Monday Afternoon: Italian Bonds and Renzi Proposal

monday afternoon: Renzi signalled that he wont stay on to help stabilize a caretaker administration, according to Guelph Mercury. The euro fell to a 20-month low, while stock index futures and Italian bonds slumped as the prospect of mounting political risk buffeted financial markets. The premier was due to hand in his resignation to President Sergio Mattarella on Monday afternoon, after Renzi proposal to rein in the power of the senate was rejected in a referendum by 60 per cent to 40 per cent, with almost all votes counted. Much of the focus is on Banca Monte dei Paschi di Siena, which is in the middle of a 5 billion-euro 5.3 billion capital raising. Italy Finance Minister Pier Carlo Padoan cancelled a trip he was due to make to Brussels on Monday for a meeting of euro-area colleagues, his spokesperson said in a text message. Its stock has fallen 83 per cent this year and a third of its loan book has soured. (www.immigrantscanada.com). As reported in the news.