“I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.”
DER SPIEGEL: Italian elections have spooked markets and Europe.
February 27, 2013 – 11:15 AM
Global investors have made it clear that the Italian election result is not to their liking, with Moody’s even threatening a rating downgrade. European politicians are also unimpressed and fear the euro crisis may soon return. Some comments have been surprisingly undiplomatic.
“We finished first, without winning.” That’s how Democratic Party head Pier Luigi Bersani on Tuesday summed up the results of the Italian election, one which left his center-left camp with an edge in parliament but without sufficient leverage in the Senate. What he didn’t say is that the biggest loser ultimately might not be in Italy at all. The biggest loser could be Europe and its efforts to finally emerge from years of crisis.
“Instead of increasing visibility on the country’s political direction, Italy’s recent elections raised the risk that the structural reform momentum achieved under the government of Mario Monti will stall, if not come to a complete standstill,” Moody’s wrote in a Tuesday report. The agency said it would downgrade the country from its current Baa2 rating — just two levels above junk status — if reform efforts wane.
It is hardly an idle concern. The Five Star Movement of former comedian Beppe Grillo emerged as the strongest single party from the election, primarily on the strength of his disdain for the political class and his unrelenting anti-European Union and anti-austerity rhetoric. Silvio Berlusconi, though he lost 4 million voters relative to his 2008 result, was also surprisingly strong — due in large part to his own rants against the EU and, in particular, against German Chancellor Angela Merkel.
When leading European politicians finally caught their breaths on Tuesday, reactions — fed by an unmistakable concern that political stasis in Rome could reignite the euro crisis — were harsh.
“To a certain degree, I am horrified that two clowns won the election,” Peer Steinbrück, Germany’s former finance minister and the Social Democratic candidate for chancellor in autumn elections, said on Tuesday evening, referring to Berlusconi and Grillo. He said the vote will “contribute to greater problems in the euro zone.” Italian President Giorgio Napolitano, in Germany for a visit, promptly cancelled a planned meeting with Steinbrück as a result of the comment.
But German Foreign Minister Guido Westerwelle likewise gave voice to deep concerns on Tuesday, telling reporters in Berlin “it is now decisive for Italy, because it is such an important country for the whole of Europe, that a stable and effective government can be formed as quickly as possible.”
Finance Minister Wolfgang Schäuble added that “the onus is now on political leaders in Italy to … do what the country needs, namely form a stable government that continues on the successful path of reform.”
Indeed, several leading Europeans on Tuesday urged Rome to continue on the reform path embarked on by outgoing Prime Minister Mario Monti, the technocrat leader who took over from Silvio Berlusconi in the autumn of 2011. Monti’s party, however, experienced nothing short of a debacle in the election, receiving a paltry 10 percent of the vote — a clear signal that there is little appetite in Italy for further austerity.
“I assume the Italian government, no matter how it may be composed, will stick to its European commitments,” Dutch Finance Minister Jeroen Dijsselbloem, who is also head of the Euro Group, said on Tuesday, adding that there was “no rejoicing” following the election. “A stable government is important to the euro zone. To pull Europe from an economic quagmire, stable politics are required, also in Italy,” he said.
Spanish Foreign Minister Jose Manuel Garcia-Margallo was less diplomatic. The result, he said was “a jump to nowhere with positive consequences for nobody.”
The markets on Tuesday made clear that investors shared such concerns over Italy. The stock index in Rome plunged by 5 percent and trading in some bank shares had to be suspended due to precipitous share-price falls. Interest rates on 10-year sovereign bonds, the canary in the euro-crisis coalmine, rose to 4.83 percent ahead of a Wednesday debt offering. European and global markets also suffered on Tuesday, with Germany’s DAX shedding 2.3 percent.
That, though, isn’t likely to impress Italy’s leading populists. Berlusconi discounted investor concern on Tuesday, saying “markets go their own way. They are independent and also a little crazy.” And Grillo? During the campaign, he called bond spreads a “hallucination.”
