POWER: EC Eyes Possibility to Fund Nuclear in Budget
Jul-17 15:00
The European Commission is considering including funding for nuclear energy in its planned 2028-2034 budget, the latest budget proposal stated, cited by Reuters.
- Under the proposal, countries may be able to fund nuclear energy activities via the national share of the budget, which is eyed at around €865bln.
- The move will likely be contested by member states such as Germany or Austria.
- "Germany rejects any subsidization of nuclear power from the EU budget," Germany’s environment minister Carsten Schneider said on Thursday.
- "However, respect for national sovereignty in energy matters also means not claiming EU funds for this expensive path, a quarter of which comes from German taxpayers' money," Schneider added.
- "There is no chance EU money goes to new nuclear," one EU country diplomat said.
- The bloc’s current budget explicitly bans member states from building nuclear power plants using their national share of the funds.
- The EC presented its budget proposal on Wednesday with a final decision expected in 2027.
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OPTIONS: Larger FX Option Pipeline
Jun-17 14:49
- EUR/USD: Jun19 $1.1415-25(E2.4bln), $1.1545-50(E1.2bln), $1.1585-00(E3.1bln); Jun20 $1.1600(E1.0bln), $1.1615-25(E1.1bln), $1.1700(E1.1bln)
- USD/JPY: Jun20 Y143.00-15($1.9bln), Y146.00($1.9bln)
- EUR/JPY: Jun20 Y162.10-20(E1.3bln)
- AUD/USD: Jun19 $0.6600(A$1.1bln)
- USD/CNY: Jun20 Cny7.3000($1.4bln)
PIPELINE: Corporate Bond Update: $5B EIB, $3B KFW Priced
Jun-17 14:47
- Date $MM Issuer (Priced *, Launch #)
- 06/17 $5B *EIB 7Y SOFR+50
- 06/17 $3B *KFW 2Y SOFR+26
- 06/17 $675M Islamic Development Bank Sukuk 5Y SOFR+58a
- 06/17 $Benchmark Hyundai Capital AM, 2Y +125a, 2Y SOFR, 3Y +135a, 3Y SOFR, 5J +145a, 5Y SOFR, 7Y +160a
- 06/17 $Benchmark UnitedHealth 3Y +80a, +5Y +95a, 10Y +120a, 30Y +140a
- 06/17 $Benchmark Enterprise Products 3Y +70a, +5Y +90a, +10Y +115a
- 06/17 $Benchmark The Bahamas 11Y 8.5%a
SEK: June 12 Low In EURSEK At Risk If Riksbank Rate Path Troughs At 2.00%
Jun-17 14:40
The Riksbank decision is due tomorrow at 0830BST/0930CET. With consensus leaning heavily towards a 25bp rate cut to 2.00%, focus will be on the policy statement guidance and June MPR rate path projection.
- Developments since March support a downward revision to the rate path from its current flat 2.25% level, but we don’t expect the path to move much below 2.00%. It’s still too early for the Executive Board to signal a material chance of a cut to 1.75% in the baseline projection – the June MPR alternative scenarios are best placed to incorporate a dovish pivot of that nature.
- If the rate path troughs at 2.00% and the policy statement is ambiguous on the chances of further easing, there may be modest hawkish risks to the SEK intraday.
- Overnight ATM EURSEK vols have moved up to 9.7 points ahead of the decision, above the 7.6 YTD average. That pushes the breakeven on an overnight ATM straddle expiring at tomorrow’s NY cut to 40 pips in either direction.
- The lower break-even on that structure aligns closely with last Thursday’s low at 10.9033, and this level may be at risk if the hawkish conditions noted above are realised. Firm support is then seen at 10.7941, the April 4 low.
- MNI’s full Riksbank preview is here.
