Weekend News Roundup - Newsquawk Asia-Pac Market Open

US stocks closed the final session of the week in the green, and saw strength in the wake of the US PCE report for August, which saw all the major metrics print in line.
The Trump administration is reportedly considering tariffs on foreign electronic devices based on the number of chips in each device, according to Reuters sources.
US President Trump told Axios his 21-point Gaza peace plan is in the final stages, saying it could end the war and open the way for wider Middle East peace.
Russian missiles and drones struck Ukraine in a “savage” 12-hour attack; Ukraine said drones struck an oil pumping station in Russiaʼs Chuvashia region.
Looking ahead, highlights include Japanese Leading Indicator, Speech from BoJʼs Noguchi

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US TRADE

US stocks closed the final session of the week in the green, and saw strength in wake of the US PCE report for August, which saw all the major metrics print in line.
Sectors were almost exclusively in the green, with only Consumer Staples in the red and weighed by Costco (-2.9%) after SSS missed. Consumer Discretionary and Utilities outperform.
SPX +0.59% at 6,644, NDX +0.44% at 24,504, DJIA +0.65% at 46,247, RUT +0.97% at 2,434.
Click here for a detailed summary.

NOTABLE NORTH AMERICAN HEADLINES

Fed’s Barkin (2027 voter) said “let’s see what happens on the employment side and also on the inflation side,” noting important PCE data is due soon. He said he has little confidence in any inflation forecast at this point, highlighting that both inflation and unemployment are moving in the wrong direction. He added that while conditions are not improving, the downside is limited, labour supply and demand are both dropping, and he expects only limited increases in unemployment. He also said the neutral rate is not that useful as an operational tool, via Bloomberg.
Fed’s Barkin (2027 voter) said there is reason to think the risk of either a big rise in unemployment or inflation is limited. He noted the labour market may be weakening but the supply of workers is also slowing, and while firms want to pass on higher costs including tariffs, consumer pushback may limit this. He said the Fed is now focused on balancing its goals, adding that the recent rate cut should help the job market while keeping pressure on inflation, which remains above target, according to Reuters.
Fed Governor Miran said models may overstate the impact of immigration on inflation, according to Reuters.
Fed’s Bowman (voter) said recent data shows a materially more fragile labour market and that inflation excluding tariffs is hovering not far above target. She said it is time for the FOMC to act decisively and proactively to address decreasing labour market dynamism and emerging signs of fragility, noting that recent data, including benchmark payroll revisions, suggest the Fed is at serious risk of already being behind the curve. She warned that if conditions continue, there may be a need to adjust policy at a faster pace and to a larger degree going forward. Bowman added the Fed should shift from overweighting the latest data points to a proactive forward-looking approach, expects inflation to return to the 2% target after the one-time adjustment from tariffs, and said a balance sheet tilted toward shorter-dated securities would offer more flexibility. She said she prefers a gradual approach to rate changes, according to Reuters.
US President Trump posted an image of himself “firing” Fed Chair Powell, via Truth Social.
New York City Mayor Eric Adams dropped his bid for re-election, according to the New York Post.
US President Trump said he will discuss the looming government shutdown with congressional leaders on Monday and believes Democrats may want to make a deal; he added that if Democrats refuse to make a deal "the country closes", according to Reuters.

DATA RECAP

Atlanta Fed GDPnow Q3: 3.9% (prev. 3.3%)
US U Mich Conditions Final (Sep) 60.4 (Prev. 61.2)
US U Mich Expectations Final (Sep) 51.7 (Prev. 51.8)
US U Mich 5-Yr Inf Final (Sep) 3.7% (Prev. 3.9%)
US U Mich 1Yr Inf Final (Sep) 4.7% (Prev. 4.8%)
US U Mich Sentiment Final (Sep) 55.1 vs. Exp. 55.4 (Prev. 55.4)
US Core PCE Price Index MM (Aug) 0.2% vs. Exp. 0.2% (Prev. 0.3%, Rev. 0.2%)
US Core PCE Price Index YY (Aug) 2.9% vs. Exp. 2.9% (Prev. 2.9%)
US PCE Price Index MM (Aug) 0.3% vs. Exp. 0.3% (Prev. 0.2%)
US PCE Price Index YY (Aug) 2.7% vs. Exp. 2.7% (Prev. 2.6%)
US Personal Income MM (Aug) 0.4% vs. Exp. 0.3% (Prev. 0.4%)
US Consumption, Adjusted MM (Aug) 0.6% vs. Exp. 0.5% (Prev. 0.5%)
US Personal Income MM (Aug) 0.4% vs. Exp. 0.3% (Prev. 0.4%)

