Central Bank Week (with a side of BMPS)

All About The Dots

This week will see the central bank of Switzerland, the UK and Mexico delivering their latest assessments and outlooks for their own economies, but the focus will undoubtedly be on the US. Tune in to your favourite news sources on Wednesday 8pm local time and watch out for those dot-plots – they will paint a picture for medium to longer term yields which is, as yet, no so clear. A rate hike is fully priced in – no surprises expected there.

BMPS – 1472 to 2016?

The world’s oldest bank is running out of time – the ECB rejected Italy’s request to delay a private sector-led rescue for Banca Monte dei Paschi di Siena, bringing a government bailout prominently back to the fore as the only likely option left.

Triggering such a bailout would impose losses on creditors, although some form of protection for the smallest investors is expected. The recent political turmoil has not facilitated things, with a Qatari sovereign wealth fund apparently holding off from pumping money into BMPS before the political environment is clearer.