The following factors could affect Italian markets on Wednesday.
Reuters has not verified the newspaper reports, and cannot
vouch for their accuracy. New items are marked with (*).
Silvio Berlusconi's party threatened to delay the approval
of Italy's 2013 budget law on Tuesday, a move that could push
back Prime Minister Mario Monti's resignation and perhaps
slightly delay the parliamentary election, now expected in
Former prime minister Silvio Berlusconi said on Tuesday
Italy would be forced to leave the euro zone unless the European
Central Bank gets more powers to ensure lower borrowing costs.
Political risks ranging from turmoil in Italy to potential
impediments to euro area reform could hamper the world economy
next year, the bank lobby group Institute of International
Finance said on Tuesday.
* Outgoing Prime Minister Mario Monti is expected to endorse
a coalition of centrist political parties at the weekend,
Italian daily La Stampa said without quoting sources.
Officials from the European Securities and Markets Authority
(ESMA) have received documents from Italian prosecutors
investigating credit rating agencies, judicial sources told
Reuters on Tuesday.
Moody's on Tuesday placed the Baa2 senior debt rating, the
Baa3 subordinated debt rating and the Ba1 preferred stock debt
ratings of the Italian insurer on review for downgrade. The Baa1
insurance financial strength rating at Assicurazioni Generali
SpA was unaffected by the announcement.
Unicredit Chief Executive Federico Ghizzoni said
on Tuesday he is comfortable with the sale of the Bank of
Italy's stake in Assicurazioni Generali to state-backed fund
Fondo Strategico Italiano (FSI).
Italy's ERG said on Wednesday it will invest about
500 million euros ($660.65 million) in the period 2013-2015 as
it presses ahead with its transformation from a refiner to a
renewable energy company.
The board of Finmeccanica is expected to discuss asset sales
at a board meeting later on Wednesday. Italian newspaper says no
decision will be taken at this board meeting on the sale of unit
AnsaldoEnergia, for which Siemens, Doosan
and the Italian state-backed strategic fund FSI have expressed
The main owner of Italy's Avio said on Tuesday that the
group which buys the aerospace supplier will need to provide
guarantees on growth opportunities and jobs.
Sources told Reuters on Tuesday General Electric is
set to clinch a deal to buy Avio, in which Italian defense group
Finmeccanica has a 14 percent stake.
* Il Messaggero says Avio's main owner Cinven is to announce
on Wednesday the sale of Avio to General Electric.
An Italian court is expected to rule on Wednesday on whether
Deutsche Bank, JP Morgan, UBS and
Depfa Bank banks missold derivatives to the city of Milan in a
case seen as a litmus test for hundreds of local governments
facing big losses from complex financial contracts. [ID:
Italian publisher RCS MediaGroup is expected to
unveil cost cuts and an overhaul of its magazines on Wednesday,
as time runs out to decide on a much-needed cash call.
The board of Pirelli holding GPI decided on Tuesday to start
an arbitration process against the Malacalza family, the
second-largest shareholder in the company, to verify whether it
has violated shareholder pacts.
The Malacalza family has requested a Milan court to seize a
13.2 percent stake in Pirelli's holding company Camfin
, a stake that is equivalent to the family's investment
in GPI. GPI opposes the move.