Is the Rising Tide of Populism Spooking Markets?
German economic growth slowed to the weakest pace in a year last quarter, in a reminder of the fragility of the euro area’s recovery in a time of rising uncertainty. In Italy, investors are starting to wake up to the Five Star Movement. With the populists’ efforts to topple Prime Minister Matteo Renzi gaining traction, investment funds are trying to get a handle on the policy plans of the anti-establishment party. Italian government bonds were hit particularly hard last week as yields rose around the world in the wake of Donald Trump’s victory in the U.S., reflecting investors’ concerns that the upset will add impetus to Five Star. Canadian Imperial Bank of Commerce Head of FX Strategy Jeremy Stretch discusses with Anna Edwards and Yousef Gamal El-Din on "Bloomberg Daybreak: Europe."