Trial now

Coming up in the Asia-Pac session on Tuesday:


Coming up in the Asia-Pac session on Tuesday:


GS: Payrolls Doesn't Change Faster Taper & First Hike In June Call


Bull Theme Remains Intact


Strong Stocks, Rebound for Oil Weighs on Tsys


Trend Signals Still Point South

     By Jai Lakhani, Irene Prihoda and David Robinson
     LONDON (MNI) - The following are the key points from the March 
Financial Policy Committee (FPC) statement and minutes released Tuesday 
by the Bank of England:
     -As part of its Brexit preparations, the FPC said that it was 
launching a new liquidity facility in Euros (LiFE), with the first 
auction next Wednesday. These auctions will occur on a weekly basis over 
the coming months. 
     The facility requires the activation of the existing swap line with 
the European Central Bank and is designed as a backstop facility.    
     -Whilst the FPC continued to argue that the core of the financial 
system is prepared for a disorderly no-deal Brexit, market stability 
would likely be impeded under such a scenario. 
     The FPC noted that a disorderly no-deal Brexit could result in 
significant market turbulance. The aim of ensuring that the core of the 
financial system is resilient in such a scenario is to ensure that it 
does not amplify market shocks and make bad times worse.  
     -EU member countries currently hold 10% of UK gilts and 15% of UK 
banks' debt, according to BOE figures. Post Brexit, appetite for UK 
assets from EU countries could diminish due to the fact it would cost 
these institutions more to hold UK assets as a result of the UK's new 
treatment as a "third country" for capital and regulatory environments.   
     -With reference to the 2019 bank stress test, the FPC said that 
domestically the test is broadly unchanged. However, the global 
environment paints a more riskier picture. The US has seen an increase 
in risk factors, with the FPC citing higher corporate debt lending. 
China's debt levels has continued to be a cause for concern and 
political development in Europe (most notably Italy) were flagged by the 
     -Evidence of resilience in the UK financial system can be seen 
through the significant reduction in the use of short-term wholesale 
funding by financial institutions. Furthermore, the financial system as 
a whole holds over stg1 trillion in high-quality liquid assets.     
[TOPICS: M$B$$$,M$$BE$]