-- Commerzbank in its "European Sunrise" note of Wednesday highlighted:
Markets: United States Treasuries sell off in late New York session, are better bid in early Asian trading. Brent rises above US$100/barrel late Tuesday, but comes off the highs after President Donald Trump announces a ceasefire extension in the conflict with Iran. E-minis rise marginally after the ceasefire headline.
Fed: Kevin Warsh says at Senate Federal Reserve chair confirmation hearing that cumulative price increases are a legacy of past policy error, inflation trajectory is improving, but there is more work to do. The balance sheet shouldn't hold long-term assets, Warsh doesn't have a particular fix number for size, changes would need to be choreographed.
Fed: Federal Reserve Governor Christopher Waller says Fed banks are working well on 10% headcount reduction, needs to rethink physical footprint, centralize operations and incorporate Artificial Intelligence (AI).
U.S.: White House nominates Christopher Phelan to chair Council of Economic Advisers.
Iran war: President Trump extends ceasefire until "discussions are concluded." Trump maintains the naval blockade. Vice President JD Vance postpones trip to Pakistan after Iran refuses to attend. Iran's foreign minister calls the U.S. blockade an "act of war." Iran evades blockage by using different ports and ship-to-ship transfers (Telegraph). Iran received "some sign" that the U.S. is ready to break the blockade (news agency Tasmin).
==EUROPE:
ECB: European Central Bank Governing Council member Martins Kazaks says there is no urgency to raise rates; says expectations for inflation are currently contained
Germany: CDU/CSU present plan for income tax reform with 25 billion to 30 billion euros tax relief per year (HB).
France: Prime Minister Sebastien Lecornu extends aid for industries hit by fuel cost rises.
Italy plans to bring down its budget deficit to 2.8% in 2026 (Reuters sources).
Ukraine: President Volodymyr Zelenskiy says repairs to the Druzba oil pipeline are completed, clearing the way for 90 billion euros European Union loan.