Political picture seemed to be coming out clearer in Italy as the Senate has more or less decided to form a large technocratic Government which is going to be headed by the former European Commissioner Mario Monti.
After chairing the last Cabinet meeting on Saturday, Berlusconi is expected to place his resignation before the President. Mario Monti is expected to sworn in on Sunday or latest by Monday.
In the meantime, IMF chief Lagarde has warned in Tokyo if situation gets worsened in Europe, it will have much negative effects on Asia as many trade and financial sector deals will get impacted. Critics say that she was compelled to say so under Washington who needs faster action from the currency rich Asian countries.
On Thursday Euro made a very strong gain against the dollar in two weeks on Friday and Italian bonds are also showing some positive trends. Now the question is whether Italy will be able to deliver the financial reforms which it has been promising far but has not been able to deliver.