US DATA: Partisanship Means UMIch Inflation Expectations Should Be Discounted
While import tariff concerns may have factored into the jump in 1Y forward inflation expectations in...
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US-EU: Scholz Expresses 'Lack Of Understanding' Re: Trump Comments On Greenland
German Chancellor Olaf Scholz delivered a statement from the Chancellery in Berlin regarding US President-elect Donald Trump's press conference on 7 Jan in which he talked of his preference for Greenland (and the Panama Canal) to come under the control of the US on "national security" grounds. Scholz said that he had discussed Trump's comments with other EU leaders. The chancellor expressed "a certain lack of understanding regarding the current statements from the US”.
- Amid Trump's refusal to rule out using military or economic force to take Greenland or the Canal, Scholz claimed "Borders must not be moved by force,"
- Scholz: “The principle of inviolability of borders applies to every country, regardless whether it is in the East or West...The inviolability of borders is a fundamental international law…[This principle] is a foundation of what we call Western values”.
- Earlier, French Foreign Minister Jean-Noël Barrot said in a radio interview that the EU would not allow an attack on its "sovereign borders". It should be noted that Greenland is not in the EU, as it is an 'Overseas Territory associated with the EU'. The Commission has confirmed that any attack on Greenland would invoke the mutual assistance clause in Article 42(7) of the Treaty on European Union.
- Focus coming into 2025 has been on the prospect of the imposition of significant US tariffs on EU products and the impact that would have on the economy. However, it could be the case that geopolitical and security threats between the two allies could overshadow trade policy.
MNI: US EIA: CRUDE OIL STOCKS EX SPR -0.96M TO 414.6M JAN 03 WK
- US EIA: CRUDE OIL STOCKS EX SPR -0.96M TO 414.6M JAN 03 WK
- US EIA: DISTILLATE STOCKS +6.07M TO 128.9M IN JAN 03 WK
- US EIA: GASOLINE STOCKS +6.33M TO 237.7M IN JAN 03 WK
- US EIA: CUSHING STOCKS -2.5M TO 20.0M BARRELS IN JAN 03 WK
- US EIA: SPR +0.25M TO 393.8M BARRELS IN JAN 03 WK
- US EIA: REFINERY UTILIZATION WEEK CHANGE +0.6% TO 93.3% IN JAN 03 WK
STIR: SOFR Calls Interest Picks Up
Upside call structure volume picked up following dovish Fed Gov Waller opinions on rate cuts and tariffs this morning, underlying futures trading moderately higher (Reds-Greens: SFRZ5-SFRU7 +0.030-0.050).
- +5,000 SFRM5 96.00/96.25 call spds 6.0 ref 95.93
- +4,00 SFRM5 96.00/96.12 call spds 3.5 ref 95.925
- +16,000 SFRU5 95.87 put vs. -8,000 2QU5/3QU5 95.87 put strip, 34.5-35 net
- -3,000 SFRU5/SFRZ5 96.50/97.00 call spd spd 2.75 net
- +10,000 SFRH5 95.81 puts 8.5 ref 95.805
- +5,000 0QM5 95.50/95.62 put spds 3.5 vs. 95.99/0.06%
