SECURITY: Trump Holds Call w/E3 Leaders On Ukraine
The leaders of the E3 nations, French President Emmanuel Macron, German Chancellor Friedrich Merz, and UK PM Sir Keir Starmer, held a phone call with US President Donald Trump today regarding the war in Ukraine, according to a statement from the German chancellery. The statement says the four "discussed the status of talks on a ceasefire in Ukraine. Intensive work on the peace plan is to continue in the coming days. They agreed that this is a crucial moment for Ukraine and for common security in the Euro-Atlantic area." It remains to be seen what progress can be achieved, given the seemingly intractable differences, with the US pushing for a swift end to the conflict, while Ukraine's European allies hold out for an agreement that is more acceptable to Ukraine.
- Comes ahead of talks between US and Ukrainian officials today regarding the nascent peace deal (see UKRAINE: Zelenskyy-US & Ukraine To Hold Peace Plan Talks Today).
- It was also the first direct communication between the E3 leaders and Trump since the latter's Politico interview in which he claimed "...most European..nations.. they’re ... they’re decaying", and that on the leadership [likely referring to EU and Western European leaders] "I think they’re weak, but I also think that they want to be so politically correct. They don’t ... I think they don’t know what to do."
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EUROPEAN INFLATION: Lower Airfares In Greece Counters Other Countries' Evidence
Softer airfares within Greece October HICP push back against findings from other larger European countries (Germany, Spain, Belgium) that airfares were a material driver behind the upside surprise in Eurozone services inflation (3.35% Y/Y vs 3.2% September). We are reluctant to put too much weight on it, however.
- Greece "passenger transport by air" Y/Y HICP (6.3% Oct vs 11.5% Sep) had moved in the same direction as the Eurozone equivalent in 7 out of 9 months this year prior to the October data.
- Categories generally associated with persistent services items, such as communication, health or education, meanwhile saw mixed developments in Greece in October.
- Given Greece's 2.9% basket weighting in the Eurozone as well as its relevance as a vacation destination, potentially introducing idiosyncrasies, we would not overinterpret the data. It remains likely that at least some of the Eurozone services upside surprise was driven by volatile travel-related categories, downplaying its impact but with final details still to come.
- Remember that ECB President Lagarde in her October meeting press conference again hinted that the persistence of services inflation drivers are important.
- The final October HICP release is likely the last round of inflation data flowing into the ECB's December projections. Our full review of the October flash HICP round and some commentary on current ECB rhetoric can be found here.
- Netherlands final HICP for October is scheduled for publication tomorrow ahead of Wednesday's release from Germany.
US TSY OPTIONS: Large Jan'26 10Y Put Buyer
- +25,000 TYF6 111.5 puts, 22
US: Trump-Money Left Over From USD2k Payments Will Pay Down National Debt
President Donald Trump posts on Truth Social: "All money left over from the $2000 payments made to low and middle income USA Citizens, from the massive Tariff Income pouring into our Country from foreign countries, which will be substantial, will be used to SUBSTANTIALLY PAY DOWN NATIONAL DEBT. Thank you for your attention to this matter! President DJT"
