Mercoledì, 17 Ottobre 2018

Milan plunges amid concern over government future


Milan, August 26 - Milan's top stock exchange
plunged dramatically Monday amid investors' fears that Italy's
fragile coalition government could collapse over a controversy
involving ex-premier Silvio Berlusconi.
The FTSE-Mib fell by 2.10% to close at 16,977 points and
broadcaster Mediaset - owned by Berlusconi - shed 6.25% over
fears about Berlusconi's future.
The ex-premier, who founded the centre-right People of
Freedom Party (PdL) political party, is in a fierce dispute with
Prime Minister Enrico Letta's centre-left Democratic Party (PD)
over Berlusconi's future following his conviction on fraud
The PdL on Sunday warned that it would bring down the
Italian government and force new elections if PD party members
vote to expel Berlusconi from his Senate seat over his
first-ever binding conviction for tax fraud.
The two coalition partners are also arguing over the future
of a despised housing tax which the PdL has vowed to eliminate.
However, Finance Minister Fabrizio Saccomanni says the
country cannot afford to forgo the revenues from the IMU.
The uncertainly added to pressure on Italian bonds and
helped to widen the spread between Italy's 10-year bond and its
German counterpart.
That closed at 249 basis points, up from last Friday's
close of 239 basis points.
The yield on Italian 10-year paper closed at 4.38%, up from
the 4.33% yield last Friday.
The spread between lending rates in the two countries is
seen as an indication of investor faith in the Italian economy
and its ability to cope with a lingering recession.
On other European markets, Frankfurt's DAX gained 0.22% to
close at 8,435.15 points, while Paris's CAC 40 was almost
unchanged, losing just 0.06% to close at 4,067.13 points, and
Spain's IBEX 35 fell by 0.42% to 8,649.90 points.
In London, the FTSE index of leading British shares was
closed Monday for the summer bank holiday.

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