Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks finished little changed on Friday as markets struggled for direction, while treasuries were mixed with bear flattening seen in the aftermath of the higher-than-expected US Housing Starts and Building Permits data, as well as some hawkish rhetoric from Fed officials.
• Israel, Hamas and the US are close to an agreement to free dozens of hostages in Gaza in exchange for a five-day pause in fighting and were reported to have reached a tentative deal, according to the Washington Post. However, it was separately reported that the White House said there is no deal yet and that the US continues to work hard to get a deal between Israel and Hamas.
• Looking ahead, highlights include Thailand GDP, Malaysian Trade Data, PBoC Loan Prime Rates, Speech from ECB's Lane.

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LOOKING AHEAD

• Highlights include Thailand GDP, Malaysian Trade Data, PBoC Loan Prime Rates, Speech from ECB's Lane.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks finished little changed on Friday as markets struggled for direction, while treasuries were mixed with bear flattening seen in the aftermath of the higher-than-expected US Housing Starts and Building Permits data, as well as some hawkish rhetoric from Fed officials.
• SPX +0.13% at 4,513, NDX +0.03% at 15,838, DJI +0.01% at 34,947, RUT +1.35% at 1,798.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Fed’s Collins (non-voter) said on Friday that she remains optimistic that inflation can come down without a large increase in unemployment, while she has not materially changed many aspects of her forecast at this point and continues to see some evidence of rebalancing of demand and supply, as well as inflation coming down. Furthermore, Collins said that policy should remain restrictive until there is sustained evidence of inflation declining.
• APEC leaders agreed to the 2023 Golden Gate Declaration after the conclusion of the meeting, while they reaffirmed the importance of the rules-based multilateral trading system with the WTO at its core and will continue to work to ensure a level playing field to foster a favourable trade and investment environment.
• OpenAI staff and investors swing behind Sam Altman with Microsoft (MSFT) and venture groups exploring options to bring him back after board members fired him on Friday, according to FT.
• UAW members at Ford's (F) Kentucky plant voted for the tentative agreement with Ford, according to Reuters.

COMMODITIES

• Energy Intel’s Bakr said she hasn’t heard of any ‘additional’ OPEC+ cuts being discussed at this time.
• Russia’s Gazprom and Venezuela’s PDVSA are to discuss new gas projects in Venezuela, according to RIA.

GEOPOLITICS

• Israel, Hamas and the US are close to an agreement to free dozens of hostages in Gaza in exchange for a five-day pause in fighting and were reported to have reached a tentative deal, according to the Washington Post. However, it was separately reported that the White House said there is no deal yet and that the US continues to work hard to get a deal between Israel and Hamas.
• Israeli forces advanced in Gaza City as Israeli PM Netanyahu resisted calls for a ceasefire, according to FT. In relevant news, Israel’s ambassador to the US Herzog said Israel is hopeful a significant number of hostages could be freed in the coming days.
• US President Biden said in an Op-Ed article that a revitalised Palestinian authority should ultimately govern Gaza and the West Bank, while he added that the international community must establish a reconstruction mechanism to sustainably meet Gaza’s long-term needs.
• UN Secretary-General Guterres said he is deeply shocked that two UNRWA schools were struck in less than 24 hours in Gaza which killed and injured dozens of people. Guterres also said the civilian toll in Gaza is staggering and unacceptable, while he reiterated the call for an immediate humanitarian ceasefire.
• EU’s foreign policy chief Borrell said at a joint press conference with Qatari PM Al-Thani that the UN Security Council resolution on humanitarian pauses in Gaza must be implemented. It was also reported that Qatar’s PM said challenges to the hostages deal are now very minor and that sticking points in negotiations are practical and logistical, while he is more confident now that a deal can be reached on hostages.
• Iran’s Foreign Minister said resistance groups are cleverly adjusting pressure on Israel and its supporters and have inactivated capacity for pressure.
• Iran's Supreme Leader Khamenei called on Muslim states to at least cut off political ties with Israel for a limited period of time, according to TASNIM.
• Yemen’s Houthis said they will target all ships owned and operated by Israeli companies or carrying the Israeli flag, while the Houthis later announced that they seized an Israeli ship and took it to a Yemeni port.
• Turkish President Erdogan said Turkey will make efforts to rebuild damaged infrastructure, hospitals and schools in Gaza if a ceasefire is achieved, while he added that Turkey is making a call for nuclear weapons inspections in Israel so no doubt is left on the issue, according to Turkish media.
• Armenia and Azerbaijan agreed on basic principles of a peace treaty, according to TASS citing Armenia's PM.

ASIA-PAC

NOTABLE HEADLINES

• China’s securities regulator will adopt different policies to address the risk of bond defaults by large real estate companies depending on their respective circumstances, according to Chinese financial media outlet Yicai.
• Taiwan’s APEC envoy Chang said he had informal interactions with US President Biden, Vice President Harris and Secretary of State Blinken, while he didn’t have any interactions with Chinese President Xi.

EU/UK

NOTABLE HEADLINES

• UK Chancellor Hunt said he won’t conduct any tax cuts that would make inflation worse and that the only way to reduce personal taxes is to spend public money more efficiently, while he responded that everything is on the table regarding the Autumn statement when asked about reports of inheritance tax cuts. Hunt also stated that the tax burden is too high which he wants to bring down.
• Hungarian PM Orban said Hungary needs to change the EU not leave it, while he also stated that they will need to correct the mistaken promise to start talks about Ukraine’s EU membership.
• Fitch affirmed Spain on Friday at A-; Outlook Stable, while Moody’s raised Portugal’s rating by two notches from Baa2 to A3; Outlook Stable and affirmed Italy at Baa3; Outlook revised to Stable from Negative.