UBS' Kunkel Says CDU Didn't Address Structural Issues

The transcript discusses the recent election results, highlighting the weak performance of major parties and the rise of the Afd. It explores potential coalition formations, including the FDP's stance on Greek debt and the implications for peripheral debt. The possibility of a grand coalition is considered, with the Afd becoming a significant opposition force. The SPD's decision to enter opposition is noted, and the potential market reactions are discussed, with expectations of muted responses due to ongoing uncertainties.

What was a significant factor in the weak performance of the CDU and SPD in the exit polls?

• Economic sanctions from the EU

• Strong opposition from the Green Party

• Failure to address structural issues and voter concerns

• Their focus on environmental issues

How did the FDP perform in the exit polls, and what is their stance on Greek debt?

• They performed poorly and support increasing Greek debt

• They performed well and want to increase Greek debt

• They performed well and support a Greek debt haircut

• They performed moderately and oppose any changes to Greek debt

What is a potential outcome if the FDP joins a grand coalition?

• A significant narrowing of peripheral debt spreads

• Immediate economic growth in Germany

• A moderate widening of peripheral debt spreads

• A complete overhaul of the monetary union

What role would the Afd play if a grand coalition is formed?

• They would become the ruling party

• They would have no significant role

• They would be the largest opposition party

• They would lead the coalition talks

How is the market expected to react to the political uncertainty following the elections?

• With a muted reaction

• With a complete market crash

• With immediate growth

• With extreme volatility