TRADE/TARIFFS

The Trump administration is reportedly considering tariffs on foreign electronic devices based on the number of chips in each device, according to Reuters sources.
The White House said the latest pharmaceutical tariffs do not apply to countries with negotiated trade deals, according to Bloomberg.
Britain would face 100% tariffs on US pharmaceuticals under US President Trump’s latest plan, according to Reuters citing sources.
The UK will offer to pay more for drugs in a bid to placate US President Trump and pharmaceutical groups, according to the FT.
The White House will honour a 15% cap on pharmaceutical tariffs as part of trade deals with the EU and Japan, according to CNBC.
A US official said India trade talks are on a positive track but stressed that India needs to address US market access concerns, the trade deficit, and purchases of Russian oil, according to Reuters.
The Trump administration is considering tariffs on foreign electronics based on the number of chips, with proposed duties tied to the chips’ value, according to Reuters citing sources.
US soybean farmers face a crisis as China halts purchases amid the tariff dispute, according to Reuters.
The EU is plotting a “devastating tariff hit” against UK steelmakers, with officials in Brussels aiming to halve the UK’s tariff-free quotas and double tariffs to 50% under pressure from steel industries in member states, according to The Times.
US trade negotiators, in talks with Indian counterparts, made clear that resolving the Russia issue is crucial to a US-India trade deal; negotiations were described as positive but with no significant breakthrough, via Bloomberg citing sources.
EU Trade Commissioner Sefcovic said the EU is looking forward to more balanced trade with Vietnam, according to Reuters.
EU trade chief said he expects US commitments on the pharmaceutical tariff cap will be respected, according to Reuters.
EU trade chief said he will send a detailed letter to the US over the weekend with suggestions on how to resolve issues on steel and aluminium, according to Reuters.

NOTABLE US EQUITY HEADLINES

Electronic Arts (EA) is near a roughly USD 50bln deal to go private, according to WSJ.
Chinese factory workers are facing harsh conditions while racing to produce Apple’s (AAPL) new iPhone 17 lineup, according to China Labor Watch.
US Vice President JD Vance said he is confident the US has separated TikTok from ByteDance, according to Reuters.
Occidental Petroleum (OXY) is said to be in talks to sell its OxyChem petrochemical unit in a deal worth at least USD 10bln, according to the FT.

FX

The Dollar was weaker on Friday and took a breather from the recent rally. The Wednesday strength left desks scratching their heads, but Thursday’s ascent higher was driven by US data.
G10 FX action has been dominated by the broader Dollar moves, as opposed to much currency-specific newsflow, and it remained the case on Friday.
Antipodeans and JPY saw similar gains. CAD was flat. For the Yen, it saw mild weakness.
EMFX was mixed. For the INR, US trade negotiators in talks with Indian counterparts made clear that the Russia issue being resolved is crucial to a US-India trade deal, via Bloomberg, citing sources

FIXED INCOME

T-notes steepened on Friday in choppy trade after PCE matches expectations.
Italy sold EUR 6bln vs exp. EUR 5-6bln 2.85% 2031, 3.60% 2035 BTP, EUR vs exp. EUR 1-1.25bln 4.00% 2035 BTP Green & EUR 1.5bln vs exp. EUR 1-1.5bln 2034 CCTeu.

