Thursday, February 28, 2013

Italy debt auction to show cost of political crisis

MILAN (Reuters) - Italy will pay the price for its latest political crisis with higher borrowing costs on Wednesday when it sells longer-dated bonds to investors worried about an inconclusive election.

The vote cast over the weekend gave none of the political parties a parliamentary majority, raising the risk of prolonged instability and a rekindling of the euro zone crisis.

The results, notably the dramatic surge of the anti-establishment 5-Star Movement of comic Beppe Grillo, left the center-left bloc with a majority in the lower house but without the numbers to control the upper chamber.

"Markets have been underpricing Italian political risk for months and are now struggling to come to terms with an extremely unstable and fluid political situation," said Nicholas Spiro, managing director of Spiro Sovereign Strategy.

After a sell-off in Italian bonds and stocks on Tuesday, investors on tenterhooks in early trade on Wednesday. In the grey market, the yield on the new 10-year bond maturing May 2023 was trading at 4.97 percent after briefly topping 5 percent, up from 4.90 percent late on Tuesday.

If confirmed at the auction, that level would be the highest since September 2012. At the end-January sale, Rome paid 4.17 percent to sell 10-year paper.

"The market is very nervous, every piece of news could trigger a violent reaction," said a Milan trader.

The premium investors demand to hold 10-year Italian bonds over equivalent German Bunds stood at 345 basis points after earlier touching a peak at 350 basis points.

The political stalemate could halt reforms needed to spur growth and help Italy cut its massive 2 trillion euro debt pile.

As stunned parties look for a way forward after the messy result, the treasury will seek to sell between 3 billion and 4 billion euros of a new 10-year bond and between 1.75 and 2.5 billion euros of five-year paper.

"Italy's debt market is facing its most serious challenge since the announcement of the European Central Bank's bond-buying program last summer," said Spiro.

On Tuesday Rome's six-month borrowing costs rose by 0.51 percent compared to a similar sale at the end of January and reached their highest level since October 2012, shortly after the ECB pledged to buy bonds of struggling euro zone countries.

The risk is that the political stalemate may reverse a cautious comeback of foreign investors into Italy's debt that started after by the ECB's bond-buying pledge.

"If political parties are not able to give in the short term a strong signal of change, foreign banks could reduce their activity in the country," Guido Rosa, head of the Italian association of foreign lenders, told Reuters.

The treasury had taken advantage of a benign environment at the beginning of this year to cover more than 20 percent of its total 2013 refunding needs.

(Editing by Anna Willard)

Source: http://news.yahoo.com/italy-debt-auction-show-cost-political-crisis-000404703.html

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Monday, February 25, 2013

Wednesday, February 6, 2013

Senate tries again to move anti-violence bill

FILE - In this Dec. 18, 2012 file photo, Senate Judiciary Committee Chairman Sen. Patrick Leahy, D-Vt. is seen on Capitol Hill in Washington. The Senate on Monday returned to the Violence Against Women Act, seeking to accomplish what Congress last year failed to do _ extend the federal government's chief means of protecting women from domestic abuse while broadening those protections to better include Native Americans, gays and lesbians. (AP Photo/Susan Walsh, File)

FILE - In this Dec. 18, 2012 file photo, Senate Judiciary Committee Chairman Sen. Patrick Leahy, D-Vt. is seen on Capitol Hill in Washington. The Senate on Monday returned to the Violence Against Women Act, seeking to accomplish what Congress last year failed to do _ extend the federal government's chief means of protecting women from domestic abuse while broadening those protections to better include Native Americans, gays and lesbians. (AP Photo/Susan Walsh, File)

FILE - In this Dec. 21, 2012 file photo, House Majority Leader Eric Cantor, R-Va. speaks during a news conference on Capitol Hill in Washington. The Senate on Monday returned to the Violence Against Women Act, seeking to accomplish what Congress last year failed to do _ extend the federal government's chief means of protecting women from domestic abuse while broadening those protections to better include Native Americans, gays and lesbians. (AP Photo/J. Scott Applewhite, File)

FILE - In this Nov. 29, 2012 file photo, Sen. Patty Murray, D-Wash. is seen on Capitol Hill in Washington. The Senate on Monday returned to the Violence Against Women Act, seeking to accomplish what Congress last year failed to do _ extend the federal government's chief means of protecting women from domestic abuse while broadening those protections to better include Native Americans, gays and lesbians. (AP Photo/J. Scott Applewhite, File)

(AP) ? Senate Democrats worked toward picking up Republican allies Monday as they launched a new attempt to broaden a law protecting women from domestic abuse by expanding its provisions to cover gays, lesbians and Native Americans.

