Weekend News Roundup - Newsquawk Daily Asia-Pac Market Open

• US President Trump claimed Russia and Ukraine agreed to an energy ceasefire with immediate effect. However, it was reported by Axios that a White House official said Trump's announcement of an energy ceasefire between Russia and Ukraine referred to a potential deal, which he expects Ukrainian President Zelensky to abide by, while the report added that Russia hasn't accepted any kind of a ceasefire so far.
• US President Trump said he was considering whether the US should join Saudi strikes against Yemen's Houthis, following another attack on the Saudi capital's airport.
• US reportedly accepted some of Tehran’s 7 conditions in a response conveyed via the Qatari intermediary, but Iran deems this insufficient, while it reaffirmed that the only way to reopen the Hormuz is to fulfil all 7 conditions simultaneously and in a single stage, according to Iranian journalist Ghaderi.
• Looking ahead, highlights include Philippines FDI, Holiday Closures in Japan & Canada on Monday.

1. Subscribe to the free premarket movers reports

2. Trial Newsquawk’s premium real-time audio news squawk box for 7 days

LOOKING AHEAD

• Highlights include Philippines FDI, Holiday Closures in Japan & Canada on Monday.
• Click for the Newsquawk Week Ahead.

IRAN CONFLICT

• US President Trump said he was considering whether the US should join Saudi strikes against Yemen's Houthis, following another attack on the Saudi capital's airport.
• US reportedly accepted some of Tehran’s 7 conditions in a response conveyed via the Qatari intermediary, but Iran deems this insufficient, while it reaffirmed that the only way to reopen the Hormuz is to fulfil all 7 conditions simultaneously and in a single stage, according to Iranian journalist Ghaderi.
• US military said it had disabled a commercial cargo vessel in the Gulf of Oman after the crew ignored warnings and attempted to breach the naval blockade against Iran.
• UKMTO announced that a tanker transiting outbound in the Strait of Hormuz was struck by an unidentified projectile, resulting in damage to the vessel.
• IRGC navy said a violating supertanker struck a sea mine in the southern Strait of Hormuz, which caused a fire and was the third tanker since Saturday to hit naval mines, while it warned that vessels disabling navigation and identification systems in the Strait of Hormuz will be treated as "hostile targets" and will face harsh, decisive action.
• Iran's Supreme National Security Council Secretary Rezai said Iran is fully prepared and will demonstrate new capabilities if war resumes, while he added that US assets in the UAE and around the Strait of Hormuz are highly valuable but have not been placed on Iran's target list to date. Furthermore, he warned that renewed conflict would see many regional undersea cables, data centres, AI facilities and other sites destroyed, assets he valued at more than USD 2tln.
• Iranian Deputy Foreign Minister Gharibabadi said Iran is in a state of war and that no commercial vessel may transit the Strait of Hormuz without prior coordination with Tehran, with the waterway a national security red line. Gharibabadi also stated that Iran is seeking to register with the IMO an agreement with Oman on transit routes, but noted that registration would not guarantee the strait’s reopening, while he added that reopening depends on the US fulfilling the prior commitments it suspended.
• Iranian Foreign Minister Araghchi held a call with Saudi Arabia's Foreign Minister bin Farhan and stressed that Iran is ready to provide any assistance to help start dialogue between Saudi Arabia and Yemen and to help achieve a political solution.
• Saudi Arabia said 12 people were killed and more than 300 injured in an attack targeting King Khalid Airport in Riyadh on Saturday, and a projectile also targeted the airport on Sunday, which caused a fire, while the Saudi civil aviation authority announced that the King Fahd International Airport in Dammam was attacked.
• Saudi Arabia, Turkey, Pakistan and Egypt issued a joint statement condemning continued attacks by Yemeni Houthis on Saudi Arabia, calling them a dangerous escalation and expressing support for Saudi measures to respond.

US TRADE

• US stocks closed higher on Friday, with tech names putting Thursday's FT piece on OpenAI revenue in the rearview, with gains led by Real Estate, Consumer Discretionary, and Healthcare, while Communications underperformed following SpaceX competition concerns for Verizon (VZ -8.6%) and T-Mobile (TMUS -13.3%). Crude prices settled in the green, but saw pressure after US President Trump announced successful talks with Russian President Putin, which led to the US Treasury allowing Russia to sell diesel to the US, albeit quantities for the time being appear insignificant in comparison to US/global diesel consumption.
• SPX +0.58% at 7,810, NDX +0.51% at 30,883, DJI +0.83% at 51,655, RUT +0.46% at 2,807.
• Click here for a detailed summary.

TARIFFS/TRADE

• US President Trump criticised being overlooked for the Nobel Peace Prize, saying the fact that it did not go to him was another sign that Norway and other countries were ripping off the US.
• EU and China talks concluded late on Friday with a 16-point consensus covering trade and investment, export controls and intellectual property rights, according to people familiar with the discussions. The EU planned measures to halve Chinese hybrid car imports, with the bloc later announcing a cap of 350k vehicles in the first year, increasing by 6% annually, under measures set to last four years.
• China's NDRC vowed to step up countercyclical support and prepare additional high-impact policy tools as it seeks to achieve this year's economic goals.

