Central Bank week... with a side of BMPS | Calamatta Cuschieri

With four central banks meetings and a no-longer-back-burner Italian banks issue, this week is looking tricky for financials

The ECB rejected Italy’s request to delay a private sector-led rescue for Banca Monte dei Paschi di Siena
The ECB rejected Italy’s request to delay a private sector-led rescue for Banca Monte dei Paschi di Siena

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.

Tune in to your favourite news sources and watch out for those dot-plots
Tune in to your favourite news sources and watch out for those dot-plots

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.

This article was issued by Andrew Martinelli, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investments Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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