Italian government bond yields soared to near 15 year highs, placing the euro zone’s third biggest economy front and center of the region’s debt troubles, despite the efforts by policymakers to stem the growing epidemic.
Italy, the world’s eighth biggest economy, overtook Greece as the primary threat to the stability of the 17-country single currency zone, as finance ministers came together to find ways of building firewall around the now two-year old crisis.
Italian 10-year bond yields increased to their highest since 1977, arriving at levels regarded as unsustainable, with political unrest in Rome threatening to drag a fourth European economy after Greece, Ireland, and Portugal into the debt mire.
Jean-Claude Juncker, the chairman of European finance ministers, stated that the European Central Bank would be taking part in monitoring Italy’s promised economic reforms along with the European Commission and the International Monetary Fund, which effectively put the country under full surveillance.
Greece’s outgoing socialist prime minister and the more conservative opposition leader pushed to place an interim national unity government just long enough to save the country from a default by putting into effect a new bailout program.
France announced new austerity measures created to preserve its wobbly AAA credit rating, which without the euro zone may not be able to bail out its more weaker members.
In Brussels, euro zone finance ministers agrees a detailed mandate to scale up the currency zone’s rescue fund by the end of this month to shield more vulnerable yet solvent economies such as Italy’s and Spain’s from a possible Greek default.
In Rome, Prime Minister Silvio Berlusconi defied huge pressure to resign as he struggled to hold together a crumbling center-right coalition after being forced to accept intrusive IMF surveillance of his economic reforms.
Juncker stopped short of calling for a national unity government in Italy, stating that it was not under EU/IMF protection.
“What we are expecting from Italy is that Italy will implement all the measures which have been announced in Silvio Berlusconi’s letter,” he stated after the finance ministers’ meeting, referring to a letter sent last month that set out plans for pensions reform and deregulation.
Stocks declined around the world upon the uncertainty, but Italian shares remained higher, partly upon hopes that Berlusconi could gone soon, traders stated.
In other news, Google Inc.’s (GOOG) new social networking service has opened up its doors to businesses to create special web pages, a move that could entice visitors to spend more of their time on the website and help Google match the offerings of rival Facebook.
Google stated that 20 businesses, which include Toyota, Pepsi, retailer Macy’s have set up special pages on the Google+ social network, and that any other organization will be able to join as well.
About Us:
At HotStockProfits.com, our focus is to develop a community of well-informed investors. Our free newsletter offers an array of fundamental research and technical trading suggestions on companies trading on the NASDAQ, NYSE, AMEX and OTCBB. Receive trade alerts on the Hottest Technical Trading Stocks, Momentum Plays, News Plays, FDA Plays, Earning Plays, and Featured Companies with Long-Term Potential.
Disclaimer:
Never invest in any stock featured on our site, social networking platform or emailed newsletter unless you can afford to lose your entire investment.
PLEASE NOTE WELL: The HotStockProfits.com employees are not Registered as an Investment Advisor in any jurisdiction whatsoever.
Full disclaimer can be read at http://www.hotstockprofits.com/disclaimer/
