EU CONSUMER CYCLICALS: Compass Group: S&P stays unch through €1.5b acq.

"*IRAN: OUR RESPONSE TO US ATTACKS WILL BE 'PROPORTIONATE'" Bloomberg

(MNI) London - The Chinese Foreign Ministry has issued a statement following a meeting between Foreign Minister Wang Yi and India's National Security Advisor Ajit Doval in Beijing earlier today. The two sides have increased communication over the past 12 months in an effort to maintain the uneasy peace along the disputed Himalayan border between the two countries (the Line of Actual Control, LAC).  Statement: "Recently, the bilateral relations have made some positive progress, and the two sides need to further strengthen communication, enhance mutual trust, and work hard to solve practical problems."

• Wang said the two countries should focus on "being development opportunities for each other and not posing a threat to each other" and "being partners rather than competitors". Says the two sides must "properly handle sensitive issues, and maintain peace and tranquillity in the border areas."
• Doval quoted as saying that "The strategic goals of India and China are consistent, and focusing on development is the top priority of each country. The two sides should view bilateral relations from a long-term and strategic perspective, understand and tolerate each other, and expand common interests."
• As Foreign Policy notes, in spite of the 2024 agreement and the subsequent BRICS summit meeting between President Xi Jinping and PM Narendra Modi, "The thaw in India-China ties since last October has not changed the nature or quantum of the two countries’ military deployment on the border." The lack of comprehensive resolution means the risk of escalation remains present. 

Latest headlines crossing from ECB President Lagarde's appearance at EU Parliament:

• "*LAGARDE: CONFLICT IN MIDDLE EAST COULD IMPAIR OIL SUPPLY" Bloomberg
• "*LAGARDE: OIL SUPPLY SHOCK COULD TRIGGER SECONDARY EFFECTS" Bloomberg

Seemingly just Lagarde covering her bases here ( "could" trigger secondary effects; "could" impair oil supply).

Additionally, one aspect of the ECB's ongoing strategy review will likely look at how the bank should respond to supply shocks in the future, following COVID and the Russia/Ukraine invasion.

• On this topic, Commerzbank wrote the following last week: "While we do expect the ECB to address supply shocks and highlight their significance during the review of its strategy, it is unlikely to specify in a manual-like manner how monetary policy should concretely respond to such shocks. The multifaceted discussion about supply shocks and their implications suggests that the ECB will not bind its hands and will allow the central bankers to continue acting in line with their general monetary policy stance"