investors wary as italy uncertainty set to last weeks
Last Updated : GMT 01:26:51
Arab Today, arab today
Arab Today, arab today

Investors wary as Italy uncertainty set to last weeks

Arab Today, arab today

Arab Today, arab today Investors wary as Italy uncertainty set to last weeks

Rome - AFP

Investors were wary on Wednesday after Italy\'s inconclusive elections gave a key role to an anti-austerity party that has ruled out joining a coalition government, setting the stage for a drawn-out stalemate. \"The outcome of the elections was even more confusing than we had anticipated,\" the Mediobanca investment bank said as Moody\'s warned it might downgrade Italy\'s debt rating, saying the vote result \"increases the risk of political paralysis and prolongs political uncertainty\". The rating agency added: \"This week’s elections have implications well beyond Italy itself and are, indirectly, credit-negative for other pressured euro area sovereigns.\" European stocks began Wednesday\'s session in positive territory mainly due to the US Federal Reserve reaffirming its huge monetary easing scheme after sweeping losses on Tuesday but the eurozone was very much on investors\' minds. \"Volatility will be the name of the game,\" Mediobanca Securities said in a note to investors as Italy\'s borrowing costs shot up on the debt markets.\"Election shock batters stocks, spreads\" read the banner headline in Italy\'s financial daily Il Sole 24 Ore after Milan stocks plunged 4.89 percent on Tuesday, recovering slightly with a 0.62 percent rise at Wednesday\'s opening. Leftist leader Pier Luigi Bersani on Tuesday admitted he had failed to win parliament -- without a majority in the Senate -- and warned that the country was in a \"dramatic situation\". Bersani also made overtures to the newcomer Five Star Movement (M5S) led by former comedian turned anti-corruption firebrand Beppe Grillo, which won a massive protest vote from Italians fed up with austerity and the corruption of their political class. But Grillo, who won about 25 percent of the vote, has so far ruled out joining any coalition. \"The M5S is not allying with anyone,\" he posted on his blog. Analysts said the options were few, including a loose alliance between the centre-left and M5S in the Senate, or an emergency government that could be formed to pass key reforms ahead of fresh elections. Bersani urged basic reforms that everyone could agree on -- cutting government costs, reforming the labour market and helping the poorest as Italy endures its longest recession in two decades.Leading Italian bank Intesa Sanpaolo warned of uncertainty for weeks ahead. \"Given the technical timeline ... uncertainty may characterise the coming weeks,\" it said. Under the constitution, parliament has to meet within 20 days of an election, after which formal negotiations begin with Italian President Giorgio Napolitano on forming a new government.  Moody\'s statement said: \"We would consider downgrading Italy\'s government debt rating in the event of additional material deterioration in the country\'s economic prospects or difficulties in implementing reform.\" Mediobanca said for its part: \"We already had a defensive stance on the market ... and we now expect (higher taxes) to further depress consumption,\" adding: \"We also expect widening spreads.\" Also Wednesday, Italy\'s ISTAT statistics agency said that business confidence had dropped from 80 points in January to 77.4 points this month. A coalition led by irrepressible tycoon Silvio Berlusconi confounded all poll predictions by coming in an extremely close second in the vote for the lower house, winning 29.18 percent to Bersani\'s 29.54 percent. The scandal-tainted billionaire had promised to refund an unpopular property tax -- if necessary out of his own pocket. Outgoing prime minister Mario Monti was the big election loser, taking just 10.56 percent in the lower house, the Chamber of Deputies. His technocratic government, which replaced Berlusconi after he was ousted at the height of the financial crisis in 2011, won praise from other European leaders, but his austerity drive was unpopular at home. Bersani admitted he had been \"overtaken\" by the protest vote for M5S, which became the biggest single party in parliament, but warned that the huge anti-austerity protest vote should be heeded beyond Italy\'s borders. \"The bell tolls also for Europe,\" he said. \"We are aware that we are in a dramatic situation, we are aware of the risks that Italy faces,\" Bersani said on Tuesday in his first speech since the vote. European leaders were quick to voice concern, with Spanish Foreign Minister Jose Manuel Garcia Margallo saying: \"It\'s a leap into the unknown, which bodes poorly both for Italy and for the rest of Europe.\"  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

investors wary as italy uncertainty set to last weeks investors wary as italy uncertainty set to last weeks

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

investors wary as italy uncertainty set to last weeks investors wary as italy uncertainty set to last weeks

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Banyan Tree Phuket Takes Festive Season

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Top Democrat faces investigation

GMT 09:50 2017 Friday ,17 November

Top Democrat faces investigation
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Angola oil boss sacked by father's protege

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Urban, young and active?

GMT 11:01 2017 Thursday ,16 November

Urban, young and active?
Arab Today, arab today Ayten Amer happy for “The Flood” success

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success
Arab Today, arab today Unloved vultures fight for their survival

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 08:21 2017 Tuesday ,14 November

Nelly Karim focuses on humanitarian roles

GMT 09:23 2017 Wednesday ,15 November

Years melt away as Bening & Bell play unlikely lovers

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 13:40 2017 Monday ,13 November

Pollution spikes in Delhi amid warnings

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 10:55 2017 Thursday ,16 November

UN warns fuel running out

GMT 01:04 2017 Wednesday ,15 November

In Morocco, a blue tourist town

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday