Lombard Odier on Italy: “Likely outcome is a centre-left victory”
The most likely outcome of Italy’s elections is a centre-left victory, possibly involving a coalition with Mario Monti, which would allow for a welcome continuation of the pro-reform agenda initiated last year, according to a report published by Lombard Odier.
According to the firm, the challenge facing Italy’s new leadership will thus be to push through much-needed reforms to improve competitiveness.
“As regards Italian asset prices, sovereign bonds are back to attractive-to-fairly valued territory. Italian equities remain cheap, and lagged behind their peers in 2012, suggesting some room for catch-up – although drawdowns will be inevitable in periods of heightened risk aversion,” Lombard Odier said.
[asset_library_tag 6354,Click here to read the complete Italy report].