Commerzbank on Overnight News

06:44 AM EDT, 08/29/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: Two-year United States Treasuries oscillate, long-end consolidates in Asia. U.S. equites close near session high, futures softer amid mixed Asian bourses. DXY appreciates, oil rangebound after last Thursday's jump.

Fed: Federal Reserve Governor Christopher Waller is open for a 50bps cut in September if August payrolls show substantial weakening; Footnote 4 of his speech points to continued deterioration of the labor market since July.

Fed: Vide President JD Vance says the government won't allow monetary policy decisions "without any input from the people that were elected to serve the American people", the Fed isn't doing its job. The Senate Banking Committee will hold a hearing on Stephen Miran's nomination next Thursday.

Russia-Ukraine war: Germany's Prime Minister Friedrich Merz says it's "obvious" Vladimir Putin/Volodymyr Zelenskiy meeting won't happen.

==EUROPE:

EU: The European Commission has prepared a draft regulation to remove all tariffs on U.S. industrial and preferential treatment of U.S. agricultural goods, expects the U.S. to now lower auto tariffs immediately and retroactively from Aug. 1.

U.K.: United Kingdom banks fear higher taxes or bank levy to plug budget hole (FT). Lloyds Business confidence rose to the highest level since November 2015.

Poland raises 2025 deficit projection to 6.9% (old 6.3%), expects 66.8% debt to GDP ratio in 2026.

==ASIA:

Japan: Industrial output falls 1.6% month over month in July, more than expected. Tokyo August CPI rates fall in line with consensus.

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