EMISSIONS: EC Sets To Announce 2040 Emissions Target On 2 July

Charles Gasparino at Fox Business posts on X: "According to people close to the White House the deal w Japan is still not ready to be announced. Could be a week or so away. Negotiations center on Japan buying from the Alaska LNG pipeline..." Japan's Economic Revitalisation Minister and chief tariff negotiator, Ryosei Akazawa, will travel to Washington, D.C., from 30 Apr-2 May to hold a second round of talks with US Treasury Secretary Scott Bessent and other senior officials on reaching a trade agreement. 

• Reuters reported late last week that "the Trump administration had told Japan's trade delegation that it could not give Japan special treatment regarding its tariff measures, in response to Tokyo's strong demand for a review during the ministerial negotiations held earlier this month."
• Speaking at a White House presser a short time ago, Bessent said that India, South Korea, and Japan were the countries "most forthcoming" on trade talks. However, as Reuters reported Japanese requests on reviewing steel and autos tariffs will be a non starter as the US "cannot give special treatment to Japan alone,".
• On 28 April, Bloomberg reported that Japan's largest gas importer Jera Co. was considering importing Alaskan LNG. Naohiro Maekawa, an executive at Jera Co. said in a presser that “We see Alaska as one promising procurement source,”.

FX Exchange traded Option Covers the ECB's 5th June Meeting:

• EURUSD (6th June) 1.2200c, sold at 0.0010 in 1k.

Well-defined technical parameters remain in play in 10-Year yields.

• While the combination of the stabilisation in U.S. Tsys/broader risk sentiment and a more activist approach towards UK yields from the DMO & BoE has pushed the benchmark away from early April highs, key support levels remain intact.
• Last print: 4.482%
• Feb 28 low: 4.460%
• Trendline drawn off Dec ’21 low (4.411%)
• Feb 6 low (4.375%)
• Apr 7 low (4.363%)

Fig. 1: UK 10-Year Yield (%)

Source: MNI - Market News/Bloomberg