-- Commerzbank in its "European Sunrise" note of Monday highlighted:
Markets: United States Treasuries weaken in Asia. Asian stocks and e-minis are mostly underpinned. The euro (EUR) rises to $1.173. Brent jumps to US$108/barrel before retreating.
Fed: U.S. Attorney Jeanine Pirro says the Department of Justice drops probe into Chair Jerome Powell and Federal Reserve building costs, adds she could restart investigation should "facts warrant doing so." Senate Banking Committee to vote on Kevin Warsh nomination on Wednesday. Senator Thom Tillis says he's prepared to move ahead with Warsh's confirmation.
US dollar: Treasury Secretary Scott Bessent says additional foreign exchange swap lines can strengthen the US "dollar dominance and reserve currency status." Bessent tells WSJ he wouldn't say "no" to being Fed chair later.
Iran war: Iran offers the U.S. a deal to reopen the Strait of Hormuz while postponing nuclear talks (Axios). Earlier, President Donald Trump cancelled Witkoff/Kushner's trip to Pakistan, stating that there has been "too much time wasted on traveling" as there is "tremendous infighting and confusion" within Iran's leadership. Trump later says he hasn't "even thought about" what this means for the ceasefire.
==EUROPE:
Germany: SPD's Matthias Miersch mulls debt brake exemption due to Iran war. DIW's Marcel Fratzscher says Germany should sell gold in this crisis.
EU: French President Emmanuel Macron says it "doesn't make sense to repay COVID debt right now," argues for "flexibility during extraordinary times."
EGB ratings: S&P downgrades Belgium to AA-/stable from AA/negative, downgrades Slovakia to A/stable from A+/negative, affirms Finland at AA+ and lowers outlook to negative from stable, affirms Germany at AAA/stable. Fitch upgrades Lithuania to A+/stable from A/stable and affirms Latvia at A-/stable.
==ASIA:
China is slowing approvals for overseas borrowing as about US$100 billion in bonds mature this year, pushing companies to raise short-term debt (Bloomberg).