Central Banks regained control in September. At the FOMC on 26 September, the FED raised its rates as expected and reiterated its intentions on future gradual rate hikes. In the meantime, the ECB recalled that nothing should be expected before the summer of 2019 (reaffirmation of gradual exit of accommodative policy). As a consequence, the dollar returned to 1.15/1.16 levels after having depreciated over the first three weeks of the month (to 1.18 vs euro). After a long wait, Italy will finally submit a deficit of 2.4% to the EU for its budget plan, which is higher than the market expected (2% expected but some fears of a number exceeding 3% of GDP). On the news, Italian spreads deteriorated (widening by 40bps), without contagion on other peripherals. In September, we participated in the new RAG/Evonik and SGL Carbon primary, we sold high delta Safran 2020 for the more balanced Airbus / Dassault. We added MTU 2023 after the recent correction on the implied vol. and switched Airbus 22 CB into options due to rich valuation of the CB. We reduced our financial sector exposure by selling our calls on ING. Finally, we took some profit on Total call options. This month, we gain from our exposure to the Energy sector (Brent ended at $82.5/barrel amid slowdown in US drilling and US/Saudi Arabia discussion over market stability). On the contrary, we suffered from the fall of chips stocks (and especially European AMS and STM) amid fallout of president Trump's trade war with China. We also suffered from our position in Nyrstar as the company announced a profit warning, 2H 2018 EBITDA will be materially lower than H1 due to negative impact from zinc prices compounded by low treatment charges.