NOTABLE HEADLINES

• Trump administration's push to establish legal liability for AI safety is setting the stage for future conflicts over who bears the cost when AI models go rogue.
  NVIDIA (NVDA) is in talks to raise investment in Reflection AI or acquire it, according to the FT.
• Amazon (AMZN) is in discussions to acquire AI startup Decart for about USD 7bln, according to WSJ.
  Four people were killed and thousands left without power after Hurricane Isaias struck the Gulf Coast, with the storm subsequently weakening to a post-tropical cyclone.

COMMODITIES

• US President Trump said refiners and retailers need to begin dropping prices.
• US authorised an emergency exchange of up to 4mln barrels from the Strategic Petroleum Reserve to address storm-related disruptions.
• Saudi Arabia's Energy Minister signed three energy cooperation MoUs with Kuwait, Qatar and Egypt. It was separately reported that oil executives withdrew from the Riyadh energy congress following missile strikes on the airport.
• BP (BP LN) is working to restart production at its Na Kika and Thunder Horse platforms in the Gulf of Mexico after shutting output due to Hurricane Isaias.
• IEA urged member countries to accelerate pledged diesel releases and consider supplying additional volumes as global markets tighten.

GEOPOLITICAL

RUSSIA-UKRAINE

• US President Trump claimed Russia and Ukraine agreed to an energy ceasefire with immediate effect. However, it was reported by Axios that a White House official said Trump's announcement of an energy ceasefire between Russia and Ukraine referred to a potential deal, which he expects Ukrainian President Zelensky to abide by, while the report added that Russia hasn't accepted any kind of a ceasefire so far.
• US President Trump demanded that Ukrainian President Zelensky halt attacks on Russian oil refineries, saying he believes it is time for Ukraine to get a new president and that it needs a leader capable of reaching a deal with Russia. Furthermore, the US threatened to cut off intelligence sharing and block arms supplies to Ukraine, while Ukraine's negotiating team cut short its trip to the US after being blindsided by the announcement of the US-Russia diesel deal, although they had worked on a peace proposal that could be sent to Russia before winter, according to FT.
• US President Trump decided to pursue a diesel fuel deal with Russia after Ukrainian President Zelensky ignored half a dozen requests to stop attacking Russian oil refineries, according to a US official with direct knowledge cited by Axios.
• US Senators reportedly demanded that President Trump reverse the Russian fuel imports deal, while Republican Senator Tillis warned that Trump’s Russian diesel deal may be illegal and put American lives at risk.
• Ukrainian President Zelensky said that he was willing to halt strikes if Russia stopped targeting Ukrainian infrastructure, while he stated that Kyiv is awaiting details of US-Russia talks, but also noted that Russia hit a power plant, following US President Trump's energy ceasefire comment.
• Russia partially lifted its ban on diesel exports, allowing 500k metric tonnes of fuel to reach international markets following an agreement between US President Trump and Russian President Putin.
• Russia conducted strikes on residential buildings in Zaporizhzhia, killing at least 20 people.
• Russia suffered 50,000 casualties last month, according to a NATO official.
• UK pledged to maintain pressure on Russia through its toughest sanctions regime following Trump's announcement of a deal to buy diesel from Moscow. Separately, UK PM Burnham said Russia interfered in the 2016 Brexit vote and called for European voters to be better informed about efforts to disrupt the democratic process, according to the FT.
• Western intelligence agencies warned Europe’s defence industry bosses that Russia is increasing efforts to assassinate them, prompting companies to increase personal security around their top executives, according to FT.

ASIA-PAC

NOTABLE HEADLINES

• China will launch an employment initiative aimed at adapting workers' skills to the development of AI.
• China released draft rules establishing nationwide requirements for automotive parts remanufacturing, including standards for sourcing used components, product quality, traceability and market oversight.
• China proposed banning fully concealed car door handles and requiring physical controls for certain safety-critical functions as regulators seek to strengthen oversight of vehicle design and product testing. Rules would prohibit foldable and flexible vehicle display screens and require additional safety assessments for a range of innovative designs, while the proposal noted some manufacturers launched products without sufficient testing.
• China's passenger vehicle sales fell 24% Y/Y to 1.7mln units in September, while new energy vehicle sales declined 12% Y/Y to 1.1mln units.
• China’s increasing debt burden is constraining Beijing's fiscal capacity for sweeping new stimulus to revive domestic demand and strengthen the economy, according to studies of state finances cited by FT.
• Japanese PM Takaichi said US sanctions against the International Criminal Court are incompatible with Japan's position, expressing deep concern over the move.

EU/UK

NOTABLE HEADLINES

• UK Chancellor Healey plans short-term Budget giveaways to limit fiscal pressure and is due to unveil further support for energy costs this winter when the Budget is announced later this month.
• UK Chancellor Healey ruled out lowering the mansion tax threshold to GBP 1.5mln.
• Pro-EU group Best for Britain said the UK could be fast-tracked back into the EU in the space of a single parliament if London and Brussels were politically aligned, according to FT.
• S&P affirmed the UK on Friday at AA; Outlook Stable.
• EU leaders will discuss a scaled-back budget at their meeting in Brussels in the week ahead, after Ireland presented a compromise plan for the next seven-year budget that would cut EUR 160bln from the European Commission's proposed EUR 2tln figure.