Commerzbank on Overnight News

06:24 AM EDT, 08/15/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries expand recovery in Asia, equity futures continue upwards trend with S&P hitting next record high amid rallying Nikkei. Yen (JPY) appreciates, DXY softer, oil stable.

Fed: Richmond Federal Reserve President Thomas Barkin is "getting a smell" of stronger consumer spending in July, "maybe" H1 weakness was just a "temporary air pocket." Louis Fed President Alberto Musalem says it's too early to decide on the September cut. Federal Reserve Chair Jerome Powell to give speech on economic outlook in Jackson Hole next Friday.

Fed: Treasury Secretary Scott Bessent argues he isn't pushing for cuts, claims that "a model of a neutral rate is approximately 150bp lower." President Donald Trump thinks inflation is down to a "perfect" number.

Trade: Trump says Brazil "has been a horrible trading partner" charging the U.S. "tremendous tariffs", also would have some "very bad laws." Argues tariffs are blocking Chinese electric vehicles from the U.S., doesn't want Chinese car imports to destroy U.S. car industry.

Geopolitics: Trump sees a 25% chance that Friday's Alaska meeting with Russian President Vladimir Putin won't be successful. Stresses the importance of a second meeting with Putin and Ukrainian President Volodymyr, suggests European Union leaders join. Putin praises U.S. efforts to stop Russia-Ukraine war, says he is willing to discuss control of strategic offensive weapons.

Rare earths: China has warned international firms against stockpiling rare earths or risk even greater shortages. Chinese authorities would deliberately limit approved export volumes (FT).

Chips: The U.S. is discussing strategic stake with Intel. Shares accelerate rally postmarket.

==ASIA:

China: Industrial production and retail sales slowed more than expected in July.

Japan: Q2 gross domestic product rises more than expected, with both private consumption and business spending stronger than expected.

Japan: Finance Minister Katsunobu Kato says specifics of monetary policy should be left to the Bank of Japan. Trade negotiator Ryosei Akazawa says Treasury Secretary Bessent isn't asking to hike rates.

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