CHILE: BCCh May Pause In Sept., Codelco Losses From Mine Collapse About $300mn

Reuters reports that the European Commission has sent a letter to Slovakian PM Robert Fico regarding his opposition to a phase-out in Russian fossil fuels in the EU that threatens the adoption of an 18th package of sanctions on Russia (see "EU-RUSSIA: Foreign Ministers Look To Sign-Off On 18th Sanctions Package", 09:18BST). 

• Letter says that the EU "will work with Slovakia to address its concerns" about he phase out. The EU "will clarify how an 'emergency brake' can be triggered if gas prices spike because of scarce supply during the phase out".
• The EU "will develop a solution for cross-border tariffs in the oil and gas trade for Slovakia, aimed at reducing these costs." The letter says the EU "will allow amendments to long-term Russian gas contracts aimed at getting more favourable terms for Slovakia", and that Brussels "is ready to intervene, if needed, during potential litigation resulting from the Russian gas phase out."
• EU foreign ministers are meeting presently in Brussels. Ahead of the meeting, European High Representative for Foreign Affairs and Security Policy Kaja Kallas said, "We are very, very close. I hope it comes today," Regarding the lowered price cap on Russian oil, Kallas said "It's alive...We have made proposals, but it is a question of whether we can overcome the veto of one member state or not. But we are trying to work on that."
• However, CGTN Europe reported earlier that ministers had failed to reach an agreement, with Slovakia and Malta continuing to object. 

Recent flow includes:

• ERU5 97.875/98.00 call spread 14K given at 11
• ERZ5 98.50/98.25 1x2 put spread 4.5K sold down to 6

Greenback is edging higher into the NY crossover, with gains slightly accelerating on the break above the overnight highs in USD/JPY at Y147.89. Moves follow the appearance from Treasury Secretary Bessent who seemed calm over the looming tariff deadlines (both the reciprocal tariffs deadline on August 1st and the deadline for a settled deal with China on August 12th).

• Markets similarly looking through most of his comments on the Fed chair. Most notably Bessent rebuffed expectations that Trump is looking to fire Powell, but the formal process has already started - which may be helping aide yields off lows and modestly underpin the dollar here.