Five months is a long time in Italian politics. Back in June, we observed that Italy was too big to fail, but also too big to bail. We were also waiting for the almost inevitable clash with the European Commission over the budget. That has now arrived and we have started trading Italian risk in the new higher range for spreads.
* (Bubbling Tensions in Politics)
Equities tend to rally into year end, and particularly in years with US midterm elections. While this could easily be a statistical fluke, we also see fundamental reasons to buy stocks at this point and are now moving positive on the asset class on a tactical basis.
The temperature's roasting and the Turkish economy is under the spotlight. With President Erdoğan fighting financial markets, the contagion is spreading fast. So which parts are overdone and are there any tempting morsels worth trying? Here are our latest thoughts from Bloomberg TV.