Milan stock-market falls 1.8 percent amid referendum fears
MILAN -- Milan stock-market is down by 1.81 percent as banks suffer amid referendum fears Monday with the bellwether FTSE-MIB index falling to 16,216 points.
The Tuscan bank Monti dei Paschi di Siena loses almost 14 percent, Bper percent, and Banco Popolare, Bpm and Unicredit all five percent. London falls 0.6 percent, Frankfurt 1.09 percent and Paris 0.88 percent. The Italian spread increases to 192 points and then closes at 187.
The Italian Economy Minister Pier Carlo Padoan said that “markets do not like uncertainty,” but crisis plans are already in place for the banks that need one. They are evaluating the strange fact that “the politics of structural reform, promoted in the past by these same markets, is now being put into uncertainty.”
The Organization for Economic Co-operation and Development (OECD) plays down fears raised by the Financial Times newspaper that eight Italian banks might fail if Italians vote to reject a Constitutional reform of Italy's political machinery in a Dec. 4 referendum.
However, there is also the possibility that banks could collapse in the event of a ‘yes’ victory in the Dec. 4 referendum as well.
The Italian newspaper Il Giornale deems The Financial Times’s article about the potential failure of Italian banks, a type of “financial terrorism.”