He also seemed to welcome economic upheaval, saying it will force new elections. Any possible coalition pairing Bersani and Berlusconi, he said on Tuesday, would last but “seven, eight months. The economy won’t let them escape.”
cgh — with wire reports
a little about me and my expertise – video
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Investment Properties in Phoenix.
View my listings at:
Please go to my web-site and get all the newsflashes and updates in Commercial Investment Real Estate in Phoenix and Commercial Investment Properties in Phoenix daily
Follow me on Facebook:
Follow me on Twitter:
Follow Me on Linkedin:
Follow Me on Google+
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial Investment Real Estate Broker in Arizona now for 15 years and I worked with banks and their commercial REO properties for 3 years. I am also a commercial and Landspecialist in Phoenix and a Landspecialist in Arizona.
WHETHER YOU LEASE OR OWN
NOW IS THE TIME FOR YOU TO EXPAND, UPGRADE OR INVEST.
In my opinion we are at bottom of the cycle in Commercial Real Estate in Phoenix, so there is only one way and it’s called we are going up again and now is the time for you to expand, upgrade or invest in Commercial Properties in Phoenix. The prices on deals I may get you will not be around forever.
IF YOU OR ANYBODY YOU KNOW IS IN TROUBLE WITH YOUR BUSINESS, AS MANY AMERICANS ARE IN THE MOMENT, AND ARE ABOUT TO LOSE YOUR COMMERCIAL PROPERTY, PLEASE CONTACT ME. IF YOUR BANK IS BEHAVING BADLY I MAY BE ABLE TO HELP YOU GET OUT OF SOME OR MAYBE A LOT OF FUTURE HEADACHES.
WAITING TO SELL YOUR LAND ? TIMES CHANGE / IT’S TIME
We barely could give land away the last few years, but times are changing. Even in those meager years, I sold more land across the state than most other brokers. Before the real estate crash I was a land specialist in Arizona with millions of dollars of transactions, but then I had to change and also sell other commercial investment properties, which was fun, but I am a Commercial Landspecialist in Arizonal, a Commercial Land Specialist in Phoenix and love to sell land, one acre to thousands of acres.
Since I was a Land Specialist in Arizona and a Land Speciaost in Phoenix many of my clients, Sellers and Buyers remember me and now they are calling me again, so this is the time to get back into land and none of my clients, including future clients, will miss out on getting their best deal.
Also, if you are up-side down on your land, like many Americans, and the lender is giving you a hard time, now is the time to put your land on the market. Lenders are making deals now with short sales. I have been working with banks for many years – I learned how to work with them.
If you have any questions about the 1 to 3 above, about Commercial Investment Properties in Phoenix or Commercial Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion in Commercial Properties in Phoenix or Commercial Properties in Arizona with you.Obviously I am also in this to make money, but it could be a win-win situation for all of us.
Please reply by e-mail firstname.lastname@example.org or call me 520-975-5207 (cell) 602-778-5110 (office direct).
Walter Unger CCIM
Kasten Long Commercial
2821 E. Camelback Road, Suite 600
Office : 602-445-4141
Delivering the New Standard of Excellence in Commercial Real Estate
- Commercial Real Estate Scottsdale
- Commercial Real Estate Phoenix
- Commercial Real Estate Arizona
- Commercial Investment Properties Phoenix
- Commercial Investment Properties Scottsdale
- Commercial Investment Properties Arizona
- Land Specialist Arizona
- Arizona Land Specialist
- Land Specialist Phoenix
- Phoenix Land Specialist
- Land For Sale Phoenix
- Land for sale Arizona
- Commercial Properties For Sale Phoenix
- Commercial Real Estate Sales Phoenix
- Commercial Properties Phoenix
- Commercial Properties Arizona
- Commercial Land Specialist Phoenix
- Commercial Land Phoenix
- Multifamily land Phoenix
- Retail Land Phoenix
- Industrial Land Phoenix
- Land Commercial Phoenix
- Land Retail Phoenix
- Land Industrial Phoenix
- Land Multifamily Phoenix
- Industrial Land for sale Phoenix
- Land Industrial
Disclaimer of Liability
The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.