Italy Zero Growth Was No fluke

Close on the heels of a disappointing GDP report in Q2, Italy is set for a contraction in GDP this summer as well, as there seems to be a genuine slowdown in the Italian economy in the run-up to the referendum, reports Bank of America Merrill Lynch. Chiara Angeloni and Gilles Moec point out in their August 19 research piece titled “Zero growth was no fluke” that Italians have turned more optimistic since the end of 2012.

Italy’s soft and hard data divergence

The BAML analysts point out that investors’ attention in Europe has shifted to Italy after Brexit.

Last month, Societe Generale’s Albert Edwards echoed similar...