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Goldman Sachs warns markets 'complacent' over Italian political risk

The investment Goldman Sachs believes the equity markets have become complacent to Italian political risks. 

Key quote

"The market reaction has remained remarkably muted. We think the market is complacent in pricing political risk in Italy. In our opinion, a Five Star - Lega government remains the outcome that would likely be viewed as the most negative by the market."

"Our Economists now see new elections as more likely in the coming months than previously expected."

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