- As expected, Italy's Senate has expelled ex-Prime Minister Silvio Berlusconi following his conviction for tax fraud in August.
- While Berlusconi will still try to disrupt the government - he will continue to lead his Forza Italia party from outside parliament - the coalition should be fairly safe, as it has the support of around 30 former Berlusconi allies.
- The government might now turn its focus to reforming Italy's moribund economy, which has been in recession for over two years. Late on Tuesday, the parliament passed a budget bill.
- The FTSE MIB is +0.5%, while Italian 10-year bond yields are +1 bps at 4.07%.
- More on Berlusconi.
- ETFs: Stocks: EWI. Bonds: ITLT, ITLY