CHILE: MNI Publishes Election Preview

Building permits fell more than expected in August when accounting for downward revisions, led by residential activity, a indication that one of the few brighter spots of growth in the Canadian economy is dimming. 

• The 1.2% M/M drop in August (SA) comes on the heels of a 1.1% drop in July (initially -0.1%). And that's the 5th drop in 6 months (June was -9.8%), leaving the level of permit values at a 14-month low.
• Residential permit values fell 2.4% (after +2.7%), with sizeable drops in Ontario and Alberta (total C$744M) offset by rises in BC and Quebec (total C$486M) with non-residential up 0.8% (after -6.6%), led by Ontario and specifically hospital construction permitting in Toronto, per StatCan. Residential permits have fallen by almost one-quarter since the end-2024 peak, with non-residential down around one-fifth from May's peak  level (the result of a +32% M/M burst).
• These are extremely volatile data but the direction of travel is looking increasingly clearly weaker in Q3, after residential structures added 0.46pp and non-residential structures 0.33pp to Q2's (-1.6% Q/Q SAAR) growth figure. Demand appears to be easing alongside broader economic uncertainty and lower net immigration.
• We get actual housing starts data for September on Thursday but it's largely been multi-unit starts falling that have led the residential pullback, with a drop of 20% M/M in August.

• Date $MM Issuer (Priced *, Launch #)
• 10/14 $600M #KEB Hana Bank $300M 3Y SOFR+60, $300M 5Y +43
• 10/14 $Benchmark Goldman Sachs 5pt 4NC3 +90a, 4NC3 SOFR, 6NC2 +100a, 6NC5 SOFR, 11NC10 +115a
• 10/14 $3.2B Terawulf 5NC2 investor calls

Headlines surrounding trade tensions continue to dominate through early NY hours.

• BBG sources reported that “the European Union is considering forcing Chinese firms to hand over technology to European companies if they want to operate locally, in an aggressive new push to make the bloc’s industry more competitive”.
• The story went to flag that “the measures would apply to companies seeking access to key digital and manufacturing markets like cars and batteries”…”The rules would also require the firms to use a set amount of EU goods or labor, and to add value to the products on EU soil”.
• Little market reaction but the story does reinforce risks surrounding global trading channels and capital flows which returned to the fore after China’s latest actions re: rare export restrictions and the subsequent escalation in Sino-U.S. trade tensions in recent days.