Is It Calm or Complacency in Italian Markets?
February 11 2019 - 04:59AM
Dow Jones News
By Alex Frangos and James Willhite
Markets early Monday gave a big shrug to news over the weekend
that Italy's top officials were taking aim at the country's central
bank, which plays a big role in keeping Italy's financial system
safe.
Italian government bond yields were in line with where they
traded Friday, with the 10-year government bond yielding around
2.9%. Italian bank stocks traded slightly higher, with Intesa
Sanpaolo and UniCredit both up slightly.
The news from The Wall Street Journal's Giovanni Legorano over
the weekend:
ROME-Italy's populist government launched an unprecedented
attack on the country's central bank over the weekend, saying its
top brass should be replaced because it had failed to supervise
effectively the country's troubled banking sector.
However, investors may think the attack lacks teeth. As the
story notes:
Under the Bank of Italy's rules, the central bank chooses its
own top appointees, though the government must endorse the bank's
nominee. Final approval rests with President Sergio Mattarella--a
respected figure in Italy's establishment and another bete noire of
the League and 5 Star Movement.
But markets also have a history of ignoring Italy's politics
until they don't.
Write to Alex Frangos and James Willhite at alex.frangos@wsj.com
and james.willhite@wsj.com
(END) Dow Jones Newswires
February 11, 2019 05:44 ET (10:44 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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