This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-15690456
The article has changed 7 times. There is an RSS feed of changes available.
| Version 5 | Version 6 |
|---|---|
| Stock markets gain after Italy austerity vote | Stock markets gain after Italy austerity vote |
| (about 2 hours later) | |
| Stock markets have risen after Italy's senate voted to adopt a package of austerity measures. | Stock markets have risen after Italy's senate voted to adopt a package of austerity measures. |
| Shares in the US and Europe closed higher, while the cost of borrowing facing Italy retreated, having reached a record earlier in the week. | |
| The Italian senate's vote begins a process that should see Italian Prime Minister Silvio Berlusconi quit. | The Italian senate's vote begins a process that should see Italian Prime Minister Silvio Berlusconi quit. |
| Investors are hopeful that a new government will take the steps necessary to calm markets. | Investors are hopeful that a new government will take the steps necessary to calm markets. |
| The US Dow Jones share index closed 2.1% higher. German stocks ended 3.2% up and in the UK the FTSE 100 share index climbed 1.8%. | |
| Meanwhile, the new Greek prime minister pledged to keep the country in the euro. | Meanwhile, the new Greek prime minister pledged to keep the country in the euro. |
| Growth fears | Growth fears |
| During a dramatic week, Mr Berlusconi on Tuesday said that he planned to resign after failing to win an absolute majority in the lower house of parliament in a vote on the budget. | During a dramatic week, Mr Berlusconi on Tuesday said that he planned to resign after failing to win an absolute majority in the lower house of parliament in a vote on the budget. |
| The following day, the yield on Italian 10-year debt shot up to a record of more than 7% - which is widely viewed as unsustainable and is same rate at which Portugal, Greece and the Irish Republic were forced to seek a bailout. | The following day, the yield on Italian 10-year debt shot up to a record of more than 7% - which is widely viewed as unsustainable and is same rate at which Portugal, Greece and the Irish Republic were forced to seek a bailout. |
| On Friday, the yield on the benchmark Italian 10-year bond had fallen back to about 6.41%. | On Friday, the yield on the benchmark Italian 10-year bond had fallen back to about 6.41%. |
| Following the Italian senate vote, the lower house will vote on new austerity measures at the weekend and this should pave the way for Mr Berlusconi to resign. | Following the Italian senate vote, the lower house will vote on new austerity measures at the weekend and this should pave the way for Mr Berlusconi to resign. |
| Italy has to roll over more than 360bn euros (£309bn) of debt in 2012. | Italy has to roll over more than 360bn euros (£309bn) of debt in 2012. |
| But all this came as the European Union on Thursday said it had drastically cut its growth forecast for the eurozone in 2012, from 1.8% down to just 0.5%. | But all this came as the European Union on Thursday said it had drastically cut its growth forecast for the eurozone in 2012, from 1.8% down to just 0.5%. |
| "Growth has stalled in Europe and there is a risk of a new recession," said European Commissioner Olli Rehn. | "Growth has stalled in Europe and there is a risk of a new recession," said European Commissioner Olli Rehn. |
| French debt woes | French debt woes |
| In a sign of how strained European finances have become, Standard & Poor's accidentally released a message on Thursday saying that it had downgraded French debt from its top AAA rating. | In a sign of how strained European finances have become, Standard & Poor's accidentally released a message on Thursday saying that it had downgraded French debt from its top AAA rating. |
| S&P said it was investigating what had gone wrong and stressed that France still had an AAA rating. | S&P said it was investigating what had gone wrong and stressed that France still had an AAA rating. |
| However, S&P's error came on the day that the difference between the yield of French and German bonds hit a record high. | However, S&P's error came on the day that the difference between the yield of French and German bonds hit a record high. |
| On Friday, yields on German 10-year bonds - the safest in Europe - were 1.85%, while the yield on French debt was 3.37%. | On Friday, yields on German 10-year bonds - the safest in Europe - were 1.85%, while the yield on French debt was 3.37%. |
| Meanwhile, Greece, which has been bailed out twice and is undergoing painful austerity cuts, has a new Prime Minister, Lucas Papademos. | Meanwhile, Greece, which has been bailed out twice and is undergoing painful austerity cuts, has a new Prime Minister, Lucas Papademos. |
| Mr Papademos, a former European Central Bank vice-president, was named on Thursday after several days of talks. | Mr Papademos, a former European Central Bank vice-president, was named on Thursday after several days of talks. |
| He said his first priorities would be to ratify the 130bn-euro rescue package agreed at an EU summit last month. | He said his first priorities would be to ratify the 130bn-euro rescue package agreed at an EU summit last month. |