COMMODITIES

Oil prices extended on weekly gains on Friday, albeit in light energy-specific newsflow.
Indonesia’s Mining Minister said production at Freeport’s Grasberg mine has not resumed following disruption earlier in the week, according to Reuters.
A force majeure notice was issued at three French LNG terminals due to a power sector strike, with the strike blocking ship reception at all terminals, according to Reuters citing Elengy.
Iraq is in talks with Vitol to handle crude oil sales once the Kurdish pipeline restarts, according to Bloomberg.
Indonesia’s Mining Minister said production at Freeport (FCX) has not resumed, with the stoppage affecting output and revenue, adding that he spoke with Freeport about extending the mining permit beyond 2041, according to Reuters.
Crude oil exports through the Kurdish pipeline are scheduled to restart at 0600 on Saturday, according to Reuters citing sources.
Iraq’s Oil Minister told Kurdistan’s Rudaw that oil exports via Turkey’s Ceyhan pipeline are to resume at approximately 180–190k bpd, according to Rudaw.
Kazakhstan’s oil and condensate output rose 3% in August to 8.885mln tonnes, according to Reuters.
Baker Hughes Rig Count: Oil +6 at 424, Natgas -1 at 117, Total +7 at 549.
OPEC+ will likely raise oil production quotas by at least 137k bpd at its October 5th meeting, according to Reuters citing sources.
OPEC+ will likely raise oil output again in November as the group continues its strategy to reclaim global market share, according to Reuters citing sources.
An Iraqi OPEC delegate said the country can boost exports beyond current levels once the Iraq–Turkey pipeline resumes and new projects come online, according to the state news agency.

GEOPOLITICAL

NATO

The EU will draw up plans to build and help finance interlinked drone defences across the continent’s borders and critical infrastructure, according to the FT.
Russian President Putin is to deliver a major speech this week, according to multiple media outlets.
Belarus's President said that if NATO threatens to shoot down Russian and Belarusian fighter jets, the response will come immediately, according to Reuters.
NATO will boost its presence in the Baltic region following drone incidents in Denmark, according to Reuters.
Denmark announced that unknown drones were spotted over several military facilities on Friday night, including the country’s main air base Karup, which houses Denmark’s F-16s and F-35s, according to Reuters.
The Kremlin said the statement about European diplomats telling Moscow that Russian aircraft will be shot down if violating airspace is irresponsible, according to Reuters.

MIDDLE EAST

US President Trump told Axios his 21-point Gaza peace plan is in the final stages, saying it could end the war and open the way for wider Middle East peace. The plan, drafted by Steve Witkoff and Jared Kushner, includes a permanent ceasefire, release of hostages within 48 hours, gradual Israeli withdrawal, release of Palestinian prisoners, a post-war governing mechanism in Gaza without Hamas, Arab and Muslim funding, disarmament of Hamas, amnesty or safe passage for its members, no Israeli annexation of Gaza or the West Bank, an Israeli commitment not to attack Qatar again, and a future path to Palestinian statehood after reforms to the Palestinian Authority, according to Axios.
US President Trump told Reuters in a phone interview that he has gotten a "very good response" from Israel and Arab leaders to the Gaza peace plan proposal, adding that "everybody wants to make the deal" and he hopes to finalize it in a meeting with Netanyahu on Monday; he said the proposal is aimed not just at Gaza but at reaching a broader peace in the Middle East, according to Reuters.
Israeli PM Netanyahu discussed President Trump’s 21-point Gaza peace plan, saying priorities are freeing hostages and dismantling Hamas while expressing doubt over Palestinian Authority reform, according to Fox News.
Israel’s Channel 12 reported that turning the Gaza Strip into an international trade zone is one of the clauses of the Trump plan.
Israel is ready to consider withdrawing from a number of areas in Syria where IDF forces are deployed, but not from the Hermon Crown, according to Kann News.
Israel’s Kan TV quoted a source close to PM Netanyahu as saying there are “significant gaps” between him and the White House over the terms of ending the war in the Gaza Strip.
The Israeli army announced it bombed a Hezbollah weapons depot in southern Lebanon, according to Reuters.
The UK’s UN envoy on Friday said UN sanctions will be reimposed on Iran this weekend, according to Reuters.
A Russian and Chinese push to delay the return of Iran sanctions for six months failed at the UN Security Council, according to Reuters.
Russia’s Deputy UN Envoy said the reimposition of UN sanctions on Iran could have very adverse consequences and lead to an escalation in the Middle East, according to Reuters.
Israeli PM Netanyahu told Fox News that 450 kilos of enriched uranium remain, saying Israel knows where it is and shares that information with the US, and that both countries knew before bombing Iranian nuclear sites they would not be able to eliminate it.
An Iranian Armed Forces spokesman said nuclear energy is a national need and that Iran will not abandon it, according to Reuters.
Iraqi media reported the discovery of an unidentified spy drone near the border with Iran.
Iran’s Parliamentary National Security Committee said the country has not yet withdrawn from the Nuclear Non-Proliferation Treaty, according to Reuters.
The European Troika warned Iran against any “escalatory” actions following the reimposition of sanctions, according to Reuters.
Iranian President Pezeshkian said the US offered to postpone snapback sanctions by three months if Tehran handed over all its enriched uranium.
Iran is reportedly bracing for the activation of the snapback mechanism and is engaged in “intensive diplomatic efforts” to postpone it, via journalist Azimi citing senior sources.

