Flash News

TREE NEWS reports: Bank of America strategists say the easy-money phase of betting on AI-related capital expenditure is fading, as the combination of rising AI spending and shrinking discretionary spending is now fully priced in. The trade is therefore harder to squeeze excess returns from, and the strategists argue it is time for a selective rotation, warning that capex intensity may be overpriced while underestimating the US consumer’s willingness to spend is dangerous.

TREE NEWS update: Russian Foreign Ministry spokeswoman Maria Zakharova said on the ministry’s website on the 5th that Moscow will take mirror countermeasures against Tokyo’s unfriendly steps, targeting above all areas of importance to Japan. The statement did not specify which measures or sectors would be affected.

TREE NEWS update: Israeli Prime Minister Benjamin Netanyahu said Israel has repelled Iran and that the country will finish the mission. “We repelled Iran. We will complete the task,” Netanyahu said in a statement. No further details on the scope of the operation or the timing were given in the remarks.

TREE NEWS reports: The Federal Reserve’s overnight reverse repurchase agreement (RRP) facility took in $1.004 billion on Monday, October 5, from six counterparties, down from $1.501 billion in the prior trading session. The drop reflects a continued decline in usage of the central bank’s overnight liquidity tool.

TREE NEWS reports: JPMorgan strategists expect US investment-grade corporate bonds to outperform Treasuries in the fourth quarter, citing slowing sales at large technology companies and strong corporate earnings. The bank forecasts the spread on its JULI index over Treasuries to narrow to 0.85 percentage point from 0.96 point last Friday. Falling rate volatility, stabilizing yields and relatively stronger domestic and foreign demand were cited as bullish catalysts.

TREE NEWS reports: Citigroup strategists advised investors to add bullish bets on Brazilian equities and local-currency bonds after Flávio Bolsonaro outperformed expectations in the presidential election’s first round. The bank said Bolsonaro is the more market-friendly candidate, pledging fiscal austerity, privatizations, deregulation and a VAT cut, and that his party’s strong Senate showing should help pass his legislative agenda. Prediction markets price a high probability of a Bolsonaro win in the October 25 runoff, Citi said, recommending Brazilian stocks and NTN-F government bonds maturing in 2031.

TREE NEWS update: Iranian President Masoud Pezeshkian said that every time nuclear inspectors visit Iran, the country’s nuclear facilities and scientists are identified and subsequently bombed or assassinated. He added that negotiating with an enemy that carries out daily acts of terror, sanctions, pressure and threats is meaningless.

TREE NEWS update: Bank of France Governor warned that the French government risks being held by the throat by interest rates, flagging the country’s exposure to rising borrowing costs. The remark points to mounting fiscal pressure on Paris as debt-servicing costs climb. No specific figure or policy action was given.

TREE NEWS reports: Monex said rising US interest rates are expected to drive the dollar stronger in 2026. The firm’s outlook points to higher US rates as the main support for the currency over the coming year.

TREE NEWS reports: Weak US jobs data has narrowed expectations for another Federal Reserve rate hike in October, giving Bitcoin relief as investors keep leaning into the debasement trade. The cryptocurrency is heading for its best quarter since 2017, though Treasury yields at 5% threaten to extend that run.

TREE NEWS reports: London Metal Exchange copper rose $162 to close at $14,420 per tonne, with the rest of the base metals complex ending higher. Aluminium gained $26 to $3,127/t, zinc added $33 to $3,744/t, lead climbed $24 to $1,876/t, nickel advanced $88 to $15,714/t and tin jumped $301 to $54,314/t. Cobalt was unchanged at $39,245/t.

TREE NEWS update: A British Airways Boeing 777 flying from London to Chicago declared an emergency on October 5, dropping from 36,000 feet (10,972.8 m) to 9,000 feet (2,743.2 m) in roughly seven minutes, a descent of about 8,230 m. The aircraft turned around over Ireland, circled over the Bristol Channel for about four hours and landed at London Heathrow at 5 p.m. local time. The cause is not yet known.

TREE NEWS reports: Goldman Sachs’ Anthony Gutmann said governments need to reduce spending and achieve stronger growth to address rising borrowing costs. He noted that higher yields are a problem across Western economies, pointing specifically to recent turmoil in US Treasury and French government bond markets. Gutmann added that Europe’s election cycle is amplifying policy uncertainty, making fiscal trade-offs harder to manage.

TREE NEWS update: US Secretary of State Marco Rubio said on October 5 that the withdrawal of American bombers from RAF Fairford in the UK was not directly linked to earlier security threat incidents. Rubio said the Pentagon adjusts military deployments as needed and that bases undergo routine rotations, including changes of personnel and aircraft, making the movement of military assets between regions unremarkable.

TREE NEWS update: US President Donald Trump said the closure of several refineries in the United States is the reason gasoline prices are elevated. He attributed the high pump prices to the shuttering of multiple American refining facilities.

TREE NEWS reports: Russia’s September wheat shipments exceeded 2.4 million tonnes, coming in 20% above the latest forecast, IKAR Director General Dmitry Rylko said. The figure covers total wheat exports for the month.

TREE NEWS update: Turkey’s Tera Investment Bank has defaulted on a 5 billion lira bond, the bank’s debt obligation going unpaid. The default marks a failure to meet repayment on the 5 billion lira instrument issued by the Turkish investment bank. No further details on the terms, timing or creditors were provided.

TREE NEWS update: Spain’s 10-year government bond yield rose 4 basis points to 4.126% on Monday, touching 4.149% intraday — close to its October 1 high of 4.219% and the 4.354% peak of Q4 2013 — as the prime minister announced an early general election. The 30-year Spanish yield added 5.2bps to 5.401%, while the 2-year fell 3.1bps. Italian 10-year yields rose 2.1bps to 4.626%.

TREE NEWS update: The US Department of Energy announced a $4.2 billion investment to advance nuclear power development in Pennsylvania and Ohio, aimed at helping lower energy costs. The investment will support roughly 3,000 project-related jobs. The department also said EDF’s conditional loan commitment includes a financing option that could fund a future power uprate at Vistra’s Comanche Peak plant in Texas.

TREE NEWS reports: Germany’s 30-year Bund yield rose 4.7 basis points to 3.866% on Monday’s late European session, while the 10-year yield gained 3.1 bps to 3.493%. The 2-year yield slipped 1.1 bps to 3.065% after a gap lower, lifting the 2/10-year spread by 4.154 bps to +42.323 bps. The 10-year had retreated over the prior four sessions.