Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks finished with marginal losses on Friday on what was a choppy session following mixed PMI data in which Manufacturing PMI topped forecasts but remained in contraction territory and Services PMI disappointed, while there were several central bank speakers including Fed's Bowman who implied she was the top dot at the Fed saying more rate hikes are likely needed.
• US GOP Rep. Graves said Republicans are considering a stopgap government funding measure that would range from 14 to 60 days and warned that letting funding lapse would be a mistake. However, it was separately reported that US lawmakers warned that a government shutdown was increasingly certain as hopes of a last-ditch compromise dwindle, according to FT.
• Looking ahead, highlights include Singapore CPI & Speech from RBA Assistant Governor Jones.

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LOOKING AHEAD

• Highlights include Singapore CPI & Speech from RBA Assistant Governor Jones.

US TRADE

• US stocks finished with marginal losses on Friday on what was a choppy session following mixed PMI data in which Manufacturing PMI topped forecasts but remained in contraction territory and Services PMI disappointed, while there were several central bank speakers including Fed's Bowman who implied she was the top dot at the Fed saying more rate hikes are likely needed.
• SPX -0.23% at 4,320, NDX +0.05% at 14,701, DJIA -0.31% at 33,963, RUT -0.30% at 1,776.
• Click here for a detailed summary.

NOTABLE HEADLINES

• US lawmakers warned that a government shutdown was increasingly certain as hopes of a last-ditch compromise dwindle, according to FT.
• US GOP Rep. Graves said Republicans are considering a stopgap government funding measure that would range from 14 to 60 days and warned that letting funding lapse would be a mistake. Furthermore, Graves said House Republicans are moving forward on four appropriations bills in the week ahead but with 7 days left until government funding runs out, lawmakers will need to pass a short-term measure to avoid a shutdown.
• UAW expanded its strikes against General Motors (GM) and Stellantis (STLA) but kept its industrial action against Ford (F) to one plant due to progress being made in talks, according to Reuters.
• Apple (AAPL) is reportedly planning to scale up production in India by over five-fold to USD 40bln during the next 4-5 years.

FX

• Iraq’s Central Bank Governor said Iraq will restrict all internal commercial and other transactions to Iraqi Dinars instead of US Dollars in the coming year, according to state media.

COMMODITIES

• Saudi Foreign Minister said the kingdom is keen to maintain stability, reliability, sustainability and security of oil markets, according to Reuters.
• EU energy official said Europe will have to rely on US fossil fuels for decades, according to FT.

GEOPOLITICAL

• Ukrainian President Zelensky said he met with Mike Bloomberg and other top US financiers during his US visit to discuss reconstruction and investment, according to Reuters.
• Russian Foreign Minister Lavrov said the Ukraine peace formula is not feasible, while he stated regarding the latest proposals by the UN Secretary-General to revive the Black Grain deal that they do not reject them but noted the proposals are simply not realistic, according to Reuters.
• Iranian President Raisi told CNN that Iran has not said it does not want IAEA nuclear inspectors in the country, while he added that Israeli normalisation with Gulf Arab states will see no success.
• Iran’s intelligence ministry said 30 simultaneous explosives were neutralised in Tehran and 28 terrorists were arrested.
• French President Macron announced that France is to end its military cooperation with Niger in the months ahead following the military coup and decided to recall its ambassador from the African country, according to Reuters.
• US President Biden’s administration is reportedly in talks for a major arms transfer to Vietnam that may include fighter jets.
• Philippines strongly condemned the Chinese Coast Guard’s installation of a 300-metre floating barrier preventing Filipino boats from entering the Scarborough Shoal in the South China Sea.

ASIA-PAC

NOTABLE HEADLINES

• PBoC adviser said China has limited room for further monetary policy easing and should pursue structural reforms such as encouraging entrepreneurs instead of relying on macroeconomic policies to revive growth, according to Reuters.
• Chinese state asset manager, China Reform Holdings is to set up a strategic emerging industry fund worth at least CNY 100bln, according to Bloomberg.
• Evergrande (3333 HK) cancelled its creditor meeting set for early this week and is scrapping its USD 35bln debt restructuring plan, while it noted that it is necessary to re-assess the terms of the proposed restructuring. Co. also stated that it is unable to issue new debt under the present circumstances citing an investigation into its subsidiary Hengda Real Estate.
• Chinese President Xi said in a meeting with South Korea’s PM that he welcomes a summit between China, South Korea and Japan at an opportune time and will seriously consider visiting South Korea, according to Reuters.
• US Department of Defense said the US and China will hold a working-level meeting on cyber issues and strategy, according to Reuters.
• EU’s Dombrovskis said the EU has no intention to decouple from China but needs to protect itself when its openness is abused, according to Reuters.
• Japan’s government is considering 5yr-10yr tax benefits for firms producing semiconductors and storage batteries as part of an upcoming economic stimulus package, while the government is considering providing support in areas where private-sector firms face high entry risks.
• Japan is to boost take-home pay for part-time workers, according to Yomiuri.

EU/UK

NOTABLE HEADLINES

• UK PM Sunak is facing a renewed backlash from within the Tory party and opposition Labour politicians, as well as business executives and university leaders after the government refused to rule out scrapping the northern leg of the HS2 rail project, according to FT.
• ECB’s Villeroy said the recent increase in oil prices won’t derail the ECB’s fight to tame inflation and stated that patience is more important than raising rates further, according to Bloomberg citing an interview with France Inter.
• Italy revisited the windfall tax on banks to give lenders the option to boost reserves instead of paying a levy, according to Reuters.