Weekend News Roundup - Newsquawk Asia-Pac Market Open

• US stocks and yields finished Friday in the green with equity gains broad-based but the Russell outperformed with the strong April Jobs data reducing fears around the economy after the US NFP report came in above expectations while the unemployment rate remained steady at 4.2%, as expected. The data set the tone for the day with yields continuing to rise into settlement while stocks closed out around highs.
• US President Trump’s 25% tariffs on engines, transmissions and other key auto parts took effect on Saturday.
• US President Trump said he is willing to lower tariffs on China at some point because the levies now are so high that the world's two largest economies have essentially stopped doing business with each other, although he also noted that he would need to keep at least some tariffs on foreign goods in place to convince businesses to move production to the US, according to Bloomberg and Axios citing an interview with NBC News.
• OPEC+ countries with voluntary cuts agreed to raise oil output by 411k bpd in June in a virtual meeting held on Saturday. It was also reported that OPEC+ will likely approve in June another accelerated oil production hike of 411k bpd for July and could unwind voluntary cuts of 2.2mln bpd through October 2025 if compliance with quotas doesn’t improve as Saudi Arabia looks to punish some members for exceeding quotas, according to sources cited by Reuters. Furthermore, eight OPEC+ countries are to meet next on June 1st.
• Looking ahead, highlights include Australian Services PMI and MI Inflation Gauge, Singapore Retail Sales, Holiday Closures in Japan, South Korea, China, Hong Kong and the UK.

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LOOKING AHEAD

• Highlights include Australian Services PMI and MI Inflation Gauge, Singapore Retail Sales, Holiday Closures in Japan, South Korea, China, Hong Kong and the UK.
• Click for the Newsquawk Week Ahead.

US TRADE

• US stocks and yields finished Friday in the green with equity gains broad-based but the Russell outperformed with the strong April Jobs data reducing fears around the economy after the US NFP report came in above expectations while the unemployment rate remained steady at 4.2%, as expected. The data set the tone for the day with yields continuing to rise into settlement while stocks closed out around highs.
• SPX +1.43% at 5,684, NDX +1.60% at 20,103, DJI +1.39% at 41,319, RUT +2.18% at 2,019.
• Click here for a detailed summary.

TARIFFS/TRADE

• US President Trump’s 25% tariffs on engines, transmissions and other key auto parts took effect on Saturday.
• US President Trump said he is willing to lower tariffs on China at some point because the levies now are so high that the world's two largest economies have essentially stopped doing business with each other, although he also noted that he would need to keep at least some tariffs on foreign goods in place to convince businesses to move production to the US, according to Bloomberg and Axios citing an interview with NBC News.
• US President Trump’s trade adviser Navarro warned the UK against deepening trade ties with China, potentially complicating tariff talks between the UK and the US, according to Bloomberg which cited comments by Navarro to The Telegraph.
• Fox Business’s Gasparino posted on X that he is getting guidance from Wall Street sources close to the White House that a bunch of trade deal “frameworks” can be expected in the coming weeks, while they might trickle out sooner such as deals with India, South Korea or Japan and it is always possible they could be as early as this week as people have been forecasting. However, he was told that delays involved the time-consuming nature of getting various foreign sign-offs on all the details in the agreements.
• Japanese Finance Minister Kato said on Sunday that Japan has no intention of using the possibility of selling its US Treasury holdings for advantage in trade negotiations with the US, according to Nikkei.
• Chinese exporters are reportedly increasing efforts to avoid US tariffs by shipping their goods via third countries to conceal where they originated from, according to FT.
• Mexican President Sheinbaum said she rejected an offer from US President Trump to send US troops to Mexico to help combat drug trafficking.

NOTABLE HEADLINES

• US President Trump said he is not worried about a US recession and that anything can happen, but he thinks they are going to have the greatest economy in history. Trump reiterated that the Fed should lower interest and said he won’t remove Fed Chair Powell, while he said he doesn’t know if he needs if people in the US deserve due legal process which is guaranteed by the constitution as he criticized the judiciary for opposing his plans to deport undocumented immigrants, according to an interview with NBC News.
• US President Trump administration officials are exploring ways of challenging the tax-exempt status of non-profits, according to WSJ.
• Apple (AAPL) plans an iPhone release schedule shake-up and new styles, according to The Information.
• Warren Buffet is to step down as CEO of Berkshire Hathaway (BRK/A) by year-end with Greg Abel to succeed Buffet as CEO later this year.

