Italian politics take centre stage, government crisis continues, and the temptation of positive yields

Genuine Impact
Aug 28 · 2 min read

Here are the top 3 insights for August 28th.

Today’s Brief

  • Amundi: Italian politics take centre stage
  • Aegon: Italian government crisis continues
  • DWS: The sweet temptation of positive yields

Italian politics take centre stage

  • The Deputy PM Matteo Salvini recently withdrew his party’s support to the coalition government headed by PM Giuseppe Conte, calling for a vote of no-confidence against the PM and subsequent snap elections.
  • On the 20th of August, after addressing the Senate, PM Conte resigned.
  • President Sergio Mattarella will now weigh three options — consult political parties to form a new government (with the same forces of the current coalition or new ones), appoint a caretaker government or call for fresh elections.

Genuine Scores for the top 3 Italian listed stocks:

  • SeSa, 74
  • Unipol Gruppo, 70
  • Gamenet Group, 68

Italian government crisis continues

  • Earlier this week the Italian Prime Minister Giuseppe Conte resigned after an intense parliamentary debate, triggering a government crisis.
  • After fourteen months, the coalition between Five-Star Movement (5SM) and Lega, often seen as the most nationalist and populist Italian government in decades, has collapsed.

Genuine Scores for the top 3 Italian focused Bond funds:

  • Lyxor EuroMTS 10Y Italy Bond ETF, 50
  • Xtrackers II Italy Government Bond ETF, 45
  • iShares Italy Government Bond ETF, 45

The sweet temptation of positive yields

  • Italian government bonds have hardly responded to the government crisis.
  • A look at who owns those bonds nowadays provides some clues as to why this might be.

Genuine Scores for the top 3 Italian focused Equity funds:

  • iShares Currency Hedged MSCI Italy ETF, 75
  • Franklin FTSE Italy ETF, 51
  • Amundi FTSE MIB ETF, 49

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All the best,
Genuine Impact Team

p.s. all Genuine Scores are accurate as of the 23rd of August

Genuine Impact

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