RUSSIA-UKRAINE

Russian missiles and drones struck Ukraine in a “savage” 12-hour attack, according to Reuters.
Russian sources said the Russian army launched strikes targeting military sites in Kyiv and its surroundings, as well as weapons depots and air defence systems.
Poland closed its airspace after a “massive” Russian attack on Ukraine’s capital killed at least four people, according to Reuters.
US President Trump told Ukrainian President Zelensky he was open to providing new long-range weapons and to lifting restrictions on Ukraine’s use of American-made long-range weapons to strike inside Russia, though he did not commit to doing so during their Tuesday meeting, according to WSJ citing a senior US official and a Ukrainian official.
Ukrainian President Zelensky said he expects new EU sanctions on Russia this week, according to Reuters.
Russian Foreign Minister Lavrov said no one expects a return to Ukraine’s 2022 borders, calling it politically blind, according to Reuters.
Ukraine said drones struck an oil pumping station in Russia’s Chuvashia region, according to Reuters.
Russian missiles and drones struck Ukraine in a “savage” 12-hour attack, according to Reuters.
Russian sources said the Russian army launched strikes targeting military sites in Kyiv and its surroundings, as well as weapons depots and air defence systems.
Poland closed its airspace after a “massive” Russian attack on Ukraine’s capital killed at least four people, according to Reuters.
US President Trump told Ukrainian President Zelensky he was open to providing new long-range weapons and to lifting restrictions on Ukraine’s use of American-made long-range weapons to strike inside Russia, though he did not commit to doing so during their Tuesday meeting, according to WSJ citing a senior US official and a Ukrainian official.
Ukrainian President Zelensky said he expects new EU sanctions on Russia this week, according to Reuters.
Russian Foreign Minister Lavrov said no one expects a return to Ukraine’s 2022 borders, calling it politically blind, according to Reuters.
Ukraine said drones struck an oil pumping station in Russia’s Chuvashia region, according to Reuters.

OTHERS

Iran and Russia reached a USD 25bln agreement to construct four nuclear power plants in Iran, via IRNA.
The US is preparing options for military strikes on drug targets inside Venezuela, with potential drone strikes on traffickers and labs being considered, though President Trump has not yet approved any action and talks are ongoing through Middle Eastern intermediaries, according to NBC News.
US President Trump plans to attend a gathering of top generals and admirals in Virginia this week, an event described as a “pep rally” for senior military brass where Defense Secretary Hegseth will outline his vision of the Pentagon as the “Department of War” and set new standards for military personnel, according to CNN.
US President Trump said he will address a generals' meeting in Quantico, Virginia, on Tuesday, adding "I want to tell the generals that we love them", according to Reuters.
Chinese President Xi is reportedly planning to press US President Trump to formally state that the US opposes Taiwan’s independence, according to WSJ.
Moldova's pro-EU PAS party leads the election with 44% of votes versus 28% for the pro-Russian Patriotic Bloc after 70% of votes counted, according to the electoral commission.

ASIA-PAC

NOTABLE HEADLINES

PBoC said it will step up monetary policy adjustment, keep liquidity ample, enhance interest rate guidance, and promote a decline in social financing costs. It added it supports foreign investors accessing the onshore repo bond market, will pay attention to changes in long-term yields, prevent funds from sitting idle, and guard against Yuan overshooting risk. The PBoC reiterated it will keep the Yuan basically stable, expand domestic demand, enhance counter-cyclical adjustment, guide financial institutions to increase credit supply, and promote stable economic growth and reasonable prices, via Bloomberg.
China’s top economic planner, the NDRC, held a symposium on Sunday hosted by agency head Zheng Shanjie, inviting private enterprises to submit opinions and suggestions on expanding effective investment during the 15th Five-Year Plan period (2026–30), according to the NDRC’s official WeChat account via Global Times.
South Korea rejected a US request for USD 350bln in cash under a tariff-reduction deal, a senior official said, according to Reuters.
Taiwan is eyeing an expanded tech presence in India amid surging US demand, according to the chief of a trade body, Reuters reported.

EU/UK