brussels and STACY MEICHTRY
in Rome
The Wall Street Journal
… Europe 's
leaders have an unwritten rule not to intervene in one another's domestic
politics…
… Italy , with
nearly €2 trillion, or about $2.6 trillion, in national debt, was simply too
big to save…
… Europe 's
leaders were reluctantly realizing that living with a common currency meant
surrendering more of their national independence than they had bargained for…
…The euro zone, which
accounts for nearly 20% of global economic activity, is sliding into recession.…
…Mr. Tremonti would
later privately tell a group of European finance ministers that his government
had received two threatening letters in August…"The one from the ECB was
worse,"…
… While the orchestra
played Rossini and Mozart, a clique of Europe 's
most powerful leaders huddled in a side room…
… Her unspoken
threat: Banks might get nothing if they spurned it…
…"The real
question" for the referendum, Ms. Merkel told Mr. Papandreou there,
"is 'Do you want to be in the euro, or not?'"…
Thursday, December 29, 2011
Italy yields seen easing, but hurdles loom
… analysts doubted
whether the unprecedented ECB move and domestic progress on reform would be
enough…
… Rome 's short-term funding costs halved…
… its longer-dated
bonds are more reliant on foreign buyers…
…. the mix of
indecisive action from EU policymakers, a deteriorating economic climate and
tortuous progress on the reform front in Italy was fuelling an increasingly
negative outlook on its short-term debt sustainability ….
Tuesday, December 20, 2011
German Push to Remodel Europe May Backfire
Bloomberg
By Rainer Buergin and Simone Meier - Dec 20, 2011 1:01 AM
GMT+0200
… The risk to Germany , …is
that transforming the region’s struggling nations into blueprints of itself may
work too well…
… German labor costs
rose at half the pace of Greece ’s…
… Schroeder unveiled
his package … It took almost two
years before the labor market began to show results,…
… Northern Italy,
especially the region around Milan ,
is as good as Baden-Wuerttemberg…
Monday, November 7, 2011
Merkel and Sarkozy Have Lost Credibility
The Wall
Street Journal
Six weeks
to save the euro," European leaders promised the world in September. That
deadline passed at last week's Cannes G-20 summit with the goal looking further
away then ever. Nothing of substance was agreed on the French Riviera to aid
the cause of euro survival, but one giant decision was taken that could hasten
its demise. Angela Merkel and Nicolas Sarkozy's announcement that Greece
is free to leave the euro has transformed the nature of the euro.
Labels:
European debt crisis,
France,
Germany,
Greece,
Italy
Tuesday, September 6, 2011
The Worst-Case Euro Scenario
Each day the currency remains
on life-support in its current form, the consequences of its eventual death
become graver.
The Wall Street Journal
By SAJID JAVID
On the Continent, August is
usually reserved for long vacations in the sun. Instead, European leaders spent
the month working on increasingly desperate attempts to save the euro in its
current form. There's only one prospect more frightening than what would happen
if they fail: what would happen if they succeed.
Tuesday, August 30, 2011
Eurobond Plan Would Need a Big Sweetener
The Wall Street Journal
The euro-zone crisis is solved. It took some doing, but the final pieces are in place.
First, Italian Prime Minister Silvio Berlusconi has promised to reform his nation's no-growth economy. Second, the European Central Bank has agreed to buy bonds of troubled countries, including Spain and Italy . Third, euro-zone leaders have agreed to authorize their bailout fund—a.k.a. the European Financial Stability Facility—to buy euro-zone government bonds in the secondary market. I would add a fourth but it takes irony too far: Euro-zone leaders have benefited from advisory phone calls from President Barack Obama, and Treasury SecretaryTimothy Geithner's warning that they are moving too slowly to confront their debt crisis.
Worries over and head for the beaches.
Labels:
European debt crisis,
European finance ministry,
Greece,
Greek Crisis,
IMF,
Italy,
Politics,
Portugal,
Spain,
Οικονομία,
Πολιτική
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