- Title: Italian bank Monte Dei Paschi must be saved, say market experts.
- Date: 12th December 2016
- Summary: FRANKFURT, GERMANY (DECEMBER 12, 2016) (REUTERS) EXTERIOR OF FRANKFURT STOCK EXCHANGE WIDE OF TRADING FLOOR TRADER AT DESK DAX INDEX BOARD TRADER ON PHONE DAX INDEX BOARD TRADERS LOOKING AT SCREENS VARIOUS OF DAX INDEX BOARD TRADER LOOKING OVER COMPUTER PAN OVER DAX INDEX BOARD (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "The German stock exchange is stable. Italy has a new government and oil prices are rising which means buying strength for OPEC countries and generally speaking also for commodity producing countries. The hike of interest rates in the U.S. this week has been accounted for and won't hurt anyone. So there are stable conditions." VARIOUS CLOSE OF TRADERS LOOKING AT SCREENS DAX INDEX BOARD (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "It is very good that Italy is getting a new prime minister so quickly. He has a lot ahead of him: voting reform that needs to ensure stable conditions for the next elections in Italy. And he needs to address the banking crisis, but he will have support from Mother Nature: the ECB!" VARIOUS CLOSE OF TRADER AT DESK DAX INDEX BOARD (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "The bank, Monte Dei Paschi, must definitely be saved. We cannot afford another banking crisis in Europe because this would awaken certain sleeping dogs. So I assume that if the increase in capital doesn't work then the state will support the bank, and the ECB is anyway always there when there is a bank in Europe to be saved." TRADERS AT DESKS DAX INDEX BOARD TRADING FLOOR DAX INDEX BOARD WIDE OF TRADING FLOOR
- Embargoed: 27th December 2016 10:01
- Keywords: Markets Dax Italy Monte Dei Paschi
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Reuters ID: LVA0015CKVP1P
- Aspect Ratio: 16:9
- Story Text: European shares were little changed in early trading on Monday (December 12), with gains in oil stocks to near 17-month highs offset by weaker pharma stocks.
German markets were stable on the back of the swift choice of new prime minister and promises by Rome to stave off a banking crisis.
Italian President Sergio Mattarella asked Foreign Minister Paolo Gentiloni on Sunday to try to form a new government, giving him a mandate to lead Italy out of a political crisis caused by the resignation of Matteo Renzi.
Gentiloni, a former journalist and Renzi loyalist, is set to be Italy's fifth prime minister in as many years and the fourth in a row to take office without winning a national election.
The soft-spoken 62-year-old immediately began consultations to form a government that will have to write a new electoral law and manage Italy's fragile banks.
Chief among his duties will be dealing quickly with Monte dei Paschi di Siena, the country's third-largest lender, which may need state intervention to avoid collapse.
Italy's FTSE rose 1.1 percent, outperforming the rest of Europe thanks to gains among its banks.
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