Italian Bank Stocks Tumble As Savona Warns Of Euro Break-Up

“We could find ourselves in a situation where we are not the ones taking the decision [to leave the euro], but others do that,” European Affairs Minister Paolo Savona told lawmakers in Rome this morning, adding that "we need to be prepared to face such a shock."

While Italian bond yields blipped higher and then retraced on the headlines, Italian bank stocks were hit hard and are back at one-week lows now...

EURUSD is fading but not specifically on these headlines.

However, what is of note is the fact that Italian redenomination risk remains significantly elevated - having ignored any normalization seen in other assets since Italy's crisis exploded (and the Italian Central Bank bought a record amount of BTPs to save the perception of markets)...

Perhaps the realization of "fiscal money" is closer than many would like to believe.


carambar chubbar Tue, 07/10/2018 - 13:03 Permalink

Hombre! were were you the last 2 years. The EU never refused to negociate with the UK. The only made clear that a free trade agreement would only be possible if certain condition were respected like for Norway, Sweeden, Danemark. But the Leavers always feigned ignorance of these conditions. Every time T MAY makes a speech, she spew so much non sense that Europeans do not pay attention any more. In fact the real issue is that Brexiter can't agree among themselves on what type of Brexit they want, especially with the extreme side of the Tories  that want to transform the UK in a mercantiliste platform with no regulations at all. But what's the point of being a platform without access to the markets next door.?  

In reply to by chubbar

William Dorritt Dilluminati Tue, 07/10/2018 - 16:57 Permalink

I know both places well, MS 13 is in both places ?

Link to any news ?


Two dozen members of the MS-13 gang have been indicted on federal charges of conspiracy to participate in racketeering related to murders, kidnapping, extortion and money laundering that the gang carried out from 2015 until 2017, federal prosecutors announced Friday.

The defendants are accused of murdering five people in Anne Arundel, Frederick and Montgomery counties. Three of the victims were dismembered.

In reply to by Dilluminati

Nobs Here Tue, 07/10/2018 - 11:05 Permalink

Does this mean the Jeeps that Fiat built in China can now be sold to stupid Americans? Or is the Romney lie of the Year from 2012 too fresh in our drug induced coma?


Well dam, we have been buying the almost assembled Jeeps from China for years now. Thanks Milt for the lie of the year.

Paul Morphy Tue, 07/10/2018 - 11:09 Permalink

European Banking Authority stress test results on the Italian banks will make for interesting reading.

Italians relying on other Eurozone nations to leave the Eurozone mechanism first, is stupid.


Dilluminati Tue, 07/10/2018 - 11:12 Permalink

my bet.. this time next year.. but it is done, another round of elections.

I'd of quit the Uk government just to have retained my political integrity and future viability

but the Euro was something that many many years ago was like heh.. lets integrate all this stuff, and now the internet does that.. 

so really now it is a burden instead..

technologically obsolete and just making nations colonies

Lugfabio Tue, 07/10/2018 - 13:29 Permalink

The problem is that this news is COMPLETELY FALSE and it is a part of a dirty trick to make some market gyration. 

This is the original speech (In Italian):…

What did they do, in a "Differently honest" way was to take 50 second of the whole speech, in which Savona was speaking about the function of the Economist. and BTW cutting the initial phrase.....


this is a subtle technique for causing caos, a dirty trick from a dirty newspaper....






caesium Tue, 07/10/2018 - 13:34 Permalink

Armstrong claims the US wanted a strong Euro so that currency manipulation could be made easier by the FED. Germany opposed the implementation of said currency that they went on to make work for themselves. This in the face of a banking disaster not of their own making. The anglos only response is to want to blow up, yet again, Germany (the Brexit fantasy) for being nice to Muslim refugees. The irony is seemingly lost on ZH regulars for the moment.

PontifexMaximus Tue, 07/10/2018 - 15:06 Permalink

who the hell cares about italo banks: MPS “used” to be bankrupt for years, a zombie, everyone and his dog knew that, but no bankrun. it only works in italy. why? too many state or para state structures hold their accounts with MPS, so, a no go. now, major sharholder is the gov and supermario is due in september 2019. so, till then, nothin will happen. enjoy the summer.

William Dorritt Tue, 07/10/2018 - 16:59 Permalink

Amici mio

  • Exit the EU
  • Exit the Euro
  • Bring back the Lira
  • Deport 2 million Africans and Muslims,
  • pay Libya to sort them out if they don't take the offer of the ticket home.