Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks closed in the green on Friday but still ended the week notably in the red, as they were especially weighed on in wake of the hawkish FOMC on Wednesday.
• US government has enacted a budget to avert a shutdown, but the deal does not include President-elect Donald Trump's proposal to raise the federal borrowing limit, according to BBC.
• US military announced that it carried out airstrikes targeting Iran-backed Houthi missile storage and command/control facilities in Yemen, according to Reuters.
• China condemned the latest US military aid to Taiwan on Sunday, stating that the USD 571mln package violates the "one China principle" and the terms of joint communiques between China and the US, according to Reuter.
• Looking ahead, highlights include Singapore CPI.

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SNAPSHOT

US TRADE

• US stocks closed in the green on Friday but still ended the week notably in the red, as they were especially weighed on in wake of the hawkish FOMC on Wednesday.
• To conclude the week there was broad risk-on sentiment through the US afternoon, albeit closing off peaks, highlighted by US equity and Treasury strength, and Dollar weakness, although the latter still significantly firmer on the week on account of the aforementioned hawkish Fed.
• SPX +1.09% at 5,931, NDX +0.85% at 21,289, DJIA +1.17% at 42,839, RUT +0.86% at 2,241.
• Click here for a detailed summary.

NOTABLE HEADLINES

• US government has enacted a budget to avert a shutdown, but the deal does not include President-elect Donald Trump's proposal to raise the federal borrowing limit, according to BBC.
• Japan's antitrust watchdog is set to conclude that Google (GOOG) violated the law in a search-related case, according to Nikkei.
• Google (GOOG) stated that remedies in the US antitrust case over search should focus on distribution agreements, according to a court filing. The company has proposed allowing Android developers, such as Samsung (005930 KS), to load its Play Store on their devices without including Google Search and suggested making agreements with Apple (AAPL) and other developers non-exclusive, according to Reuters.
• A US jury has found that Qualcomm (QCOM) did not breach Nuvia's license agreement with Arm (ARM) and determined that Qualcomm's custom CPUs are licensed under its agreement with Arm, according to Reuters.
• US President-elect Trump has selected David Fink to serve as the Administrator of the Federal Railroad Administration, according to Reuters. Trump has selected Stephen Feinberg to serve as Deputy Defense Secretary, according to Reuters.
• Fed's Goolsbee (2025 Voter) on Friday stated that it is "nice" to see an inflation number better than expected, reaffirming that the path remains to achieve 2% inflation. He described recent firming as a "bump," according to CNBC.

DATA RECAP

• US Core PCE Price Index MM (Nov) 0.1% vs. Exp. 0.2% (Prev. 0.3%); unrounded 0.1149% (prev. 0.2727%)
• US Core PCE Price Index YY (Nov) 2.8% vs. Exp. 2.9% (Prev. 2.8%)
• US PCE Price Index MM (Nov) 0.1% vs. Exp. 0.2% (Prev. 0.2%); unrounded 0.128% (prev. 0.238%)
• US Core PCE Price Index YY (Nov) 2.8% vs. Exp. 2.9% (Prev. 2.8%)
• US Personal Income MM (Nov) 0.3% vs. Exp. 0.4% (Prev. 0.6%, Rev. 0.7%)
• US Consumption, Adjusted MM (Nov) 0.4% vs. Exp. 0.5% (Prev. 0.4%, Rev. 0.3%)
• US Personal Consump Real MM (Nov) 0.3% (Prev. 0.1%
• US U Mich Sentiment Final (Dec) 74.0 vs. Exp. 74.0 (Prev. 74.0)
• US U Mich Expectations Final (Dec) 73.3 (Prev. 71.6)
• US U Mich Conditions Final (Dec) 75.1 (Prev. 77.7)
• US U Mich 5-Yr Inf Final (Dec) 3.0% (Prev. 3.1%)
• US U Mich 1Yr Inf Final (Dec) 2.8% (Prev. 2.9%)
• Canadian Retail Sales MM (Oct) 0.6% vs. Exp. 0.7% (Prev. 0.4%, Rev. 0.6%)
• Canadian Retail Sales Ex-Autos MM (Oct) 0.1% vs. Exp. 0.5% (Prev. 0.9%, Rev. 1.1%)

COMMODITIES

• Qatar has warned that it will "stop" gas sales to the EU if fined under the due diligence law, according to the Financial Times.
• Slovak PM Fico noted that Russian President Putin confirmed Russia's readiness to continue supplying gas to the West and Slovakia, according to Reuters.
• Libya's Acacus Oil Company has achieved oil production of 301.5k BPD, while the Sirte Oil Company has reached 103k BPD over the past two days, its highest output since 2007, according to the NOC spokesman.
• Oil transit through Russia's Druzhba pipeline resumed on Saturday, according to Belarus' BelTa state news agency. Earlier, Reuters reported that oil flows from Russia and Kazakhstan to Hungary, Slovakia, the Czech Republic, and Germany via the Druzhba pipeline had been halted since Thursday due to technical issues at a Russian pumping station.

