'Confirmation of a changing political landscape': Industry reacts to Renzi's referendum defeat

Fund managers have warned of short-term volatility following Italy's vote against constitutional reform in this weekend's referendum, which they say could "exert a baleful influence" on the country's struggling banking sector.

With most ballots counted in Sunday's referendum, Italy voted by 60% to 40% to reject  Renzi's (pictured) proposals to greatly reduce the power of the Italian Senate in order to simplify and speed up the process of passing laws. This was a wider margin than expected for the 'no' vote, with the turnout also high at around 70%.  In a late-night news conference, Prime Minister Renzi said he took responsibility for the outcome, and said the 'no' camp must now make clear proposals. Although the euro fell to levels last seen in March 2015 following the vote, the response from European marke...