Italy: Scooting the wave
The Italian elections are unlikely to deliver a thumping victory to any party. That’ll leave a government with a weak mandate and limited ability to enact structural reform. But that’s not dissimilar to what we’ve already had. Italy will continue despite this, and that means gradual improvement. This is supportive for the euro. It also bodes well for Italian equities, particularly the manufacturing and export focused midcaps. We remain short Italian bonds.