Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks were bid throughout Friday's session with outperformance in the small caps Russell 2k and all sectors closed in the green with Utilities, Communication and Materials the best performers, although Health Care, Real Estate and Financials lagged, while T-Notes bull steepened as traders increased bets for a 50bp rate cut at the upcoming Fed meeting with money markets (via Refinitiv) pricing the decision at a near coin toss.
• Multiple shots were fired near former President Trump’s golf course in West Palm Beach and the Secret Service reportedly opened fire at a suspected person with a weapon while Trump was golfing, while Trump’s campaign said he is safe following the shooting in his vicinity,
• Looking ahead, highlights include holiday closures in Japan, South Korea, China, Indonesia and Malaysia in a quiet calendar to start the risk-packed week.

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LOOKING AHEAD

• Highlights include holiday closures in Japan, South Korea, China, Indonesia and Malaysia in a quiet calendar to start the risk-packed week.
• Click for the Newsquawk Week Ahead.

US TRADE

• US stocks were bid throughout Friday's session with outperformance in the small caps Russell 2k and all sectors closed in the green with Utilities, Communication and Materials the best performers although Health Care, Real Estate and Financials lagged, while T-Notes bull steepened as traders increased bets for a 50bp rate cut at the upcoming Fed meeting with money markets (via refinitiv) pricing the decision at a near coin toss.
• SPX +0.54% at 5,626, NDX +0.47% at 19,515, DJIA +0.72% at 41,394, RUT +2.49% at 2,182.
• Click here for a detailed summary.

NOTABLE HEADLINES

• Multiple shots were fired near former President Trump’s golf course in West Palm Beach and Secret Service reportedly opened fire at a suspected person with a weapon while Trump was golfing, according to law enforcement sources cited by AP. Trump’s campaign said the former President is safe following a shooting in his vicinity, while Trump said he will never give up and nothing will stop him. Furthermore, The New York Post cited law enforcement sources that stated two people were firing at each other outside the golf club and Trump was never in danger although it was later reported that the FBI said it is investigating what appears to be an assassination attempt.
• Goldman Sachs still sees 25bps of Fed easing this week and for each remaining meeting this year, while JPMorgan reiterated its call for a 50bp Fed rate cut in September.

FX

• Bank of Canada Governor Macklem opened the door to increasing the pace of rate cuts as growth fears mount, according to FT.

COMMODITIES

• Almost a fifth of US Gulf of Mexico crude oil production remained offline and nearly 28% of natural gas production was shut-in in the aftermath of Francine on Sunday, according to the US offshore energy regulator cited by Reuters.
• BP (BP/ LN) is restarting operations at its Castrol lubricants facility in Port Allen, Louisiana after determining conditions are safe to return and Shell (SHEL LN) is ramping up production at Perdido following the resolution of downstream issues, according to Reuters.
• Chevron (CVX) said its US Gulf of Mexico Jack/St Malo and Big Foot platforms are producing at reduced rates due to onshore gas plant disruption, while it continues to return workers and restore oil production at the US Gulf of Mexico Anchor and Tahiti platforms shut-in by Francine with initial assessments showed that neither the Anchor nor Tahiti platforms suffered significant damage, according to Reuters.

GEOPOLITICAL

MIDDLE EAST

• Yemen’s Houthis claimed responsibility for a missile attack on central Israel and stated that a Yemeni missile reached Israel after 20 missiles failed to intercept it. There were separate reports that Israel’s military announced sirens were set off by a missile which crossed into the country from the east and fell in an open area but caused no casualties.
• Israeli PM Netanyahu said Yemen’s Houthis should know that they will exact a heavy price for every attempt to harm Israel and noted that a missile fired from Yemen most likely fragmented in mid-air, while he also said the current situation in northern Israel will not continue.

OTHER

• Russia’s Medvedev said Russia already has formal grounds to use nuclear weapons but has so far chosen not to do so, while their patience has its limits and their response might come in non-nuclear form.
• Russia’s Deputy Foreign Minister said Moscow is aware that the West decided on whether to allow Ukraine to strike deep within Russia and that Moscow should use other means since verbal warnings to the West against escalation are not working, according to TASS.
• G7 Foreign Ministers condemned in the strongest terms Iran’s export and Russia’s procurement of Iranian ballistic missiles, while they called for Iran to immediately cease all support to Russia’s illegal war against Ukraine and halt such transfers of ballistic missiles, according to Reuters.
• Ukrainian President Zelensky said Ukraine brought home 103 POWs from Russia in a second swap in two days and noted the incursion into Kursk helped bring about a prisoner exchange with Russia.
• Ukrainian spy chief Budanov said North Korea’s artillery supplies to Russia are a major problem and have a visible battlefield impact. Budanov said that Russia has ramped up production of Iskander ballistic missiles and guided bombs, as well as commented that Russia expects to face recruitment problems in the summer of 2025.
• US National Security Adviser Sullivan said long-range weapons permission is the subject of intense consultations among allies and that fighting around Ukraine’s Pokrovsk is of unique concern, while the US is preparing to present a substantial Ukraine aid package this month.
• US military member was detained in Venezuela and it was also reported that two additional US citizens were detained, according to a State Department spokesperson cited by Reuters.
• China’s military said the transit of two German warships in the Taiwan Strait increased security risks and sent a wrong signal. China’s military also stated that Chinese troops are always on high alert and ready to counter all threats and provocations.
  - China’s Coast Guard said Philippine vessel 9701 withdrew from the Sabina Shoal on September 14th which ‘illegally’ stayed there for nearly five months, while it added that China took measures against the Philippine vessel in accordance with the law and the Philippines’ repeated attempts to organise supple replenishment to the vessel had all failed.

ASIA-PAC

NOTABLE HEADLINES

• China is strongly dissatisfied with and firmly opposes the US locking in tariff hikes on Chinese imports. Furthermore, China urges the US to immediately correct its ‘wrongdoings’ and lift all tariffs imposed on Chinese goods, while China will take necessary measures to firmly safeguard the interests of Chinese firms, according to MOFCOM.
• China Stats Bureau spokesperson said China will step up macro policy adjustments, while they expect a mild rebound in the consumer price index and for quickening bond issuance and policy initiatives to support China’s investment growth.

DATA RECAP

• Chinese Industrial Output YY (Aug) 4.5% vs. Exp. 4.8% (Prev. 5.1%)
• Chinese Retail Sales YY (Aug) 2.1% vs. Exp. 2.5% (Prev. 2.7%)
• Chinese Urban Investment YTD YY (Aug) 3.4% vs. Exp. 3.5% (Prev. 3.6%)
• Chinese House Prices YY (Aug) -5.3% (Prev. -5.0%)

EU/UK

NOTABLE HEADLINES

• UK Chancellor Reeves was advised by a group of leading economists that cutting public investment in the UK would damage the foundations of the economy, according to FT.
• ECB's Makhlouf said on Friday that the ECB is not pre-committing to a particular rate path.