The legislation to renew the Violence Against Women Act appeared on a smooth path toward passage in the Senate, possibly by the end of this week. Monday's procedural vote to make the bill the next order of business was expected to easily clear the 60-vote threshold.

Senate passage would send the bill to the House. Advocates hope that Republicans, smarting from election losses among women voters in November, won't repeat their resistance last year to the Senate approach.

"Allowing partisan delays to put women's lives at risk is simply shameful," Senate Majority Leader Harry Reid, D-Nev., said before the vote. He said he hoped convincing support for the legislation in the Senate would "send a strong message to House Republican leaders that further partisan delay is unacceptable."

House Republicans, including Majority Leader Eric Cantor of Virginia, say reauthorizing the 1994 act, which expired in 2011, is a priority. But resolving partisan differences remains an obstacle: last year both the House and Senate passed bills but the House would not go along with Senate provisions that single out gays, lesbians, bisexuals and transgenders for protection and give tribal authorities more power to prosecute non-Indians who attack Indian partners on tribal lands.

Kim Gandy, president of the National Network to End Domestic Violence, said that after last year's election both parties are eager to demonstrate that they are behind a pro-woman agenda. She said her group, which supports the Senate bill, had received "very positive responses" from the offices of both Cantor and Rep. Cathy McMorris Rodgers, the top-ranked Republican woman.

The Senate bill, while making minor concessions to meet GOP concerns, is essentially the same as the measure that passed that chamber last April on a 68-31 vote, with 15 Republicans voting yes. It focuses on ensuring that college students, immigrants, Native Americans and gays, lesbians, bisexuals and transgender people have access to anti-abuse programs.

The Violence Against Women Act, or VAWA, "has been extraordinarily effective" in combating domestic violence, Senate Judiciary Committee Chairman Patrick Leahy, D-Vt., said in a letter urging the support of his colleagues. He said that since VAWA was first passed the annual incidence of domestic violence has fallen by more than 50 percent. Leahy is the sponsor of the bill with Republican Mike Crapo of Idaho.

Sen. Susan Collins, a Republican supporter from Maine, said helping victims of violence "should never be a partisan issue." She said that in her state nearly half of homicides were linked to occurrences of domestic violence and 13,000 Maine residents would experience some form of sexual violence this year alone.

White House press secretary Jay Carney urged Congress to move rapidly on the legislation. "Three women a day are killed as a result of domestic violence and one in five have been raped in their lifetimes. We should be long past debate on the need for the Violence Against Women Act," he told reporters aboard Air Force One Monday.

During election campaigns last year Democrats seized on the congressional stalemate over VAWA in claiming that Republicans did not represent the best interests of women.

Getting a bill to the president's desk this year could hinge on resolving the issue of tribal authority over domestic abuse cases.

Last year House Republicans objected to the Senate provision increasing tribal authority. Currently, non-Indians who batter their spouses often go unpunished because federal authorities don't have the resources to pursue misdemeanors committed on reservations.

The National Congress of American Indians says violence against Native American women has reached "epidemic proportions," citing findings that 39 percent of American Indian and Alaska native women will be subjected to violence by a partner in their lifetimes. It cited a 2010 government report finding that U.S. attorneys declined to prosecute half of violent crimes occurring in Indian country, and two-thirds of the declined cases involved sexual abuse.

Two House Republicans, Darrell Issa of California and Tom Cole of Oklahoma, last year offered a compromise that would allow non-Indian defendants to request that their cases be moved to federal courts, but the session ended before a deal could be reached. Cole is one of two House members claiming Indian heritage.

The Violence Against Women Act provides grants to state and local offices for legal assistance, transitional housing, law enforcement training, stalker databases and domestic violence hotlines. It also established the Office on Violence Against Women within the Justice Department.

The programs authorized under the act are still in place. But without reauthorization of the law, they cannot be expanded or improved. The Senate bill would consolidate 13 existing programs into four and set aside some $659 million over five years for the programs, down 17 percent from the last reauthorization in 2005. The bill would also give more emphasis to sexual assault prevention and take steps to reduce the rape kit backlog. In a concession to Republicans, it removes a provision in last year's bill that would have increased visas for immigrant victims of domestic violence.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/89ae8247abe8493fae24405546e9a1aa/Article_2013-02-04-Violence%20Against%20Women%20Act/id-ed1a0d92866a43289d3789e776cb9b6a

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