As most people are winding down for a long weekend of sweet sherry and mince pies the Italian government is scratching its head about how to rescue Monte dei Paschi di Siena. Unless it receives a capital injection the bank's bondholders will find themselves holding shares instead of bonds they signed up for.  Many of those bondholders are ordinary people and there could be a political outcry were they to lose their money. So the government will stump up the cash. Except EU rules say it is not allowed to, which accounts for the quandary.

Yet this problem has been so long in the making that it has not so far had any impact on the Euro, which has strengthened by a dozen ticks on the week against the US Dollar. It was up by a cent and a half against Sterling, which lost ground to all but the Commonwealth Dollars.