Labor Day News Recap - Newsquawk Asia-Pac Market Open

US stock markets were closed on Monday for Labor Day.
US President Trump posted on Truth Social that India has now offered to cut their tariffs to nothing, but it’s getting late, and they should have done so years ago.
US Treasury Secretary Bessent said he plans to write a brief for the US Solicitor General to file that defends US President Trump’s tariffs, as well as commented that he is confident the Supreme Court will uphold Trump tariffs and noted there are other statutes that could be used to justify tariffs, but they are not as efficient and not as powerful.
Looking ahead, highlights include New Zealand Terms of Trade Index, South Korean CPI, Australian Current Account & Net Exports Contribution to GDP, Supply from Australia & Japan.

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Highlights include New Zealand Terms of Trade Index, South Korean CPI, Australian Current Account & Net Exports Contribution to GDP, Supply from Australia & Japan.
Click for the Newsquawk Week Ahead.

US TRADE

TARIFFS/TRADE

US President Trump posted on Truth Social that India has now offered to cut their tariffs to nothing, but it’s getting late, and they should have done so years ago.
US Treasury Secretary Bessent said he plans to write a brief for the US Solicitor General to file that defends US President Trump’s tariffs, as well as commented that he is confident the Supreme Court will uphold Trump tariffs and noted there are other statutes that could be used to justify tariffs, but they are not as efficient and not as powerful. Bessent stated the US is making headway with Europe on the need to crack down on India over Russian oil purchases, while he played down the significance of the China-hosted meeting of leaders from non-Western countries as performative, and accused China and India of being ‘bad actors’ by fuelling the Russian war machine.
EU Council President Costa said it would have been an imprudent risk to escalate trade tensions with the US whilst Europe's eastern border is under threat, and that is why they chose diplomacy over escalation.
SCO joint statement on trade said they oppose trade measures that violate WTO rules and principles, while they are concerned about measures that disrupt the stability of the global supply chain.

NOTABLE HEADLINES

US Treasury Secretary Bessent said the Fed is and should be independent, but added the Fed has also made a lot of mistakes and commented that ‘we haven’t seen anything yet’ regarding the market reaction to President Trump’s pressure on the Fed. Bessent also commented that Fed Governor Cook should be removed or should step down if mortgage allegations are true and noted that Cook hasn’t denied them. Furthermore, Bessent said he thinks there will be a good chance that Stephen Miran is seated before the September meeting, according to interviews with Reuters and Semafor.
US Treasury Secretary Bessent said President Trump may declare a national housing emergency this fall to address rising prices and dwindling supply, according to an interview with the Washington Examiner.

Oil traders expect OPEC+ to hold crude production steady when it meets this weekend, after a series of accelerated supply increases, according to Bloomberg.
Nigeria signed a production sharing contract with TotalEnergies (TTE FP) for two offshore oil blocks, according to a report citing the oil regulator.
Iraq's SOMO and Saudi's Aramco halted crude oil sales to Indian refinery Nayara, according to Reuters citing sources.

MIDDLE EAST

Israeli PM Netanyahu said at a security cabinet meeting that President Trump told him to "Forget the partial hostage deals with Hamas. Go in with full force. Finish it.", according to journalist Stein.
Iranian Foreign Ministry spokesman said Europeans are working under Washington's orders and the move to activate sanctions lacks good faith and undermines credibility, while it is talking with Russia and China to thwart this "illegitimate" European path.
Russia's President Putin told Iranian President Pezeshkian that they're constantly in talks over various issues, including Iran's nuclear programme.
Joint letter from Iran, China, and Russia said the EU's attempt to invoke "snapback" on Iran is legally baseless and politically destructive.

RUSSIA-UKRAINE

Russian President Putin noted that for a Ukrainian settlement to be sustainable and lasting, the root causes of the crisis that he has spoken about many times before, must be addressed, and a fair balance in the sphere of security must be restored.
French President Macron said he has spoken to NATO Secretary General about preparations for the "Alliance of the Willing" meeting on Thursday in Paris. Macron also said they will move forward with their partners and in cooperation with NATO to define strong security guarantees for Ukraine, while he added that Ukraine's security guarantees are a prerequisite for real progress towards peace.
German Defence Minister rejected comments by EU Foreign Policy Chief von der Leyen on sending troops to Ukraine, according to Sky News Arabia.
European Commission President von der Leyen's plane was reportedly impacted by suspected Russian GPS interference in an incident that occurred on Sunday, in which the plane was deprived of electronic navigational aids when landing. Furthermore, the EU Commission confirmed that the GPS system of President von der Leyen's plane to Bulgaria was jammed, and it is looking into the matter.

NOTABLE HEADLINES

India reportedly proposed a 10ppt cut to its general sales tax for around 175 products, with the tax for small hybrid cars, motorcycles, air con, TVs, and cement to be lowered to 18% (prev. 28%), while it will maintain the carbonated drink levy at 40%.

NOTABLE HEADLINES

UK PM Starmer said he's definitely going to lead the Labour Party into the next election, while Starmer conducted a mini-reshuffle of his Downing Street team in which he promoted Chancellor Reeve’s deputy to a new senior role and brought in new economic advisers.

DATA RECAP

UK S&P Global Manufacturing PMI Final (Aug) 47.0 (Prev. 47.3)
German HCOB Manufacturing PMI Final (Aug) 49.8 vs. Exp. 49.9 (Prev. 49.9)
French HCOB Manufacturing PMI Final (Aug) 50.4 vs. Exp. 49.9 (Prev. 49.9)
EU HCOB Manufacturing PMI Final (Aug) 50.7 vs. Exp. 50.5 (Prev. 50.5)
EU Unemployment Rate (Jul) 6.2% vs. Exp. 6.2% (Prev. 6.2%)