Trump touted that significant progress is being made between Russia and Ukraine; European stocks set for a weaker open - Newsquawk EU Market Open

• US President Trump said on Truth Social that he is negotiating peace between Russia and Ukraine and that significant progress is being made.
• US President Trump signed an executive order waiving Graham Act sanctions and tariffs on Russian energy, drawing bipartisan criticism.
• Pakistani Army Chief Asim Munir may visit Tehran this week, ISNA reported.
• Cost-of-living and education protests swept across Europe; around 550,000 people marched in France, with unrest also in Milan, Lisbon and Brussels.
• Crude futures were softer, bonds firmer, with APAC sentiment recovering; Europe points to a slightly softer open.
• Looking ahead, highlights include Canadian CPI (Sep). Speakers include ECB's Lane and Elderson. Earnings from Cleveland-Cliffs.
• Click for the Newsquawk Week Ahead.

SNAPSHOT

US TRADE

EQUITIES

• US stocks closed sharply lower on Friday as AI-financing worries and high oil prices weighed; chipmakers led the tech selloff, with Micron (MU) and Intel (INTC) among the decliners, and the Nasdaq suffered its biggest daily drop since 23rd July, while CoreWeave (CRWV) fell 12% to extend its weekly loss to 25%. On the week, the S&P 500 (-1.95%) and Nasdaq (-4.48%) posted their steepest weekly losses since June, while the Dow (+0.67%) notched a second straight weekly gain.
• SPX -1.09% at 7,659, Nasdaq Comp. -2.14% at 26,140, DJI -0.34% at 52,002.

NOTABLE WEEKEND GEOPOLITICS

RUSSIA-UKRAINE

• US President Trump signed an executive order waiving certain Graham Act sanctions, restrictions and duties on Russian energy revenues.
• US President Trump said he is negotiating peace between Russia and Ukraine and that significant progress is being made.
• Russian President Putin proposed a meeting with US President Trump and Chinese President Xi on the sidelines of the APEC summit in China (Nov 18th-19th) to discuss ending the war, WSJ reported.

MIDDLE EAST

• Pakistani Army Chief Asim Munir may visit Tehran this week, ISNA reported.
• Iran's Foreign Ministry Spokesperson said Iran is ready to help peacefully resolve issues between Saudi Arabia and Yemen.
• Iran's Foreign Minister Araghchi said Tehran's seven-day proposal to reopen the Strait of Hormuz remains on the table.
• IRGC said two oil tankers caught fire in the Strait of Hormuz after hitting mines.
• Explosions were reportedly heard in Saudi Arabia's Jeddah, Abha and Jazan.

(Full detailed headlines below)

TRADE/TARIFFS

• US Ambassador to the EU Puzder warned of devastating retaliation if Brussels limits spectrum access for non-EU firms, after the EU decided to allocate most mobile satellite spectrum to domestic companies, FT reported.
• Mexico's Ebrard said Commerce Secretary Lutnick has never told him he opposes lowering Section 232 tariffs on Mexico.
• US lifted restrictions on new Mexican airline flights to the US from Mexico City's AICM and AIFA airports.
• US President Trump said the US will at some point make an "amazing" deal with Canada.
• EFTA states signed a free trade agreement with Vietnam, with around half of Norwegian exports to become tariff-free upon entry into force.
• French President Macron said the EU needs to extend the China deal to include plastics, chemicals and ferroalloys.

NOTABLE NORTH AMERICAN HEADLINES

• US Treasury Secretary Bessent said the US is in an energy shock and inflation will slow when the war ends.
• US President Trump pledged USD 5k for every adult if the GOP wins Congress, speaking at a Kentucky rally ahead of the 3rd November midterms; separately, Reuters reported he blamed aides for a faltering Republican midterm strategy as Democrats led House polls.
• US President Trump said the US economy has never been stronger; on oil drilling in Texas, he said nobody can take a chance on it.
• "No Kings" rallies were held across the US, urging early voting.
• White House Press Secretary Katie Zacharia left the role after less than a week.
• Canadian PM Carney confirmed four soldiers died and dozens were injured in the fire at Canadian Forces Base Wainwright in Alberta; CBC had earlier reported seven dead.
• Alberta is set to vote on Monday on starting the legal process for a separation referendum; Canadian PM Carney and Alberta Premier Smith both oppose separation.
• US State Department is reportedly updating its travel advisory for mainland China to include an increased risk level for wrongful detention, according to a plan seen by Semafor.
• Anthropic co-founder Jack Clark said an internal model suggested AI could lift US GDP to USD 44tln by 2030 from USD 30tln.

APAC TRADE

EQUITIES

• APAC stocks were mixed following Friday's tech-led sell-off on Wall Street, with Japanese and Korean stocks underperforming amid continued pressure on AI and semiconductor names. However, losses were pared as US equity futures recovered alongside a pullback in crude prices. Sentiment was also supported by Trump's latest Russia-Ukraine peace efforts and easing of restrictions on Russian energy, while Chinese activity data generally topped expectations but prompted little reaction.
• ASX 200 bucked the regional weakness, supported by Cleanaway Waste Management surging after EQT agreed to acquire the Co. Elsewhere, RBA's Kent noted evidence of rising neutral interest rates in Australia and abroad.
• Nikkei 225 and KOSPI underperformed as tech stocks caught up with Friday's losses in their US counterparts, although the indices pared earlier losses of over 2%. For Japan, BoJ Governor Ueda also spoke overnight but offered little fresh.
• Shanghai Comp was marginally softer despite Chinese activity data generally topping expectations, although Fixed Asset Investment remained weak. Hang Seng was closed for the Chung Yeung Festival.
• US equity futures recovered from Friday's tech-led losses, with the Nasdaq outperforming amid the pullback in crude prices. Trump's latest Russia-Ukraine peace efforts and easing of restrictions on Russian energy also provided some relief.
• European equity futures are indicative of a softer cash market open with the Euro Stoxx 50 future -0.3% after cash closed with gains of 0.6% on Friday.

FX

• DXY was little changed after Friday's losses, with the Buck finding some respite amid EUR weakness following widespread European protests. However, softer Treasury yields and Trump's efforts to ease energy supply pressures through Russian sanctions relief capped upside. DXY remained within Friday's 101.57-102.09 range, with the index holding around 101.80.
• EUR/USD was marginally softer for most of the session as the Dollar steadied, with the Single Currency also pressured at the start by political and social unrest in France and other European cities over the weekend. The pair remained within a 1.1181-1.1232 range.
• GBP/USD was flat/firmer, retaining most of Friday's gains amid limited Sterling-specific catalysts. Attention turns to UK inflation data later this week and fiscal developments ahead of Chancellor Healey's Budget. EUR/GBP weakness also provided some support, with the cross testing 0.8400 to the downside. GBP/USD remained within a 1.3303-1.3339 range.
• USD/JPY was marginally firmer amid weakness in Japanese equities, with BoJ Governor Ueda's comments prompting little reaction. USD/JPY remained within Friday's parameters, with the pair reaching 158.13.
• Antipodeans outperformed, led by AUD, which was supported by recovering US equity futures despite weakness in Japanese and Korean stocks. RBA's Kent suggested neutral rates were rising, while stronger-than-expected Chinese GDP and activity data prompted little reaction. NZD was also firmer despite New Zealand's September trade deficit widening to NZD 1.97bln (exp. 0.78bln deficit).
• PBoC set USD/CNY midpoint at 6.7208 vs exp. 6.6897 (prev. 6.7220).

FIXED INCOME

• 10yr UST futures extended their recovery following Friday's tech-led sell-off on Wall Street. The pullback in crude prices helped ease inflation concerns after Trump relaxed restrictions on Russian energy and signalled progress towards a Russia-Ukraine peace agreement.
• Bund futures were modestly firmer, with European fixed income supported by easing energy prices and ongoing political uncertainty following widespread cost-of-living protests across Europe. However, gains remained contained amid the recovery in broader risk sentiment, with Bunds holding within a 121.55-121.71 range.
• 10yr JGB futures outperformed amid weakness in Japanese equities; JGB futures remained within a 125.44-125.88 range.

