Banks warn clients of Italian election threat

Large banks and hedge funds are advising clients to brace for trouble ahead of the Italian elections early next month, saying a late surge by anti-eu populist parties threatens to shatter Europe’s brief political calm. Polls over the weekend showed a further hollowing out of the political centre, with rising risks of gridlock or the “nightmare scenario” of a radical coalition taking control. Filings show the world’s biggest hedge fund, Bridgewater, has taken out a huge bet against European equities. Business, page 1