News and Notes:
• Turkey raised the Tax on Dollar deposits in an attempt to stem the decline in the lira, Brazil, Indonesia and Argentina using measure’s to bolster their currency continues to indicate that EM issues are still present
• Yesterday Argentina raised the Benchmark lending rate by 15% to 60%!
• Italian BTPs trade unchanged as I type but a 90 tick range indicates nervous traders as the Country’s Budget/possible downgrade continues to be an issue
• Trump is threatening to pull out of the WTO unless they treat the USA better
• Trump has rejected an offer from Eurozone to scrap tariffs on cars, The Eurozone said we “will lower our tariffs to zero if US does same”-BB
• Trump is threatening to Levy $200 B in new tariffs on China as early As Next Thursday, as the public comment period on Such measures ends
• China’s manufacturing PMI and Composite PMI better than expected for August but export orders shrank for third month-Reuters.
• Today is the Deadline for Canada to agree to the new NAFTA deal, both sides negotiated well into the evening but no Deal yet-Reuters. If No deal watch for a drop in the Canadian $
The Yuan Fixed marginally higher for third consecutive Day, Base metals lower Copper -.6%,Nickel -1.77%, Gold +.3%,palladium +.8%.European Bourses lower as Auto Sector and Retail both down >1% due to trade worries. Spoos though little changed -4 handles, Bunds +11 and treasuries with a small bid.Dollar little changed against the “majors” but higher against Mexican peso , the Brazilian real and the Rand.Lower against Turkish lira and Ruble
Drivers today same as all week will be Trade/tariffs comments and moves in emerging markets (EM) currencies. Keep an eye for anything Mueller probe related as Politico reporting that the 60 day window prior to midterm elections is next week and if Mueller does not want to seem partisan he needs to release something if he has anything to report Month end may also play a role in today’s activates.
News and Notes: