The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0906 ET - The Swiss franc could fall against the dollar if the Federal Reserve raises interest rates and Fed Chair Kevin Warsh hints at possible further policy tightening later, Societe Generale's Kit Juckes says in a note. Switerzland's low interest rates mean the franc could suffer versus the dollar in carry trades where investors use low yielding currencies to buy higher-yielding currencies, he says. The Fed announces its decision at 1800 GMT. The dollar falls 0.1% to 0.8183 francs after reaching a six-week high of 0.8198 Tuesday, according to LSEG. (renae.dyer@wsj.com)

0904 ET - Yields on U.K. government bonds, or gilts, drop sharply and faster than U.S. and eurozone peers following U.K. inflation data that was in line with expectations. The data offered limited evidence that high energy prices were feeding through into the wider economy and followed weak jobs data on Tuesday. The Bank of England is expected to hold interest rates on Thursday and investors have slightly lowered expectations for rate increases in the coming months. Money markets price three quarter-point rate increases by March, down from four on Monday, LSEG data show. Meanwhile, the U.S. Federal Reserve is expected to hike rates later Wednesday. Ten-year gilt yields drop 8.2 basis points to 5.318%, Tradeweb data show. (miriam.mukuru@wsj.com)

0859 ET - Treasury yields remain elevated heading into the Fed's rate decision. The U.S. 10-year Treasury yield hovers around 4.977%, slightly lower than the 4.981% recorded before retail sales came in stronger than expected. The U.S. 2-year Treasury yield hovers around 4.632%. Bond market investors will watch what Chairman Kevin Warsh says about the rate path and the state of the bond market. Warsh may attempt to ascribe rising bond yields as indicating stronger growth expectations, but refrain from repeating his statement that bond markets are doing some of the tightening for the Fed, says EY-Parthenon chief economist Gregory Daco. (jessica.coacci@wsj.com)

0851 ET - Restaurant stocks are once again under pressure from a host of external factors--"some real, some perhaps overplayed, all hard to predict," Morgan Stanley analysts say in a note. Higher gas prices, interest rates and cost pressures are all weighing on the industry, the analysts say. Political uncertainty and geopolitical disruptions are also overhangs, they say. "As for AI, we'll see," they add. Restaurant demand data, meanwhile, doesn't look much different overall but continues to be choppy in some pockets under the surface, they say. "We could call this an overreaction from a stock standpoint (like the ones we have seen before)," they say. (kelly.cloonan@wsj.com)

0847 ET - The European Union's proposition to make Canada the bloc's first associate member looks positive for the region's spirits sector, an industry group says. "We were pleased to see Ursula von der Leyen underline the importance of the EU extending its strong, strategic trading partnerships in her speech," trade director Pauline Bastidon at SpiritsEurope says. As a highly export-driven sector, furthering open trade is crucial, Bastidon says. "We view closer ties with Canada positively and will be watching with interest as this relationship develops," she adds. (andrea.figueras@wsj.com)

0830 ET - The economic benefits for Europe of a trade deal with Canada would be relatively small, says Claus Vistesen at Pantheon Macroeconomics. "For Europe, it's geopolitics," he says, citing the rupture between the continent and the U.S. as a major driving force behind negotiations. The move follows on from Canadian Prime Minister Mark Carney's push for the so-called "middle powers" to stand together. "Europe can't rely on America anymore, so it's going out and saying: 'Look, you chose this path. We're choosing another.' There's a natural sense that the EU and Canada can team up here." But economically, the move isn't likely to be groundbreaking for Europe. "It's a fairly small deal. If Europe loses export shares in the U.S. because of high tariffs, it's very unlikely that they will be able to recuperate those shares in free trade with Canada." (don.forbes@wsj.com)

0814 ET - Plans for closer ties between the EU and Canada need more substance, Bernd Lange, chair of the European Parliament's trade committee says. European Commission President Ursula von der Leyen backed an idea for Canada to become an associate member of the EU during a speech in Strasbourg on Wednesday. "This could become a new model for close transcontinental partnerships with democratic countries against the new model of the law of the strongest," Lange says in a social media post. "But now we need substance. The Canada initiative needs concrete rights, obligations and joint projects," he says. (edith.hancock@wsj.com)

0757 ET - Europe's collaboration with Canada is crucial for the continent's international competitiveness, says Cecilia Bonefeld-Dahl, director general of Digital Europe. The trade body, which represents European tech companies, says it welcomes European Commission President Ursula von der Leyen's announcement that Canada is on track to become the EU's first associate member. "Europe will not win the technology race by going it alone," Bonefeld-Dahl says. "It will open new markets for dual-use technology scaleups and create opportunities for joint investment in funds and new capabilities for the alliance's members." Bonefeld-Dahl also points to the EU-Canada Tech Alliance as a positive step in cooperation between the two. (josephmichael.stonor@wsj.com)

0754 ET - A proposal by the EU to make Canada the bloc's first associate member reflects an attempt to revive long-dormant hopes for a transatlantic trade partnership, says Claus Vistesen at Pantheon Macroeconomics. After talks between the EU and U.S. to implement the Transatlantic Trade and Investment Partnership effectively died following Donald Trump's victory in the 2016 election, the new Canada initiative shows Europe attempting to revive this vision with individual North American states, Vistesen says. "Now, with the North American Free Trade Agreement up in the air, there's a way for Europe to start to try to pick off deals," he says. And the maneuver might not stop in Ottawa. "I wouldn't be surprised if Europe and Mexico try to do something next." (don.forbes@wsj.com)

0755 ET - The European Union is ready to use all the tools at its disposal to rebalance its relationship with China, European Commission President Ursula von der Leyen says in Strasbourg, adding the bloc's trade deficit with China stands at 1 billion euros ($1.15 billion) a day. "It has reached a tipping point," she says, calling the situation unsustainable. The bloc is in talks with Beijing, "but this dialogue must now lead to results," she says. "It is in both our interests to work together and find solutions, but let me be very clear: We will use all tools at our disposal to rebalance our relationship." (edith.hancock@wsj.com)

0747 ET - The European Union has its sights on "game changing" data initiatives in five high-value AI sectors including health, transport, agriculture, advanced manufacturing, and defense and space, European Commission President Ursula von der Leyen says in a speech in Strasbourg. She says that Europe does not need to be a hub of developing frontier artificial intelligence technology to draw the best value from it, adding that industries in the bloc are sitting on valuable data other companies can use. "These data are a precious European treasure. They are what can power tailor-made industrial AI models," she says. The commission will announce those initiatives in November, she adds. (edith.hancock@wsj.com)

0711 ET - A more risk-averse market has lifted the dollar only modestly as a safe-haven asset, Societe Generale's Kit Juckes says in a note. The realization that the Middle conflict is likely to drag on, together with higher energy costs, hasn't managed to lift the DXY dollar index back above 100 after its decline to 98 over the summer, he says. "This is partly due to increased optimism about the growth outlook elsewhere, relative to the concerns that prevailed at the start of the conflict," Juckes says. The DXY last trades up 0.1% at 99.671.