INVESTMENT SOLUTIONS & PRODUCTS Investment Alert International Wealth Management, 21/12/2015 Spain Stalemate in Spain No obvious alliance for an absolute majority in the 350 seat Parliament. Near-term prospects for growth are still solid, but some growing uncertainty about the medium term and the sustainability of the public debt. Michael O'Sullivan European periphery. The strong showing of Podemos will re- CIO – UK & EEMEA michael.o'
[email protected], +41 44 332 81 73 mind many investors of the similar rise of Syriza in Greece. Second, there is the possibility that political uncertainty proves Anne-Charlotte Perot Investment Strategy Europe & CH disruptive economically. Here we would emphasize that, in
[email protected], +41 44 333 17 23 terms of consumer confidence, job creation and most lead in- dicators, Spain has considerable economic momentum and this may at least prove resilient in the short run. Sunday’s general election in Spain has failed to deliver a decis- ive result, and has produced a number of surprises. With no ob- vious government in sight, Spanish equities and bonds have Possible scenario of alliance sold off. The incumbent PP party (People’s Party) has ob- In terms of what materializes next, a new parliament will be tained 123 seats, the socialist PSOE came second with 90 formed on 13 January and will be able to vote for the first seats, and Podemos and Ciudadanos obtained 69 and 40 time. After this, the government approval process should not seats, respectively. While prime minister Mariano Rajoy’s PP exceed two months; otherwise new elections would have to be party has re-emerged in the pole position, its ability to form a called.