Monday, September 12, 2011 Reports Rumor of Chinese Negotiation to Buy Italian Debt - S&P Jumps 10 Points

If you wondered what that 10 point S&P rally off of 1036 is, the Financial Times is reporting talks of China buying Italian debt.  Just another day in Rumorville as computers scanning headlines buy before you can put down your glass of water.  (psst - China was buying Greek bonds a year ago - how did that work out?)

Update 3:10 PM - here is what Bloomberg says

The Italian government is making approaches to China with the aim of selling the cash-rich Asian country “significant” quantities of Italian bonds and investments in strategic companies, FT reports.
* China Investment Corp. Chairman Lou Jiwei was in Rome last week for discussions with Italian Finance Minister Giulio Tremonti and Italy’s Cassa Depositi e Prestiti, a government entity that has established an Italian Strategic Fund open to foreign investors, FT says, citing unidentified Italian officials
* Italian officials met China Investment Corp. and the country’s State Administration of Foreign Exchange, which manages most of China’s $3,200 trillion foreign exchange reserves, in Beijing two weeks ago, FT says
* Italy’s Head of Treasury, Vittorio Grilli, met Chinese investors in the Chinese capital in August, FT reports
* Further negotiations are likely to take place soon, FT says, citing unidentified Italian officials.

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