GEOPOLITICAL

MIDDLE EAST

• US military announced that it carried out airstrikes targeting Iran-backed Houthi missile storage and command/control facilities in Yemen, according to Reuters. US military stated that it conducted precision airstrikes targeting a missile storage facility and a command-and-control facility operated by Iran-backed Houthis in Sanaa, according to Reuters.
• Yemeni Houthis have confirmed targeting central Israel with a ballistic missile, according to Reuters.OTHER
• US President-elect Trump's team has informed European officials that the incoming US president will demand NATO member states increase defence spending to 5%, while planning to continue supplying military aid to Ukraine, according to the Financial Times.
• China is considering allowing seafood imports from Japan and may lift the ban as early as the first half of 2025, according to Nikkei.
• China condemned the latest US military aid to Taiwan on Sunday, stating that the USD 571mln package violates the "one China principle" and the terms of joint communiques between China and the US, according to Reuters.
• China's Defence Ministry on Saturday expressed its dissatisfaction over a US report released this week on China's military, which it said distorted its defence policy and "grossly interferes" in its internal affairs, according to Reuters.
• Chinese Foreign Ministry announced that China will take countermeasures against two Canadian institutions and 20 personnel, specifically targeting Canada's Uyghur Rights Advocacy Project and the Canada-Tibet Committee, according to the ministry.

ASIA-PAC

NOTABLE HEADLINES

• Honda (7267 JT) and Nissan (7201 JT) are considering manufacturing cars in each other's factories to deepen ties, with Honda also exploring the possibility of supplying hybrid vehicles to Nissan as part of a potential merger, according to Kyodo.
• NIO (NIO, 9866 HK) CEO William Li stated that the company will accelerate the construction of battery swapping stations in Europe, with costs for those designed for Firefly EVs reduced by a third compared to stations for NIO-branded cars, according to Reuters.
• Nippon Steel (5401 JT) and US Steel (X) have alleged that the White House exerted impermissible influence over the CFIUS review of their proposed tie-up, a claim the White House denies. The companies have vowed to challenge the expected block of the deal, according to Reuters, citing a letter.

Europe/UK

• EUROPEAN CLOSES: DAX -0.27% at 19,917, FTSE 100 -0.26% at 8,085, CAC 40 -0.27% at 7,274, Euro Stoxx 50 -0.38% at 4,861, AEX -0.39% at 875, IBEX 35 +0.24% at 11,467, FTSE MIB -0.06% at 33,766, SMI +0.26% at 11,432.

NOTABLE HEADLINES

• BoE Governor Andrew Bailey and FCA CEO Nikhil Rathi will reportedly join UK Chancellor Reeves as part of Britain’s delegation to China next month, according to Sky News.
• Elon Musk has called for German Chancellor Scholz to resign, according to Reuters.
• Hungarian PM Orban stated that when the dollar strengthens, the forint automatically weakens, adding that the current weakening of the forint is not driven by Hungary's economic fundamentals, according to Reuters.

DATA RECAP

• EU Consumer Confid. Flash (Dec) -14.5 vs. Exp. -14.0 (Prev. -13.7).

LATAM

• Panama's President Mulino said that every square metre of the Panama Canal and its surrounding area belonged to Panama after Trump threatened to retake the canal, stressing that the country's independence is non-negotiable, the Panama Canal sovereignty agreement is indisputable, canal fees are not set arbitrarily, and the canal remains free from influence by China or any other country, remaining under Panama's control, according to Reuters.
• US President Biden is considering a tariff exemption for solar modules imported from Mexico, according to Bloomberg News.
• Mexico's Financial Stability Council stated that the country's financial system remains solid and resilient, according to Reuters.
• Mexico's Economy Ministry stated that the government does not agree with the panel's decision on GM corn, but will respect the ruling, emphasising that the USMCA dispute resolution system is a key component of the treaty, according to Reuters.
• El Salvador's president has sent a bill to Congress aimed at overturning the ban on metals mining, according to Reuters.
• BCB's Roberto Campos Neto stated that there is significant uncertainty regarding the factors that will drive global disinflation going forward, adding that the inflationary challenge ahead will be quite tough. He also noted that central bank autonomy is not yet complete and expressed a desire to have made the central bank fully autonomous, according to Reuters.
• Colombia Central Bank cut rates by 25bps to 9.50% (exp. 9.25%), with the decision backed by a "majority" of board members.