EM CEEMEA CREDIT: Coca-Cola Icecek; Fitch affirms

Our commodities team notes that crude front month futures and prompt time spreads rally back to levels seen late last week on risks of rising Middle East tension amid reports of Israeli military strike on Yemen's main airport in the capital.

• The IDF claimed the attack on May 6 destroyed Houthi infrastructure including a strike on the Sanaa International Airport and targets in the Hudaydah Port, BBC said.
• Crude prices were already recovering ground following a decline at the start of the week as the markets weighed the latest OPEC+ decision to raise output in June.

The confirmation from both sides that a UK-India trade deal has been finalised could provide something of a boost to British PM Sir Keir Starmer's gov't. While the signing of a trade pact is unlikely to be reflected in opinion polling, it will allow the gov't to argue that its trade policy is working amid an increasingly fragmented global trading landscape. The agreement is the most sizeable trade deal entered into by the UK since it left the European Union, with one of the reasons touted for leaving the Union by pro-Brexiteers in 2016 being the ability for the UK to negotiate trade deals on a bilateral basis, rather than as part of a slow Brussels-directed process. 

• A UK gov't press release claims that as part of the agreement, "Indian tariffs will be slashed, locking in reductions on 90% of tariff lines, with 85% of these becoming fully tariff-free within a decade. Whisky and gin tariffs will be halved from 150% to 75% before reducing to 40% by year ten of the deal, while automotive tariffs will go from over 100% to 10% under a quota."
• Reaching trade deals with India has been a high priority for major Western economies, including the US and EU, as they look to bolster economic links with the world's most-populous nation. Earlier, Indian Finance Minister Nirmala Sitharaman said that securing an FTA with the EU was a 'top priority' for the gov't of PM Narendra Modi., 

More large Options in Equities, this time in the Bank index:

• SX7E (15th May) 185/190cs, bought for 2.65 and 2.70 in ~37.2k.