EU FINANCIALS: ZKB €500m WNG 6NC5 Bail-in

Reuters reports comments from an EU official. Claims "We are already seeing the implementation of the EU-US framework trade deal." Official: "In the US executive order, you are seeing [an] all-inclusive tariff rate of 15%...This means that the most-favoured nation rate is included within this US 15% tariff rate."  Says "This US framework trade deal creates immediate relief while we work out [the] formal details." 

• The official claims that the EU "will not discriminate in favour of the US on our legislation." To those EU member state ministers who have criticised the agreement, the official says, "The alternative would mean an escalation and high tariffs on both sides [and] would risk creating divisions within the EU." Acknowledges"there is no celebration on the EU side" regarding the deal.
• Official: "The 15% US tariff rate applies to Section 232 tariffs except on steel and aluminium." Says that "Discussions with the US on steel are taking longer because we need to discuss volumes."  The official says that the US 15% tariff rate on Section 232, such as pharmaceuticals, "will kick in once the US investigation is complete".
• Confirms that "The 15% US tariff rate will also apply to cars and car parts."
• Official: "It will take some time before we fully nail down the list of essential products exempt from US tariffs." 

On 4 August, the European Commission confirmed that the retaliatory tariffs due to come into force against the US on 7 August had been postponed for six months following the agreement of the framework deal. 

• MNI: UK JULY FINAL SERVICES PMI 51.8 (51.2 FLASH, 52.8 JUNE)

• The push lower in Treasury futures, higher Yield, provides another bid into the USD, now at a fresh intraday high against the JPY, AUD, ZAR, SGD, KRW, CAD, ILS, PLN, CHF, CZK, CNH.
• The Kiwi is still the early worst performer in G10, but the move so far is still very gradual, 1 pip at a time.
• For now the Dollar takes its early cue from the price action in Yields.