“Markets may well be in for another Italian surprise”. Deutsche Bank’s analysts do not make this claim lightly. On their reading of the admittedly ambiguous data, they believe the anti-establishment Five-Star movement may only be a normal polling error away from being able to block the formation of any realistic, broadly centrist, pro-European government.
The Corner | June 1, 2015 | Italian risk premium (136.5 bp) should probably come down and be lower than the Spanish one (135 bp) this week despite PM Matteo Renzi’s set back in the country’s regional elections on Sunday, experts at Bankinter commented. (Chart above: Italy Generic Govt 10Y Yield by Bloomberg.)
MADRID | Ignoring that Italians have given support to political programmes contrary to current austerity policies would be a temerity.
MADRID | Peter Garnry, analyst at Saxo Bank: “The true irony of this story is that these political voids, as now in Italy, have often generated periods of economic calm and even growth.”
MADRID | In Italy, as in other southern eurozone countries, citizens cannot believe there will be light at the end of the austerity tunnel.
By Marcus Nunes, economist and author | If you followed the results of the Italian general election, you would probably be wondering: what will happen to the “growing investor confidence” the European Commission was talking about?