COMMODITIES

• Crude futures were softer following Friday's gains, with WTI and Brent pressured after Trump waived certain sanctions and restrictions on Russian energy and signalled progress towards ending the Russia-Ukraine war. WTI declined within a USD 97.32-99.24/bbl range, while Brent traded within USD 107.70-109.65/bbl. Dutch TTF remained firmer despite the crude weakness, within a EUR 88.46-89.32/MWh range.
• Spot gold was modestly firmer amid softer US yields and lingering geopolitical uncertainty, although the steady DXY capped upside. Spot silver outperformed, with both metals recovering from earlier lows.
• Copper futures were firmer amid the recovery in US equity futures and better-than-expected Chinese activity data, although the broader risk tone remained mixed following Friday's tech-led sell-off. China's Q3 GDP, Industrial Production and Retail Sales all topped forecasts but prompted little reaction. Supply concerns also eased after Antofagasta reached an agreement to end the strike at its Centinela mine in Chile.
• US President Trump reiterated that oil prices are going to come down very soon.
• US Energy Secretary said the US is negotiating with European countries to release large diesel stockpiles, but their response has been slow.
• US lawmakers introduced a bill to block US President Trump's Russia diesel deal.
• Turkey will secure part of Russia's diesel supplies and plans to build a second offshore natural gas platform in the Black Sea, SANA reported; Turkey's Energy Minister said Turkey will receive some diesel under the US-Russia supply deal.
• Russian Deputy PM Novak said Russia's gasoline shortage is currently about 5% and the global oil market is unbalanced after a shock, with a significant supply deficit estimated at 4-6mln barrels, Interfax reported.
• IRIB reported that Saudi Arabia's East-West oil pipeline was targeted again, noting a new thermal anomaly in the Yanbu area near the pipeline.
• Russia's Ryazan oil refinery has halted one of its primary units since the 15th October drone attack, according to sources.
• US DoE issued an RFP to exchange up to 17mln bbls of crude from the SPR.
• Venezuela expects nearly USD 76bln of oil investment over five years; a US-Venezuela bilateral oil accord covers 17 fields and 250 rigs.
• Iraq aims to produce 450k bpd from four Kirkuk fields.
• Pemex set its November price constants for Maya crude to the US Gulf and Asia.

DATA RECAP

• US Baker Hughes Total Rig Count (Oct/16) 603 (Prev. 603); Oil Rig Count (Oct/16) 459 (Prev. 462); Gas Rig Count (Oct/16) 133 (Prev. 132).

CRYPTO

• Bitcoin traded with mild gains overnight but with price action largely contained withing recent ranges.

CENTRAL BANKS

• ECB's Lagarde said Eurozone headline inflation rose to 3.8% in September on energy, with no material wage response yet; sees growth of 0.9% in 2026 and 1.4% in 2027 after 25bps hikes in June and September, according to her IMFC statement.
• ECB's Nagel said the job of fighting inflation is not done and the ECB may have to do more.
• ECB's Rehn said the Bank is staying vigilant to second-round inflation effects.
• BoE Governor Bailey was among the delegates who walked out of the IMFC meeting in Bangkok as Russian Finance Minister Siluanov spoke.
• BoJ Governor Ueda said Japan is in a positive cycle of rising wages and recovering prices and anchoring core inflation near 2% is increasingly important; the steady recovery, tight labour market, strong AI-driven capex and exports, and Middle East energy costs are fuelling inflation. He said it would be inappropriate to signal in advance when the BoJ might conduct emergency bond market operations, with any intervention to depend on the speed of long-term rate rises and signs of market instability; long-term rates would likely rise steadily in line with policy rate hikes, financial conditions remain accommodative and fiscal spending is adding upward pressure on prices and wages.
• IMF said the BoJ may need to tighten faster if inflation beats forecasts, and that JPY moves since mid-2025 were driven by speculation rather than yield differentials.
• RBA Assistant Governor Kent said there is reasonable evidence neutral rates are rising in Australia and abroad, and that policy is somewhat restrictive but it is questionable whether it is restrictive enough; household demand is softening while business credit remains strong, and housing tax adjustments move policy in a favourable direction. He is cautious about monthly employment figures but said the labour market has become less tight and the market reaction to the jobs data was reasonable.
• PBoC Governor Pan backed closer IMF surveillance of fiscal risks in major advanced economies and said China opposes all forms of protectionism.
• PBoC injected CNY 80bln via 7-day reverse repos at an unchanged rate of 1.40%.
• BoC Governor Macklem said high oil prices raised the risk of broader inflation, though they had boosted Canadian growth and investment.
• Barclays sees 25bps Fed hikes in December and January (prev. a December hike only).

