BRAZIL: Lula Administration Ready for Dialogue with White House
Aug-07 10:37
- O Globo report that after several attempts to open a negotiating channel with the US to avoid tariffs of up to 50% on Brazilian exports, the Lula administration expects the White House to make the next step toward resuming dialogue. It adds that Brazil has already made it clear that it is willing to discuss trade alone, not domestic policy. Brazilian negotiators are said to be preparing a response, that will presented on August 18, to Washington's questions regarding American ethanol in Brazil, corruption, and the use of the Pix payment system.
- In an interview with Reuters published yesterday, Lula said he himself is in no rush to ring the White House – although his government would not give up on cabinet-level talks – as direct talks with US President Donald Trump would likely be a "humiliation." He added that Brazil is not about to announce reciprocal tariffs.
- Meanwhile, Special Advisor to the Presidency, Celso Amorim, confirmed reports that President Lula and Indian Prime Minister Narendra Modi will speak by phone today about the US tariffs. He also said Lula would likely talk to Chinese leader Xi Jinping next.
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SONIA: Ratio Put vs Call
Jul-08 10:36
SFIZ5 96.15p x2 vs 96.50c x1, sold the Call at -2.75 in 4k.
EQUITIES: Large outright Commerzbank Put Option
Jul-08 10:34
- CBK (18/12/26) 24p, bought for 3.75 in 20k.
As a side note, more interestingly there's a HUGE 472.4k worth of OI in the 20p, of the same expiry.
US TSY FUTURES: CFTC Shows A Managers Extend Net Long, Funds Add To Net Short
Jul-08 10:28
The latest CFTC CoT report showed asset manager net longs in FV, TY & UXY futures hit record levels in the week of July 1, with net longs also added in TU futures. Meanwhile, the cohort marginally trimmed net longs in both US & WN futures. Over $40mln of DV01 exposure was added to the cohort’s curve-wide net long.
- Leveraged funds added to net shorts in all contracts outside of US futures. The cohort added ~$10mln DV01 to its curve-wide net short, with net shorts in UXY futures hitting a record level.
- Broader non-commercial accounts extended net shorts across the curve (further details in the table below).
Source: MNI - Market News/CFTC/Bloomberg Finance L.P.
