ISRAEL: Dermer Instructs Mediators To Seek 'Comprehensive Agreement' To End War
Earlier, Axios reported that David Barnea, head of Israel's foreign intelligence service Mossad, is travelling to Qatar for a meeting with Prime Minister Mohammed bin Abdul Rahman al-Thani and to take part in talks on a ceasefire-for-hostages deal in Gaza. These are the first in-person talks since the last round of negotiations collapsed three weeks ago. There is seen to be an impetus for both sides to reach a comprehensive agreement to avoid Israel's planned full military occupation of Gaza, which is set to form the next stage of its military operations.
- Ariel Kahana at Israel Hayom posts on X that Strategic Affairs Minister Ron Dermer, "conveyed an unequivocal message to the mediators, stating that Israel is now willing to discuss only a comprehensive agreement to end the war in exchange for the release of the hostages. [...] which would include the demands to disarm Hamas and ensure that it no longer controls Gaza. A source familiar with the details noted that this is currently the consensus demand in Israel, from both the right and the left. He added that if Hamas does not agree, Israel will turn to a military resolution in Gaza."
- Dermer had previously advocated for a partial agreement, but these comments would appear to indicate a change in stance on behalf of the gov't. As Barak Ravid at Axios notes, "For months, the families of the hostages, mediators, negotiation team members, and even Hamas have been saying that a comprehensive agreement is needed."
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EU-RUSSIA: EU Looks To Overcome Slovak Veto On Sanctions With Letter To PM
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.
EURIBOR OPTIONS: Selling Of Both Put & Call Spreads Seen
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
US: Yields, USD Improve into NY Crossover as Bessent Reassures on China Trade
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.
