Political risks will deepen eurozone woes

Question marks are hanging over the future of European politics in Italy, Austria and Germany. Such widespread political uncertainty will wreak havoc on markets.

For those who had hoped we might slowly leave the Great Recession behind, this week brought bad news on both sides of the Atlantic. In the US, the government shutdown after Republicans and Democrats failed to reach an agreement on the budget. However, as in previous US budget clashes, this may only be a temporary blockage.

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