Weekend News Round Up - Newsquawk Asia-Pac Market Open

US stocks were mostly subdued on Friday after solid earnings from major US banks JPMorgan and Wells Fargo failed to support sentiment amid some profit-taking across asset classes, while a surge in the University of Michigan consumer survey and a nudge higher in inflation expectation gauges added to the pullback in dovish Fed pricing.
Libya’s El Sharara oil field and the El Feel oil field resumed production, according to Reuters.
Russian President Putin said Russia reserves the right to mirror actions in the event that cluster munitions are used against Russia and that they have a sufficient stockpile of them, while he also stated that Ukraine’s attempts to break through Russian defences have failed, according to IFX and Reuters.
Highlights include New Zealand Performance of Services Index, South Korean Trade Data, Singapore Non-Oil Exports, Chinese GDP, Industrial Production & Retail Sales, Japan Holiday Closure.

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LOOKING AHEAD

Highlights include New Zealand Performance of Services Index, South Korean Trade Data, Singapore Non-Oil Exports, Chinese GDP, Industrial Production & Retail Sales, Japan Holiday Closure.

US TRADE

US stocks were mostly subdued on Friday after solid earnings from major US banks JPMorgan and Wells Fargo failed to support sentiment amid some profit-taking across asset classes, while a surge in the University of Michigan consumer survey and a nudge higher in inflation expectation gauges added to the pullback in dovish Fed pricing.
SPX -0.1% at 4,506, NDX -0.04% at 15,566, DJIA +0.33% at 34,510, RUT -1.01% at 1,931.
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NOTABLE HEADLINES

Fed policymakers are set to resume raising interest rates this month and remain open to further hikes later in the year, according to Bloomberg citing comments from officials that it is too soon to declare victory over inflation.

COMMODITIES

Libya’s El Sharara oil field and the El Feel oil field resumed production, according to Reuters.
Kuwait plans to raise oil output from 2.7mln bpd to 3.15mln bpd within four years, according to Reuters.
Saudi’s Energy Minister said they will continue to guarantee oil supply to Japan and maintain the position as the reliable partner, while he added that Saudi is Japan’s largest oil exporter fulfilling 40% of its total needs and will continue cooperating with Japan in clean hydrogen and recycled carbon fuels, according to state TV.
Japan is to ensure private sector loans for LNG procurement with Nippon Export & Investment Insurance to receive premiums from private lenders in turn for policies that will cover more than 90% of the loaned amount, with NEXI is to insure a loan by Sumitomo Mitsui Banking Corp (8318 JT) to a unit of LNG importer JERA, according to Nikkei.
Turkey raised the special consumption tax on oil and gasoline with taxes on petrol increased by about 200%, according to Official Gazette and FT.

CRYPTO

National Australia Bank announced new customer protections by blocking some payments made to high-risk cryptocurrency exchanges, according to Reuters.

GEOPOLITICAL

Russian President Putin said Russia reserves the right to mirror actions in the event that cluster munitions are used against Russia and that they have a sufficient stockpile of them, while he also stated that Ukraine’s attempts to break through Russian defences have failed, according to IFX and Reuters.
Russian-backed Governor of Crimea said Russian air defences and fleet engaged in repelling Ukraine’s drone attacks on Crimea, while the Russian Defence Ministry said it stopped Ukraine’s “terrorist attack” on Crimea’s Sevastopol, according to RIA.
Russia moved to ban Apple (AAPL) iPhones for government officials after claiming they were hacked by the US, according to SCMP. It was also reported that Moscow seized the Russian subsidiaries of Danone (BN FP) and Carlsberg’s (CARLB DC) Baltika, according to FT.
China and Russia will start joint air and sea drills in the Sea of Japan, according to Reuters.
Japan is reportedly being pressed by the US to consider a military role in a Taiwan conflict, according to WSJ.
White House National Security Adviser Sullivan said the administration remains concerned North Korea will move forward with another intercontinental ballistic missile test, according to Reuters.

ASIA-PAC

NOTABLE APAC HEADLINES

US Treasury Secretary Yellen commented at the G20 meeting that her Beijing visit put the US-China relationship on a super footing and is eager to mobilise further action on areas of mutual concern. Yellen said tariffs on China were put in place as there were concerns about unfair trade practices and those concerns remain, while she added that China’s slowdown is significant to the global economy and seems in part a reflection of a consumption slowdown. Furthermore, Yellen said US corporates want to see an environment where they can invest and thrive in China, according to Reuters.
US Senate Majority leader Schumer said Democrats will amend the defence policy bill to impose sanctions on China and declare a national emergency over fentanyl, while he hopes the China amendment will pass with strong bipartisan support, according to Reuters.
US climate envoy Kerry arrived in China, according to Chinese state media.
New Zealand PM Hipkins said the region is becoming more contested, less predictable and less secure, while he added that China’s rise and how it seeks to exert influence is a major driver of the increasing strategic competition. Furthermore, he stated that the relationship with China will continue to require careful management and that New Zealand is stepping up engagement with India as it expands its role and interests in the Indo-Pacific.
China reported a record temperature of 52.2 degrees Celsius over the weekend.
G20 chair India said they want to stick to the Bali language for chair summary in finance track meetings and that G20 nations are not keen on a one-size-fits-all thumb rule to restructure the debt of vulnerable countries. Furthermore, the response from China has not been encouraging so far in developing a common understanding for debt restructuring, while the G20 finance meeting this week is to produce a presidency guidance note on crypto as input for synthesis paper discussions, according to a source cited by Reuters.
Japan is to restart free trade agreement talks with 6 Gulf states.
Australian Treasurer Chalmers said he expects a substantial economic slowdown and unemployment to increase as inflation eases, according to Bloomberg.

DATA RECAP

Chinese House Prices YY (Jun) 0.0% (Prev. 0.1%)

EU/UK