Italian referendum: Too many no's, Renzi goes - HSBC

Fabio Balboni, European Economist at HSBC, notes that after a strong rejection of constitutional reform in the Italian referendum, Prime Minister Matteo Renzi resigned.

Key Quotes

“We still believe that there won’t be a snap election, as we do not think that the president will send the country to new elections before parliament has approved a new electoral law for the upper house of parliament. However, the strong rejection could open a new period of political instability in Italy, and the Eurozone, causing a negative market reaction and possible concerns about the future of the single currency.”