EU UTILITIES: Orsted: Equinor Comments
(ORSTED; Baa2/BBB-/BBBneg)
Marginal positive. Not a surprise but adds weight to recent comments. Pooling would diversify its asset base improving its business risk profile and reduce costs. Stop orders on US offshore projects is the bigger issue and this does not affect that. High-rated Equinor would be less impacted.
- Equinor’s chairman said the company has an “open mind” on combining renewable assets as one of many options, Bloomberg reports.
- Aborted merger talks were reported last month, but Equinor still pledged closer co-operation. It will maintain its 10% stake through the upcoming rights issue.
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US TSYS: /STIR: Bank Of America More Constructive On Duration After Recent Data
Bank of America write “recent U.S. data has meaningfully shifted market Fed pricing & our view on rates. July payrolls & prior month revisions pushed us to drop our paid front-end view & has made us recommend being received 5-Year OIS".
- They also recommend “positioning for: a steeper rates curve, wider TIPS breakevens, long end asset swap spreads cheaper & relatively subdued near-term rate vol.”
- They warn that “Fed independence erosion risk could see higher inflation tolerance & more low-rate champions, which factor into our thinking”.
US: MNI POLITICAL RISK - Limited Expectations For Trump-Putin Meeting
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- President Donald Trump will hold a press conference at 10:00 ET 15:00 BST to announce a new plan focused on public safety in Washington, D.C.
- Trump is expected to meet with the Intel CEO at the White House today, days after calling for his sacking.
- Treasury Secretary Scott Bessent will temporarily replace IRS Commissioner Billy Long. Bessent said he expects to have pending trade deals done by October.
- White House Artificial Intelligence and Crypto ‘Czar’ David Sacks said AI development is in the "Goldilocks" zone.
- Trump is reportedly considering 10 candidates for Federal Reserve Chair.
- Consumers are expected to increasingly bear tariff costs.
- Trump is expected to approve a 90-day US-China tariff and export control pause, ahead of tomorrow's deadline.
- The White House struck an 'unprecedented' deal with chip giants to share 15% of their revenue, in return for export licences.
- Trump called on China to increase US soybean imports, amid concerns of reduced farm profits.
- Trump is considering public offerings for the mortgage giants Fannie Mae and Freddie Mac.
- Trump will meet Russian President Vladimir Putin in Alaska on Friday. The prevailing view is that the summit is unlikely to result in a ceasefire agreement acceptable to Ukraine, with European leaders concerned the meeting could provide Putin a strategic victory and drive a wedge between the US and Ukraine.
- Chart of the Day: Artificial Intelligence could reduce competitive seats in the House of Representatives
Full Article: US DAILY BRIEF
EGBS: Off Lows, Ranges Remain Tight
Bund futures stabilised in front of intermediate support at last Monday’s low (129.50) before recovering to ~129.70 in recent trade.
- Macro headline flow has been light over the last couple of hours, with recent social media posts from U.S. President Trump focused on combating crime and the implementation of tariffs, providing little new for markets to trade off.
- German yields are essentially unchanged across the curve.
- EGB spreads to Bunds are flat on the day.
