GFMA: News on the global financial markets

Italy's bond auction sees demand, but at a cost
Demand for Italy's latest bond auction exceeded analysts' expectations, but the country wasn't able to avoid paying inflated yields. Italy sold €7.5 billion in three- and 10-year bonds. Meanwhile, euro-zone finance ministers were warned that Italy's economy could become insolvent. The Wall Street Journal(30 Nov.), The Guardian (London)(29 Nov.)

LCH.Clearnet moves most MF Global UK positions to other brokers
LCH.Clearnet transferred the majority of positions its clients held with the British arm of MF Global Holdings to designated brokers. Financial Times(tiered subscription model)(29 Nov.) 

Commentary: Italy's debt needs orderly restructuring
Noted economist Nouriel Roubini argues that in order to avoid a "disorderly default", Italy needs to undertake an orderly restructuring of its public debt. Financial Times(tiered subscription model)(29 Nov.)

• Other News

UK decision to raise bank levy will hit HSBC and StanChart hard
The Telegraph (London) (29 Nov.)

Regulatory Roundup

EBA delays notifying lenders of fundraising needs
The European Banking Authority had intended to finalise this week estimates for fresh capital that banks need to meet core capital requirements. However, the regulator is waiting for EU finance ministers to decide on plans to restore confidence in the financial system before telling banks how much capital they need. Reuters(29 Nov.)

IMF urges national regulators to watch capital flows
The International Monetary Fund released a study that encourages national regulators to prevent the spread of financial instability through cross-border capital flows among banks. Financial Times (tiered subscription model)(29 Nov.)

Other News

Economists expect ECB to cut interest rates next week
Reuters (29 Nov.)

Norwegian official supports Sweden's move on Basel III
Bloomberg (29 Nov.)