Nov. 11 - Spreads on Italian debt have tightened on hopes of a new government surfacing soon, while French debt spreads are widening on fears of contagion, says Reuters Fixed Income Analyst Vincenzo Albano.
Examined London nine on the continent some relief for investors at the end of a bruising week as new government's commitment to fiscal discipline. Take shape and it's leading -- the Italian senate votes down austerity measures demanded by the European Union. Votes -- for the first time in the opera house that will be the former European commissioner Mario Monti the favorite to replace outgoing prime minister Berlusconi. And you government could be in place before the markets open Monday meanwhile Greece's prime minister designate at Lucas company must. We'll name and -- crisis cabinet today you also with the aim of rolling out painful austerity measures. Have a -- losses most pressing tossed -- to meet the terms of of 130 billion Euro bailout plan. And keeping Greece solvent the Italian ten year yields hovering around -- -- 7% to model that's almost half percentage point off this week's historic high. But well above levels considered to be consistent with -- debt sustainability markets are optimistic about -- is likely appointment. But it that he faces a big test on Monday when an auctions Friday of Barnes. As the pressure on Italy's his boss of me it's intensifying once again on France S&P on Tuesday and mistakenly announced that its strip France and its AAA rating. It quickly apologize for the technical -- reaffirmed France's top rating and stable outlook but it did nothing. To suit investors to be France's banking sector is weak and exposed to peripheral eurozone debt. The -- back about 136. Slightly up on the day as investors covered short positions built up over the week. The -- down for the second week in a row and below the 100 week moving average around 136 and a half today. Italian spreads tightening as markets give a cautious thumbs up -- -- missed the moment he's likely government but is that we just mentioned French spreads are widening Reuters fixed income analyst intends rob Bartlett. Has all the -- house frustrating. When not to of this president and if I -- Hingis is now if you do 7% that they need to precisely that six and 91 at this moment the that afford the outlook is improving all of David do each of these -- that would send you supposed to do it bolt set a specific game. However this is this -- no -- in the matches the F 561. Which indeed is the market that's in quite witty. President is that there probably should be no affect the markets. Spreads were widening already due date or not as much as you name the other European counterpart the bedroom about the Saudi Germany and that may be the Netherlands. Armed markets would be rather quiet the waiting a for the that it won't the most of the appointment of the new. But I mean is they're aware and keep an eye on the bones of the -- few sure as open week in this vacuum that action supposed to be need to be motivated them. Let's -- looks okay it doesn't matter that's the rally on Wall Street should give your pension as opposed to the open. In the first couple of minutes of trade the you're -- first 300 up by about a quarter of 1%. 966. -- on the latest financial group hit by the crisis third quarter net. Well below expectations of 196 million euros -- markets from a ship investment income. -- Europe's biggest insurer and Spanish telecoms giant Telefonica sticking to shareholder return targets despite missing four across. With a 69% drop in profits in the first nine months of the year Telefonica citing a challenging. Operating environments. I think for now coming up on inside his Japanese the only real -- left in the Euro zone. A question I'll be -- -- James shot west practice on the floor of a think tank redefine that's an 1113. I'm axle problems sources.