SocGen's Overnight Economic News Summary

06:26 AM EDT, 09/10/2025 (MT Newswires) -- Societe Generale in its early Wednesday economic news summary pointed out:

-- Euro (EUR) on back foot, eurozone government bon yields retreat after Poland shoots down Russian drones following 'multiple' airspace violations. Prime Minister Tusk: incursion was probably a large-scale provocation. Russia/Belarus to hold military exercise near Polish border on Friday.

-- US dollar (USD) consolidates prior to the producer price index. United States Treasury Secretary Bessent: size of Federal Reserve cut needs to be recalibrated after 911,000 downward benchmark payrolls revision. Three-year U.S. Treasury auction demand solid: stop through 0.7bp, non-dealer bidding 91.6%, bid/cover 2.73x.

-- U.S. court temporarily blocks President Trump from removing Fed Governor Cook. The alleged mortgage misconduct likely didn't amount to "cause" to fire Cook under the Federal Reserve Act.

-- France: President Macron names Sebastien Lecornu as new PM -- SocGen economists see early elections imminent. 10-year OAT/BTP turns negative 1.1bp aided by calendar roll (November 2035 versus August 2035).

-- China's CPI declines to 0.4% year over year in August, below forecast, food prices fell 4.3%. Core CPI up to an 18-month high of 0.9% year over year.

-- Day ahead: U.S. PPI, 10-y UST auction. Brazil CPI. Germany and United Kingdom benchmark auctions.

-- Nikkei +0.9%, EUR 10-year IRS -1.5bps at 2.607%, Brent crude +1.0% at $67.1/barrel, Gold -0.1% at $3,642/oz.

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