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Breakingviews: Italy faces nerve-racking game of chicken

Wednesday, November 09, 2011 - 04:26

Nov. 9 - Italy needs to move fast in appointing a national unity government able to grasp the country's problems, as financial markets are growing impatient, says Chris Hughes of Breakingviews.

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Agenda setting insight now without commentary on Reuters breaking news today's top stories Italy faces a nerve wracking game of chicken says she's got Dixon. And HSBC's governor is doing the right things but the are we target. Looks rather optimistic 15% having an inside joining me now is that Chris -- Christmas ball which he goes -- arm. It's going to be a tough few months of course. National unity government sound get on the face of it but they take a -- put in place and there's a lot of infighting before we -- Was gonna be at this car is tough few hours. Italian bond yields nothing else I was coming to -- you. In the hovering close to sort of seven point 3% say they've they've -- through that critical 7%. Part of this morning which is the sort of magic number which really gets several more as we did that plus what ECB is doing in the north of the moment. But it just shows that. It even though we've. How. The it's an offer of resignation from from -- -- was standing by actually has not all brought stability to the Fitch. Race and -- people who are expecting a -- -- -- When when when we were talking about post and resignation people I spoke to the market -- and we're gonna see a relief rally -- we happen -- that. That must be a realization now that the country faces difficult season from what happens next is not gonna sort out these problems right what. It was both of us rally when this is fit is that is that the bond yields the rest of the -- little that. But the no problem here is that that we will not do well it's horrible and it which is a strong. Governments. National units to ground coalition whips and -- which led by you -- credible figure people would like marry them into. Who and I actually thought to bring in is bringing to our own if these stats and thought implementing. Structural reforms that can be found through a long way if we're given credit part of the profit they make that there's division and the weather. It's in the case can elections. Whether the whether whether it forms a coalition. On this committee moments. Down moments of uncertainty of how the F 30 that's -- in a -- from the outsiders if Obama is a good thing because. What you're saying -- in the markets today. I landfill and -- still the all euros and states. And supranational -- left which can Green. Pressured to back all in these bickering politicians. To get back together to our heads together because clearly. If the markets are impatient. And then nobody to wait to promote flu situation to clarify for. Okay a very good let's quickly organizations BC story as well pretax profits parked in Q3. -- got about your audio message seems to be this you've got I was doing the right thing but this 15% are we target looks looks. Wait too optimistic right now. Yeah I just to see how the strategy. Today I think bar here and back in the day. Whether outlined. Some some pockets with some mouth of running up moving and the realities that the markets -- -- this. Big drop in pretax profit in Q3 -- -- -- -- to. Loan impairments on the wrong with the European business. A registry since that since the reds. I can't fab five from one -- question whether the targets were already looking. Any moment so there would be the optimistic that. In may be and I think there was a range of maybe that we -- sort of in 15% aspirations of the parole -- and maybe even both of twelfth and desperation move for the whole power and light wasn't. -- come race you know the thing that struck me a -- to say it but. I live rule we like what goes -- -- do they just BC it's gonna be is there is going to be a lead them by incumbents. Under his leadership -- whether he can actually hit these all the -- talking that's. If these different markets and you. Will the questions -- Personal thanks to reflect Chris Hughes. From our agenda setting aside what's our US showed breaking news show every day profit in Houston 1630 GMT. I'm -- problems is righteous.

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Breakingviews: Italy faces nerve-racking game of chicken

Wednesday, November 09, 2011 - 04:26