NOTABLE ASIA-PAC HEADLINES

• China's Stats Bureau said the economy showed more positive developments in Jan-Sept, though weak demand and a complex international environment remain challenges; its Deputy Head said new growth drivers, including high-end manufacturing and the digital economy, accounted for over 40% of growth, while consumption contributed 46.7% of GDP growth.
• Japanese PM Takaichi said the government has no predetermined plans on whether to compile a supplementary budget and a robust economy can boost market confidence in the JPY; her approval rating fell below 50%, the lowest since she took office, Kyodo reported.
• South Korea's Finance Minister expects economic growth of 3.4-3.6% in 2026.
• China's solar panel exports extended their slump in September, Reuters reported.
• Chinese President Xi called for coordinated planning of computing power, electricity and water supply.

DATA RECAP

• Chinese GDP Growth Rate (Q3 YY) 4.5% vs. Exp. 4.4% (Prev. 4.3%).
• Chinese GDP Growth Rate (Q3 QQ) 1.2% vs. Exp. 1.1% (Prev. 0.9%).
• Chinese Industrial Production (Sep YY) 5.5% vs. Exp. 5.4% (Prev. 5.2%).
• Chinese Retail Sales (Sep YY) 1.1% vs. Exp. 0.5% (Prev. 0.4%).
• Chinese Fixed Asset Investment (YTD) (Sep YY) -7.2% vs. Exp. -7.3% (Prev. -7.2%).
• Chinese Unemployment Rate (Sep) 5.2% vs. Exp. 5.3% (Prev. 5.3%).
• Chinese House Price Index (Sep YY) -2.8% (Prev. -3.0%).
• Chinese Industrial Capacity Utilization (Q3) 73.1% (Prev. 73%).
• New Zealand Trade Balance (Sep) -1.971B vs. Exp. -0.775B (Prev. -1.536B).
• New Zealand Imports (Sep) 8.44B (Prev. 8.02B).
• New Zealand Exports (Sep) 6.47B (Prev. 6.48B).
• New Zealand Composite NZ PCI (Sep) 53.4 (Prev. 52.5).
• New Zealand Services NZ PSI (Sep) 50.9 (Prev. 51.2).

