- The financial quakes are getting bigger and bigger! How long can the Illuminists hold things together? They will do so until all the bankster debts have been dumped onto the sheeple. Thereafter, they will pull the plug.
Italy debt contagion fears hit markets as top EU officials meet
By James Hall, and agencies, http://www.telegraph.co.uk/
Italian stocks plunged more than 3pc on Monday, as fears that the country would be the next victim of the eurozone crisis rocked markets.
The FTSE Mib sank to a 14 month low on Monday afternoon, to 18,426.61 and followed a 3.5pc fall on Friday amid political jostling in Rome that threatens the country’s fiscal stability. The market plunge came as ministers tried to assure markets that Italy would not need a bail-out. “Italy can get out of this situation on its own and with the help of all European countries but not with financial aid,” Spanish Economy Minister Elena Salgado insisted before a meeting of euro-area finance ministers in Brussels.
Ten year yields on Spanish, Greek and Italian bonds also rose, pushing the gap between German and Spanish yields to a euro-era record of 321 basis points, while global stock markets followed Italy’s lead.
Britain’s FTSE 100 also sank 1.2pc to 5,918.31, while Frankfurt’s DAX 30 lost nearly 2pc to 7,352.73, and in Paris the CAC 40 fell 2.15pc percent to 3,878.60. In New York, the Dow Jones Industrial Average fell 1pc to 12,530 in opening deals.
The meeting comes as the Financial Times reported that leaders are prepared to accept that Athens should default on some of its bonds. The newspaper said the move would be part of a new bail-out plan for Greece that would put the country’s overall debt levels on a sustainable footing. The plan could also include new concessions by Greece’s European lenders to reduce Athens’ debt, such as further lowering interest rates on bail-out loans and a broad-based bond buyback programme.
Italy is the region’s third largest economy and after Greece has the second highest sovereign debt ratio in the eurozone relative to its overall ecomony.
Fears of eurozone debt contagion were stoked by dramatic falls in Italian stocks on Friday. Shares were dragged down by Italy’s banks, which along with other European banks will learn the results of “stress tests” later this week. Shares in Unicredit Spa, Italy’s biggest bank, fell almost 8pc on Friday.
“The EU is definitely worried about what happened on Friday. Key people have suddenly realised that this [contagion] is going to hit big economies and they have little defence,” said one observer.