Most probably ECB´s "non existing" secondary market buying program. As you know it is "illegal" for uncle Draghi to buy on the primary market...cough, cough
Hum, as soon as BTP rallies => EURO rally, all European indices rally. Nice, simple correlation trade
http://www.zerohedge.com/news/ecb-goes-hog-wild-lifts-every-offer-another-failed-attempt-calm-market ECB Goes Hog Wild, Lifts Every Offer In Another Failed Attempt To Calm Market
Monti, giving his first parliamentary speech since taking over as prime minister, says the three pillars of his programme will be financial rigour, growth and social equity. His tone before the senate was extremely sombre, declaring that Italy faced an emergency and that Europe was going through its worst crisis since the second world war. While he avoided the word âausterityâ, the technocrat prime minister said âsacrificesâ had to be equitable as Italy ensured it reached a balanced budget by 2013. Additional corrective budgetary measures might be necessary because of the market crisis, Monti said, but gave no details. However, he said his government would consider reimposing a property tax on principal homes lifted by the previous government of Silvio Berlusconi. But he did not mention a wealth tax. Reforms to the pension system and work contracts are needed while the system of collective wage bargaining at the national level should be made more local, he said. Tax incentives were needed to get more young people and women in the market place, while the tax burden on enterprises must be reduced. The crackdown on tax evasion must go on, he said. The cost of politics â a subject dear to the heart of Italians â must be reduced, Monti said. His speech was interrupted by applause several times and appears to have gone down well. âThis government recognises that it was born in order to tackle the situation of a serious emergency,â Monti said, calling his administration a âgovernment of national unityâ and appealing to all the political parties to put aside their differences and work collectively for the national interest. The senate is to hold its vote of confidence in his government programme this evening.
It´s of course coincidence that just right now Fitch must come out with the following "statements": 9:46a Fitch: Italy public debt may become unsustainable 9:45a Fitch: Imperative that Italy retains market access 9:44Fitch: Italy is likely already in recession
True. But despite all attempts, their effort produced meagre results yesterday, let's see today. Trying to shift focus on Spain (like in a chess game, you give away the pawns first...)