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Italy, Spain Head for Bailouts, Fidelity’s Stuttard Says

Italy and Spain, which account for more than a quarter of the euro-area economy, are heading for sovereign bailouts in the next 12 months that will send shock waves through the global economy, Fidelity Investments’s Jamie Stuttard said.

Both sovereigns will likely stumble over debt auctions in the next year, forcing European authorities to find official funding for them to hold the single-currency area together, Stuttard, Fidelity’s head of international bond portfolio management in London, said in a telephone interview on June 19.