GEOPOLITICS

RUSSIA-UKRAINE

• Russian President Putin proposed a meeting with US President Trump and Chinese President Xi next month to discuss ending the Ukraine war, with the Kremlin suggesting talks on the sidelines of the APEC summit in China (Nov 18th-19th), WSJ reported citing sources; Trump has not agreed but could be receptive, according to a senior US official. Putin has proposed a trilateral summit before, but the latest offer comes amid a broader shift in Moscow's relations with Washington.
• US President Trump said he is negotiating peace between Russia and Ukraine and that significant progress is being made, including on hostage talks, but warned that signing a Russia-related document now could drive Moscow away from negotiations; he criticised Ukrainian President Zelensky for targeting Russian diesel refineries, claiming the attacks are hurting global and US diesel markets, and accused him of not wanting to end the war. Trump also said he wants the war ended, will release details at some point and will get a deal on nuclear arms with Russia and China, and denied slowing Ukraine's Starlink access.
• US President Trump signed an executive order waiving certain Graham Act sanctions, restrictions and duties on Russian energy revenues, certifying the move is in the US national interest, and said Russia will initially supply over 300k tonnes of diesel. Secretary of State Rubio said Trump will take up to 60 days to weigh Russia sanctions and assess their economic impact, Treasury Secretary Bessent said the waiver could be examined during that period, and Energy Secretary Wright said enforcement had been suspended rather than ended and Russian diesel exports would benefit US consumers. Russian Envoy Dmitriev hailed the waiver as historic, while Ukrainian President Zelensky said it rewarded Putin.
• The Trump administration has proposed resuming Russian gas imports to Europe as part of a potential Ukraine peace deal, with US envoys Witkoff and Kushner raising the idea with Ukrainian and European officials despite opposition from European governments, NYT reported.
• US Secretary of State Rubio said US President Trump is open to anything to end the Ukraine war, while discussions have taken place over a potential meeting between Putin, Xi and Trump.
• Ukrainian President Zelensky said Trump is pushing Ukraine to capitulate to Russia, citing delayed Patriot deliveries, Starlink restrictions and eased sanctions, and offered to halt strikes on Russian refineries if the US sends more interceptors. He said he spoke with Witkoff and Kushner about a peace meeting, possibly as early as this week, that US intelligence-sharing had resumed after a brief pause, that Ukraine-US negotiators could meet next week with a trilateral leaders' meeting possible at the G20, and that Europe needs its own track for talks with Russia.
• US Treasury Secretary Bessent called Zelensky reckless for accusing the US of slowing Starshield, while Rubio said Ukraine had requested Starshield for deep strikes in Russia and access is still under discussion.
• Ukraine launched more than 1,000 drones at Russia, including its biggest attack on St Petersburg since 2022, which set oil terminal and depot facilities ablaze; Russia said it downed 1,015 drones over 15 regions and Crimea, and the Kremlin said the attacks would not change its war aims. Separately, Moscow's Mayor said nearly 200 Ukrainian drones heading for the city were destroyed, with Domodedovo and Vnukovo airports suspending flights.
• Russia launched one of its largest attacks on Ukraine's energy sector, using 320+ drones and missiles against more than 15 energy sites, and hit Metinvest's Zaporizhstal steelworks with six ballistic missiles; Zelensky said Russia attacked Ukraine's energy sector 76 times in the week since Trump announced an "energy ceasefire" and warned Russia may escalate strikes on western Ukraine and deploy ballistic systems in Belarus.
• Russia claimed the capture of Dobropillia and eight more settlements; Ukraine's General Staff denied that Dobropillia had fallen.
• Kremlin said Russia is building a security zone which will not be part of any negotiation with Ukraine, Interfax reported.
• Ukrainian President Zelensky asked Poland, Romania, Slovakia and Hungary to allow grain transit amid a Black Sea blockade; Hungarian PM Magyar said he would not object to transit.
• Lithuania issued a red air raid alert after detecting an unidentified flying object, closing Kaunas airport and scrambling NATO air police jets, before Lithuania and Latvia lifted their alerts. Lithuania found likely drone debris that probably entered from Poland, with Ukraine regretting the possible Russian diversion of its drone over Lithuania, and treated an attempted arson attack on Starlink equipment as Russia-linked sabotage targeting Ukraine's military capability.
• Poland's army investigated a possible airspace violation and searched south of Lublin for a crash site, though no violation was confirmed; Romanian F-16s shot down two drones over Romania's Black Sea waters, and Moldova condemned Russia after five drones crashed on its territory.
• Italy's Defence Minister Crosetto said Ukraine could never win the war and called the US decision to limit Kyiv's access to satellite systems and intelligence a serious mistake.
• EU Council President said Russia's actions point to escalation.

