The Betrayal Of Berlusconi Smashes Italian Stocks To Best Day In 3 Months
Italian sovereign bond spreads fell a mere 2bps on the day as Italian stocks (after techncial issues) screamed higher by over 3% - their best day in 3 months - as rumor after headline hit of the slow dissolution of Berlusconi's apparent power. As the confidence vote nears in Italy, several of Berlusconi's top aides are defying him as tries to collapse what is already a fragile coalition. The WSJ just broke news that 40 Italian lawmakers are ready to break with Berlusconi -, and Berlusconi's own party secretary stated that "all should vote for Letta" - that sent stocks to their highs at the close. Despite his anger at center-left senators pending vote to strip him of his Senate seat, it appears the 77-year old media mogul, as AP notes, will be pressured to drop his bid to sabotage PM Letta.
BERLUSCONI'S PDL PARTY SECRETARY ALFANO IS READY TO SUPPORT ITALY PM LETTA'S GOVERNMENT EVEN WITHOUT BERLUSCONI'S AGREEMENT - PDL SOURCE
A senior ally of Silvio Berlusconi said that the former premier's conservative People of Freedom (PDL) party should back off from its plans to pull out of Italy's ruling grand coalition government.
"I remain firmly convinced that all of our party should tomorrow give its vote of confidence to (Prime Minister Enrico) Letta - there are no groups or factions," said Angelino Alfano, the PDL's second-highest official after Berlusconi.
- *ITALY'S LETTA TO CALL CONFIDENCE VOTE: ANSA CITING MINISTER
The best day for Italian stocks in 3 months... (even as Italian bonds rallied only 2bps?!!)
The link between Gold's sell-off and Italian stocks is intriguing as the rumors started to break this morning...
But it seems that Italian bonds are notably less impressed in general with the 'resolution' of the Berlusconi debacle...
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