Investment Conundrums: Tilney's Godding - Italian political risk persists

Could result in significant amount of disruption for markets

Investors have grown "complacent" about the market risk posed by political instability in Italy, following the country's tumultuous 4 March general election, Tilney CIO Chris Godding has warned.

He said the potential for a populist party to seize power and significantly increase the country's spending in the wake of the election, which saw no political group or party win an outright majority, could still result in a "significant amount of disruption in markets". 'Political risk is back roaring': Managers warn election result is 'bad news' for Italy Godding explained: "We are in danger at the moment of seeing a populist government in power, where they are likely to be more expansionary than we have seen in the past. "That will make the European Central Bank (ECB) quite nerv...