EMISSIONS: Germany Pushes EU To Reconsider 2035 CO2 Vehicle Ban
Sep-26 13:29
German Chancellor Friedrich Merz is urging EU leaders to lift the bloc’s ban on CO2-emitting vehicle production from 2035, according to Reuter.
- Merz said the car and supplier industries should determine the technological path to achieve CO2 neutrality by 2035–2045.
- From 2035, all new cars that come on the market cannot emit any CO2. This is to ensure that by 2050, the transport sector can become carbon neutral.
- The relaxation or even abolishment of the ban could support EU ETS 2 prices, as increased demand for conventional fuels will raise allowances needs for road transport covered under the scheme.
- ICE and EEX EU ETS 2 futures contract remain muted as the open interest currently stood at 15 and 1 contracts respectively.
- ICE EU ETS 2 Dec28 was priced at €88.63/t on 25 Sep
- EEX EU ETS 2 Dec28 was priced at €88.70/t on 25 Sep
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EGB OPTIONS: Bund Ratio Put Spread
Aug-27 13:26
RXV5 128/127ps 1x1.5, bought for 18.5 in 4k.
EQUITIES: US Cash Opening Calls
Aug-27 13:25
Although Equity futures have drifted slightly lower, we are set for a flat Cash Open, albeit a touch lower.
- Calls: SPX: 6,464.3 (-0.0%); DJIA: 45,403 (-0.0%/-15pts); NDX: 23,503.8 (-0.1%).
SECURITY: E3 Edges Closer to Triggering Snapback Sanctions On Iran
Aug-27 13:10
Reuters reports that Britain, France and Germany, the ‘E3’ signatories to the 2015 Iran nuclear deal, “are likely to begin the process of reimposing UN [snapback] sanctions on Iran on Thursday.”
- The report notes that the group still maintains hope that Tehran will “provide commitments over its nuclear programme within 30 days that will convince them to defer concrete action,” according to four diplomats.
- As the US withdrew from the Iran nuclear deal during President Donald Trump’s first term, Washington has no direct input into the snapback mechanism. If the E3 chooses to trigger the snapback, then punitive UN sanctions on Iran's financial, banking, hydrocarbons, and defence sectors will take effect in 30 days.
- The Reuters report supports a piece from Bloomberg earlier, which noted that the E3 will “maintain contacts in coming days” after talks on Tehran’s nuclear program concluded in Geneva on Tuesday without a breakthrough.
- Iranian foreign ministry spokesperson Esmaeil Baghaei told state television today that Iran wants to “make use of all diplomatic capacities” following Tuesday’s meeting in Geneva, per Bloomberg.
