Economists are predicting an even worse result in the final quarter. And in Italy, the cost of borrowing has once again soared above seven percent.

 

What the markets need in order to go back to some sort of normality, to reduce Italy's interest rates, is confidence in stability and action. Italy needs to grow and cut at the same time. And that's a very difficult job and Monti will need full support from a broad base, and that's the question at the moment, the doubt.

 

Let's see what the markets have been doing. The Dow Jones has closed 17 points higher. The NASDAQ put on 29. The S&P 500 was 11 points higher. And in London, the FTSE closed two points lower. Checking commodity prices. West Texas Crude is trading at 99 US dollars and 73 cents a barrel. Tapis crude’s at 123 US dollars and six cents a barrel. And gold’s at 1778 US dollars 80 cents an ounce. The Australian dollar is buying a dollar and one US cent, 75 euro cents and 64 pence sterling.