Rate Uncertainty Embroils Central Banks
Money markets are flashing warning signals as rising credit risk, spurred in part by fears of Brexit, makes it harder for big banks to obtain U.S. dollar funding. A gauge of bank borrowing costs -- the FRA/OIS spread -- hit the most extreme level since 2012 on Thursday, and the premium to swap foreign currencies into dollars reached the highest since late last year as deteriorating investor sentiment ahead of Britain’s June 23 referendum on European Union membership strained the financial system. The chiefs of the U.S. Federal Reserve the Bank of Japan, the Bank of Canada and the Swiss National Bank all cited the referendum on EU membership as being potentially disruptive to the global economy. BMO Head of European FX Strategy Stephen Gallo discusses with Bloomberg's Francine Lacqua on "The Pulse."
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U.K.'s May Calls for Two-Year Brexit Transition Period
51:55 - U.K. Prime Minister Theresa May speaks in Florence, Italy on the need for a period of implementation after the nation leaves the European Union. (Source: Bloomberg)