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Oppenheimer Funds President and Portfolio Manager Alessio de Longis weighs in on the results of the Italian election, and how it will affect the marke...
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-- that -- Italy's borrowing costs sort of four month high now in its first post election on sale.
But strong demand for Italian government debt is calming investor fears of a political stalemate a vacuum if you like in Rome.
Could reignite the Euro zone's debt crisis so what's next for Italy.
Little unclear just because now Alessio debt launch yes vice president portfolio manager at -- the funds and Alessio thank you for joining us.
Would -- be fair to say that the results of the Italian election is basically anti austerity and you know to take that further and.
Very much agree when your statement Italians have clearly voted against the EU impose austerity and they diluted in two forms.
EU driven reform process.
And secondly they have.
Voted -- incredible.
Incredible strength and voice.
The movement of that -- below the five star movement the anti establishment -- austerity movement that tries to fight to the old.
Establishment uniquely.
So now we have -- -- from the center left party who has to try and form a coalition government which seems you know next to impossible.
So.
Does that raise the Specter of another election and house and -- that -- Dead then he's my opinion on my -- -- that he heard it did the question is not if the question is when easily will have thirty elections and I believe.
Because of some institutional.
Do you case.
As well as the current situation.
Easily could go to new election between Sikhs and twelve months from now I think earlier than six months it's very difficult because of the institutional situation.
Bubba Sonny has a very difficult job he has already offered in -- hand.
-- that are below to form a completion and he simply -- turned him down very clearly.
So now they're signing ironically enough has to try to form a correlation -- nothing less than mr.
Berlusconi.
The old rival from generations.
Even deep policy -- of creating that grand coalition.
I don't think we will go very far the Italians have voted against austerity so I think the reform agenda is off the table.
And most likely given that they will try to win and come paying for the next elections.
It will Prodi do some minor forms of fiscal loosening on the policy -- to to basically -- to what both -- said.
Not these kind of austerity so the political chaos -- it essentially.
I think it slows down this future for additional reforms and on the margin it will probably.
Changing that in some details some of the reforms that -- accomplished I don't think we have.
As set up foresee any major derailed what has been done I don't think either you can afford debt.
Interesting so all the US markets over reacting to what's been going on in -- I mean obviously they're rallying today but when.
The outcome of the election was no we saw the US markets react here so could more bad headlines out of -- impact -- -- US markets.
I think India on Monday reaction was probably fair because we were perfectly -- for it did good outcome.
And we've got the worst possible outcome.
On the other hand we don't think easily EC stand -- like the Euro zone crisis wall system making right 101011.
And twelve.
So probably -- will be a short term.
Did and a buying opportunity for value looking best there's.
That being said but that's for US equity markets before you Italian sovereign debt markets and other European.
Denmark right.
You'll probably more more volatile ride more sensitive to the news flawed illegally.
Will be keeping a close I -- official thank you so much Alessio -- -- -- with Oppenheimer Funds thank you so much for joining us.
