EM LATAM CREDIT: Braskem Idesa: Capital Structure Challenges - Negative

Gov Macklem says that incoming data suggests the Canadian economy overall is weaker but not "sharply weaker" amid the US-Canada trade conflict (the policy statement noted "the economy is showing some resilience so far"):

• "When we say the economy is showing some resilience overall, what we're saying is that when you look beyond the directly-affected trade sensitive sectors, and you look at the rest of the economy, it is continuing to grow. If you look at employment outside of sectors heavily dependent on the US. Employment in the rest of the economy has continued to expand, as I mentioned in a previous question. You know, consumption growth is modest, but it is continuing to grow. So look, the economy is weaker, but it's not sharply weaker. It is showing, it is showing some resilience so far.... hopefully we move more towards a de-escalation scenario and we get a stronger bounce back in growth than we have, than is in the current tariff scenario. But you know, we've got to be alive to the possibility that, you know, that's not the only possible outcome."
• On the BOC's balance sheet policies, Deputy Gov Rogers says that plans haven't changed: "our plan that we've shared in previous press conferences on settlement balances hasn't changed. We're on a continued trajectory down. We still think we'll settle somewhere between 50 and $70 billion at the end of the day. We're getting closer to that number, but we've got a ways to go. The bottom line is, we don't have any change to our plans right now."

• BOC'S ROGERS SAYS BALANCE SHEET PLANS UNFOLDING AS EXPECTED
• BOC DOESN'T WANT A TARIFF PROBLEM TO BECOME INFLATION PROBLEM

"*BESSENT: CAN KEEP NEGOTIATING ON TRADE PAST AUG. 1 IF NO DEALS" Bloomberg

Recall Trump on Truth earlier today: "THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!""