The storm is not over

“Markets down, banks under attack”, headlines La Repubblica. The downgrading of Greek debt by Moody's and “the American impasse between Democrats and Republicans has affected the markets, dragged down by bank shares”, writes the Italian daily. “Spain and, above all, Italy were caught in yesterday’s storm”. Milan was the worst-hit stock market in Europe, down 2.48 per cent at closing. Banks in Italy and Spain also plummeted: Italy’s biggest bank Intesa San Paolo fell 8.33 per cent after rating agency Moody’s decided to rate the Greek deal a default. “The big fear is not over”, comments La Repubblica, “and worse, the yield spread between Italian 10-year bonds and German bunds widened to 280 points, underlining that Italy is less reliable than before”.