The Italian BTP market is coming under.........>

BTPS: The Italian BTP market is coming under considerable pressure in the past

couple of hours.

- Note our earlier report reproduced here:

"Il Giornale newspaper carried an interview with Forza Italian leader, Silvio

Berlusconi in which he outlined an idea for a second currency -- a new lira --

to complement the euro. - The idea is to run the euro for international

transactions and a new lira for domestic ones and he believes that it would help

revive domestic demand. - In the interview he says "we are convinced that the

idea is compatible with EU Treaties" and it will allow for a "partial recapture

of the sovereignty of the State".

- Also, MNI wrote a Main Wire article on the upcoming constitutional court

decision on pension reforms (October).

- The Bund-BTP spread has moved from 160bp to 164bp.