US: Trump Pins Lagging Housing Market on Fed's Powell

Nothing too market moving in Lagarde's remarks to EU Parliament, which largely re-iterate the communication from the June press conference. Still, it's interesting she cites disinflationary trade diversion as a downside risk to the inflation outlook - something the hawkish Executive Board member Schnabel has argued is likely to be a "quantitatively small" impact.

• "Risks to the growth outlook remain tilted to the downside, however. In particular, growth could slow in the event of a further escalation in global trade tensions and the associated uncertainties, deteriorating financial market sentiment and continued geopolitical tensions".
• "Most indicators of underlying inflation continue to suggest that inflation will stabilise sustainably at our 2% medium-term target"...."The outlook for euro area inflation is more uncertain than usual, with frictions in global trade responsible for both upside and downside risks. Upside risks include a possible fragmentation of global supply chains, while downside risks include lower demand for euro area exports and countries with overcapacity rerouting their exports to the euro area".
• "At the current interest rate levels, we believe that we are in a good position to navigate the uncertain circumstances."
• The rest of the speech covers developments in stablecoins and cryptoassets.

• Date $MM Issuer (Priced *, Launch #)
• 06/23 $500M Turk Eximbank WNG 3Y 7.5%
• 06/23 $500M Barbados 10Y 8%a
• 06/23 $Benchmark IFC 5Y SOFR+43a
• 06/23 $Benchmark Hanwha 3Y +100a
• 06/23 $Benchmark KT Corp 3.5Y +70a
• 06/23 $Benchmark JBIC 3Y SOFR+48a
• 06/23 $Benchmark Nomura PerpNC5.5, 5Y, 10Y
• 06/23 $Benchmark Mexico 7Y +210a, +12Y +265a
• 06/23 $Benchmark BNP Paribas PerpNC10 7.75%
• 06/23 $Benchmark NiSource 10Y +125a, 30Y +135a
• 06/23 $Benchmark Marvell Tech 5Y +120a, 10Y +145a
• 06/23 $Benchmark Public Service of Oklahoma +10Y +135a
• 06/23 $Benchmark JBS USA +10Y +150a, +30Y +170a, +40Y +190a
  • On tap for Tuesday
  • 06/24 $Benchmark Denmark 2Y +7a

White House Press Secretary Karoline Leavitt has provided short ad hoc remarks to the press at the White House, walking back President Donald Trump’s Truth Social message appearing to hint that the US could pursue regime change in Iran.

• Leavitt says: “The President’s posture and our military posture has not changed. The President was just simply raising a question that I think many people around the world are asking. If the Iranian regime refuses to give up their nuclear programme or engage in talks – we just took out their nuclear programme on Saturday night as you all know – … why shouldn’t the Iranian people raise up against this brutal terrorist regime…? That’s the question the President raised, but our military posture hasn’t changed.” 
• Asked what the administration has offered Iran to come to the negotiating table, Leavitt says: “He has made his message to Iran quite clear,” without expanding. Leavitt notes that there have been public and private messages sent to the Iranians since the “very successful operation”.
• Asked if there is a plan to “add oil to the global market” if Iran shuts down the Strait of Hormuz, Leavitt says: “I can assure the administration is actively and closely monitoring the situation,” and the Iranians would be “foolish to make that decision.”
• For additional analysis, see our US Daily Brief.