Italy’s election outcome rattled the markets. Political uncertainty in one of Europe’s biggest economies scared the entire monetary union.
Italian voters firmly rejected the previous government’s austerity policies and reforms and risked pushing the country deeper into the recession quagmire, reviving the problems the eurozone faced last year. As a result, Spain rushed to assure the markets that it is not in danger.
US investors have also been worried at the possibility that the Federal Reserve might change its stimulus policies. Fed Chairman Ben Bernanke calmed them down, saying it is not time yet.
We look at all these issues, and discuss them with Jonathan Ferro from Bloomberg in this edition of Business Weekly.