Posted on 12/03/2016 8:40:00 AM PST by Lorianne
Big international investors are holding huge short positions on Italian assets, the CEO of the Italian exchange said on Tuesday, days before the country holds a referendum on constitutional reform that could unseat Prime Minister Matteo Renzi.
"There are colossal short positions on Italy from the U.S. and other countries where big investors are based," said Raffaele Jerusalmi during a conference in Milan.
Opinion polls conducted until a blackout period began last week showed the "no" vote comfortably in the lead, raising concerns of a political crisis and fueling market volatility.
(Excerpt) Read more at cnbc.com ...
Does this referendum do away with a bicameral legislature? Am I getting that right?
Not exactly but close.
http://www.cnn.com/2016/12/02/opinions/italy-referendum-preview/
Polls in Italy close Sunday @ 5 pm NY time. Should have a decent idea of results within 3 hours.
Sydney markets open @ 4pm, Tokyo 6 pm, Berlin @ 2 am Mon., London @ 3 am.
From what I have read, it is for the most part incomprehensible what the Italy referendum does.
http://www.mauldineconomics.com/frontlinethoughts
(not meant as an endorsement, but Mauldin *is* pretty smart)
The long and short of it is, what else, Italy is in massive, massive debt, being bailed out on a semi-continuous basis by Germany, and needs to raise add’l funds to liquify its banks which is not easy when its banks are considered insolvent as they sit.
The question (in my mind, and I am not presenting myself as anyone even partially informed on the Italy situation) is whether the ref result will be seen as a prelude to an Italian “Brexit”.
Part of this issue is that the federal gov’t of Italy would like to just hand money to the bank structure (call it a cheap loan or just a “gift”).
The EU has a law...forbidding this type of action. Based on what’s been said on business news in Europe for the past month...something will have to happen with a loan from someone, or it’ll collapse.
The general talk over the past week is that if it doesn’t pass...the PM will resign, and a new election will be called. Right now....some Tea-Party-like group...the Five-Star-Movement...would take in a lot of votes and might be friendly toward a ITEXIT situation. This makes everyone uncomfortable. Added to this....the Austria election concludes tomorrow and a right-wing guy may win it.
For the Germans....heck of a lot of problems if both go against their ‘wishes’.
IOW, the EU has a law against exactly what the Fed does here.
Very clear analysis. Thank you. “Movimento Cinque Stelle” and the Five Star Movement has been building steam for four years since March 2013 and presently has support across the country. The 5 Star people lack the strategic and financial skills of the Tea Party and will need American assistance immediately.
Thanks, L! Has anyone seen a link for the actual text of the referendum? Danged if I can find one.
Check this out, media comments banned until after 2200 GMT....
Media silence on eve of Italy’s crunch referendum
https://www.yahoo.com/news/rapid-rise-italys-renzi-braced-fall-023526082.html
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