European Debt Crisis Intensified &Nbsp; Dow Fell 3.20% On Wednesday.

As of 4:00 pm Eastern time, Dow Jones Industrial Average

The three major indexes of the US stock market fell sharply by more than 3% on the 9 day.

Source: Eastern broadband column: finance early bus, Italy Prime Minister Berlusconi is going to resign, Italy national debt.

On the disk side, the financial, energy and raw materials sector led the decline.

Italy Senate President Renato Skei Fanny has asked the Senate to approve a financial stability bill before the end of the week.

Italy's prime minister Berlusconi will resign after the new budget reform bill was approved by Parliament.

President Napolitano of Italy said that after Berlusconi resigned, he would soon form a new government or hold a general election.

Greek Prime Minister Papandreou said in a televised speech on Wednesday that although there were differences among the political parties in the country, the coalition government had been set up, and Greece will make every effort to stay in the euro area, and the EU's latest aid plan will be implemented.

Papandreou announced his resignation after the speech, but did not announce the new prime minister.

Sources said the speaker Filippos Petsalnikos had been identified as the new prime minister.

The International Energy Agency (IEA) said on Wednesday that international crude oil prices could rise to $150 a barrel in the short term if investment in oil producing countries in North Africa and the Middle East can not meet the growth needs of emerging market economies.

As the clearing house LCH.Clearnet announced the raising of the margin rate of Italy bond trading, the yield of Italy's 10 - year treasury bonds exceeded 7%.

At present, the outside world has widely believed that Italy will not be able to maintain such high financing costs, and the euro zone debt crisis is further aggravated.

In the European market, Italy's benchmark treasury bond yield surged by 7%, and European stock market investors' concerns about Italy's debt problems intensified. The pan European Dow Jones index closed down at 1.73% on Wednesday at 236.34.

In the main regional index, the French CAC 40 index fell 2.17%, closed at 3075.16 points, the German DAX 30 index fell 2.21%, closed at 5829.54 points, and the financial times 100 index fell 1.92% to 5460.38 points.

In terms of commodities, the market's development of the euro zone sovereign debt crisis will lead to another recession in Europe. The rise in the US dollar also suppressed the performance of copper at the same time. The copper price once reached the lowest level since the end of October, and the three month benchmark copper contract of the London Metal Exchange closed at 7621 dollars, closing at 7800 dollars per ton on Tuesday.

economic data

At 10:30 a.m. Eastern time, data released by the US energy information administration showed that crude oil inventories dropped by 1 million 400 thousand barrels in the week ended November 5th, a drop larger than that of economists who had averaged 700 thousand barrels a week, after a drop of 1 million 800 thousand barrels a week.

Company news

Buffett's Boxill Hathaway northern Berlin Santa Fe Railway Company is facing an investigation by US regulators. A news station in Seattle questioned the safety of the company.

Messi's net profit in the third quarter increased from 10 million US dollars in the same period last year to US $139 million, and sales increased from US $5 billion 620 million in the same period last year to US $5 billion 850 million, better than analysts expected.

Due to fluctuations in foreign exchange market and uncertainty in Thailand's flood production, TOYOTA announced that it would reduce its profit forecast for the current fiscal year. In addition, TOYOTA will resume production in Thailand in November 21st.

GM realized a profit of $1 billion 700 million in the third quarter, making profits for the 7 consecutive quarter, but 15% lower than the same period last year, and operating income increased 7.6% to 36 billion 700 million US dollars over the same period last year.

In the third quarter, GM sales increased by 9% to 2 million 200 thousand vehicles.

Goldman Sachs sold 2 billion 400 million shares of ICBC on Wednesday at a price of HK $4.88 to HK $5 per share, with a cash dividend of up to US $1 billion 540 million. Compared with ICBC's closing price on Wednesday in Hongkong, Goldman Sachs offered a maximum discount rate of 6%.

HSBC's net profit in the third quarter increased from 3 billion 150 million US dollars in the same period last year to 5 billion 220 million US dollars. HSBC CEO Europe Zhi Hua said it was facing a more severe market environment such as macroeconomic, regulatory and political uncertainties.

Moodie, an international rating agency, announced on Wednesday that it would adjust India's banking rating outlook from the current "stability" to "negative" because of the worry that the challenging business environment will have an adverse impact on asset quality, total capital and profitability of banks.

One of the world's largest jewellery retailers, the British jewelry retail giant Graff plans to raise $1 billion in Hongkong next year in IPO, and the Rothschild family has been recommending that Graff implement the IPO plan.

In its quarterly report to the securities and Exchange Commission, Goldman Sachs said that in the third quarter, the group's securities trading business suffered losses in 21 trading days, and the number of loss trading days reached its highest level since the fourth quarter of 2008.

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Italy enters European debt storm eye, Rodgers throws "bankrupt therapeutics"

Although Prime Minister Berlusconi of Italy has promised to resign after 8 days of ratification of the austerity measures, the European independent clearing house LCH.Clearnet raised the margin ratio of the Treasury bond pactions, prompting investors to worry about the rapid warming and the cost of borrowing in Italy approaching the high level of crisis. Yesterday, the Italy bond yield reached a new high in the euro area since the establishment of the euro zone on the 9 th.

Affected by this, as of the daily economic news (micro-blog) (micro-blog) press release about 21:30, the European stock market plummeted, the German DAX index plunged 2.55%, France CAC fell 2.02%, the UK FTSE fell 1.81%, the US stock market also has a big decline.

