EM LATAM CREDIT: Genneia: New 7-Year Fair Value

MNI's calculation of dispersion in September's CPI report points to a slight narrowing of price pressures, which offers a dovish offset to a slight firming in some core metrics in the month.

• The share of items seeing rises of 2+% dipped to a 7-month low 46%, from 50% prior. Above 3% it was 36%, likewise a 7-month low, from 38%, and for 4+%, it was 27%, unrounded an 8-month low (29% prior).
• All of these measures have receded from their Q2 peaks, and we saw a reduction in breadth in September across both goods and services across all of the above buckets.
• Previously Bank of Canada policymakers have been concerned with the broadening out of price pressures across categories, particularly the increase in CPI components growing above 3% and within those, services were a particular worry. The latest numbers are thus an entry into the dovish column when recent inflation developments are considered ahead of the October 29 decision announcement.

ERU6 98.25/50 call spread, paper sells at 5.25 in 5k (vs 98.125 spot, 18% delta)

(MNI) London - Reuters reporting comments from European Trade Commissioner Maros Sefcovic following his call earlier today with China's Ministry of Commerce Wang Wentao. Sefcovic: "The scale of China's export controls, scaled up since April, is unjustified and harmful." Sefcovic: "We agreed to intensify contacts at all levels...I invited the Chinese authorities to come to Brussels in the coming days, and they accepted the invitation." 

• Sefcovic: "The prompt resolution of rare earth restrictions is essential...This dramatic expansion of the export controls, as it was proposed by the Chinese authorities last week, is highlighting how negatively this could impact European industries."
• Sefocvic: "The EU is in contact with both sides to support a quick solution for Nexperia...Both sides intend to reduce tensions...[We are] aiming for solutions to restore global supply chains, [there is a ] focus on preventing production halts worldwide."