EU: Firms Present Copenhagen Pledge To Ldrs; Investment In Exchange For Reforms
Oct-01 09:56
With member state leaders holding an informal meeting in the Danish capital today, twenty-eight large European firms have presented them with the 'Copenhagen Pledge'. This says firms "stand ready to increase investment levels in Europe by ~50% towards 2030" should the EU and its member states engage in a series of major reforms. Claims that with reforms and private investment, "Europe could be on track to close most of the ~800EURbn annual investment gap outlined by Draghi."
- The areas of reform identified in the pledge are:
- 'Unlock innovation, reduce the regulatory burden and remove barriers to the Single Market' - i.e. protect IP, speed up approval procedures, streamline compliance, mutual qualifications recognition, boost investment in procurement of new tech.
- 'Incentivise private investments in Europe to build strategic influence' - i.e. use long-term budget towards capital investment, pension and tax systems to encourage private capital flows into EU markets, commit to 3% of GDP for R&D, and boost joint EU research projects.
- 'Power the future of Europe: Clean, competitive, and resilient energy for industrial leadership' - i.e. expand grids, faster permitting for infra, increase clean energy production while ensuring renewable competitiveness
- 'Build a competitive and resilient defence industrial base' - i.e. large-scale orders to encourage sector, remove barriers to transnational cooperation, use EU financial instruments to leverage private capital.
- 'Advance Europe’s technological resilience' - i.e. ensure EU as a market leader in AI, quantum, green and clean tech, ensure critical infra like 5G and 6G to enable next-gen services.
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USD: Scandies outperform
Sep-01 09:53
- The Dollar has been mixed so far Today, it was in the red going into the European session, with the EUR the best performer.
- While it tried to pare some of its losses, the Greenback is in the red against all the G10, aside from the JPY and the CAD that are flat.
- Most notable moves have been in the Scandies, both the SEK and the NOK have outperformed and have taken over the EUR s the best G10 Currencies.
- Local Banks have noted some local demand but have also suggested the lack of demand for the Dollar with the US Labour Day.
- EURSEK falls to its lowest level since around mid June and eyeing at test at the Psychological 11.0000 level.
- USDSEK is the most interesting chart as the cross makes an attempt at the 2025 low, this level stands at 9.3792, which is also its lowest level since April 2022.
DUTCH T-BILL AUCTION RESULTS: 2/6-Month DTCs
Sep-01 09:42
| Type | 2-month DTC | 6-month DTC |
| Maturity | Oct 30, 2025 | Feb 26, 2026 |
| Amount | E1.47bln | E1.44bln |
| Target | E1.0-2.0bln | E1.0-2.0bln |
| Previous | E1.48bln | E1.89bln |
| Avg yield | 1.948% | 1.954% |
| Previous | 2.845% | 1.940% |
| Bid-to-cover | 1.39x | 1.44x |
| Previous | 1.47x | 1.29x |
| Previous date | Dec 02, 2024 | Aug 04, 2025 |
BONDS: Some Bear Steepening For Gilts & Bunds, Yields Off Session Highs
Sep-01 09:42
Core global FI markets hold lower but are off worst levels of the day, with gilt and Bund futures piercing, but failing to hold below, initial support levels (129.16 & 90.22, respectively).
- Early weakness came on the back of focus on impending EUR supply, French political risk and ongoing questions surrounding Fed independence.
- Firmer-than-expected manufacturing PMI data across much of Europe & a move higher in crude oil prices have limited recoveries at this stage.
- Bund futures last -30 at 128.23 vs, lows of 128.05, German yields 1-2bp higher, bear steepening.
- EGB spreads to Bunds generally ~0.5bp tighter, with a bounce from lows in e-minis helping the narrowing.
- Little in the way of meaningful reaction to weekend comments out of France, which reaffirmed the idea that PM Bayrou’s government may fall.
- Gilt futures -18 at 90.34 vs. lows of 90.20.
- UK yields 0.5-2.5bp higher. 5s30s is on track for its first close above 150bp in the current cycle, trading less than 2bp off the Feb ’17 high (152.63bp).
- Fiscal risks remain front and centre in the UK.
- A reminder that the DMO will introduce the new 4.75% Oct-35 gilt via syndication this week.
- Little net movement in EUR & GBP STIRs, modest hawkish moves on the back of weakness in the long end. The former still leans towards one further cut in the current cycle (17bp of cuts priced through June ’26), while the latter shows under 10bp of easing through year-end.
- Broader liquidity is thinned out by the U.S. Labour Day holiday.
- Note that ECB’s Lagarde, Schnabel & Cipollone will appear at the ECB’s legal conference later but may not touch on monetary policy given the topic of the meeting.
