Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks and bonds were pressured on Friday following hot US PPI data which resulted in the underperformance of the rate-sensitive Russell 2k amid higher yields, while the dollar was initially lifted by the data but then pared its gains following a downbeat UoM survey.
• PBoC conducted a CNY 500bln 1-year MLF operation with the rate kept at 2.50%, as expected. PBoC also injected CNY 105bln via 7-day reverse repos with the rate kept at 1.80%.
• Israeli PM Netanyahu said Hamas's demands in negotiations are delusional and they will keep fighting until their goals are achieved. Netanyahu said their military pressure is working and that whoever tells them not to operate in Rafah is telling them to lose the war, while he added that a deal with Palestinians will only be reached through direct negotiations between the sides without preconditions.
• Looking ahead, highlights include Japanese Machinery Orders, UK Rightmove House Prices, RBNZ Offshore Holdings, Thai GDP, US & Canadian Markets are Closed on Monday for Holiday.

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LOOKING AHEAD

• Highlights include Japanese Machinery Orders, UK Rightmove House Prices, RBNZ Offshore Holdings, Thai GDP, US & Canadian Markets are Closed on Monday for Holiday.
• Click here for the Newsquawk Week Ahead.

US TRADE

• US stocks and bonds were pressured on Friday following hot US PPI data which resulted in the underperformance of the rate-sensitive Russell 2k amid higher yields, while the dollar was initially lifted by the data but then pared its gains following a downbeat UoM survey.
• SPX -0.48% at 5,005, NDX -0.90% at 17,685, DJIA -0.37% at 38,627, RUT -1.39% at 2,032.
• Click here for a detailed summary.

NOTABLE HEADLINES

• EU is to hit Apple (AAPL) with a EUR 500mln fine for allegedly breaching EU competition law regarding its music streaming service, according to FT.

GEOPOLITICAL

MIDDLE EAST

• Israeli PM Netanyahu said Hamas's demands in negotiations are delusional and they will keep fighting until their goals are achieved. Netanyahu said their military pressure is working and that whoever tells them not to operate in Rafah is telling them to lose the war, while he added that a deal with Palestinians will only be reached through direct negotiations between the sides without preconditions.
• Israel's cabinet unanimously approved a motion rejecting international calls for a permanent settlement with the Palestinians including the unilateral recognition of a Palestinian state, according to FT.
• Hamas chief Ismail Haniyeh blamed Israel for the lack of progress in achieving a ceasefire agreement and said they would not accept anything less than a complete cessation of aggression and withdrawal of the occupation army from Gaza. In relevant news, it was also reported that Gaza’s second-largest hospital is now completely out of service, according to Reuters citing a Health Ministry spokesman.
• Qatar’s PM said the pattern of the last few days is not very promising for Israel/Hamas negotiations, while he added time is not in their favour as the situation in Rafah is evolving and will be very dangerous for the entire region.
• US plans to send weapons to Israel amid US President Biden’s push for a cease-fire deal, according to WSJ.
• US military said it conducted five self-defence strikes in Iranian-backed Houthi-controlled areas of Yemen.
• Yemeni armed forces spokesman said via X that they will shortly release an important statement.
• UK Foreign Secretary Cameron urged China to use its influence on Iran to pressure the Houthis over their actions in the Red Sea.
• Palestinian Authority PM said Russia invited Palestinian factions to meet in Moscow on February 26th.

OTHER

• Russia’s Defence Ministry said Russian troops took full control of the city of Avdiivka.
• Ukrainian President Zelensky said Ukraine will surprise Russia with its drone systems and electronic warfare capability this year, while he added that keeping Ukraine in an artificial deficit of artillery and long-range capabilities allows Russian President Putin to adapt to the current intensity of war.
• US President Biden called Ukrainian President Zelensky on Saturday to underscore US commitment to continue supporting Ukraine and emphasised the need for Congress to urgently pass a national security supplemental funding bill to resupply Ukraine.
• US VP Harris said the US will work to ensure Russia pays damages to Ukraine and the US stands ready to support Ukraine in its war with Russia for as long as it takes.
• G7 Presidency statement noted that G7 expressed outrage at the death in detention of Alexei Navalny and demanded that Russian authorities fully clarify the circumstances of the death.
• German Chancellor Scholz said Germany is discussing developing distance-capable precision weapons with France and Britain.
• Estonia’s PM said the EU should work on a plan to issue EUR 100bln in Eurobonds to bolster the European defence industry and called for allies to do more to get Kyiv the weapons it needs, according to Bloomberg.
• Hungarian PM Orban said they can ratify the Swedish NATO bid at the beginning of the new session of Parliament.

ASIA-PAC

NOTABLE HEADLINES

• PBoC conducted a CNY 500bln 1-year MLF operation with the rate kept at 2.50%, as expected. PBoC also injected CNY 105bln via 7-day reverse repos with the rate kept at 1.80%.
• Chinese Premier Li said departments under the cabinet should do more to boost confidence and expectations, as well as noted that policymaking and implementation should be consistent and stable, according to Reuters.
• Chinese Foreign Minister Wang Yi discussed lifting sanctions against Chinese companies and individuals in talks with US Secretary of State Blinken. It was separately reported that Wang said in talks with German Chancellor Scholz that both countries should eliminate interference and continue with open and free trade. Furthermore, Wang spoke with Canada’s Foreign Affairs Minister and said the current difficult situation in relations is not what China wants to see and the sides are not rivals or enemies, while he added both sides should build trust and achieve win-win cooperation, as well as hopes that Canada will establish a correct understanding of China and stop hyping the ‘China threat theory’.
• FBI warned that Chinese malware could threaten critical US infrastructure and the FBI is laser-focused on Chinese efforts to insert malicious software code in computer networks that could disrupt critical infrastructure.

EU/UK

NOTABLE HEADLINES

• French Finance Minister Le Maire lowered France’s 2024 economic growth forecast to 1.0% from 1.4% and announced plans to cut spending by EUR 10bln, according to Bloomberg citing an interview with TF1.
• Fitch affirmed Netherlands at AAA: Outlook Stable and affirmed Belgium at AA-; Outlook Negative.