MIDDLE EAST

US-Iran

• Pakistani Army Chief Asim Munir may visit Tehran this week, ISNA reported.
• Iran's Foreign Ministry Spokesperson said Iran is ready to help peacefully resolve issues between Saudi Arabia and Yemen, and to use all its capacities for this if requested by the parties, reaffirming that dialogue between them is necessary.
• Iran's Foreign Minister Araghchi said Tehran's seven-day proposal to reopen the Strait of Hormuz remains on the table: the strait could reopen within six days if the US meets Iran's conditions, with talks resuming on day seven; Iran said it is still studying US comments on the proposal.
• US said it is awaiting Iran's response to a counterproposal to end the war, while CENTCOM said Iran-backed militias were sending funds back to the cash-strapped IRGC, Axios reported.
• US President Trump said the Iran war will be over very soon and that Iran had been systematically destroyed militarily and financially, warning the US would soon finish the job unless Iran rapidly changes course. He endorsed Netanyahu ahead of Israel's 27th October election, where polls show a tight race between Netanyahu's bloc and its rivals, adding that if anyone else led Israel the US would have to do the work itself.
• Israeli PM Netanyahu said Israel's goal is to eliminate the Iranian threat and topple the regime in Tehran, that he remains aligned with Trump on Iran, and that the ultimate goal is to eliminate Hezbollah as he does not trust the Lebanese government to disarm it.
• Lebanon's President said a military delegation will present demands to halt Israeli escalation at trilateral talks in Tampa on 20th October, accused Israel of breaching the US-brokered framework and sought an extension of UNIFIL's mandate.
• Iran's SNSC Secretary Rezaei said the armed forces have prepared a new operational plan for any renewed attack, while an IRGC spokesperson warned the world will see what happens if Iran's energy infrastructure is attacked, ISNA reported.
• Iran's IRGC denied reports of an explosion in eastern Tehran, saying no explosion or security incident had occurred, Fars reported.
• Iran's parliament approved US- and UN-sanctioned Mehrdad Akhlaqi Ketabchi as defence minister.
• Two rockets were launched from the city of Tabriz in north-west Iran, Sabreen reported; two missiles were also fired from Iran towards the Strait of Hormuz.
• An Iranian hardline newspaper called for strikes on Israeli nuclear sites if the US attacks Pickaxe Mountain, Iran International reported.
• IRGC said two oil tankers caught fire in the Strait of Hormuz after hitting mines. Separately, the IRGC Navy said a tanker struck a sea mine in the southern strait, causing an explosion and engine-room fire, after reportedly disabling its navigation systems and attempting an unauthorised route, and warned of severe action against vessels disabling navigation and identification systems in the Strait of Hormuz and Persian Gulf, according to SNN.
• Indian shipping official said a crude oil tanker was targeted by a missile in the Strait of Hormuz, also noting the Romania incident on 14th October.
• UKMTO said a southbound tug was struck by two unknown projectiles northeast of Khor Fakkan, UAE, sustaining damage and one minor casualty but continuing its route. It also reported a tanker struck by an unknown projectile 68NM northeast of Saudi Arabia's Jubail on 16th October (crew safe and evacuated) and a tanker hit by an RPG fired from a small boat 78NM northeast of Jubail, possibly the same incident, and an LNG tanker fired upon by a skiff 140NM southeast of Al Mukalla, Yemen, before its security team fired warning shots.
• US CENTCOM said the US has helped ship over 100mln bbls through Hormuz in the past seven days, and a US commander said the naval blockade had stopped Iran exporting USD 25bln of oil and the US helped freeze USD 350mln of Iranian crypto.
• US VP Vance said gasoline prices would be three times higher without the US Navy keeping oil and gas moving through Hormuz; JMIC kept the Strait of Hormuz threat level at severe.
• Masked Israeli settlers attacked a convoy of European diplomats in the West Bank and beat a visiting French mayor; the EU strongly condemned settler attacks and urged Israel to halt settlement expansion, Rubio said he was disturbed by the images and the US wants Israel to do more to curb settler violence, Israel's Foreign Minister condemned the attack and Netanyahu's office decried a "smear campaign".
• Israel's government approved an ILS 2.6bln cut across ministries to boost the security budget, Channel 12 reported.

