Italian President asks Matteo Renzi to become PM

|By:, SA News Editor

As expected, Italian President Giorgio Napolitano has asked Florence Mayor Matteo Renzi, the head of the center-left Democratic Party (PD), to form a government.

Renzi will have to win over the small New Center Right, which has been the PD's junior coalition partner and is demanding guarantees, such as in the areas of tax, jobs and family policy.

Renzi's nomination comes after the PD ousted incumbent PM Enrico Letta last week following Renzi's machinations.

The FTSE MIB is flat, while Italy's 10-year bond yields have fallen 6 bps to an eight-year low of 3.62%.