The return of political economics gives rise to some concern as markets are generally bad at pricing political risk. The electoral calendar over the last two months has not tended to favour incumbents. This is perhaps not surprising given that the weak economic recovery is sufficient to reduce conservatism, while the sluggish labour market response has fostered a desire for change. A variety of votes lies ahead. We explore what’s in store in Portugal, the UK, Canada, Germany and Italy. Continue reading →