Macro Strategy Views Podcast: The shocks and the risks – Italy could dwarf Brexit

In our weekly podcast, Macro Strategy Views, we focus on topical macro and market themes targeting investors and trading corporates. Today, we focus on the current shocks and the future risks facing the global economy and financial system with a special focus on Italy. Thomas Harr, Global Head of FI&C Research, chairs today’s podcast and our eurozone economist, Aila Mihr, joins him. We expect the EU will give a negative opinion and ask for a revision of the budget, possibly as early as this week. Eventually, the Italian government is likely to give in if the market pressure becomes too great, but the market pressure is not substantial enough yet. An Italian debt crisis is the biggest risk facing the eurozone and the EU in the coming years, as it could prove seriously contagious to other countries.