Europe: Politics taking the centre stage - BBH

The Italian referendum and the Austrian presidential election next week may be a dress rehearsal for the French Presidential election next spring, expects Research Team at BBH. 

Key Quotes

“The center-right Republicans will have a run-off between a self-styled Thatcher-esque candidate (Fillon) and the old guard (Juppe).  Perhaps obscured by the pressure on Italian bonds, the French premium over Germany continues to trend higher.  It is near 54 bp today, the widest since Q1 2014.  As recently as July, the premium was near 20 bp.”