News Headline Summary

European news of note from this weekend...

- Over the weekend, Observer reported that Italian PM Monti has told the head of state he has lost support in Parliament and intends to resign, but will seek to pass the Italian budget first. Monti is to check with lawmakers to see if they are prepared to approve the budget law in the short time, before formalizing his irrevocable resignation. (Newswires) An official statement released by the president's office said the prime minister had told the head of state that without the support of Mr Berlusconi's party, "he cannot further carry out his mandate, and consequently made clear his intention to resign". The Italian PM Monti's official end of his mandate is in April, however his resignation could lead to elections as early as February.

- Over the weekend, EKathimerini reported that the Greek debt buyback scheme received EUR 25-26bln in offers, according to unsourced reports, with Greek banks offering EUR 10bln of their bond holdings, and foreign investors offering EUR 15-16bln of theirs. Greek banks are to increase their offer to total holdings if needed for Greece to meet the EUR 30bln target. Offer books are to be reopened today if the banks have to increase their sale offer.

- UK Business Secretary Cable has said the UK economy faces a real risk of a Japanese-style lost decade, and could head into a triple-dip recession. Cable added that he senses the Bank of England is running out of steam or motivation, and the UK has to have a very expansionary monetary policy.

09 Dec 2012 - 22:15 - Forex - Source: Newswires

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