DATA RECAP

• US Non-Farm Payrolls (Apr) 177.0k vs. Exp. 130.0k (Prev. 228.0k, Rev. 185k); two month net revisions -58k (prev. -34k).
• US Unemployment Rate (Apr) 4.2% vs. Exp. 4.2% (Prev. 4.2%).
• US Average Earnings YY (Apr) 3.8% vs. Exp. 3.9% (Prev. 3.8%).

COMMODITIES

• OPEC+ countries with voluntary cuts agreed to raise oil output by 411k bpd in June in a virtual meeting held on Saturday. It was also reported that OPEC+ will likely approve in June another accelerated oil production hike of 411k bpd for July and could unwind voluntary cuts of 2.2mln bpd through October 2025 if compliance with quotas doesn’t improve as Saudi Arabia looks to punish some members for exceeding quotas, according to sources cited by Reuters. Furthermore, it was also reported that eight OPEC+ countries are to meet next on June 1st.
• UAE’s ADNOC set June Murban crude OSP at USD 67.73/bbl.

GEOPOLITICAL

MIDDLE EAST

• Israel called on Qatar to stop playing both sides with its double talk and decide if it is on the side of civilisation or if it is on the side of Hamas, according to the Israeli PM’s office.
• Israeli PM Netanyahu said Israel will respond to Houthi’s Iranian terror master at a time and place of its choosing, while it was also reported that Israel’s army chief issued an order for reservists to expand operations in Gaza.
• A missile fired by Yemen’s Houthis hit the grounds of Israel’s Ben Gurion Airport after interception failed, while six were reportedly injured, but none seriously, according to The Times of Israel. It was separately reported that Yemen’s Houthis said they are working on imposing a comprehensive air blockade on Israel by targeting its airports.
• Iran’s Defence Minister warned they will respond with force if Iran is attacked and said if a war is initiated by the US or Israel, Iran will target their interests, bases and forces wherever they may be and whenever deemed necessary, according to state TV.

RUSSIA-UKRAINE

• US will no longer mediate peace negotiations between Ukraine and Russia, according to a report on Friday by The Telegraph citing the State Department.
• Russian President Putin said they have enough strength and the means to bring the conflict with Ukraine to a logical conclusion, while he also stated that there has been no need to use nuclear weapons in the Ukraine conflict and hopes there never will be.
• Russia’s Kremlin said President Putin’s offer to Ukraine of a 3-day ceasefire to coincide with World War Two commemorations was a test to assess Kyiv’s readiness for peace and Ukraine’s refusal to agree shows ‘neo-Nazism’ lies at the foundation of the Ukrainian government.
• Russian senior security official Medvedev said US President Trump’s claim that the US did more than any other country to win World War Two is pretentious nonsense, according to TASS.
• Chinese President Xi will conduct a state visit to Russia and attend a war victory celebration on May 7th-10th, while Chinese President Xi and Russian President Putin are to discuss the development of a comprehensive strategic partnership.

OTHER

• US Army Pacific Commander General Clark said the region is more dangerous now due to China’s aggressive behaviour and that China’s rehearsals of a Taiwan blockade ‘leave you speechless’.

ASIA-PAC

NOTABLE HEADLINES

• Australian PM Albanese’s Labor Party won an increased majority in the election on Saturday with a projected 85 seats in the 151-seat parliament, while the opposition Liberal-National Coalition leader Dutton lost his seat which he had held for 24 years.
• Singapore’s ruling PAP won in 29 out of 32 constituencies contested in the election on Saturday and was confirmed the winner of 87 of 97 House seats.
• US President Trump said he would extend the TikTok deadline if there is still no deal.

EU/UK

NOTABLE HEADLINES

• EU is reportedly eyeing closer ties to the trans-Pacific CPTPP bloc to defend the rules-based global system, according to FT.