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1.Market Observations, 8.Was Sticky

31 May 2018 (AFR) – Why investors are so worried about Italy’s latest political crisis

(31 May 2018, AFR, p36, by Karen Maley)

‘It’s the nightmare scenario that has worried financial markets for close to a decade – the prospect of a debt crisis in Italy, the eurozone’s third largest economy. So it’s scarcely surprising that financial markets are panicking as Italy sinks deeper into a political and institutional crisis. Investors were initially cheered when Italian President Sergio Mattarella vetoed the appointment of a eurosceptic minister for finance, Paolo Savona, who had been proposed by the anti-establishment Five Star Movement, and the far-right League.’

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