EU FINANCIALS: UBS Group: Capital Rule Implementation Timeline       

• In the equity space, the dominant uptrend in S&P E-Minis remains intact and the contract is trading at its recent highs. Moving average studies are in a bull-mode position, highlighting a clear uptrend and positive market sentiment. Attention is on 6508.75, the Aug 15 high and the bull trigger. Clearance of this level would confirm a resumption of the uptrend and open 6523.63, a 1.764 projection of the May 23 - Jun 11 - 23 price swing. Support to watch lies at  6311.73, the 50-day EMA.
• The trend set-up in EUROSTOXX 50 futures is bullish and the pullback from the Aug 22 high is for now, considered corrective. Support to watch lies at 5374.47, the 50-day EMA. A clear break of this average would strengthen a short-term bearish threat and signal scope for a deeper retracement towards 5166.00, the Aug 1 low and a key support. Resistance to watch is 5522.00, the Aug 22 high. Clearance of this hurdle would resume the uptrend.

• Governor positions: Trump yesterday appeared to suggest in a cabinet meeting press conference that the administration could nominate Stephen Miran to "fired" Governor Cook's Board position (expiring in 2038), instead of ex-Gov Kugler's vacant spot (whose term ends in January before requiring renewal). Politico reports Miran’s nomination hearing is expected next week.
• Trump also made it clear he is looking to have a "majority" on the Fed Board "very shortly", with the aim to bring down interest rates.
• Two separate articles published in quick succession point to multiple angles being pursued by the Trump administration to exert more influence on the composition of the FOMC.
• The WSJ cited "people familiar with the matter" as saying President Trump wants to "move quickly to announce a nominee" to succeed Cook. One potential candidate is ex-World Bank President David Malpass.
• Regional Fed presidents: Echoing concerns by Brainard from earlier in the day, Bloomberg wrote that the Trump administration is "reviewing options for exerting more influence over the Federal Reserve's 12 regional banks that would potentially extend its reach beyond personnel appointments in Washington, according to people familiar with the matter." It’s ahead of the once-in-five-year exercise of authorizing reserve bank presidents in February.
• MNI Exclusive: With Miran’s growing likelihood at being placed in a longer-term Governor position, the MNI policy team’s latest interview with him from yesterday carries even more weight. See MNI INTERVIEW: US Growth, Jobs Poised For Rebound – Miran (1345ET) followed by Transcript of MNI Interview with CEA Chair Stephen Miran (1557ET)
• Fed Statement: A Federal Reserve statement yesterday indicated that the Fed's position is that Board Governors can only be removed "for cause", and that while Cook " has indicated through her personal attorney that she will promptly challenge this action in court and seek a judicial decision that would confirm her ability to continue to fulfill her responsibilities", the Fed will "abide by any court decision". “Long tenures and removal protections for governors serve as a vital safeguard”. 

Stephan van Baarle, leader of the ethnic minority interest Denk party, has submitted a motion of no confidence in the demissionary cabinet of PM Dick Schoof. The prospect of the no confidence motion passing is nil. The leaders of the far-right Party for Freedom (PVV) and centre-left/environmentalist GreenLeft-Labour Party have both said they will not back Schoof's ouster, and combined with the members of the two remaining parties of gov't, this secures a majority for keeping Schoof in office. 

• For months the Netherlands has been in a state of effective political paralysis. The withdrawal of Geert Wilders' PVV from the coalition in June left the Schoof gov't without a majority. Unable to gain requisite support, the PM went to the King to request a dissolution of parliament and snap elections. These are due on 29 October.
• In the interim, the minority three-party coalition sat as a 'demissionary' i.e. caretaker, administration that is tasked with the day-to-day running of gov't, but without the ability to pass 'controversial' legislation.
• On 22 Aug, the Christian democratic New Social Contract party withdrew from the demissionary gov't amid disagreements with the remaining two parties (the conservative People's Party for Freedom and Democracy and agrarian Farmer-Citizen Movement) on policies relating to Israel and Gaza.
• The liberal Democrats 66, left-wing Socialist Party, and centre-right Christian Democratic Appeal have called for a narrowing of the scope of legislation deemed 'controversial' for the demissionary cabinet, potentiall further restricting the gov'ts ability to pass bills or make decisions beyond immediate gov't operations.