EU-RUSSIA: Commission: Rouble Payments For Gas Could Breach Sanctions-RTRS
Reuters reporting the release of a European Commission guidance document regarding the Russian request for gas payments from 'unfriendly nations' in the EU to be made in roubles.
- Says that EU companies can only lawfully comply with the Russian rouble demand if it does not breach EU sanctions. Adds that it appears possible for companies to continue to deposit euros or dollars for Russian gas under existing contracts.
- Says that the Russian decree demanding payment in roubles does not prevent a payment process that would allow EU companies to comply with sanctions, but it is not yet clear how this could work.
- Goes on to say that any transaction in roubles could involve the Russian Central Bank, which would be a breach of EU sanctions.
- Speaking to BloombergTV on 20 April, German Finance Minister Christian Lindner stated his belief that EU firms should not have to pay for gas in Russian currency: “Contracts are contracts...Contracts are based on dollars and euros and so private-sector companies should pay in dollars or euros.”
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UK: Sunak Sets Out 'Tax Plan', Raises NIC Threshold
Sunak: "Today, I am publishing a Tax Plan.....our new Tax Plan will build a stronger economy by reducing and reforming taxes over this Parliament, in three ways....There is now a dedicated funding source for the country’s top priority – the NHS and social care. Providing funding over the long-term, as demand grows...I’m going to increase it [NIC threshold] by the full £3,000. ...From this July, people will be able to earn £12,570 a year without paying a single penny of income tax or National Insurance. That’s a £6bn personal tax cut for 30 million people across the United Kingdom. A tax cut for employees worth over £330 a year...around 70% of all workers will have their taxes cut by more than the amount they’ll pay through the new Levy"
US EURODLR OPTIONS: Early Trade Roundup Including SOFR
- SOFR Options:
- 10,000 short Aug 97.00/97.25 put spds
- Block, 2,500 SFRU2 98.50/98.75 put spds, 19.0
- Block, +8,000 SFRM2 98.50/98.75 put spds, 10.5 vs. 98.695/0.25%
- Eurodollar Options:
- -2,000 Dec 97.25 straddles, 81.0 (off-strike)
- +15,000 short Sep 96.50/97.50 put over risk reversals, 0.5 vs. 97.00/0.56%
UK: OBR's new borrowing forecasts
"Underlying debt is expected to fall steadily from 83.5% of GDP in 2022-23 to 79.8% in 2026-27. Borrowing as a percentage of GDP is 5.4% this year, 3.9% next year, then 1.9%, 1.3%, 1.2% and 1.1% in the following years."
But notes these figures do not include full impact of Ukraine war.
