“Only I and my government can achieve this reform program for 18 months, which is why there is no way for me to stand aside,” said Italian PM Berlusconi to a newspaper. Apparently markets don’t have the same confidence as Italian bonds continue to trade lower and yields mover higher. Yields in Spain, Portugal, Belgium and Ireland are also all up. The unemployment rate in the euro zone for Sept rose to 10.2% from 10.1%, matching the highest rate since Aug ’98. Oct CPI for the region stayed at 3% for a 2nd straight month, matching the most since Oct ’08 and a touch above estimates of 2.9%. Italian CPI specifically rose to 3.8% as Mario Draghi is about to preside over his first ECB meeting on Thursday as its head. Inflation remains stubbornly elevated around the world just as the pressure continues to remain intense on central bankers to ‘do more.’ Following a unilateral intervention last Sept, a bilateral one in Mar, and another unilateral move in Aug, Japan is going at it alone again to stem the yen rise and the Japanese FM said “I’ll continue to intervene until I’m satisfied.” Since nothing has worked so far, his appetite is uncertain.

Category: MacroNotes

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