POWER: EdF Cuts St Laurent 1 and 2, Paluel 3 Output on Strike

Italy released its funding plan on Friday last week, outlining plans to sell E350-365bln of bonds in 2026 (see a summary on pages 4-5 of our EGB Supply Daily publication here).

New issues expected in Q1 (up to 10-year):

• Feb-28 BTP Short Term (minimum E9bln, MNI expect January launch)
• 3-year Mar-29 BTP (minimum E9bln, MNI expect February launch)
• 5-year Jun-31 BTP (minimum E10bln, MNI expect March or potentially February launch)
• 7-year Jun-31 BTP (minimum E10bln, MNI expect January launch, potentially via syndication)

Issues expected to be reopened in Q4 (up to 10-year):

• 3-year 2.35% Jan-29 BTP (minimum outstanding E9bln already exceeded).
• 5-year 2.85% Feb-31 BTP (minimum E10bln, first auction of E3.5-4.0bln on Friday).
• 10-year 3.45% Feb-36 BTP (minimum outstanding E10bln, E9.1bln outstanding at time of writing).

A post on US President Donald Trump's Truth Social page states, "I had two wonderful telephone calls this morning with Kassym-Jomart Tokayev, the President of the Republic of Kazakhstan, and Shavkat Mirziyoyev, the President of the Republic of Uzbekistan. We discussed the importance of bringing Peace to ongoing conflicts, and increased Trade and Cooperation between our Nations. The relationship with both Countries is spectacular. The United States will be hosting the G20 Summit next year, and we will be extending invites to both of these Leaders to join us as guests at this very important event, which will take place in Miami!"

• Both Kazakhstan and Uzbekistan have historically claimed close relations with Russia (as former states of the USSR), and in recent years with China amid increased oil and gas exports sent eastwards.
• Trump hosted five Central Asian leaders at the White House on 6 November, with the US announcing a series of major purchases of American-made equipment by Kazakhstan and Uzbekistan, ranging from Boeing aircraft to John Deere farm equipment.
• The two countries also agreed to deepen cooperation on critical minerals extraction and supply chains, one of the major focuses for the Trump administration (and other global and mid-ranking powers) amid the increasingly bifurcated global trade environment.
• Trump's invites to the G20 could be viewed as efforts to further court both countries by enhancing their international prestige with attendance at a meeting of global economic powers. 

Recent mixed trade buying up- and downside insurance. Underlying futures near recent lows. Projected rate cut pricing consolidating after this morning's data: current lvls vs. early morning (*): Jan'26 at -3.3bp (-4.4bp), Mar'26 at -11.3bp (-14.8bp), Apr'26 at -17.3bp (-21.9bp), Jun'26 at -30bp (-34.8bp).

• +3,000 SFRZ6 96.25/96.50 2x1 put spds
• +2,500 SFRH6 96.31/96.43 put spds, 6.0
• +8,000 SFRU6 99.00/100.00 call spds, 1.25
• -2,500 SFRH6 96.37 puts, 3.5
• -1,500 SFRH6 96.43 straddles, 15.5
• +1,000 SFRM6/SFRU6 96.75 straddle strip 69.25