EU AUTOMOTIVE: Week in Review

• Secured Overnight Financing Rate (SOFR): 4.39% (-0.12), volume: $2.857T
• Broad General Collateral Rate (BGCR): 4.36% (-0.14), volume: $1.139T
• Tri-Party General Collateral Rate (TCR): 4.36% (-0.14), volume: $1.115T
• (rate, volume levels reflect prior session)

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• President Donald Trump’s State Visit to the United Kingdom kicked off today. Trump and UK Prime Minister Keir Starmer are expected to unveil a raft of tech investment pledges, a nuclear deal, and hammer out details of the May trade framework agreement.
• Trump’s top economic advisor, Stephen Miran, was formally sworn in as a governor on the Federal Reserve board, capping a lightning-fast Senate confirmation process that ensures Miran’s position will be recorded in today's interest rate decision.
• The US and China are reportedly in the final stages of negotiations for Trump to attend a state visit to Beijing.
• Trump and Indian Prime Minister Narendra Modi touted their personal relationship as Washington and New Delhi look to defuse a trade standoff.
• The House of Representatives approved a measure that cedes more tariff authority to Trump.
• The USTR initiated the public consultation process in advance of a joint review of the USMCA.
• Democratic leaders rejected a Republican CR to avert a government shutdown on October 1.
• Trump told reporters the US military “knocked off” a third Venezuelan boat allegedly involved in narcotics smuggling.
• Iranian Foreign Minister Abbas Araghchi will hold a call with his European counterparts today, in an attempt to head off UN sanctions.
• Poll of the Day: 80% of US adults believe the government should prioritise AI safety over developing capabilities. 

Full Article: US DAILY BRIEF

The Danish Presidency of the Council of the European Union posts on X: "Coreper unanimously agrees on mandate to Commission to open negotiations with the UK and Canada on their participation in the SAFE-instrument." The Security Action for Europe (SAFE) instrument is an EUR150bln loan instrument indended to boost defence production across the Union. Initially, in order to gain approval for EU funding, at least 65% of the value of the weapon system being acquired has to be made in an EU member state, Ukraine, or in a EEA/EFTA country (Norway, Iceland, Liechtenstein, Switzerland), leaving a limit of 35% of components from other nations. 

• Following the signing of the EU-UK security and defence partnership in May, the 35% limit for the UK was removed. The Guardian reported earlier that France is pushing for a ceiling to be imposed at 50% British components in any SAFE-financed project.
• The French demands risk intra-EU friction. Paris has long favoured EU 'strategic autonomy' in issues such as defence procuruement, primarily targeted at reducing reliance on US material. Since Brexit, this drive has also been focused at the UK.
• However, most member states are opposed to restrictions on UK involvement, arguing the inclusion of the sizeable and advanced British defence contracting sector is crucial for swift rearmament in the face of an increasingly dangerous geopolitical landscape.
• Guardian: "The UK does not intend to apply for loans, which are earmarked for EU member states, but hopes British defence companies will benefit from the spending bonanza."