Labor Day News Roundup - Newsquawk Daily Asia-Pac Market Open

• US stock markets were closed for the Labor Day holiday.
• US President Trump called for a stop to US sales of Canada’s Bombardier aircraft.
• Looking ahead, highlights include New Zealand Manufacturing Sales, South Korean GDP, Japanese Labour Cash Earnings, Current Account Balance & Revised Q2 GDP, Australian Westpac Consumer Confidence & NAB Business Confidence, Chinese Trade Data, Supply from Australia & Japan.

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LOOKING AHEAD

• Highlights include New Zealand Manufacturing Sales, South Korean GDP, Japanese Labour Cash Earnings, Current Account Balance & Revised Q2 GDP, Australian Westpac Consumer Confidence & NAB Business Confidence, Chinese Trade Data, Supply from Australia & Japan.
• Click for the Newsquawk Week Ahead.

IRAN CONFLICT

• Iran warned that ships face strike risk near Oman's Khasab, according to Fars.
• Iran's Parliament Speaker Ghalibaf said US oil and gas companies across these waters and facilities are threatened, while he warned "Strike our assets and you get struck".
• Iran's acting Minister of Defence Ibn Al-Reza said they have the ability to strike ships participating in the US blockade against Iran.
• Iranian Foreign Minister Araghchi held a call with the new Secretary-General of the Organisation of Islamic Cooperation (OIC) and briefed him on the regional situation, while he urged Islamic states to take unified, responsible measures to safeguard Iranian sovereignty.
• Iranian Foreign Ministry spokesperson said this is not a war but an overt aggression, while he stated that the deal with Oman regarding the Strait of Hormuz will be registered soon and hoped parties will not prevent the implementation of the understanding. Furthermore, it was reported that Qatar's delegation was present in Iran on Sunday.
• Iran's envoy to the IAEA warned that US or Israeli strikes on Iran's IAEA-safeguarded peaceful nuclear facilities, if 'normalised', would have serious consequences.
• Saudi airstrikes resumed in Yemen on the governorates of Al-Jawf, Al-Bayda, Ma'rib, Taiz, and Al-Hudaydah, according to a military source cited by Al-Masirah.
• Yemeni armed forces spokesperson said Saudi Arabia would not go unpunished for its ongoing acts of aggression following a Saudi air strike on a correctional facility in Al-Jawf, which resulted in over a dozen casualties.
• Sources reported several explosions at Saudi Aramco facilities, according to Mizan.

US TRADE

• US stock markets were closed for the Labor Day holiday.

TARIFFS/TRADE

• US President Trump called for a stop to US sales of Canada’s Bombardier aircraft.
• Chinese Commerce Minister Wang said stable EU ties are important and that China seeks to handle trade conflicts with the EU through talks.
• Latvian PM said they plan to impose a 300% tariff on grain arriving from Russia and Belarus.

GEOPOLITICAL

MIDDLE EAST

• Israeli Finance Minister Smotrich said Israel will expel the UK ambassador, while he accused the UK government of "anti-Semitism" and of attacking Israel. In relevant news, Israel's National Security Minister Ben-Gvir posted, "It is time for the State of Israel to publicly recognize that the Falkland Islands are occupied Argentine territory, violently stolen from the Argentine people by the British."
• UK government will accelerate sanctions against Israeli settlements in the West Bank, while the sanctions could include a ban on trade with West Bank settlements, according to The Telegraph.

RUSSIA-UKRAINE

• Russian President Putin is said to remain committed to escalating his war against Ukraine despite a new US push to revive peace talks, according to Kyiv Independent citing sources.
• Russia's Kremlin said that it does not rule out Russia-Ukraine talks resumption, but added it is too early to speak about a time and venue, while it does not rule out a call between President Putin and President Trump. Furthermore, the Kremlin said it has not received information about contacts in Kyiv.
• Russian Foreign Ministry is to close the German Consulate General in St Petersburg.
• US is exploring whether Ukraine and Russia could take steps to de-escalate the war during the winter while restarting negotiations toward a broader peace agreement, according to Ukrainian President Zelensky in an interview with Axios on Monday.
• US President Trump and UK PM Burnham discussed working towards a Russia-Ukraine ceasefire during a call, according to Downing Street.
• France said its plan to send air defence systems to Ukraine is on track.

OTHER

• North Korea's Defence Minister criticised joint military drills by South Korea, Japan, and the US, while he warned they will take strong countermeasures if the US and its allies seek military confrontation.
• Cuba’s Foreign Minister said there has been no progress, no negotiations, nor any agenda for future negotiations with the US.

ASIA-PAC

NOTABLE HEADLINES

• Japan sees talks between PM Takaichi and US President Trump in late September.

EU/UK

NOTABLE HEADLINES

• UK PM Burnham will host bosses next Monday to reassure the private sector that Labour has a sound economic growth plan amid fears that next month's budget will hike business taxes.
• UK Chancellor Healey said borrowing costs are at a historic high, fiscal discipline underwrites every promise the government makes, and the UK must have a buffer to protect against uncertainty. Healey also stated that government spending is to be controlled and that fiscal credibility and growth go hand-in-hand, while he recognises the elevated costs of living and costs for businesses and wants to draw a line under this. Furthermore, he will set out a roadmap to fiscal devolution at the upcoming budget and will be changing the Treasury Green Book discount rate from 3.5 to 3.0%.
• UK Chancellor Healey (Q&A) avoided the question when asked if he will confirm there will not be tax increases in the Autumn Budget, stating that he will not respond to or engage in speculation now with relation to tax and that such matters are for the budget. Healey said they will keep to commitments from the 2024 manifesto, with reference to taxation, and will take recommendations from the Milburn review, with reference to the triple lock, after the British Chamber of Commerce comment.
• UK government spokesperson said they remain committed to the pensions triple lock.
• US President Trump and UK PM Burnham held a phone call, while The Sun reported that the leaders are expected to meet at the UNGA, with a possible Oval Office visit beforehand under discussion.
• King Charles will host a closed-door AI meeting later this month, with NVIDIA (NVDA) CEO Huang and DeepMind chair Hassabis invited.
• German Chancellor Merz said there can be no cooperation with the AfD.

DATA RECAP

• European GDP Growth Rate 3rd Estimate (Q2 QQ) 0.6% vs. Exp. 0.4% (Prev. -0.2%)
• European GDP Growth Rate 3rd Estimate (Q2 YY) 1.2% vs. Exp. 1% (Prev. 0.5%)
• European Employment Change Final (Q2 QQ) 0.1% vs. Exp. 0.1% (Prev. 0.1%)
• European Employment Change Final (Q2 YY) 0.5% vs. Exp. 0.5% (Prev. 0.5%)
• European Sentix Investors Sentiment 5.1 vs. Exp. 1.6 (Prev. 0.9)