1. FOMC meeting: no hurry with hikes. The FOMC statement is not expected to show any major changes but unlike on previous occasions, it may well hold back in issuing any clear forward guidance on the timing of rate increases
2. The Ifo business climate has further improved this month (up from 107.9 to 108.6), but it can't go much further now. Demand growth from the emerging markets has eased off substantially, for one thing, and German profit margins are coming under gradual pressure from the marked rise in unit labour costs
3.he Greek government could remain liquid until the end of June. Thus any decision about a subsequent sovereign default will only be made at that point, rather than at today’s meeting of the euro finance ministers. In the event of a sovereign default, it is unlikely that Greece would remain in EMU since this would require the recapitalisation of Greek banks, which would be difficult for political and economic reasons.