At the same time, Nymex oil fell sharply, close to $95, spot gold rebounded to a recent high of 1795.59 U.S. dollars / ounce.

In the foreign exchange market, the euro fell by nearly 200 points, the Australian dollar fell 150 points, and other non US currencies declined.

Li Wei, global research economist at Standard Chartered Bank, told reporters that Italy's economic problems were more serious. In the two quarters, the economy was in a downward trend, and there were signs of decline. The measures to reduce financial expenditure and reform also encountered some resistance.

He believes that there is a certain risk in Italy.

10 year Treasury yields break 7

LCH.Clearnet, the European clearing house, announced on its website yesterday that it will increase the initial margin ratio of BTP bonds applicable to all Italy bonds and the initial margin ratio of inflation linked BTP bonds by 3.5~5 percentage points, raising the margin ratio of Italy bonds to 5 percentage points from 7 to 10 years to 11.65%.

The decision will take effect after closing in November 9th and will affect the margin in November 10th.

The news prompted Italy's 10 year treasury bond yield to rise sharply by 82 basis points to 7.4%.

Investors believe that the yield is generally over 7%, which will not be sustainable in the long run.

For now, how to reduce the deficit and the yield of treasury bonds and attract market purchases is the top priority for the country to solve the crisis.

But to achieve this goal, Italy must do something.

In a report entitled "Italy - what will happen next" and Credit Suisse's "Italy: Countdown" report, two investment banks have made judgments that if Parliament passes new tightening measures next week, according to what Berlusconi has said before, he will announce his resignation.

After his resignation, Italy faces only two choices: one is a coalition government that is composed of different parties, and the other is an early general election.

But in fact, these two options may not be able to push down the yield of treasury bonds.

SilvioPeruzzo, a European economist at the Royal Bank of Scotland, said that only a coalition government composed of technocrats would help to push the European crisis to be resolved and that market people believe Italy has political cohesion to repay the debt, which the market would not want to see ahead of time.

However, the Goldman Sachs report shows that even if the situation moves towards the development of a coalition government that is composed of technocrats, it will cost Italy a few weeks.

In the meantime, chaotic political negotiations will replace the original reform agenda. The selling price of Italy's treasury bonds will continue to rise due to additional risks and increased margin requirements.

ECB buying debt is not enough to quench thirst

No one can give an answer to whether Italy is hopeless.

But as long as there is no news that investors can convince, Italy Treasuries may be sold off.

In order to maintain the situation in Italy, the ECB became the biggest buyer of the two tier market of Italy's Treasuries last week. It purchased 9 billion 500 million euros of sovereign debt through the SMP in the two week market as of November 4th, which is two times the size of the previous week, but did not prevent Italy's bond yields from rising to 7.4% before 6.2%.

The current rate of return will increase Italy's annual interest cost by 28 billion euros.

This means that if the European central bank wants to control the situation in Italy, it will have to expand its balance sheet more quickly and faster. This is something Germany does not want to see.

As early as 27 EU summit last month, German Chancellor Merkel said she did not want European leaders to force ECB to buy troubled state bonds, which would undermine the independence of ECB and the liquidity of Europe as a whole. The problem of buying bonds should be borne by EFSF.

Former Federal Reserve Chairman Volcker proposed that "emergency policy is not the goal of the European Central Bank. ECB is being asked to do more than its basic mission. The central bank should have only been responsible for monetary policy in Europe".

In the long run, Delagi, the Italian ECB, last week's radical buying behavior was also "far away" and "very thirsty".

The report of Goldman Sachs economist DirkSchumacher last month, "the potential and limit of the European Central Bank's balance sheet" shows that although ECB can expand its balance sheet to a large extent, it will lead to two broad consequences, namely, the broad currency boom in Europe, the inflationary pressure and the financial health deterioration of the European Central Bank.

Considering that the existing interest rate reduction measures will further amplify inflationary pressure, it is easy to see that ECB's measures to buy bonds are difficult to last for long, and the strength is limited. The yield of Italy's treasury bonds has jumped to 7.4%.

Rodgers throws out bankruptcy therapy.

This week, Rodgers, the investment guru, gave Europe a magic trick to let it go bankrupt.

Rodgers did not approve of the Procrastination of Delagi's purchase of debt. In an exclusive interview with foreign power, he admitted that excessive consumption and excessive loans were the main problems in Europe, and that more loans could not solve the problem of excessive loans.

He believes that the implementation of various means of help based on credit expansion is far less likely to take "short pain".

He also said that if the EU allows the troubled countries to go bankrupt, the people who hold the bad assets themselves will bear the losses themselves. It is just a problem country that comes back all the same. But if we push the problem forward again, the snowball will get bigger and bigger. After 5 years, the whole euro area and even the whole western world will be dragged down.

Greenspan, the former chairman of the Federal Reserve, predicted earlier this month that the euro zone is doomed to disappear as a result of the cultural and fiscal differences between the north and the south.

He said Greece, Italy, Spain and Portugal, now in the euro zone, are the countries with increasing debt crisis in the euro area.

The northern part of the eurozone represented by Belgium, Finland and Germany is a creditor country.

The southern countries are more lazy than the northern countries, and they are mostly financially deficit. The practice of putting the euro and the north and the South together is wrong from the beginning.

Morgan Stanley economist JoachimFels expects the possibility of a euro zone member leaving the euro zone is increasing.

Last week, EU leaders just discussed the possibility of letting members withdraw from the euro for the first time.

There is also news that Germany has even prepared for euro zone bankruptcy protection.