Yesterday the people spoke in the Italian elections, the first since Mario Monty and his technocrats were installed to deal with the Italian economic crisis [European economic crisis], and did they enjoy themselves.
The techno did worse than the monster raving looney party, however, it is worse than that.
There are two houses in Italian politics, the upper & lower, and the upper has a lees than 1% lead to the right, the lower has a less than 1% lead to the left, so a hung parliament has arisen. It is even worse than that though, because a comedian Beppe Grillo has taken 25% of the votes in what the media is calling a protest vote. I do not believe 1 in 4 of the populace in a turnout reported as good can be considered a protest.
So my interest is the economy and how it will be affected. The markets will not be happy because the stability of Mario Monty’s technocrats has been shattered. The Euro will be affected as has shown through the night in the Asian markets that have been open since the election results, and there is already talk of Sterling being a safe haven. So most of the sellers yesterday will return to the market today as buyers and the pound will strengthen.