An impressive rally in Italian risk assets has been completely overturned this week, as Italy descended into political chaos. Some market participants now fear a repeat of last year, when Italian issuers were frozen out of debt and equity markets as the country’s government fought with the European Commission over its annual budget targets. Tyler Davies and Sam Kerr report.
Italian politics has been in turmoil after deputy prime minister Matteo Salvini called for snap elections earlier this week, saying that his party, League, could no longer govern in coalition with the Five Star Movement.
Capital markets have not responded well, even though there have been some