Saudi & Gulf

• Explosions were reportedly heard in Saudi Arabia's Jeddah, Tasnim reported, with flight operations at King Abdulaziz International Airport disrupted according to Naya for Iraq, and in Jizan and Abha following attacks by Yemeni forces, Sabreen News reported.
• Saudi Civil Defence issued warnings in Jazan, Khamis Mushait (later saying the danger had passed), Najran, As Sulayyil and Abha; six people were injured after a projectile fell in Najran.
• Houthis have repeatedly struck Riyadh airport and Saudi Aramco headquarters, with 19 killed in Houthi strikes as Saudi Arabia struggles to counter the attacks, AP reported; Iran is providing the Houthis with intelligence and targeting data for attacks on Saudi Arabia, WSJ reported.
• Saudi-led coalition said it destroyed two ballistic missile launchers in Yemen's Saada, and an airstrike killed at least nine in the Houthi-held province, AP reported; Saudi warplanes reportedly bombed a residential house in Shamaytin in Yemen's Taiz province, Mehr reported. Separately, a Saudi helicopter crashed in Najran due to a technical failure, killing two crew members.
• Egypt's National Defence Council, chaired by President Sisi, pledged all forms of support to Saudi Arabia against Houthi attacks and reportedly approved deploying troops to the kingdom; Sisi sought parliamentary backing to defend Saudi Arabia if asked, with parliament calling an emergency session for Sunday and set to resume discussions on Monday.
• GCC Secretary General said Saudi security is integral to GCC security and called for Iran to be compelled to abide by international law.
• Iran's Deputy Foreign Minister said Saudi Arabia is yet to respond to Iran's response on mediation efforts relating to Yemen.
• US President Trump said Israel has been helpful to Saudi Arabia and the US relationship with Saudi Arabia is great.
• The Six Kings Slam and an EU summit in Saudi Arabia were postponed, while the US weighed direct involvement in Saudi-backed operations.
• US embassies in Kuwait, Bahrain and Jordan issued security warnings to American citizens over potential attacks on US interests amid escalating regional tensions, Tasnim reported.
• Iraqi Islamic Resistance said six US MQ-9 drones violated Iraqi airspace across four provinces on Saturday, ISNA reported.
• A flight from Tel Aviv made an emergency landing in Sofia, Bulgaria after the crew reported a bomb threat signal near the Romanian border, Bulgaria's Transport Ministry said, Sky News reported.

OTHERS

• US and China remained divided on Taiwan despite plans for more Trump-Xi meetings, Nikkei reported.
• North Korea said it successfully tested a new AI-guided high-speed torpedo on 15th October.
• US Defense Secretary Hegseth warned of China's historic military buildup.

EU/UK

NOTABLE HEADLINES

• France's Saturday cost-of-living protests drew around 550,000 people, with some 1,800 arrested and more than 500 police, gendarmes and firefighters injured, according to the Interior Minister; one demonstrator died and Limoges' historic town hall was torched. Clashes, fires and looting hit Paris, Lyon and other cities, and President Macron and PM Lecornu said violence would not be tolerated.
• French President Macron ordered a review of police preparedness and intelligence, empowered prefects and mayors to ban gatherings, and asked the government to hold cost-of-living talks this week.
• US President Trump said France is burning, blamed immigration and urged France to close its borders.
• Clashes continued for a second day in Milan, with Italian PM Meloni condemning the violence and calling a government meeting for Monday; cost-of-living and education protests also hit Bologna, Lisbon, Madrid and Brussels.
• EU's Costa said an EU long-term budget needs to be agreed by year-end.
• Morningstar DBRS affirmed Italy at A (low); trend stable.
• S&P affirmed the Netherlands at AAA/A-1+; outlook stable.

LATAM

NOTABLE HEADLINES

• Brazil's Finance Minister Durigan said CPI is under control, but high rates are still a problem and need to come down.