Italy and Greece now have “technocrat” leaders in place – the word is derived from the Greek word “tekhne” meaning skill and advocates the replacement of politicians with scientists and engineers who have the technical expertise to manage the country’s economy.

The return of some semblance of stability to Europe looks to have encouraged equity markets this morning. Former European Commission Mario Monti has replaced Berlusconi and Italy’s Prime Minister and now leads an emergency government with a mandate to ensure that austerity measures are fully implemented.

Despite a more positive end to Thursday, volatility continues to remain elevated (VIX Index remains above 30).The end of the week has seen Italy and Greece, announce firm commitments to form governments led by market friendly candidates. Italian bond yields have declined although remaining worryingly high for the ECB and Italy.

The phrase ‘no news is good news’ would be an accurate way of describing the last two weeks. Yesterday, the news that Silvio Berlusconi was to resign as Prime Minister of Italy was meant to lift market sentiment – instead Italian bond yields rose to 7.5%, the Euro weakened and...

Yields on 10 year Italian bonds rose yesterday to 6.68%, a Euro era high for the country, and precariously close to the 7% which would mean that Italy needs to seek a bail out. This is despite the ECB ramping up its bond buying to €9.52 billion, during the first...

The good news is that Greek politics might now drop out of the limelight as a cross-party coalition Government is being formed in order to ensure payment of the latest tranche of EU/IMF aid. The bad news is that it is being rapidly replaced centre-stage by Italian politics, with Prime...

Investors and traders might have been flailing around yesterday trying to follow the latest twists and turns in the unfolding Greek tragedy but they can take comfort – if that’s the right word – that their Leaders at the G20 Summit in Cannes were in exactly the same position.

George Papandreou arrived in Cannes yesterday, with a warning from the French Prime Minister ringing in his ears that Greece had to abide by the rules, or leave the Euro Zone. Mr Papandreou has also been told that the next tranche of bailout funds due on the 11th December will...

Last week’s resolution to the Euro Zone debt crisis, which was meant to buy the single currency time, lies in tatters this morning. The Greek prime minister, George Papandreou yesterday discussed his idea for a referendum on Greece’s involvement in the Euro Zone and on accepting the latest bailout package.

Halloween marks the end of an era at the ECB with President Trichet stepping down to be replaced by Mario Draghi. Draghi in turn presides over his first ECB Council Meeting on Thursday with the market split as to whether he will cut rates in light of weak survey data...