Italian Prime Minister Mario Monti may reverse a pledge not to run for a second term and become a candidate in elections that may be held as soon as February, said Riccardo Barbieri, chief European economist at Mizuho International Plc in London.
When U.S. President Barack Obama told Chinese Premier Wen Jiabao last week that the yuan’s peg to the dollar is unsustainable, he forgot to add one thing: It also threatens the world’s floating exchange-rate system.
Spanish bonds fell, with 10-year yields rising the most in seven weeks, amid speculation domestic banks are reducing holdings of the securities before the European Central Bank reviews their balance sheets in 2014.
European taxpayers hold most Greek public debt in the wake of last month’s bond swap and a second bailout, increasing chances the rescue will stay on track as euro leaders channel loans to Athens to repay themselves.
Italian Prime Minister Enrico Letta reshaped the country’s two-year commitment to austerity by approving a labor-tax cut and relying on 3.5 billion euros ($4.7 billion) of spending reductions to meet 2014 deficit targets.