The job markets resistance to an improving economy has been the subject of political debate across the region, with European Central Bank President Mario Draghi urging governments to implement decisive structural reforms to fight unemployment. Stocks Decline European stocks sank today as the U.S. faced the first government shutdown in 17 years and Italian Prime Minister Enrico Letta fought to save his administration. The Stoxx Europe 600 Index fell 0.8 percent to 309.76 at 4:11 p.m. in Frankfurt . The euro was little changed at $1.3530. Italys Letta said hell request a confidence vote for Oct. 2 to try to save his five-month-old administration after Silvio Berlusconi withdrew his support from the ruling coalition and pulled his ministers from cabinet. The Organisation for Economic Cooperation and Development sees Italian unemployment at 12.5 percent next year. Data released at 10 a.m. in Rome tomorrow will show whether joblessness still is near a May all-time high of 12.2 percent.
Ship Sinks, Dozens of Europe-Bound Migrants Dead
Rescue workers report that a blanket might have been lit to raise the alarm, sparking the fire. Helicopters and rescue boats are continuing to search the accident scene. Local fishing boats have also helped in searching. Lampedusa is 70 miles from the African coast. It is the closest Italian island and the nearest European arrival point for asylum seekers. The ship was packed with immigrants from Eritrea, Ghana and Somalia, according to Italian Coast Guard officials. Lampedusa and nearby Malta have been inundated in the past few years with refugees seeking to arrive in Europe. The Maltese government recently began patrols to prevent illegal access to the waters in an effort to stop the flow of asylum seekers trying to reach their shores. Under European laws, refugees are the responsibility of country where they first make landfall. Lampedusa hosts a temporary asylum camp for refugee seekers. The pope immediately issued his condolences, tweeting, “Pray God for the victims of the shipwreck off Lampedusa.” The Italian government has dispatched Interior Minister Angelo Alfano to oversee the operations.
Europe stocks drop on U.S. fears; Italy rises
The vote was initially called after former Prime Minister Berlusconi over the weekend withdrew his support from the government and ordered five ministers representing his People of Freedom party to resign. In a Senate debate leading up to the vote, Berlusconi, however, reversed his position and said he would support Letta, after several allies in recent days expressed their dissent with the hard line on the government Bloomberg News ECB President Mario Draghi says the recovery remains weak. The FTSE MIB stock index /quotes/zigman/1482176 XX:FTSEMIB -0.25% rallied 0.7% to 18,098.44, while the yield on 10-year Italian government bonds /quotes/zigman/4869096/delayed IT:10YR_ITA +0.32% fell 10 basis points to 4.36%, according to electronic trading platform Tradeweb. Click to Play Watch BlackBerry, Monsanto John Shipman takes a look at which stocks traders are watching during market action, including BlackBerry, Monsanto, and Global Payments. Photo: Getty Images. It is positive for Italy that the government seems to be able to continue. It is even more positive for Italy if this means Berlusconis political career will come to an end. Berlusconi has been a risk factor in Italian politics for a long time. If this risk factor disappears, the Italian yield spread over Germany could move quite a bit lower. It would also be positive for the rest of the euro area and move us one step further away from the debt crisis, land said. In the U.S., the government shutdown moved into a second day as lawmakers still didnt agree on a budget for the fiscal year, which started on Tuesday.