LATAM: EU-Lula Calls On Macron To Back Mercosur FTA
Jun-05 11:30
Speaking on the occasion of a high-profile state visit to France, Brazilian President Luiz Inacio Lula da Silva says that "I will not leave the Mercosur presidency without having concluded a trade deal with the EU." Lula holds this position until the end of 2025. He also called on Brazil and France to "stand together to defend democracy, multilateralism and free trade."
- France has been the primary impediment to the final ratification of the EU-Mercosur trade deal, with the country's powerful agricultural sector pushing back against what it says are looser food quality standards and GM production in the Mercosur states that will pose a risk to their domestic industry.
- The deal only needs a qualified majority at the European Council level in order to be ratified, requiring 15 member states representing 65% of the Union's population. Not having France, the second most populous member, on board would be a notable obstacle to overcome.
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MNI EXCLUSIVE: ECB Economist Vanessa Gunnella Speaks to MNI
May-06 11:29
- ECB economist Vanessa Gunnella speaks to MNI about Chinese exports to Europe -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
GBP: Cable Pops to Fresh Session Highs, Back Above 1.3350
May-06 11:27
- Sterling outperformance standing out at the NY crossover, with GBPUSD rising above Monday’s highs and extending to a high print of 1.3370 in recent trade. Note that moving average studies remain in a bull-mode position, and the 100 pip bounce from yesterday’s lows continues to signal a dominant underlying uptrend.
- A resumption of gains places the focus back on the cycle highs located at 1.3444, before 1.3510, a Fibonacci projection.
- The more optimistic tone for sterling also helps EURGBP through the aforementioned support around 0.8480. It is worth noting that the 50-day EMA also comes in at 0.8467, where a break would strengthen a bearish theme for the cross.
EGB SYNDICATION: Germany 2.90% Aug-56 Bund Tap: Allocations
May-06 11:11
- Size: E4.5bln inc E0.5bln retained by issuer (MNI expects E4-6bln)
- Books closed in excess of E47bln (inc E3.595bln JLM interest)
- Spread set earlier: 2.50% Aug-54 Bund + 2.5bp (mid) (guidance was +3.25bp area)
- HR: 109% vs 2.50% Aug-54 Bund
- Settlement: May 13, 2025 (T+5)
- ISIN: DE000BU2D012
- Bookrunners: Barclays, Citi (B&D), CA-CIB, DZ Bank, GS, JPM. Remaining members of the Bund Issues Auction Group will be invited into the co-lead group
- Timing: Hedge deadline 12:30BST / 13:30CET. Allocations and pricing to follow.
From market source
