EM LATAM CREDIT: Argentina: Treasury Secretary Comments
(ARGENT; Caa1/CCC/CCC+)
• Bessent saying their intent is to give Argentina a swap line, "not putting money in".
• This is in line with previous comments that a bailout is not necessary. The intent is to provide a bridge till after the midterms and provide some stability to the market both in the FX where a swap line could be useful and buying Argentina bonds if necessary. Stabilizing the currency will help stabilize the USD bond market.
• This is consistent with our view that bonds will likely be range bound until progress is made on the domestic political front. Supportive comments and meetings in the White House have limited benefits eventually.
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US: MNI POLITICAL RISK - Lawmakers Return To DC For Busy September
Download Full Report Here
- President Donald Trump will make an Oval Office announcement at 14:00 ET 19:00 BST, his first formal public appearance since a Cabinet meeting last Tuesday.
- Congress is back in session, with lawmakers facing a hectic September schedule. The most pressing business is averting a government shutdown on Oct 1.
- A federal judge is expecting additional filings today from Fed Governor Lisa Cook's legal team detailing why Trump's firing was unlawful.
- Reps. Ro Khanna (D-CA) and Thomas Massie (R-KY) are expected to trigger a bipartisan discharge petition today calling on the DOJ to release the so-called ‘Epstein files’.
- Treasury Secretary Scott Bessent has “an open mind” as he begins interviewing candidates to be the next Fed chair today.
- Bessent is confident the Supreme Court will uphold Trump's use of emergency powers to impose tariffs on trading partners, but said the administration has a backup plan.
- Trump claimed India offered to lower tariffs on US imports to zero. Bessent downplayed the implications of a public display of solidarity by India, Russia, and China at the SCO summit in Beijing.
- Trump may declare a 'national housing emergency' this fall to address rising house prices.
- The Treasury Department released a list of jobs that are exempt from taxes on tipped earnings.
- Bessent said “all options are on the table” for further sanctions on Russia.
- Poll of the Day: Optimism about improving living standards hits a record low.
Full Article: US DAILY BRIEF
EGB FLOWS: EUREX Roll Pace (updated)
- Buxl: 39%.
- Bund: 28%.
- Bobl: 50%.
- Schatz: 44%.
- BTP: 20% (below pace).
- BTS: 30%.
- OAT: 31%.
US: FHFA's Pulte Maintains That Cook Mortgage Allegations Are Authentic
FHFA's Pulte sticks to his claims that his allegations against Fed Governor Cook of mortgage fraud on three separate occasions are authentic, whilst briefly touching on the housing emergency declaratiothat has been floated by Tsy Sec Bessent.
- "*PULTE ON FED'S LISA COOK: DOCUMENTS ARE AUTHENTIC
- *PULTE: POWELL NOT HOLDING LISA COOK ACCOUNTABLE
- *FHFA DIRECTOR PULTE SPEAKS ON FOX BUSINESS" - bbg
A reminder that we could see headlines from the Fed Gov. Cook court case after US District Judge Jia Cobb on Friday asked Cook’s lawyers to file a brief today spelling out their arguments for why Trump’s firing of Cook was unlawful. This is a case that seems likely to ultimately end up in the Supreme Court.
- "*PULTE: TRUMP FOCUSED ON GETTING HOUSING MARKET BOOMING
- *PULTE ON HOUSING EMERGENCY: WE ARE LOOKING AT WHAT IS AVAILABLE" - bbg
Bessent yesterday told the Washington Examiner that Trump may declare a 'national housing emergency' this fall to address rising house prices.
