Research Team at RBC Capital Markets, notes that the Italians will vote in a referendum on reforming the country’s constitution, mainly changing how parliament functions, on Sunday.

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“Publishing opinion poll results is not permitted in the two-weeks in advance of the vote but up until that cut-off point they showed a consistent, and growing, lead for the ‘no’ side though a substantial proportion of voters are still undecided. In summary a no vote, rejecting the government’s proposed reform and probably forcing the resignation of current PM Renzi, risks a period of significantly increased political uncertainty in Italy and would represent a major set-back for economic reform efforts though a ‘yes’ vote does not eliminate political risk in Italy.”