US: Schumer Says Democrats Will Force Votes On Trump Tariffs
Senate Minority Leader Chuck Schumer (D-NY) says Democrats will 'force' votes in the coming weeks to reverse President Donald Trump's tariffs, citing today's soft jobs reports.
- Schumer: “Today’s jobs report was worse than the already low expectations. This is a blaring red light warning to the entire country that Donald Trump is squeezing the life out of our economy…In the coming weeks, Senate Democrats will force votes to reverse Donald Trump’s damaging tariffs and we will see whose side Republicans are on. I hope Republicans will choose wisely.”
- As Schumer has little influence over legislation on the Senate floor, the most obvious route to forcing votes is via amendments to government funding bills under consideration. These amendments would need to defeated by the GOP majority, offering a messaging platform for Democrats as Trump continues to struggle with weak approval on his handling of the economy and inflation.
- In the last few moments, National Economic Council Director Kevin Hassett told reporters at the White House that the jobs report was "a bit of a disappointment".
- Hassett added that, "Trump knows we're optimistic about the future of jobs numbers. Inflation is low, economic growth is solid," per Reuters.
- Trump filed a petition on Wednesday seeking a Supreme Court ruling on the legality of using emergency authority to impose tariffs. The court could decide as soon as September 10 whether it will take the case.
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SOFR OPTIONS: Morning Update: Continued Call Buying, Underlying Pares Losses
Underlying SOFR futures paring losses, White pack mostly steady now. In turn, projected rate cut pricing gaining vs. morning (*) levels: Sep'25 at -23.4bp (-22.6bp), Oct'25 at -38.9bp (-38.4bp), Dec'25 at -58.8bp (-58.3bp), Jan'26 at -70.4bp (-68.9bp).
- +3,000 SFRV5 96.31/96.43/96.50 broken call flys, 2.62 ref 96.255
- +5,000 SFRU5 96.12/96.25 call spds, 1.25 ref 95.935
- -2,000 SFRZ5 96.00/96.68 strangles, 11.5 ref 96.25
- +4,000 SFRX5 96.25/96.37/96.50/96.62 call condors .25 over SFRZ5 95.62/95.857 put spd
- Update, over +10,000 SFRZ5 96.56/96.68/96.75 1x3x2 broken call flys, 0.5
TARIFFS: Trump to Impose Additional 25% Tariff on India
President Donald Trump has signed an Executive Order imposing an additional 25% tariff on India in response to its continued purchase of Russian oil. Full White House statement here.
- USDINR 1-month NDFs spike higher on the headlines, but remain below the overnight highs for now.
CANADA DATA: July PMIs Add To Evidence Of Activity Improving After Weak Q2
July's Canada Services PMI report was upbeat by recent standards, and one that is suggestive of economic activity having troughed in Q2 in line with expectations and the Bank of Canada's latest Monetary Policy Report projections.
- Weakness persisted in July but was not as acute as it was in the depths of the summer (49.3, below the 50.0 expansionary mark for an 8th consecutive month but the highest since November 2024 and up from 44.3 prior and 41.2 in March).
- Some highlights from the S&P Global report:
- "There were tentative signs of recovery in the Canadian services sector as the second half of the year got underway. Business activity neared stabilisation amid a further slowdown in the pace of contraction in new orders, while business confidence improved. Companies also increased their staffing levels again...Demand also showed tentative signs of improvement, albeit with customers still reluctant to commit to new projects, particularly those in international markets."
- "The impact of US tariffs was again the main factor highlighted by those companies that saw a drop in output over the month. On the other hand, the start of new projects led some firms to record a rise in activity."
- "On the price front, both input costs and output prices rose at slower rates than seen in June."
- Note the Composite PMI index came in at 48.7 (44.0 prior), weighed down by Manufacturing (46.1).
