Italy: Italians take heart from a pair of Super Marios, projecting image of "can-do Italy"

Thanks to two Marios, Italy’s image as the fun-loving land of the bunga bunga party but unreliable partner in Europe is under reconstruction — sparking cultural shifts at home.

Mario Monti

Mario Draghi

Premier Mario Monti, an economics professor who succeeded Silvio Berlusconi, is creating renewed confidence in Italy — among investors, political partners and crucially Italians themselves. Mario Draghi, as head of the European Central Bank, basks in acclaim leading an institution that holds sway over the EU economy.

The two Marios, both in their roles since November, have the seal of approval from German Chancellor Angela Merkel, a key figure in Europe’s drive to save itself from ruin.

For more: Italians take heart from a pair of Super Marios, projecting image of can-do Italy - The Washington Post

Italian yields fall sharply in €5 billion auction; Monti govt survives confidence vote

Italy easily raised €5 billion ($6.47 billion) in a pair of bond auctions on Thursday that saw a sharp drop in borrowing rates, a sign that investor confidence in the country is improving.The sale was the first test of market sentiment in the country’s handling of its debt since ratings agency Standard & Poor’s cut Italy’s credit rating by two notches on Jan. 13.

Italy paid an interest rate of 3.763 percent on €4.5 billion in two-year bonds, compared with 4.85 percent in a comparable auction in December. The borrowing cost for a new bond expiring in September 2014 was 3.2 percent.

UniCredit analysts said the sale was “positive” and an encouraging sign for upcoming auctions.

For more: Italian yields fall sharply in €5 billion auction; Monti govt survives confidence vote - The Washington Post

East Europe Confidence Improves on Euro Outlook, ZEW Says - by Zoltan Simon

Central and eastern Europe’s economic outlook improved in January on optimism about the euro area, the ZEW Center for European Economic Research and Erste Group Bank AG said.

The economic-sentiment indicator, a measure of investor confidence in the region, rose 14.8 points to minus 26.6 points, the Mannheim, Germany-based ZEW and Vienna-based Erste Bank said today in an e-mailed statement.

“The increase in experts’ expectations is consistent with their overall expectations for the euro zone,” they said in the statement.

For more: East Europe Confidence Improves on Euro Outlook, ZEW Says - Businessweek

Euro up vs. dollar as borrowing rates fall in Italy, Spain and US data looks weaker

The euro rose against the dollar Thursday as borrowing rates fell for Italy and Spain, a sign that investor confidence in those two debt-hobbled countries is improving.

Traders also bought euros because of worries that the economic recovery in the United States is slowing. More Americans filed unemployment claims last week, and retail sales barely grew in the last month of the year.

Italy sold one-year bonds at a rate of 2.735 percent, less than half what it had to pay last month. And Spain raised double the amount of money it had hoped to at its bond auction.

For more: Euro up vs. dollar as borrowing rates fall in Italy, Spain and US data looks weaker - The Washington Post