• Italy was forced to pay almost twice the yield to float 6 month bills in its latest auction compared to its previous attempt. The 6.504% yield compared to 3.535% paid in August. The results put more pressure on the euro and euro zone equities. From Bloomberg News.
• Spain’s Prime Minister-elect Mariano Rajoy has proposed the creation of a state-backed agency to buy troubled loans, especially real estate, at a discount. The “bad bank” would require external financing in excess of 100 billion euros. Presumably, the agency would seek funding from the EFSF or IMF. From Bloomberg News.
• AT&T said yesterday it would take a $4B charge Q4 to cover the costs of its acquisition of T-Mobile potentially falling apart. The company and T-Mobile’s parent, Deutsche Telekom AG, said they are not abandoning the deal. The charge and comments from the FCC chairman earlier this week who said he would seek a trial-like hearing on the merger, raise even more doubts about the already troubled deal, however. From the Wall Street Journal.