Invest
Trump victory alarming for Italian referendum
With last week’s US election result shocking many, the rise of populism in the European Union may have been dangerously underrated ahead of Italy’s crucial December referendum.
Trump victory alarming for Italian referendum
With last week’s US election result shocking many, the rise of populism in the European Union may have been dangerously underrated ahead of Italy’s crucial December referendum.
Asset manager Standard Life Investments says the surprise Trump presidential victory in the US may undermine the polling figures for rising European populist parties.
“We consider the election of an anti-establishment populist candidate in the US to be symptomatic of a wider undercurrent of dissatisfaction in developed markets towards traditional political parties, politicians and globalisation in the post crisis era,” Standard Life political economist Stephanie Kelly said.
“The US election probably does not in itself increase the likelihood of a political shock in Europe, but suggests that the strength of the populist undercurrent may not be being captured in traditional polling in a number of countries, heightening nerves around upcoming political events.”
Italian Prime Minister Matteo Renzi has promised he would step down if the national referendum on constitutional reform on 4 December returned a ‘no’ vote, an exit that would open the door for local populist parties to gain traction.
All major polls taken in the last three weeks puts the ‘no’ vote ahead, meaning a potentially crushing loss for the current government, one that would support the eurosceptic Five Star Movement, and would likely have serious consequences for markets and European unity.
“The European Commission stressed in its winter forecast that the main risks facing Europe are political,” Ms Kelly said.
“It’s something worth watching very carefully. It could have quite large ramifications for Italy and Europe as a whole,” HSBC chief economist Paul Bloxham said.
“Obviously, Prime Minister Matteo Renzi has put a lot of his political capital into it. It’s the next big event for market.”
RELATED ARTICLES
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
